Title: JAPANESE MANAGEMENT STYLE
1JAPANESE MANAGEMENT STYLE
2WHAT 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
3STRENGTHS OF STRATEGY STRUCTURE
- 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
4WEAKNESSES 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
5JAPANESE 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 3.25
6COMMON BELIEF
- Belief Japanese management system is so unique
that it cannot be easily transferred overseas
because these processes of management are culture
bound -
7HUMAN 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
8HUMAN 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
9POTENTIAL AFFECT
- Program intended to enable the firm to maintain
its strategy of - minimizing costs
- occupying the maximum competitive space
- Allowing continued diversification of production
locations - Impact upon the firm
- Expectations from the local managers
- Communication problems since Japanese are not
very bilingual - Possibility of ties weakening between head office
subsidiary
10WHAT ALTERNATIVES?
- Increase recruitment of Japanese managers
- Reduce requirements for expatriate managers
- Alleviate pressure on cost control
- Diversify upstream, out of small motors
11ASSIGNMENT
- Compare Japanese Management style with western
management style
12Quality Guru
13- Quality Guru
- Kaoru Ishikawa
- Father of Quality Circle
- Launches Japans 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 QCs - 10 million employees.
2000- Two
Million QCs- 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
14Dr 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
15Shigeo Shingo
His method, poka-yoke or zero mistakes, stops the
process whenever a defect occurs, defines the
cause and prevents the recurring source of the
defect. The method relies on a process of
continuously monitoring potential sources of
error. The machines used in this process are
equipped with feedback instrumentation that
identifies errors before they become defects, so
remedial action can be taken
16WHAT IS TQM ?
- T TOTAL
- Q QUALITY
- M MANAGEMENT
17WHAT IS TQM ?
- ALL FUNCTIONS / AREAS / DEPTTS.
- ALL ACTIVITIES
- ALL EMPLOYEES
- ALWAYS
- AT ALL PLACES
18WHAT IS TQM ?
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.
19WHAT IS TQM ?
MEANS MANAGEMENT WHICH ACTUALLY MEANS AN
INTEGRATED AND CONTINUAL ACTIVITY TO RAISE
QUALITY OF A COMPANY AT COMPANY-WIDE LEVEL.
20TQM 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.
21What Does Kaizen Mean?
- KAI ZEN
- To modify, to change Think, make good, make
better - KAIZEN
- Make it easier by studying it, and making the
improvement through elimination of waste.
22Just-In-Time (JIT)
- JIT an integrated set of activities designed to
- achieve high-volume production using
minimal - inventories of raw materials, finished
goods - work in process.
- Management philosophyNothing produce until
needed. - Encompasses the successful execution of all
production activities required from design to
delivery of products. - Common sense based/simple techniques
23Knowledge Worker
- Knowledge worker, a term coined by Peter Drucker
in 1959, is one who works primarily with
information or one who develops and uses
knowledge in the workplace. - Also called as intellectual worker or brain
worker - A Knowledge Worker's benefit to a company could
be in the form of developing business
intelligence, increasing the value of
intellectual capital, gaining insight into
customer preferences, or a variety of other
important gains in knowledge that aid the
business
24Knowledge Worker
- A knowledge worker is anyone who works for a
living at the tasks of developing or using
knowledge. - For example, a knowledge worker might be someone
who works at any of the tasks of planning,
acquiring, searching, analyzing, organizing,
storing, programming, distributing, marketing, or
otherwise contributing to the transformation and
commerce of information and those (often the same
people) who work at using the knowledge so
produced.
25Knowledge network of knowledge workers
- Knowledge workers work in an environment
described as a knowledge network. - Popper (1963) states there is always an
increasing need for knowledge to grow and
progress continually, whether tacit or explicit.
Knowledge grows like organisms, with data serving
as food to be assimilated rather than merely
stored. - All knowledge workers, particularly RD project
managers, need to easily access and search
internal and external knowledge bases
26Management of knowledge workers
- Knowledge workers are believed to produce more
when empowered to make the most of their deepest
skills - they can often work on many projects at
the same time - they know how to allocate their time
and - they can multiply the results of their
efforts through soft - factors such as emotional
intelligence and trust. - ? Organizations designed around the knowledge
worker (instead of just machine capital) are
thought to integrate the best of hierarchy,
self-organization and networking rather than the
worst. Each dictates a different communications
and rewards system, and requires activation of
knowledge-sharing and action learning.
27The Knowledge Age
- The third wave of human socio-economic
development is described by Charles Savage in
"Fifth Generation Management." The first wave was
the Agricultural Age with wealth defined as
ownership of land. In the second wave, the
Industrial Age, wealth was based on ownership of
Capital, i.e. factories. In the Knowledge Age,
wealth is based upon the ownership of knowledge
and the ability to use that knowledge to create
or improve goods and services. Product
improvements include cost, durability,
suitability, timeliness of delivery, and
security. - In the Knowledge Age, 2 of the working
population will work on the land, 10 will work
in Industry and the rest will be Knowledge
Workers
28Hierarchy of knowledge Work
- Knowledge work, ranges from tasks performed by
individual knowledge workers to global social
networks. This framework spans every class of
knowledge work that is being or is likely to be
undertaken. There are seven levels or scales of
knowledge work. - Knowledge work, (e.g., writing, analyzing,
advising) is performed by subject-matter
specialists in all areas of an organization.
Although knowledge work began with the origins of
writing and counting, it was first identified as
a category of work by Drucker (1973). - Knowledge functions (e.g., capturing,
organizing, and providing access to knowledge)
are performed by technical staff, to support
knowledge processes projects. Knowledge functions
date from c. 450 BC, with the Chanakya, but their
modern roots can be linked to the emergence of
information management in the 1970s - Knowledge processes (preserving, sharing,
integration) are performed by professional
groups, as part of a knowledge management
program. Knowledge processes have evolved in
concert with general-purpose technologies, such
as the printing press, mail delivery, the
telegraph, telephone networks, and the Internet.
29Hierarchy of knowledge Work
- Knowledge management programs link the generation
of knowledge (e.g., from science, synthesis, or
learning) with its use (e.g., policy analysis,
reporting, program management) as well as
facilitating organizational learning and
adaptation in a knowledge organization. Knowledge
management emerged as a discipline in the 1990s. - Knowledge organizations transfer outputs
(content, products, services, and solutions), in
the form of knowledge services, to enable
external use. The concept of knowledge
organizations emerged in the 1990s. - Knowledge services support other organizational
services, yield sector outcomes, and result in
benefits for citizens in the context of knowledge
markets. Knowledge services emerged as a subject
in the 2000s.. - Social networks enable knowledge organizations
to co-produce knowledge outputs by leveraging
their internal capacity with massive social
networks. Social networking emerged in the 2000s.
30Corporate Social Responsibility
- 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.
31Corporate Social Responsibility
- There is no universally accepted definition of
CSR. Selected definitions by CSR organizations
and actors include - World Business Council for Sustainable
Development - "Corporate Social Responsibility is the
continuing commitment by business to behave
ethically and contribute to economic development
while improving the quality of life of the
workforce and their families as well as of the
local community and society at large" - Mallen Baker
- "CSR is about how companies manage the
business processes to produce an overall positive
impact on society." - CSR Asia
- "CSR is a companys commitment to
operating in an economically, socially and
environmentally sustainable manner whilst
balancing the interests of diverse stakeholders." - International Finance Corporation
- "Corporate social responsibility is the
commitment of businesses to contribute to
sustainable economic development by working with
employees, their families, the local community
and society at large to improve their lives in
ways that are good for business and for
development - European Commission "A concept whereby companies
integrate social and environmental concerns in
their business operations and in their
interaction with their stakeholders on a
voluntary basis."
32Corporate Social Responsibility
- Dr. Reddy's corporate social responsibility -
Truly sustainable ... - Corporate social responsibility - Dr. Reddy's
believe that any high performance sustainable
organization rests on the three pillars of
economic, social and Emplioyees.
33ITCs e-Choupal
- e-Choupal also unshackles the potential of
Indian farmer who has been trapped in a vicious
cycle of low risk taking ability gt low investment
gt low productivity gt weak market orientation gt
low value addition gt low margin gt low risk taking
ability. This made him and Indian agribusiness
sector globally uncompetitive, despite rich
abundant natural resources.
34Corporate Social Responsibility
- Infosys Foundation, the philanthropic arm of
Infosys Technologies Ltd., came into existence on
4th December 1996 with the objective of
fulfilling the social responsibility of the
company by supporting and encouraging the
underprivileged sections of society. In a short
span of time, the Foundation has implemented
numerous projects in its chosen areas. The
Foundation has undertaken various initiatives in
providing medical facilities to remote rural
areas, organizing novel pension schemes and in
aiding orphans and street children. It has
undertaken a large rural education program titled
"A library for every school" under which 5500
libraries have been set up in government schools
spread across many villages. Other activities
include the reconstruction of old school
buildings, setting up of rural Science Centers
and schemes to provide support to dying
traditional art and culture forms
- THE SOCIAL COMMITMENT
- NTPC believes in growth with a human face, and
pursuing people-centred development. NTPC is a
socially committed organisation and a socially
responsible corporate citizen. It attaches great
importance to discharging its overall social
responsibilities to the community and the society
at large where its projects and stations are
located. In this regard Resettlement and
Rehabilitation (RR) program becomes an area of
sharp focus, a program that addresses people
affected directly or indirectly in the wake of
the projects undertaken by NTPC.
35Corporate Social Responsibility
The term 'corporate social responsibility' or
sustainability is of relatively recent vintage.
Not so the philosophy of social responsibility
that underlines the Tata way of conducting its
businesses, and the manner of its interactions
with all the constituents that come under the
canopy of corporate social responsibility. The
multitude of initiatives the Group has nurtured
from its earliest days flows from a wellspring of
voluntary, as opposed to obligatory commitment
Principles first
An implicit sense of ethical business conduct has been the cornerstone of the Tata way in the corporate governance sphere. On issues ranging from customer care and business excellence to financial propriety and more, explicit rules and regulations supplement the traditional values on which the Tata Group companies has been shaped.
A feel for people
With some 2,46,000 members in its diverse and widespread family, the Tata Group is more than just another employer. The Group's many pioneering initiatives to benefit and empower employees have few parallels anywhere in the world, and it has blended its traditional benevolence with evolving human resource methodologies to deliver a whole lot beyond mere jobs
Green at heart
The Tata ethos places a special emphasis on environmental and ecological issues. The Group's efforts to preserve and regenerate the environment find expression in the slew of projects and programmes in has undertaken in and around its facilities and operations.
Caring and sharing
From health and education to livelihoods and women-children welfare, from tribal hamlets in Jharkhand and the rural outback of Gujarat to the high ranges of Kerala and disadvantaged villages in Andhra Pradesh the community work being undertaken by the companies and trusts of the Tata Group touches a multitude of Indians across the land. Beyond purely social work, this support extends to individuals and institutions pursuing artistic and sporting excellence.
36Assignment
- Discuss CSR with the examples of minimum 5
different organisations.
37Thank you