Prepared by

Andrews
 Self-Awareness, the Group, and Conformity
 One of the most homogenous nations in the world
 Strongly aware and proud of their country
 High on fashion and technology
 “Islander” mentality
 Relationships take foremost priority, reflects in business too
 Hard work is a given, not a exception
Japanese companies, like Japanese
society, are hierarchically organized with
individuals knowing their position within a
group and with regard to each other
 Life time employment
 Collective decision making
1] Ringi-sei - The circulation of consultative memorandums
around a company in order to achieve consensus.
2]Information flow from the bottom of the company to the top.
3]Most policies originate at the mid-level management
4]Top Management plays only a “supervisory” and
“encouraging” role.

 Collective responsibility
 Slow evaluation and promotion
 Implicit control mechanisms
 Non specialized career path
 High self disciplined
 Holistic concern for employee as a person
 Centralized management control
 Strong head office/subsidiary manager
interpersonal relations
 Multiple locations

Business strategy
 Single product focus
 Minimize costs of production
 Maintain consistently high quality output at all factories
through standardization of best work practices &
procedures
 Diversify market segments, geographic markets, &
production location
 Qualified senior management
 Low costs of production
 Quality control
 Diversified & strong market positions in
established & growing markets
 Good reputation – early leader in small motors
 Good fit between organization structure &
competitive environment
 Limited scope for continued expansion with
existing managerial capacity
 Relative difficulty in transferring Japanese
management style across cultures
 continued growth will be difficult; long term
problem is new competitors allowed to establish
themselves or if existing competitors were
allowed to grow in strength
 Hatvany and Pucik (1981) offer a model of
Japanese management in which they define
three interrelated strategies:
 The authors assert that these general
strategies are translated into specific
management techniques including
 Job rotation and slow promotion;
 Evaluation of attributes and behavior;
 Emphasis on work groups;
 Open communication;
 Consultative decision making; and concern
for employee.
 Fully satisfaction of customer’s needs
 Achieve employee's fulfillment
 Slow and careful way of implementing
 Willingness to any activity if necessary
 Zero-defect theory
o “Rom was not built in a day” approach
Belief: Japanese management system is so unique that it
cannot be easily transferred overseas because these
processes of management are culture bound
STRENGHTS: OPPORTUNITIES:
- Closer relationships - Prefering personality
- Non-competition to education
among employees - Challenge in time of
- Consensus decision crisis
making - Tom Bata’s rotating
WEAKNESSES: system
- Slow promotion THREATS:
system - Scope of company
- High training costs - Nature of work
- No motivation - Cultural differences
 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
lean management is the development of the
problem solving capabilities of the entire
workforce allocating specific categories of
problems to each layer of the organization.

leader is less focused on problem

solving, high focus on building problem
solving muscle of the workforce
1. Eliminate waste
2. Minimize inventory
3. Maximize flow
4. Pull production from customer demand
5. Meet customer requirements
6. Do it right the first time
7. Empower workers
8. Design for rapid changeover
9. Partner with suppliers
10. Create a culture of continuous improvement
(Kaizen)
 The operations or production management
practices of Japans companies has some
specific characteristics quite different from
traditional or western management system.

 Justin time system

 Subcontracting
 Quality control
 Kaizen approach
an integrated set of activities designed to
achieve high-volume production using minimal
inventories of raw materials, finished goods &
work in process.

1]Management philosophy : …Nothing produce

until needed.
2] Encompasses the successful execution of all
production activities required from design to
delivery of products
3] Common sense based/simple techniques
Large companies, particularly in manufacturing
sector, rely heavily on a regular subcontracting system. To
secure punctual and regular supply of quality parts and
semi finished products from subcontractors at various
levels, large companies provide smaller ones with
technical, managerial and financial assistance in various
forms. This way, the large and small companies need not
compete and contract for every supply and purchase.
Mutual trust is the basis of their long-term transactions.
T TOTAL
 Q QUALITY
 M MANAGEMENT
“T” TOTAL

• ALL FUNCTIONS / AREAS / DEPTTS.

• ALL ACTIVITIES
• ALL EMPLOYEES
• ALWAYS
• AT ALL PLACES
QUALITY DOES NOT MEAN MERELY QUALITY OF PRODUCT, SERVICE & WORK BUT
QUALITY OF A COMPANY

WHAT IS QUALITY OF A COMPANY ?

• CONSTANT AND CONTINUAL APPROPRIATE PROFIT GAIN

• EMPLOYEE SATISFACTION (INCLUDING SELF REALISATION)
• CUSTOMER SATISFACTION
• SHAREHOLDER SATISFACTION
• AFFILIATE COMPANY SATISFACTION, AND
• SOCIAL SATISFACTION
MEANS MANAGEMENT WHICH ACTUALLY
MEANS AN INTEGRATED AND CONTINUAL
ACTIVITY TO RAISE QUALITY OF A COMPANY
AT COMPANY-WIDE LEVEL.
TQM IS A COST EFFECTIVE SYSTEM FOR
INTEGRATING THE CONTINUOUS QUALITY
IMPROVEMENT EFFORTS OF PEOPLE AT ALL
LEVELS IN THE ORGANISATION TO DELIVER
PRODUCTS AND SERVICES WHICH ENSURE
CONSUMER SATISFACTION
 Policy of constantly introducing small
incremental changes in a business in order
improve quality
 It assumes that employees are the best
people to identify room for improvement as
they practically deals with operations
 Small improvements needs less capital
investments
 Creativity  Adaptability
 Individualism  Teamwork (systems
approach)
 Specialist-oriented
 Generalist-oriented
 Attention to great leaps
 Attention to details
 Technology-oriented
 people-oriented
 Information: closed, proprietary
 Information: open, shared
 Functional (specialist)
orientation
 Cross-functional orientation
 Build on existing technology
 Seek new technology
 Cross-functional organization
 Line + staff
 Comprehensive feedback
 Limited feedback
 Technolog Preferred
Product
y Level Process

Western
High Technology- Innovative
perceptions
technology oriented innovation product

Japanese People-
Low technology + KAIZEN-oriented
perceptions oriented +
KAIZEN product
KAIZEN
 Corporate Social Responsibility (CSR) is a concept
which encourages organizations to consider the
interests of society by taking responsibility for the
impact of the organization's activities on
customers, employees, shareholders, communities
and the environment in all aspects of its operations.
 This obligation is seen to extend beyond
the statutory obligation to comply with
legislation and sees organizations
voluntarily taking further steps to
improve the quality of life for employees
and their families as well as for the local
community and society at large
 Belong to group
 Team players
 Substantial respect to
authority
 Live to work
 Loyal to Company
 Collective responsibility
 Paternity style
 Monitoring by
employees
 Slow decision making
 Individual
 Competitive
 Minimal respect to
authority
 Work to live
 Loyal to Self
 Individual responsibility
 Directive style
 Monitoring by managers
 Quick decision making
Thank you