Japanese Style of Management
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Transcript of Japanese Style of Management
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Amity International Business School
Japanese Style of Management
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Amity International Business School
Pertinent Characteristics of Japanese Management
• Company-wide union or house union
• General preference for inexperienced fresh graduates from schools or colleges
• Preference for promotions from within
• Life-time employment
• Quality Control Circles (QCCs)
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Amity International Business School
Pertinent Characteristics of Japanese Management
• Training practices
– On-the-job training
– In-house and outside training
– Job rotation
• Decision making and consultation practices
– Bottom-up communication
– Regular management-labour consultation
• Settlement of conflict trough negotiations
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Amity International Business School
Understand Japanese Management – The Company as the Family
• Social belonging
• Life-time employment and loyalty
• Social status of employees linked to success of company
• Social role of employment– company song– company pin– Paternalism
• Emphasis on harmony (suppression of conflict)
• Seniority system
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Amity International Business School
Understand Japanese Management – The Company as the Family
• Zaibatsu Groups –
– the financial & industrial conglomerates were outgrowths of family enterprises
• Scarcity of daily necessities during World War II
– Fostered company-based cooperative activities in the procurement and distribution of goods
– Companies were used by the government to distribute rations
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Amity International Business School
Understand Japanese Management – Recruitment and Training
• Fresh graduates are recruited each spring through company's entrance examinations and interviews– Well known corporations usually focus on a few high ranking schools
and universities
• Costs and benefits of training internalised within one firm (paternalism / loyalty) – Continuous training
• Seniority system facilitates on-the-job training– Senior workers train junior workers without fear of jeopardizing their
own position
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Amity International Business School
Understand Japanese Management – Participatory Management
• Process of decision making not centralized at the top
– Process of broad consultation and consensus
• System cannot move capable individuals upwards
– Moves authority downward through personal contacts and relationships (of CEO and junior)
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Amity International Business School
Understand Japanese Management – Participatory Management
• Anyone with a stake in the decision will be consulted (hierarchical relationship blurred).
– Explains why talented, able and young employees can be satisfied under the seniority-based system
• The Father-leader
– Authoritarian
– Able to advance corporate goals through unobtrusive persuasion and conciliation
– Synthesizes group with warmth, sincerity and humaneness