Assignment 1: Japanese management in U.S.

companies
American-Japanese Company Sony in San Diego is an example of practical Japanese
management in United States. The San Diego plant produce more than 700,000 color TV
sets/year, which represents 1/3 of Sony's global production. Making a labor productivity
similar to that of a company operating Japan is due and the atmosphere created in the
company. There is no hierarchy, managers and workers use their surname and have dinner
together, and once a month a senior manager is addressing the workers presenting sales and
production targets and encourage them to express their wishes. The company organizes four
times a year a reception for employees. The attitude of American workers can be
characterized by the view expressed by Price, 54 years old, who works on the assembly line
"... to work for Sony, is like working for your family. Moreover, the plant director, Shiro
Yamada, 58 years old, says that there are very few differences between American workers
and their Japanese colleagues. He says that "Americans are as aware of the importance of
quality as the Japanese, but need to be motivated for that.
Shiro Yamada pays particular attention to the needs of workers. Once a year the
workers whose rate of absenteeism is zero are invited to a restaurant in downtown. Attention
is paid to employees working and living conditions. Thus, if there is a complaint about the
size of the refrigerator, for instance, it will be replaced quickly. Vice President Masayoshi
Morin, which is called by everyone Mike, took courses of Spanish to converse with plant
Hispanic workers. Everywhere phones are installed to allow communication and record
anonymous suggestions and claims by the workers. Hoping that workers will show their
loyalty, the company strives to create close ties with them. Promotions come from within;
most assembly line supervisors are graduates of secondary schools promoted because of their
work and their loyalty towards the enterprise. Although sales during the last 5 years have
significantly decreased, nobody was fired and they were asked to carry out other maintenance
work to remain in the company. When one of the first employees of the factory demanded his
resignation less than a year before retirement, Japanese managers were surprised. Richard
Crossman, human relations specialist for the plant, explains "... they came to see me and
asked me where they were wrong. I had to explain that in southern California is common
practice to leave the job". The company care for its employees gave excellent results.
Numerous attempts aimed to implement a trade union were rejected at a ratio of 3/1. Jean
Timmerman, 22 years, say: "The salary you are receiving at the union was higher and social
benefits were probably better, but eventually we decided to ignore them". However, Sony
hasnt forced American workers to work in Japanese style. The use of yellow overalls for
workers on the assembly line was a failure, because they prefer to wear jeans. Also, the
company has tried to implement group exercises with workers in San Diego, as exists in
Japanese plants, but backed off on that decision because of their opposition.
The youngest of the plant supervisor, Mark Dempsey, 23, admits that there is a
cultural gap between Japanese and Americans, saying: 'They do not understand that some of
us think only at the weekend, while most of them think how to resume work. There are also
different opinions of American workers about Japanese management system: the consensual
decision making process cause delay, it demonstrates an inability to decide. However, most
Americans appreciate the management system even though some of them still consider it
foreign. Significant for this purpose is the statement of supervisor Robert Williams: "A long
time ago, Americans also take into consideration the person like the Japanese does, but in
time we lost that sensitivity.
Topics for discussion:
1. How do you consider the Japanese management system?
2. What kind of problems you think will have to solve Japanese managers in the U.S.?
3. How do you consider the knowledge transfer in management should be done?