V Management in all business and human

organization activity is the act of getting people

together to accomplish desired goals and
objectives.
V Comprises planning, organizing, staffing, leading
or directing, coordinating, motivating and
controlling an organization.
V Derived from French word ´mesnagementµ.
V Change started by Meiji restoration in 1880s.
V In 1912, Yoichi Ueno introduced Taylorism to
Japan & thus started the Japanese style mgmt.
V Also referred as ´Nihonteki Keieiµ in the west.
V Main styles are:
‡ Bottom-to-top information flow (Horenso)
‡ Anytime accessibility of managers
‡ People-oriented & work-oriented
V Main concepts are:
‡ Lifetime employment
‡ Job rotation
‡ Promotion based seniority
‡ Group consensus
‡ Just in time (JIT)
‡ Quality circles (QC)
‡ Kaizen
‡ Suggestion system
‡ Pareto Charts
‡ Total Quality Control (TQC)
V To give a sense of security & identity to workers.
V Promises to provide them with cheap housing,
health-plans, pensions, education & recreation
facilities for their families.
V Usually offered to full-time male employees who
stay with the company for lifelong period.
V To cut no of full-time employees (as in recession),
´shoulder-tappingµ (katatkaki) or ´transferringµ
(Shukko) is used.
V Initiallysome salary is retained with the company.
V Nowadays this technique is discouraged.
V Subcontracting (part-time workers) is increasing.
V Part-timers don·t get social-insurance, pension,
union-rights or paid-holidays.
V Temporary contract employees (Rinjiko) who
work full-time for limited periods are another
pool of non-ordinary workers available to
Japanese companies.
V 'alued as the best means of increasing the
motivation of the workers, improving their
performance & thus achieving better efficiency &
productivity.
V During 1st 10 years, employee is expected to learn
& acquire expertise in a no of areas in the firm.
Then they are rotated to various departments
according to their potential.
V It also allows knowledge & skill sharing.
V It minimizes company·s dependency on a few
specialized workers.
V It enables companies to create a well-rounded
company man who understands the company·s
holistic system.
V Called ´Nenko Joretsuµ
V ´Confucianismµ which states respect for elders.
V Seniority is determined more by age & length of
service than by individual skill.
V Outstanding individuals are rewarded with
bonuses without compromising the seniority-
based wage system.
V Nowadays companies are encouraging ´ability
based mgmt.µ Merit ratings are increasingly being
used in conjunction with seniority.
V One of most important features of Japanese mgmt.
V ´Rinµ means submitting a proposal & requesting a
decision and ´giµ denotes deliberations & actual
decisions.
V This system comprises 2 methods:
‡ Nemawashi
‡ Ringi Seido
V Nemawashi is the process of preliminary &
informal sounding of employees out of employee·s
ideas about a proposed course of action/project.
V In this,the contacted persons remain anonymous
& feel free to talk about their ideas.
V ´Ringi Seidoµ is a formal procedure of mgmt. by
group consensus. It is a proposal that originates in
one section & is forwarded to all relevant sections
on the same level, section heads, managers,
directors & eventually to company·s president.
V Each will make comment on the attached sheet
and then accordingly the decision will be taken by
the top management.
V This results in sounder decisions and also helps in
better & effective implementation. It also help
boost morals, generate harmony and strengthen
loyalty & cohesion among staff.
V Employees at lower levels can also generate
proposals or work out plans, which are then
transferred upward to higher levels.
V Sometimes it can be slow, cumbersome process
which may delay business decisions.
V Developed & perfected by Tai-chi Ohno, Toyota
vice-president in early 1970s.
V Concept is to supply parts as they are needed to
meet consumer·s demands with minimum delays.
V It reduces waste and improves product-quality &
production-efficiency.
V JIT principles & objectives are universal.
V It offers a competitive advantage by providing
superior service or by developing superior means
of production.
V Itaims for optimal quality/cost relationship.
V Eliminates unnecessary wastes.
V JIT is a long-time process which can·t be
implemented in short period of time & nor can
rewards be realized over-night. Toyota took 10
years for this.
V Main problems are loss of safety stocks because of
inaccurate demand forecasts.
V Also results in greater amount of stress &
pressure on workers to perform.
V North-American firms refer to them as ¶employee
participation groups· or ¶focus groups.·
V These are small employee-groups doing similar or
related work, which meet regularly to identify,
analyze and solve product-quality & production
problems and to improve general operations.
V Also deals with personal training, job enrichment
& leadership development.
V Participating employees put suggestions into a
handy-box and examined by specialists.
V Group members select problems through
consensus.
V QC requires a leader, coordinator, facilitator &
other members who function together. Meetings
are held at least once a week.
V QCs don·t provide quick-fix solutions to all
organizational problems.
V It is the main key to Japan·s competitive success.
V Constitutes the basic philosophical
underplanning for the best in management. This
philosophy assumes that our way of life deserves
to be constantly improved.
V Japanese managers devote atleast 50% of their
attention to Kaizen.
V It is an ongoing process. After it is started, the
trend can·t be reversed.
V It is generic & can·t be applied to every aspect.
V Improvement refers to improvement in standards.
V Improvement can be broken in 2 parts:
‡ Kaizen (small improvement)
‡ Innovation (drastic improvement)
V It is a customer driven strategy for improvement
leading ultimately to customer-satisfaction.
V It doesn·t require sophisticated techniques or
state-of-art technology. It needs common sense
with continuity & commitment.
V Itwas brought to Japan by TWI (Training
Within Industries) & US Air-force.
V Stresses on morale-boosting benefits of positive
employee participation.
V Also incorporates incentives for the employees.
V This system has a span of 5-10 years & involves 3
stages:
‡ Help workers by suggestions
‡ Employee·s education
‡ Economic impact of suggestions
V Workers, under this system, are expected to make
daily suggestions.
V Toyota suggestion system, e.g., produces a
legendary 47.7 suggestions per employee per year
& every suggestion receives response within 24
hrs from employee·s direct supervisor. In 1986,
Toyota reached an implementation rate of 96% of
the suggestions submitted.
V Named after ´'ilfredo Paretoµ.
V One of the 7 basic tools of QC (Quality Control).
V Displays values in descending order as bars & the
cumulative total of each category as a line graph
(left to right).
V Left vertical axis is frequency of occurrence, cost
or other important unit of measure.
V Right vertical axis is the cumulative % of total no
of occurrences, total cost or total of particular
unit of measure.
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V Based on Pareto principle that when several
factors affect a situation, only a few will account
for most of the impact. A phenomenon in which
80% of variation observed in everyday processes
can be explained by a mere 20% of causes.
V Purpose is to highlight the most important among
a typically large set of factors.
V In QC (Quality Control), it often represents the
most common set of defects, highest occurring
type of defect, most frequent reasons for customer
complaint, and so on.
V Also called TQM.
V Initially developed by Professor William Deming
of NY university, but was not successful in US.
V In TQC, quality by inspection, scrapping &
reworking are unacceptable.
V Corrective measure must be built into the entire
productive process.
V Japanese believe that ´If you take care of quality,
the profits will take care of themselves.µ
V Apart from conceptsdiscussed previously, other
main concepts of Japanese management style are:
‡ Brainstorming
‡ Silent Idea Generation Process
‡ Five Whys