JAPANESE

MANAGEMENT
SYSTEM
 HISTORY
 Japan ruled by Tokugawa when conditions were worst
 Japan was closed from outside world for 230 yrs

 After 1868 to 1941, it started slowly creating base for

industrialization and economic development

War demolished the infrastructure, economic conditions
were suppressed and dominated by other countries
But the war accelerated the efforts of people towards
national development
SPECIAL FEATURES

People oriented : life time employment, the seniority

system and the groupism
Work oriented : production and engineering functions
including the just in time production system,
subcontracting and the quality control
Management Philosophy & Corporate Identity

The concepts of “Wa” – harmony and “service” to the

nation and the society can be found expressed in
company creed and mottoes.
“Shage” corporate constitution and “Shakun” code of
behavior are the most common forms of expressions.
 Exhibit 1 – Corporate Philosophy

¥ Principles/Objectives ¥ Service to Mankind

¥ Code of Conduct ¥ Contribution to industry a
and society
¥ Company Song ¥ Promotion of Technology
¥ Employee Diary ¥ Sincerity and effort
¥ Operational Standards ¥ Unity, cooperation and
¥ Rules of Employment harmony
¥ Improvement of standards
¥ Collective labor
of living
agreement and others ¥ Human resources
development
 Ownership Structure
Majority of the Japanese
companies are not family owned
•The owners are mainly financial
institutions and companies that are
affiliated to the same business
group
•The relationship among the group
member institutions are mutual
assistance and stockholding,
interlocking directors, HRD etc/
 Corporate Structure
Determination of corporate policy
Full support for managers and workers
External relations for favorable for
operations
General planning and friendly supervision
Facilitation pleasant work atmosphere
Kanri
Administration
Assistance for non supervisory employees
Development of self and subordinates
Positive evaluation of employee performance
Cooperation with other departments
Promotion of god human relations

On the spot planning and reporting

Facilitating workplace meetings
Leadership by good examples
Continuous improvement – technical &
human
Cooperation for productivity, quality, HR
Human Resource Management Practices

 Lifetime Employment
 Seniority Based Promotion and Wage

System
 Team culture or Groupism
 Production Management Practices

External Customer
1.Quantity needed
2.Quality perceived
3. Price affordable Internal Customer
4. Delivery time & 1. Security
availability 2. Motivation

Company
1 .Production Capacity
2. Quality of Goods and Services
3. Cost of Operations
4. Delivery timing
5.Safety
5. Morale
Production Management Practices
1. Just –In – Time
2. Subcontracting
3. Quality Control