Mar Athanasios College For Advanced Studies, Tiruvalla (MACFAST)

SIMI CHERIYAN

JAPANESE MANAGEMENT 

Today, Japan is considered as one of the super-economic powers of the world.

As the saying goes: Rome was not built in a day, Japan was also not built in a day.

Japan as it stands today, is due to the efforts of Japanese people…

According to William Ouchi , “Theory Z” is the name given to Japanese Management style.

COMMON BELIEF

Japanese management system is so unique that it cannot be easily transferred overseas because these processes of management are culture bound

SPEACIAL FETURES OF JMLifetime Employment Guaranteeing work until the mandatory retirement age. Seniority based promotion and wage

system The promotion from lower level to immediate higher level is mostly based on seniorityJust-In-Time (The Production)System Integrated set of activities designed to

achieve high-volume production using minimal inventories of raw materials, finished goods & work in process

Quality Control (QC) Kaoru Ishikawa (Father of Quality Circle) Around 10 workers who meet weekly. Quality circles focus on concrete aspects of the

operations. It also provide workers to participate in

company affairs . Employee suggestions play an important

role in Japanese companies. Managing the company with the "Quality

First" concept.

6 fundamentals of quality management in Japan

Company 1) Production Capacity 2) Quality of Goods and Services 3) Cost of Operation 4) Delivery timing 5) Safety 6) Morale

HUMAN RESOURCE PRACTICES IN JAPAN FOR MANAGERS

High wages based on seniority (including substantial bonuses)

Structured managerial career paths

Employment security (for regular employees)

Company-sponsored welfare systems (I.e. subsidized housing, recreational facilities, etc.)

Wide involvement of middle management in decision making

Japanese Management Techniques

In-house training of managers consensual and decentralized decision-

making extensive use of quality control methods carefully codified work standards emphasis on creating harmonious relations

among workers lifetime employment and seniority-based

compensation

DISTINCTION OF JAPANESE MANAGEMENT SYSTEM

The management systems of Japanese companies exhibit a number of distinctive characteristics

Management Philosophy and Corporate Identity

Corporate Structure Company Strategy The "Ringi System: and Decision Making

Communication

Corporate Structure: The top-management in Japanese companies has

an extremely open structure. Corporate Structure

(A Japanese company is fully participatory and notAuthoritative)

TOP

Middle

Lower Middle

Shop floor Workers

Roles at Different Levels TOP LEVEL • Determination of corporate policy•Full support for managers and workers•External relations for favorable operationsMIDDLE LEVEL •General planning and friendly supervision•Facilitating pleasant work atmosphere•Assistance for non-supervisory employees•Development of self and subordinates•Positive evaluation of employee performance•Cooperation with other departments•Promotion of good human relationsLOWER LEVEL•On the spot planning and reporting•Facilitating workplace meetings•Continuous improvement- technical and human•Cooperation for productivity, quality, human relations•Sharing information and experience

Theory Z Companies

STRENGTHS OF STRATEGY & STRUCTURE

Qualified senior management Low costs of production Quality control Diversified & strong market positions

in established & growing markets Good fit between organization

structure & competitive environment

WEAKNESSES OF STRATEGY & STRUCTURE

Limited scope for continued expansion with existing managerial capacity

Relative difficulty in transferring Japanese management style across cultures

continued growth will be difficult.