Japanese Management Style

The attitude of the employer toward the employees is more often like a father to the son living together in the family.

Japanese Decision Making

y DM in Japanese organizations is based on the

culture of collectivism and shared responsibility. y Consensus Decision making.

Process

y Advantages
 

y Dis-Advantages
 

Democratic Participative

Long time Hampers Organization effectiveness

Life Time Employment

y Employees directly recruited from the school rather

than open job market. y Employees are expected to stay a career long. y The recruitment is based on general characteristics and abilities of potential employees. y Complicated screening process
  

Academic Examination Investigation of family background Detailed personal interview

Seniority Promotion
y It is the major motivation to stay long in one

company. y Under this system remuneration of the worker is determined on the basis of the number of years spent in the company. y Seniority based wage system since 1970.

Kaizen
y Japanese philosophy that focuses on continuous

improvement. y To be most effective kaizen must operate with 3 principles in place

  

consider the process systemic thinking of the whole process a learning & non-blaming

The foundation of the Kaizen method consists of 5 founding elements

y teamwork, y personal discipline, y improved morale, y quality circles, and y suggestions for improvement.

Six Sigma
y Six Sigma is a business management strategy,

originally developed by Motorola, that today enjoys wide-spread application in many sectors of industry. y Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes. y It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization who are experts in these methods.

Sigma levels
y One Sigma = 31% efficiency y Two Sigma = 69.2% efficiency y Three Sigma = 93.32% efficiency y Four Sigma = 99.379% efficiency y Five Sigma = 99.977% efficiency y Six Sigma = 99.9997% efficiency