Japanese Management Styles

The most common Japanese management styles include lifetime employment, seniority-based promotion and the wage system,
ringi, nemawashi, just in time, quality control, Omikoshi management, Kaizen, and the Five S.

Lifetime employment

The management style is mainly associated with the labour system. However, it’s not been applied in many of the companies.
Life-time employment requires large companies to hire employees after they finish their studies and keep them until retirement.
The system also states that new employees are to be chosen from the general potential. The new employees are considered human
capital, and they should be trained and equipped with all the relevant skills then assigned to the various post of the company.
Rather than hiring outsiders for managerial positions, the system advocates promoting their employees to the organizational
system.

There is no written agreement about lifetime employment, but the employees are aware that they should perform their duties well
and with loyalty. Employers, on the other hand, are not supposed to dismiss employees even in challenging economic conditions.
Seniority-based promotion and the wage system

The pace of promotion is languid; however, the promotion from lower-level to high-level positions is mainly based on seniority.
The number of years that one has worked for the company is crucial for getting a promotion. The reasoning for establishing
promotion on seniority is the positive correlation between the length of service in the same job and the knowledge and skills
acquired by the employee during that period. The wage structure is also based on seniority.
Ringi system

The system requires the low-level managers to discuss ideas among themselves before discussing them with the higher managers.
The higher managers are then required to discuss among themselves until they reach a consensus. The process continues to the
highest managers who may choose to implement the policies discussed or not. Ringi’s decision-making allows quick
implementation of policies as the people have already taken part in the decision-making.
Nemawashi

It’s participatory decision-making that entails laying down the foundation and the changes needed in the organization by talking to
the concerned people. The system works well where the company needs change. It’s the first step that the management should
take before any other formal measures. Nemawashi allows for change to be carried out with the consent of all the employees.
Just in time system

Just in time is a production technique where raw materials, labour and goods are scheduled to arrive just when needed. The main
reason for incorporating the just-in-time approach is to ensure that products are produced and dispatched in time. Just in time
approach is beneficial for the organization in the following ways it reduces the production cost, reduces the warehouse cost, and
low inventory cost. Just in time also leads to improved productivity and better quality goods.
Quality control

The management style ensures that the products produced are of high quality. The customer is the king in the business; thus, the
company needs to ensure they make products that interest the customers to improve quality by following the six management
fundamental. They include quality of goods and services, cost of production, delivery time, safety, morale, and production
capacity.

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Omikoshi management

Omikoshi management is where the middle-level management works together with the top-level management to achieve the
companies’ goals and success. It’s pretty challenging to identify the person who is the leader and one who is a junior-level
employee. Omikoshi is a shrine that young men carry on their shoulders during traditional Japanese festivals. No one knows the
direction to be followed; thus, the carriers need to determine the path they should follow.

In this type of management, middle-level management has the most power and rights. In most Japanese companies, you often find
that the top-level management and the low-class employees rarely talk. The middle class acts as the intermediaries between the
top-level and low-level management and may treat the low-level employees as they like; however, the top-level management is
usually held responsible once there is an issue.
Kaizen

Kaizen’s management style focuses on improvement and changing for the better. Continuous effort can be witnessed from the top-
level management and all staff to ensure that the company achieves improvement in all the processes and the systems. The
management follows five main principles: knowing your customers, empowering people, being transparent, letting your target
flow, and knowing what happens at every level of the organization.

The Kaizen management style is governed by the Five S, which ensures that the policies, rules, and procedures are followed,
providing that the organization has a healthy work culture.

 Making effective decisions.

 Harmonizing employment security with other needs such as productivity, flexibility in labor costs, and acceptance of
change in the company.
 Developing young professional managers.
Techniques of Japanese Management
1. Techniques of Japanese Management Francis Paul V. Jagolino, M.D.
2. Japanese Management Culture • Service to the public – by providing high-quality goods and services at reasonable
prices, we contribute to the public’s well-being; • Fairness and honesty – we will be fair and honest in all our business
dealings and personal conduct; • Teamwork for the common cause – we will pool abilities, based on manual trust and
respect; • Uniting effort for improvement – we will constantly strive to improve our corporate and personal
performances;
3. Japanese Management Culture • Courtesy and humility – we will always be cordial and modest and respect the rights
and needs of others; • Accordance with natural laws – we will abide by the laws of nature and adjust to the ever-
changing conditions around us; and • Gratitude for blessings – we will always be grateful for all the blessings and
kindness we have received.”
4. Techniques of Japanese Management • Theory Z • Quality of Work Life (QWL) • Quality Circles
5. Theory Z • A “Japanese Management Style” popularized by Dr. William Ouchi. • Theory Z focused on increasing
employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both
on and off the job.
6. Theory Z According to Dr. Ouchi, Theory Z management tends to promote: • Stable Employment • High Productivity •
High employee morale and satisfaction
7. Theory Z as an Approach to Management • Humanistic approach to management • Hybrid management approach
combining Japanese management philosophies with U.S. culture. • Places a large amount of freedom and trust with
workers • Assumes that workers have strong loyalty in both teamwork and the organization
8. Characteristics of Theory z • Long-term employment and job security • Collective responsibility • Implicit, informal
control with explicit, formalized measures • Collective decision-making • Slow evaluation and promotion • Moderately
specialized careers • Concern for a total person, including their family (Holistic Concern)
9. Long-term employment and job security (Shushinkuyo) • New employees are recruited directly from school rather than
in an open job market. • An exchange of commitment between the employer and the employee. • The employer must be
prepared to make sacrifices for the employee to ensure lifelong loyalty and commitment.
10. Collective Responsibility • The entire workforce is held responsible for failure to achieve corporate targets • “The fault
of one is the fault of all” • Trust is a key essence in ensuring that teams meet their objectives and goals.
11. Implicit, informal control with explicit, formalized measures • Employees are briefed on what needs to be done but not
specifically told how to do it. • Assumes that every employee will use their intellect, skills and ingenuity to accomplish
their task. • Despite minimal supervision, strict Key Performance Indicators (KPI) must be met.
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12. Collective decision-making • All decision making in Japanese companies is a group process. Ringi System of Decision-
making: • Newawashi (Tree Root): Preliminary and informal sounding out of employees’ ideas about a proposed course
of action or project. • Ringi Seido (Proposal, Decisions, Action): A formal process that provides the opportunity for equal
ranking managers or employees of a group within a company to partake in an individual’s idea.
13. Slow evaluation and promotion • The longer than employee stays, the more chance of getting promoted. • A major
motivation for an employee to stay in a company. • Japanese employees generally stay an average of 7-10 years in a
company before being promoted. • Affirms the company’s commitment to the employee for lifelong employment.
14. Moderately specialized careers • Traditional Japanese Career paths are more “non- specialized” allowing employees to
rotate roles and jobs on a frequent basis. • American Career paths are more geared towards “mastery of
craft/specialization” allowing little or no crossing between functional roles. • A Type Z Career path is the “middle of the
road” where employees are allowed to rotate roles but on a less frequent basis.
15. Concern for a total person, including their family (Holistic Concern) • The Japanese strongly believe that problems at
home will affect work performance. • Employees and their families are seen as one entity. • Companies usually offer
many benefits like family allowances, insurance, housing assistance and other needs for the employee and their
immediate family.
16. Quality of Work Life
17. Quality Of Work Life (QWL) • Quality of relationship between employees & total working environment • a process by
which an organization responds to employee needs • Varying from industry to industry
18. OBJECTIVES 1. To create a positive attitude  2. To increase productivity 3. To improve standard of living of the
employees
19. MAJOR ISSUES IN QWL 1. Pay and stability of employees • Employees will demand more in the form of social
security and welfare benefits • Not giving out proper salaries will affect the QWL 2. Job security • Should not have any
fear of losing their job • Systems with healthy working conditions & optimum financial security
20. 3.Occupational stress • Due to working conditions, working schedule , hypertension, irritability, conflicts etc.. •
Adversely effect employ productivity 4. Adequacy of resources • Match between resource availability & company
objectives • Leads to employee dissatisfaction
21. STRATEGIES FOR IMPROVEMENT OF QWL 1. Self managed work teams • Autonomous work group or integrated
work teams • Plan , coordinate & control activities with the help of team leader • employee participation
22. 2. Participative management • Allowed to participate in management participative schemes – quality circle • Develop a
positive attitude 3. Worker- Supervisor relationship • Social association , belongingness, achievement of work results
etc…
23. 4. Promotion • Opportunity to move in to jobs with high job satisfaction and prestige 5. Recognition • Recognizing
workers as Human beings rather than as mere employees. Performance based reward system job enrichment incentives
etc…
24. 6.Organizational health programs • Educating employees about health problems • Results in reduction of absenteeism,
hospitalization etc.. 7. Alternative work schedules • Work at home, flexible working hours, part time employment etc…
25. CONCLUSION • Quality Work Life basically is all about employee involvement, which consists of methods to
motivate employees to participate in decision making. This helps in building in good relationships • To retain a good
talent ,organizations should have low stress levels and high quality of work life.
26. Quality Circle
27. INTRODUCTION • Quality circles were originally associated with Japanese management and manufacturing
techniques. • Quality Circle is one of the employee participation methods. • It implies the development of skills,
capabilities, confidence and creativity of the people through cumulative process of education, training, work experience
and participation. • It also implies the creation of facilitative conditions and environment of work, which creates and
sustains their motivation and commitment towards work excellence. • Quality Circles have emerged as a mechanism to
develop and utilize the tremendous potential of people for improvement in product quality and productivity.
28. DEFINITION • Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together
on a regular basis to identify improvements in their respective work areas. • They use proven techniques for analyzing
and solving work related problems coming in the way of achieving and sustaining excellence leading to mutual
empowerment of employees as well as the organization. • It is "a way of capturing the creative and innovative power that
lies within the work force".
29. PHILOSOPHY • Quality Circles is a people – building philosophy, providing self-motivation and happiness in
improving environment without any compulsion or monetary benefits. • A philosophy of managing people and methods
to make this philosophy a way of life. • The Quality Circle philosophy calls for a progressive attitude on the part of the
management and their willingness to make adjustments, if necessary, in their style and culture.

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 30. CONCEPT • The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human
being, as someone who willingly capitalizes on his wisdom, intelligence, experience, attitude and feelings. • Quality
Circle concept has three major attributes: – Quality Circle is a form of participation management. – Quality Circle is a
human resource development technique. – Quality Circle is a problem solving technique.
31. OBJECTIVES The objectives of Quality Circles are multi-faceted. a) Change in Attitude From "I don’t care" to "I do
care" Continuous improvement in quality of work life through humanization of work. b) Self Development Bring out
‘Hidden Potential’ of people People get to learn additional skills.
32. OBJECTIVES c) Development of Team Spirit Individual Vs Team – "I could not do but we did it" Eliminate inter
departmental conflicts. d) Improved Organizational Culture Positive working environment. Total involvement of people
at all levels. Higher motivational level.
33. TRAINING • Appropriate training for different sections of employees needs to be imparted. • Without a proper
understanding of the real concept of Quality Circles, both the workers and management might look at this philosophy
with suspicion. • Each group should know beforehand the commitments and implications involved as well as the benefit
that can be obtained from Quality Circles. • Such training comprises of : Brief orientation program for top management.
Program for middle level executives. Training of facilitators (Train the Trainer). Training for Circle leaders and members.
34. Organizational Structure A steering committee Coordinator Facilitator Circle leader Circle members
35. LAUNCHING QUALITY CIRCLES The major prerequisite for initiating Quality Circles in any organization is the
total understanding of, as well as complete conviction and faith in the participative philosophy, on the part of the top and
senior management. The launching of Quality Circles involves the following steps: o Expose middle level executives to
the concept o Explain the concept to the employees and invite them to volunteer as members of Quality Circles. o
Nominate senior officers as facilitators
36. LAUNCHING QUALITY CIRCLES o Form a steering committee. o Arrange training of coordinators, facilitators in
basics of Quality Circle approach, implementation, techniques and operation o A meeting should be fixed preferably one
hour a week for the Quality Circle to meet. o Formally inaugurate the Quality Circle. o Arrange the necessary facilities
for the Quality Circle meeting and its operation.
37. PROCESS OF OPERATION The operation of quality circles involves a set of sequential steps as under: Problem
identification: Identify a number of problems. Problem selection : Decide the priority and select the problem to be taken
up first. Problem Analysis : Problem is clarified and analyzed by basic problem solving methods. Generate alternative
solutions : Identify and evaluate causes and generate number of possible alternative solutions.
38. PROCESS OF OPERATION Select the most appropriate solution : Discuss and evaluate the alternative solutions by
comparison in terms of investment and return from the investment. Prepare plan of action : Prepare plan of action for
converting the solution into reality which includes the considerations "who, what, when, where, why and how" of solving
problems. Present solution to management : Circle members present solution to management for approval.
Implementation of solution : The management evaluates the recommended solution. Then it is tested and if successful,
implemented on a full scale.
39. BENEFITS AND LIMITATIONS OF QUALITY CIRCLES Advantages of quality circles • Increase Productivity •
Improve Quality • Greater upward flow of information • Boost Employee Morale Disadvantages/problems with QC •
Inadequate Training • Lack of Management commitment and support • Jealousy and Envy by non-participants • Quality
Circles are not really empowered to make decisions.
40. CONCLUSION • Quality Circles are not limited to manufacturing firms only. • They are applicable for variety of
organizations where there is scope for group based solution of work related problems. Quality Circles are relevant for
factories, firms, schools, hospitals, universities, research institutes, banks, government offices etc.

Theory Z Examples

Companies that use Theory Z use job rotation, focus on training and individual responsibility. Employees are given
a chance to get to know the facets of the company and gain insight into each position to improve their skill set
Theory Z stresses the need to help workers become generalists, rather than specialists. It views job rotations and
continual training as a means of increasing employees' knowledge of the company and its processes while building a
variety of skills and abilities.

What Is Z Theory of Motivation?

Companies that use Theory Z endorse the use of the base concept as a model for motivation. Incentives include the
chance for the company and employees to bond for mutual benefit. Employees are often given lifetime employment or
tenure, and that gives them a sense of loyalty to the business. During adverse situations, the shareholders may even
forgo their usual dividends to avoid the need to lay off workers.

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Theory Y Leadership
Closely aligned with Theory Z for employees is Theory Y for management. Theory Y business leaders tend to have
positive opinions of their workforce and employ a decentralized management style. This encourages a collaborative
relationship based on trust between team members and managers.

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