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Principles of Japanese management

What are its bases?

Summary:  This is the twelfth part of the Japanese corporate organization study.  I started off with a perspective on the Japanese corporate restructuring and potential scenarios for the future of Japan.  Then I provided a brief outline of the history of modernization of Japan.  I also alluded to the transition underway in Japanese business and society.  Then I discussed how the Japanese employers are reconsidering traditional compensation systems and replacing them for young workers with more performance oriented models.  After that I pointed out all the new trends in employment and labor and how this is upsetting the traditional corporation.  That has led to redefining of the employer employee relationship in Japan and I have argued that Japan is at crossroads.  That is why I discussed the case of Pioneer Electric Company that failed in efforts to become more efficient and profitable because it could not layoff workers.  Subsequently I went into the details of the Japanese management system, how it developed, and why managers behave the way they do.  Below are highlights of Japanese management principles.
Emphasis on the Group

In the corporate world, the Japanese enterprise becomes a social as well as economic group that is quasi-tribal and permeates the lives of its employees. A Japanese company is regarded as a community with a common destiny. It is able to elicit worker attitudes similar to school spirit, patriotism, and religious fervor. Group cohesion is buttressed by several other means like morning calisthenics, company songs, and recitations of the company creed. An emphasis on broad social goals and service to society further enhances group consciousness. They also emphasize a united company spirit through company traditions, history, atmosphere, and discipline. The strength of the group identity gives rise to some interesting operations characteristics of Japanese business.

Emphasis on Human Relationships

In Japanese companies, the permanence of the group forces managers to place more emphasis on people than on the system. They place great weight on the quality of the people in the organization and on maintaining harmonious relationships among them. This emphasis on human relations can be seen in careful recruitment practices, a concern for the whole employee, harmonious resolution of conflicts, and ambiguity in expressing differences, which minimize hurt feelings and allows for face saving.



Managers as Generalists

In Japan, top management is rich in experience and has been with the company for long time. Managers tend to be generalists and facilitators - much like the elders of a tribe. Actual decisions tend to be made by middle managers after consultation with superiors and then circulated for final approval. Responsibility is widely dispersed, and the system is highly flexible.  In addition to obvious cultural uniqueness of Japan, the following considerations could also be important:

 

Related:  History of the Japanese management system evolution

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