japanese managment by sarath g

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    TOKYO CITY

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    1945 HIROSHIMA & NAGASAKHI

    BOMB BLAST PICTURE

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    MEANING OF MANAGEMENT

    LOUIS.E.BOONE AND DAVID: The use of people

    and other resources to accomplish objectives.

    MARY PARKER: The act of getting things done

    through people.

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    MANAGEMENT PROCESS

    INPUT PROCESS OUTPUT

    Planning

    Organizing

    Staffing

    Leading

    Controlling

    AttainmentOrganizational goals

    LandLaborCapitalOrganizer

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    PLANNING PRACTICES IN JAPAN

    Japanese management is famous in the west, generally limitedto Japans large corporation.

    Japanese economy provide their workers excellent salaries,

    working conditions and secure employment.

    Qualification for employment is limited to men and few women

    graduate from the top 30 colleges and universities in Japan.

    Companies provide their own training and give more

    preference to the excellent trainees.

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    The Japanese government provide job on the basis ofcompetitive examination but it became less competitive with agradual decrease in the number of candidates.

    Major feature of Japanese management is the practice of

    permanent employment. (Shushing koyo)

    Permanent employment covers the minority of the work force thatwork for the major companies.

    Employees are not dismissed rapidly, except for serious

    breaches of ethics.

    Another unique aspect is the system of promotion and reward.

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    Compensation for young workers is very low.

    Members graduated in the same class start with same salary andincreases promotion are generally uniform. this is for avoiding stressand jealous within the groups.

    Another aspect is the companies union, which most regularcompany employees are obliged to join.

    Japanese managerial style and decision making in large companiesemphasizes the flow of information and initiative from the bottom

    up, making top management a facilitator (easier) rather than thesource of authority, while middle management is for the shaper ofpolicy.

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    A Japanese chief executive officer is a consensus builder.

    The workers do not have a separate skill identification outside of the company.

    Consensus (general agreement) is stressed as a way of arriving at decision, rather than serve as an important decision maker.

    A few selected persons can attain a job in such companies.

    Promotion and reward is based on seniority.

    JAPAN

    The geography of Japan, its lack of indigenous resources, isolation from the Asian landmark, have contributed to their resourcefulness and hard workingnature.

    Loyalty to the king is translated to loyalty to the superior of the organization.

    Western concept of Statistical Quality Control (SQC) is changed to Total Quality Management (TQM) by Japan.

    There philosophy is:

    National service through industry

    Fairness

    Harmony and cooperation

    Struggle for betterment

    Courtesy and humility

    Adjustment and assimilation.

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    JAPAN

    The geography of Japan, its lack of indigenous resources,isolation from the Asian landmark, have contributed to their

    resourcefulness and hard working nature. Loyalty to the king is translated to loyalty to the superior of the

    organization.

    Western concept of Statistical Quality Control (SQC) ischanged to Total Quality Management (TQM) by Japan.

    There philosophy is:

    National service through industry

    FairnessHarmony and cooperation

    Struggle for betterment

    Courtesy and humility

    Adjustment and assimilation.

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    JAPANESE MANAGEMENT

    JAPANESE ORGANISATION. (CHARACTERISTICS)

    SCIENTIFIC SELECTION PROCESS

    LIFETIME EMPLOYMENT

    SENIORITY SYSTEM

    CONTINUOUS TRAINING

    EMPHASIS ON GROUP WORK

    DECISION MAKING

    COMPLICATED PERFORMANCE EVALUATION

    FATHER LEADERSHIP

    GOOD BENEFITS FOR EMPLOYEES

    SIMPLE AND FLEXIBLE ORGANIZATION

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    1 ) SCIENTIFIC SELECTION PROCESS

    Few Japanese attend graduate school and graduate

    training in business but percentage is rare because

    there are only 30 top business colleges who gain

    admission and study in that colleges only those studenthave the chance to work in large company. That large

    company conduct competitive examination. Those

    student passed the examination they can gain jobs but

    company provide their own training.

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    2) LIFE TIME EMPLOYMENT

    Lifetime employment refers to recruitment ofemployees immediately upon graduation

    generation of employment until retirement, and

    mandatory retirement. Though there is no formal

    contract, employers and employees have an

    unwritten mutual understanding regarding their

    expectation about the job. Under lifetime

    employment an employee spends his entireworking life with a single enterprise. This helps

    generate a feeling of job security in the employee

    and a feeling of belongingness towards the

    enterprise

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    3) SENIORITY SYSTEM

    This concept is closely related to the

    concept of lifetime employment companies

    following this concept, provide privileges to older

    employees who have been with it for a long time.Promotion and wage increases are based on

    employees length of service in the company, not

    job performance.

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    5) EMPHASIS ON GROUP WORK

    In most Japanese organizations, a task is not

    assigned to an individual; instead several tasks

    are assigned to a group, which consists of a

    small number of people are treated like familymembers. Kaisha means my or ones company

    the community to which one belongs and which

    is an important part of ones life. probably this

    is the reason why employees take great pride

    in their company and its success.

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    6) DECISION-MAKING

    The practice of managerial decision-making in Japan is

    built on the concept that change and new ideas shouldcome primarily from personnel belonging to lower levels

    in the hierarchy. Thus in Japan lower level employees

    prepare proposals for higher-level personnel. The ringi

    system refers to decision-making by consensus. The

    word ringi consists of two parts rin which means

    submitting a proposal to ones superior and getting his

    approval, and gi meaning deliberations and decisions.

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    7) COMPLICATED PERFORMANCEEVALUATION.

    When job description are not well definedand when tasks are performed by groups, itbecomes difficult to evaluate individual job

    performance objectively. The evaluation of workersand managers in Japanese corporations takes avery long time up to ten years and requires the useof qualitative and quantitative information aboutperformance.

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    8) FATHER LEADERSHIP

    As a kacho ,the task of a leader is not

    only to supervise his people at work, but also to

    show fatherly concern for their subordinates

    private life. Since, promotion is based on

    seniority, it is not easy to move on to a kacho

    position. Sufficient training and experience are

    essential for an individual to be promoted to thisposition.

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    9) GOOD BENEFITS FOR EMPLOYEES

    Japanese companies provide substantial benefits

    to their employees are provided benefits such asfamily housing and transportation allowances. Some

    companies also provide bachelor accommodation,

    scholarships for employees children, and low-

    interest housing loans. Salary enhancementsbecome rapid after about seven years of

    employment with the firm. Since the seniority-based

    wage system assumes that the longer theexperience, the more valuable the employee.

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    10) SIMPLE AND FLEXIBLE

    ORGANIZATION

    In Japanese firms, very often people are

    trained to be generalists. For this reason, the

    organization structure in Japan is relatively

    simple flexible, and it possible for people to take

    up a new challenge or a new task by forming a

    new formal or informal group. Informalorganization wield considerable power in formal

    organization

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    JAPANESE

    v/s

    INDIAN MANAGEMENT

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    JAPANESE MANAGEMENT

    PLANNING

    Long term orientation

    Collective decision making with consensus

    Involvement of many people in preparing and

    making the decision

    Decisions flow bottom to top

    Slow decision making and fast implementation

    of the decision

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    STAFFING

    Young people hired out of school; hardly anymobility of people among companies

    Slow promotion through the ranks

    Loyalty to the company Very infrequent performance evaluation for new

    employees

    Promotion base on multiple criteria

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    LEADING

    Leader acting as a social facilitator and groupmember.

    Paternalistic style

    Common values facilitating cooperation Bottom-up communication

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    CONTROLLING

    Control by peers Control focus on group performance

    Saving face

    Extensive use of quality control circles. The study of Japanese and Indian management,

    the Japanese management is gaining importance

    because it deals with the process of planning,

    organizing, staffing, leading and controlling is

    better than Indian management.

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    The study of Japanese and Indian

    management, the Japanese management is

    gaining importance because it deals with theprocess of planning, organizing, staffing,

    leading and controlling is better than Indian

    management.

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    WORKERS CHARACTERISTICS AND

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    WORKERS CHARACTERISTICS AND

    ATTITUDES.

    CHARACTERISTICSTYPICAL JAPANESE

    Self image Belong to a group. Okay to show feelingsand weakness.

    Nationalism and

    Image of Race.

    Strong sense of nationalism based on asingle superior race.

    Education. Rigorous system through high school.

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    WORKERS CHARACTERISTICS AND

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    WORKERS CHARACTERISTICS AND

    ATTITUDES.

    Respect for authority. Substantial.

    Attitude towards work. Live to work. Self sacrifice,highly self disciplined.

    Attitude towards work place,property, environment.

    Everyones job to keep it clean.respect property of others.

    LoyaltyLoyal to the company. companyfirst, individual and familysecond.

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    MANAGEMENT POLICIES AND

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    MANAGEMENT POLICIES AND

    ATTITUDES TOWARDS

    WORKERS

    POLICY OR

    ATTITUDE.

    TYPICAL JAPANESE.

    Workers suggestions Way to achieve continuous

    improvement (kaizen)

    employment Lifetime. Paternalistic. No layoff.

    Managersaccessibility.

    Accessibility to workers. Wear sameuniform. Open office policy in plant.

    MANAGEMENT COMPETITIVE FOCUS

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    MANAGEMENT COMPETITIVE FOCUS

    AND POLICIES.

    POLICY AREAS TYPICAL JAPANESE

    Overall focus Long range focus on competitivestrategy.

    Operating strategy Continues improvement(kaizen)

    Quality control TQC. Seek perfection. Zero

    deffects.Use as strategic weapons.

    MANAGEMENT COMPETITIVE FOCUS

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    MANAGEMENT COMPETITIVE FOCUS

    AND POLICIES

    Equipment Design in house to maintain technological

    leadership. Used, but not abused. Replaceparts before they break.

    Union Company. Emphasize cooperation. Promote

    team approach. no strike policy.

    Production Small focused plants. Work performed insequential order to remove inconsistency

    according to program work sheets.

    Vendors Long term partnership. Have co destiny. Fewdeliveries, few vendors.

    MANAGEMENT ACCOUNTING AND

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    MANAGEMENT ACCOUNTING AND

    CONTROLPolicy Area Typical Japanese

    Planning andcontrolling.

    Bottom up. Goal setting and feedback. Worker involvement. nearfanatical commitment to four stepsplans, do check action approach.

    Cost Long run plant wide life cycle costs.

    Investment justification. Long term perspective. Emphasison growth, increasing marketshare,flexibility,customer needs.

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