Japanese Management Style-Managment-Lecture Slides, Slides of Business Management and Analysis

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1

JAPANESE MANAGEMENT

STYLE

2

WHAT ARE THE KEY

ELEMENTS?

 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

4

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; long term

problem is new competitors allowed to

establish themselves or if existing

competitors were allowed to grow in strength

5

JAPANESE MANAGEMENT

OVERSEAS

 Japanese firms – more Outsider

than firms from other countries

 Manufacturing subsidiaries: average of 4

 Electronics industry – mean was 5.03;

 Overall average in Asia: 3.

7

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

8

HUMAN RESOURCE PRACTICES

FOR LOCALLY HIRED

MANAGERS OUTSIDE OF JAPAN

 Prevailing market rates – no attention

paid to seniority & bonuses rarely paid

 Employee welfare system usually

absent – future of employees

depended upon the market

performance of the subsidiary

10

WHAT ALTERNATIVES?

 Increase recruitment of Japanese

managers

 Reduce requirements for expatriate

managers

 Alleviate pressure on cost control

 Diversify upstream, out of small motors

11

ASSIGNMENT

 Compare Japanese Management style

with western management style

13

Quality Guru

 Kaoru Ishikawa

Father of Quality Circle

Launches Japan’s Quality Movement in 1960s.

Series of Articles in his Magazine “ Gemba to Q A”

Fish Bone Diagram

Quality circle was first piloted at Nippon Telegraph & Cable company in 1962 - …1978- One Million QC’s - 10 million employees. …2000- Two Million QC’s- 20 million employees.

Book “ What is TQC?”

Given Seven basic tools for Quality- 1. Pareto Analysis 2.Fish Bone Diagram

 3 Stratification 4.Tally chart

 5 Histograms 6.Scatter Diagram

 7 Control Charts

 Book Guide to Quality Control in 1974

Binomial Probability & Sampling

14

Dr Genichi Taguchi

In the early 1970s Taguchi developed the concept of the "Quality Loss Function" and by the end of that decade was highly acclaimed in his own country.

It was not until 1980 that Western companies, particularly in the USA began to implement Taguchi's methods. The most notable of these being Xerox, Ford and ITT.

Taguchi had made little impact in Europe until the Institute of Statisticians organised a conference in London in 1987 to discuss his methods

16

WHAT IS TQM?

 T TOTAL

 Q QUALITY

 M MANAGEMENT

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WHAT IS TQM?

 “T” TOTAL

• ALL FUNCTIONS / AREAS / DEPTTS.

• ALL ACTIVITIES

• ALL EMPLOYEES

• ALWAYS

• AT ALL PLACES

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WHAT IS TQM?

 “M” MANAGEMENT

MEANS MANAGEMENT WHICH ACTUALLY

MEANS AN INTEGRATED AND CONTINUAL

ACTIVITY TO RAISE QUALITY OF A

COMPANY AT COMPANY-WIDE LEVEL.

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TQM DEFINED

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.