Review Questions
1.Explain the concept of work place diversity with examples.
2.What factors contribute for diversity at the work place? Explain the emerging trends in the Indian corporate sector with regard to the diversity.
3.What initiatives do you propose to manage diversity in organisations? Present any anecdotes that you are familiar with either from your own organisation or any other that you have heard of.
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Lesson – 27 : Japanese Management Practices
Objectives
After studying this lesson, you should be able to:
ӹӹUnderstand The Important Elements Of Japanese Management;
ӹӹDistinguish The Japanese And American Management Practices; And
ӹӹExamine How Far Japanese Management Practices Could Be Implemented In The Indian Context.
Lesson Outline
ӹӹUnique Features Of Japanese Management.
ӹӹComparison Of Japanese And American Management Practices.
ӹӹWeaknesses Of Japanese Management.
ӹӹReview Questions.
It is anybody’s knowledge that Japanese economy was reduced to scrambles during the Second World War. The war had a devastating effect in that the whole economy had to be rebuilt from scratches. Looking back, it is quite amazing to note how Japan as a nation could achieve such a tremendous development in all the sectors of the economy in the span of about 60 years. In a way, Japan amply demonstrated to the whole world what a nation could achieve given the commitment and determination of its people. As such, there is no wonder that captains of the industry, management thinkers and practitioners all over the world began to examine the factors that contributed to the Japanese success -often described as ‘Japanese miracle’.
In the several studies conducted by the management thinkers, it was found that the secret lies in their management practices. They have developed a comprehensive system that combines structure and people in the way that when integrated with Japanese culture, generates a highly productive and efficient organisation.
Unique Features of Japanese Management
The Japan management system has three levels of attention: An overall focus, general strategies and specific techniques.
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Focus
The essence of management in large Japanese organisations is its focus on human resources. Management considers its human resources, more than its financial or physical resources. The Japanese organisations go all out to develop the human resources. Much of the Japanese management revolves around a distinct approach to personal management. Such a focus on the human resources helped the Japanese industry to achieve so much inspite of the poor endowment of the natural resources.
Strategies
The concern for human resources is manifested in three interrelated strategies. First, employees are offered long-term employment. This demonstrates the organisation’s commitment to its people. Second, the organisation’s philosophy concerning employee needs and the values of cooperation and teamwork are well articulated. Third, close attention is given to hiring new employees who fit well in the organisation and to ensuring that this fit is maintained and enhanced throughout the employee’s work life.
i. Life time employment
TheU.S.viewtowardsemployeesisthatwhentimesarebad,employees are laid off and fired. In Japan, except in the most severe economic circumstances, employees are assured of permanent employment. Usually new employees are hired fresh out of educational institutions. The organisations then train them, make promotions from their internal pool, and emphasises seniority in the allocation of rewards. Long-term employment leads to high employee morale. For the organisation, the benefits are : low employee turnover, low training costs, and high organisational cohesiveness.
ii. Organisational philosophy
Each Japanese organisation has a specific philosophy that presents a clear picture of its objectives and values. It acts as a super ordinate goal- a shared and unifying goal with which all organisational members can identify, support and place above any one person’s individual goals. A common theme among Japanese companies is a heavy emphasis on cooperation and teamwork. Members of the company are part of a family. The theme spirit and cooperation characteristic of a family are possible with the security provided by the strategy of permanent employment.
iii. Intensive socialisation
Employees once hired undergo an initial training programme, the purpose of which is to familiarise the employee with the organisation. Over a period, the employee identifies himself with the company. He is socialised very intensively.
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Techniques
i. Job rotation and slow promotion
In Japan, life-time employment means limited upward mobility. Movement is predominantly lateral through job rotation. Promotions are based on seniority.
ii. Complex appraisal system
In addition to the output, employees are appraised on the basis of traits such as creativity, honesty, seriousness, maturity and cooperation with others. Employees’ performance in the long run is given more importance, since evaluation is done not exactly on the basis of immediate performance. Employees are naturally motivated to demonstrate loyalty and commitment by their attitudes and actions.
iv.Emphasis on work groups
The Japanese system gives far greater attention to organising tasks around groups than around individuals. Autonomous work teams are constituted. Tasks are assigned to such teams and the group members of the team then decide among themselves the best way for performing the tasks.
v. Open communication
The Japanese system is inherently designed to foster open communication. Job rotation and emphasis on groups means that employees build an informal network that facilitates extensive face to face communication. The physical work setting is also designed to foster communication. People work in cubicles and in open space which facilitate interaction and open communication.
vi. Consensus decisionmaking
In the Japanese model, the manager while taking decisions discusses them to those who may be affected by the decision. When all are familiar with the proposal, a formal request for a decision is made, and as a result of the previous informal preparations, it is easily ratified.
vii. Concern for the employee
Managers spend a great deal of time talking to employees about everyday matters. They take keen interest in employees’ needs and problems. In fact, the concern for employees is one of the parameters on which managers performance is appraised. Japanese companies offer a wide range of benefits to their employees. Beyond the usual incentives, a comprehensive offering of cultural, athletic, and recreational activities are very common. For instance, an annual calendar of office events might include several overnight trips, monthly Saturday afternoon recreation, and an average of
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