History of Japanese HRM Business Culture

History of Japanese HRM 
HRM in the period of 1960s to 1980s

- µPeople oriented¶ HRM systems - Long term contracts - High investment in education & training - µRed carpet¶ benefits to employees - Ability based grade system - Seniority based pay and promotions  HRM from1990s - µPerformance oriented HRM systems - Fujitsu Company Limited, Nikko Securities Company - Standard labor law, 2000

Business Culture Product Work style People customers quality .

People .

Screening of people is done on 2 principle criteria: 1. What is the applicants potential. . Does the person really want to work for the organization.Recruitment Selection of personnel is the most important phase for quality & continuous improvement. 2.

.Lifetime employment Once accepted for employment. The employees do not consider leaving an organization even if he could get a substantially better position & salary. the Japanese workers are guaranteed employment for lifetime with the company. This gives the organization the advantage of stable & experienced workforce.

.  Salaries in Japanese companies are relatively low for younger employees.Seniority (Wage) System  Life time employment is strongly tied to promotions and pay raises.  Many companies do not recognize previous work experience when workers switch jobs (so far few people change jobs). but rise when the employee reaches his/her midthirties.

.Financial incentive to be innovative The organizations in Japan give adequate financial incentive for employees who come up with innovative ideas for improving quality & productivity.

promise of upward mobility within the company. access to employee cafeteria and holiday trips. home loans for newly weds. the perks include housing for unmarried.Importance of the individual Japanese organizations have true & genuine concern for people. This is reflected in most of their organizations and is the first & foremost objective for achieving continuous improvement. . Besides healthy bonus.

.Company loyalty Many mistakenly believe that company loyalty is achieved by much publicized Japanese exercises. products. bottom-line & share holders but also about them. motto repetition or vision statements. It goes much deeper & broader. It consists of a working relationship in which workers recognize that the company is concerned not only about customers.

Work Style .

they meet their workers. . Many times the top management is on the shop floor. The top management is personally involved in all the areas of quality improvement. observe what they are doing & converse and resolve their problems.Involvement of Top management The top executives of all Japanese firms wear the same uniform as their workers.

This also relieves monotony and instills fresh enthusiasm in the employees which is regarded as an important motivating factor to obtain continuous good performance.Job rotation In Japan workers are rotated in different jobs irrespective of their qualifications. . The employees tend to view all the problems with a fresh perspective and do not have a biased attitude. This is beneficial both for the management & the employees.

Thinking about new ideas in most of the organizations is thoroughly encouraged. . They believe that unless you have an inquiring mind. continuous improvement is not possible.Very important to have an inquiring mind The Japanese organizations inculcate in their employees the quality of an inquiring mind.

people and other natural resources in Japan are so limited that all Japanese workers have been taught to exploit them with great care & diligence.A classical example of the positive influence of adversity.Attitude to Excel under challenge Japan with its limited space & scarcity of resources has been able to make the most of whatever it has. This colors the Japanese workers efforts to excel with whatever little they have . Space. .

 Training happens via Japanese knowledge management styles creating highly skilled generalists On-the-job training (OJT) Job rotation .  Educators are the older employees and senior managers. the employees become more & more living assets who can be shifted to new responsibilities & higher positions.Commitment to training  The company believes that as you invest more & more in training.

Consensus management  RINGE system Section X Section Y .Decision making .

Their investments aim for growth over a long period of time.Long term management outlook Most of the decisions taken by the Japanese organizations are long term in nature. .

.Competitive spirit Competition in Japan is taken as an opportunity to improve. More and more Japanese companies benchmark their products with the global leaders in quality.

Product Quality .

000 hrs. . At a Sony factory one could see a color T.V was still producing an acceptable picture. and the T.000 operating hrs with no adjustments or repairs.Zero defect policy Zero defect is a well understood & practiced quality standard of Japanese industry. The Industry standard is 10.V that had been operating 8 hrs a day for over 37.

Each worker is empowered to stop the production line if something goes wrong and they do not fear reprisal for interrupting the production line. In Toyota plants every workstation has a line stop button. .Quality supersedes production In almost all the Japanese organizations quality supersedes production.

upplier quality Poor quality work is not accepted from any supplier and definitely means an end of relationship with the organization. The supplier is considered to be an integral part of the organization. The organizations also conducts training program for their suppliers and takes interest in continuously improving their products & services as well. .

Effectives Techniques  Just in Time inventory  Kaizen  Six Sigma  Fool proofing .

Customers .

.Global reach Japanese had a very clear vision of developing products for the global market from the very beginning. They made fast improvements on those products and offered to customers at the most affordable price. They were quick in identifying the disadvantages of some of the important products manufactured globally. Electronics and Automobiles are live examples.

Attention to detail From design & production to packaging & delivery the Japanese pay lot of attention to details for customer satisfaction. .

The U. .S auto manufacturers failed to perceive that the 1972 fuel crisis would have a real impact on the customers and they continued to manufacture large fuel inefficient cars.Market research Most of the organizations in Japan have risen to eminence because of excellent market research . The Japanese saw the need and came out with small fuel efficient cars which met with great success.determining what consumers want and giving it to them.

S. reliability and preference. not something shoddy.S. companies have failed at . market and distribute directly We will succeed with innovations that U. .such as transistor radio 50 years from now our brand name will be as well known as any in the world and will signify innovation and quality that rival most innovative companies anywhere Made in Japan will mean something fine.Examples: Sony: We will create products that become pervasive around the world We will be the first Japanese company to go into the U. Within no time the country has transformed its Made in Japan label from cheap to the one signifying quality.