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JAPANESE
MANAGEMENT

Presented by:
Sarath.G
MSNIMT.
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TOKYO CITY
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1945 HIROSHIMA & NAGASAKHI


BOMB BLAST PICTURE
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MEANING OF MANAGEMENT

• LOUIS.E.BOONE AND DAVID: “The use of people


and other resources to accomplish objectives.”

• MARY PARKER: “The act of getting things done


through people.”
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MANAGEMENT PROCESS

INPUT PROCESS OUTPUT

Land Planning Attainment

Labor Organizing Organizationa


l goals
Capital Staffing

Organizer Leading

Controlling
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PLANNING PRACTICES IN JAPAN

 Japanese management is famous in the west, generally limited


to Japan’s large corporation.

 Japanese economy provide their workers excellent salaries,


working conditions and secure employment.

 Qualification for employment is limited to men and few women


graduate from the top 30 colleges and universities in Japan.

 Companies provide their own training and give more


preference to the excellent trainees.
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 The Japanese government provide job on the basis of
competitive examination but it became less competitive with a
gradual decrease in the number of candidates.

 Major feature of Japanese management is the practice of


permanent employment. (Shushing koyo)

 Permanent employment covers the minority of the work force that


work for the major companies.

 Employees are not dismissed rapidly, except for serious


breaches of ethics.

 Another unique aspect is the system of promotion and reward.


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 Compensation for young workers is very low.

 Members graduated in the same class start with same salary and
increases promotion are generally uniform. this is for avoiding stress
and jealous within the groups.

 Another aspect is the companies union, which most regular


company employees are obliged to join.

 Japanese managerial style and decision making in large companies


emphasizes the flow of information and initiative from the bottom
up, making top management a facilitator (easier) rather than the
source of authority, while middle management is for the shaper of
policy.
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 A Japanese chief executive officer is a consensus builder.

 The workers do not have a separate skill identification outside of the company.

 Consensus (general agreement) is stressed as a way of arriving at decision, rather than serve as an important decision maker.

 A few selected persons can attain a job in such companies.

 Promotion and reward is based on seniority.

JAPAN

 The geography of Japan, its lack of indigenous resources, isolation from the Asian landmark, have contributed to their resourcefulness and hard working
nature.

 Loyalty to the king is translated to loyalty to the superior of the organization.

 Western concept of Statistical Quality Control (SQC) is changed to Total Quality Management (TQM) by Japan.

 There philosophy is:


National service through industry
Fairness
Harmony and cooperation
Struggle for betterment
Courtesy and humility
Adjustment and assimilation.
JAPAN www.mecmsnimt.ning.com
 The geography of Japan, its lack of indigenous resources,
isolation from the Asian landmark, have contributed to their
resourcefulness and hard working nature.
 Loyalty to the king is translated to loyalty to the superior of the
organization.
 Western concept of Statistical Quality Control (SQC) is
changed to Total Quality Management (TQM) by Japan.
 There philosophy is:
National service through industry
Fairness
Harmony and cooperation
Struggle for betterment
Courtesy and humility
Adjustment and assimilation.
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JAPANESE MANAGEMENT

JAPANESE ORGANISATION. (CHARACTERISTICS)


• SCIENTIFIC SELECTION PROCESS
• LIFETIME EMPLOYMENT
• SENIORITY SYSTEM
• CONTINUOUS TRAINING
• EMPHASIS ON GROUP WORK
• DECISION MAKING
• COMPLICATED PERFORMANCE EVALUATION
• FATHER LEADERSHIP
• GOOD BENEFITS FOR EMPLOYEES
• SIMPLE AND FLEXIBLE ORGANIZATION
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• 1 ) SCIENTIFIC SELECTION PROCESS

Few Japanese attend graduate school and graduate


training in business but percentage is rare because
there are only 30 top business colleges who gain
admission and study in that colleges only those student
have the chance to work in large company. That large
company conduct competitive examination. Those
student passed the examination they can gain jobs but
company provide their own training.
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• 2) LIFE TIME EMPLOYMENT
Lifetime employment refers to recruitment of
employees immediately upon graduation
generation of employment until retirement, and
mandatory retirement. Though there is no formal
contract, employers and employees have an
unwritten mutual understanding regarding their
expectation about the job. Under lifetime
employment an employee spends his entire
working life with a single enterprise. This helps
generate a feeling of job security in the employee
and a feeling of belongingness towards the
enterprise
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• 3) SENIORITY SYSTEM

This concept is closely related to the


concept of lifetime employment companies
following this concept, provide privileges to older
employees who have been with it for a long time.
Promotion and wage increases are based on
employees length of service in the company, not
job performance.
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• 4) CONTINUOUS TRAINING

The secret of the success of Japanese managers


may lie in “continuous training" In western
organizations, employees receive training only to
acquire a new skill or to move to a new position. In
Japanese firms however, every young manager
has a godfather ,who is never his boss or anyone in
the direct line of authority. The godfather is not part
of the top management, but is highly respected by
others.
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• 5) EMPHASIS ON GROUP WORK

In most Japanese organizations, a task is not


assigned to an individual; instead several tasks
are assigned to a group, which consists of a
small number of people are treated like family
members. Kaisha means my or one’s company
the community to which one belongs and which
is an important part of one’s life. probably this
is the reason why employees take great pride
in their company and its success.
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• 6) DECISION-MAKING
The practice of managerial decision-making in Japan is
built on the concept that change and new ideas should
come primarily from personnel belonging to lower levels
in the hierarchy. Thus in Japan lower level employees
prepare proposals for higher-level personnel. The ‘ringi
system’ refers to decision-making by consensus. The
word ringi consists of two parts ‘rin’ which means
submitting a proposal to one’s superior and getting his
approval, and ‘gi’ meaning deliberations and decisions.
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• 7) COMPLICATED PERFORMANCE
EVALUATION.

When job description are not well defined


and when tasks are performed by groups, it
becomes difficult to evaluate individual job
performance objectively. The evaluation of workers
and managers in Japanese corporations takes a
very long time up to ten years and requires the use
of qualitative and quantitative information about
performance.
• 8) FATHER LEADERSHIP

As a kacho ,the task of a leader is not


only to supervise his people at work, but also to
show fatherly concern for their subordinate’s
private life. Since, promotion is based on
seniority, it is not easy to move on to a kacho
position. Sufficient training and experience are
essential for an individual to be promoted to this
position.
• 9) GOOD BENEFITS FOR EMPLOYEES
Japanese companies provide substantial benefits
to their employees are provided benefits such as
family housing and transportation allowances. Some
companies also provide bachelor accommodation,
scholarships for employees children, and low-
interest housing loans. Salary enhancements
become rapid after about seven years of
employment with the firm. Since the seniority-based
wage system assumes that the longer the
experience, the more valuable the employee.
• 10) SIMPLE AND FLEXIBLE
ORGANIZATION

In Japanese firms, very often people are


trained to be generalists. For this reason, the
organization structure in Japan is relatively
simple flexible, and it possible for people to take
up a new challenge or a new task by forming a
new formal or informal group. Informal
organization wield considerable power in formal
organization
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JAPANESE
v/s
INDIAN MANAGEMENT
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JAPANESE MANAGEMENT

PLANNING
• Long term orientation
• Collective decision making with consensus
• Involvement of many people in preparing and
making the decision
• Decisions flow bottom to top
• Slow decision making and fast implementation
of the decision
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ORGANIZING
• Collective responsibility and accountability
• Ambiguity of decision responsibility
• Informal organization structure
• Well-known common organization culture and
philosophy; competitive sprite toward other
enterprises
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STAFFING
• Young people hired out of school; hardly any
mobility of people among companies
• Slow promotion through the ranks
• Loyalty to the company
• Very infrequent performance evaluation for new
employees
• Promotion base on multiple criteria
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LEADING
• Leader acting as a social facilitator and group
member.
• Paternalistic style
• Common values facilitating cooperation
• Bottom-up communication
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CONTROLLING
• Control by peers
• Control focus on group performance
• Saving face
• Extensive use of quality control circles.
• The study of Japanese and Indian management,
the Japanese management is gaining importance
because it deals with the process of planning,
organizing, staffing, leading and controlling is
better than Indian management.
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The study of Japanese and Indian


management, the Japanese management is
gaining importance because it deals with the
process of planning, organizing, staffing,
leading and controlling is better than Indian
management.
WORKERS CHARACTERISTICS
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ATTITUDES.
CHARACTERISTICS TYPICAL JAPANESE

Self image Belong to a group. Okay to show feelings


and weakness.

Nationalism and Strong sense of nationalism based on a


Image of Race. single superior race.

Education. Rigorous system through high school.


WORKERS CHARACTERISTICS
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ATTITUDES.
Respect for authority. Substantial.

Attitude towards work. Live to work. Self sacrifice,


highly self disciplined.

Attitude towards work place,Everyone’s job to keep it clean.


property, environment. respect property of others.

Loyal to the company. company


Loyalty first, individual and family
second.
MANAGEMENT POLICIES AND
ATTITUDES TOWARDS
WORKERS
POLICY OR TYPICAL JAPANESE.

ATTITUDE.
Workers suggestions Way to achieve continuous
improvement (kaizen)

employment Lifetime. Paternalistic. No layoff.

Managers Accessibility to workers. Wear same


accessibility. uniform. Open office policy in plant.
MANAGEMENT COMPETITIVE FOCUS
AND POLICIES.
POLICY AREAS TYPICAL JAPANESE

Overall focus Long range focus on competitive


strategy.

Operating strategy Continues improvement(‘kaizen’)

Quality control TQC. Seek perfection. Zero


deffects.Use as strategic weapons.
MANAGEMENT COMPETITIVE FOCUS
AND POLICIES
Equipment Design in house to maintain technological
leadership. Used, but not abused. Replace
parts before they break.

Union Company. Emphasize cooperation. Promote


team approach. no strike policy.

Production Small focused plants. Work performed in


sequential order to remove inconsistency
according to program work sheets.

Vendors Long term partnership. Have co destiny. Few


deliveries, few vendors.
MANAGEMENT ACCOUNTING AND
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CONTROL
Policy Area Typical Japanese
Planning and Bottom up. Goal setting and feed
controlling. back. Worker involvement. near
fanatical commitment to four steps
plans, do check action approach.

Cost Long run plant wide life cycle costs.

Investment justification. Long term perspective. Emphasis


on growth, increasing market
share,flexibility,customer needs.
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