Kaizen refers to continuous improvement involving all employees. It focuses on improving all business functions through small, ongoing changes rather than large, innovative changes. The Kaizen process involves standardizing operations, measuring performance, identifying areas for improvement, innovating new standards, and repeating the cycle continuously. It relies on teamwork, personal discipline, improved morale, quality circles, and suggestions for improvement from all levels of the organization. Management maintains current standards through policies and discipline while also aiming to improve standards through Kaizen's small, continuous efforts.