JAPANESE MANAGEMENT STYLE

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JAPANESE MANAGEMENT STYLE
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WHAT ARE THE KEY ELEMENTS?

• Centralized management control
• Strong head office/subsidiary manager
  interpersonal relations
• Multiple locations
• Business strategy
• Single product focus
• Minimize costs of production
• Maintain consistently high quality output at all
  factories through standardization of best work
  practices procedures
• Diversify market segments, geographic markets,
  production location

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STRENGTHS OF STRATEGY STRUCTURE

• Qualified senior management
• Low costs of production
• Quality control
• Diversified strong market positions in
  established growing markets
• Good reputation early leader in small motors
• Good fit between organization structure
  competitive environment

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WEAKNESSES OF STRATEGY STRUCTURE

• Limited scope for continued expansion with
  existing managerial capacity
• Relative difficulty in transferring Japanese
  management style across cultures
• continued growth will be difficult long term
  problem is new competitors allowed to establish
  themselves or if existing competitors were
  allowed to grow in strength

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JAPANESE MANAGEMENT OVERSEAS

• Japanese firms more Outsider
• than firms from other countries
• Manufacturing subsidiaries average of 4
• Electronics industry mean was 5.03
• Overall average in Asia 3.25

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COMMON BELIEF

• Belief Japanese management system is so unique
  that it cannot be easily transferred overseas
  because these processes of management are culture
  bound

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HUMAN RESOURCE PRACTICES IN JAPAN FOR MANAGERS

• High wages based on seniority (including
  substantial bonuses)
• Structured managerial career paths
• Employment security (for regular employees)
• Company-sponsored welfare systems (I.e.
  subsidized housing, recreational facilities,
  etc.)
• Wide involvement of middle management in decision
  making

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HUMAN RESOURCE PRACTICES FOR LOCALLY HIRED
MANAGERS OUTSIDE OF JAPAN

• Prevailing market rates no attention paid to
  seniority bonuses rarely paid
• Employee welfare system usually absent future
  of employees depended upon the market performance
  of the subsidiary

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POTENTIAL AFFECT

• Program intended to enable the firm to maintain
  its strategy of
• minimizing costs
• occupying the maximum competitive space
• Allowing continued diversification of production
  locations
• Impact upon the firm
• Expectations from the local managers
• Communication problems since Japanese are not
  very bilingual
• Possibility of ties weakening between head office
  subsidiary

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WHAT ALTERNATIVES?

• Increase recruitment of Japanese managers
• Reduce requirements for expatriate managers
• Alleviate pressure on cost control
• Diversify upstream, out of small motors

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ASSIGNMENT

• Compare Japanese Management style with western
  management style

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Quality Guru
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• Quality Guru
• Kaoru Ishikawa
• Father of Quality Circle
• Launches Japans Quality Movement in 1960s.
• Series of Articles in his Magazine Gemba to Q
  A
• Fish Bone Diagram
• Quality circle was first piloted at Nippon
  Telegraph Cable company in 1962 - 1978- One
  Million QCs - 10 million employees.
  2000- Two
  Million QCs- 20 million employees.
• Book What is TQC?
• Given Seven basic tools for Quality- 1. Pareto
  Analysis 2.Fish Bone Diagram
• 
  3 Stratification 4.Tally
  chart
• 
  5 Histograms 6.Scatter
  Diagram
• 
  7 Control Charts
• Book Guide to Quality Control in 1974
• Binomial Probability Sampling

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Dr Genichi Taguchi
In the early 1970s Taguchi developed the concept
of the "Quality Loss Function" and by the end of
that decade was highly acclaimed in his own
country.It was not until 1980 that Western
companies, particularly in the USA began to
implement Taguchi's methods. The most notable of
these being Xerox, Ford and ITT.Taguchi had
made little impact in Europe until the Institute
of Statisticians organised a conference in London
in 1987 to discuss his methods
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Shigeo Shingo
His method, poka-yoke or zero mistakes, stops the
process whenever a defect occurs, defines the
cause and prevents the recurring source of the
defect. The method relies on a process of
continuously monitoring potential sources of
error. The machines used in this process are
equipped with feedback instrumentation that
identifies errors before they become defects, so
remedial action can be taken
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WHAT IS TQM ?

• T TOTAL
• Q QUALITY
• M MANAGEMENT

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WHAT IS TQM ?

• T TOTAL

• ALL FUNCTIONS / AREAS / DEPTTS.
• ALL ACTIVITIES
• ALL EMPLOYEES
• ALWAYS
• AT ALL PLACES

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WHAT IS TQM ?

• Q QUALITY

QUALITY DOES NOT MEAN MERELY QUALITY OF PRODUCT,
SERVICE WORK BUT QUALITY OF A COMPANY
WHAT IS QUALITY OF A COMPANY ?

• CONSTANT AND CONTINUAL APPROPRIATE PROFIT GAIN
• EMPLOYEE SATISFACTION (INCLUDING SELF
  REALISATION)
• CUSTOMER SATISFACTION
• SHAREHOLDER SATISFACTION
• AFFILIATE COMPANY SATISFACTION, AND
• SOCIAL SATISFACTION.

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WHAT IS TQM ?

• M MANAGEMENT

MEANS MANAGEMENT WHICH ACTUALLY MEANS AN
INTEGRATED AND CONTINUAL ACTIVITY TO RAISE
QUALITY OF A COMPANY AT COMPANY-WIDE LEVEL.
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TQM DEFINED

• TQM IS A COST EFFECTIVE SYSTEM FOR INTEGRATING
  THE CONTINUOUS QUALITY IMPROVEMENT EFFORTS OF
  PEOPLE AT ALL LEVELS IN THE ORGANISATION TO
  DELIVER PRODUCTS AND SERVICES WHICH ENSURE
  CONSUMER SATISFACTION.

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What Does Kaizen Mean?

• KAI ZEN
• To modify, to change Think, make good, make
  better
• KAIZEN
• Make it easier by studying it, and making the
  improvement through elimination of waste.

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Just-In-Time (JIT)

• JIT an integrated set of activities designed to
• achieve high-volume production using
  minimal
• inventories of raw materials, finished
  goods
• work in process.
• Management philosophyNothing produce until
  needed.
• Encompasses the successful execution of all
  production activities required from design to
  delivery of products.
• Common sense based/simple techniques

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Knowledge Worker

• Knowledge worker, a term coined by Peter Drucker
  in 1959, is one who works primarily with
  information or one who develops and uses
  knowledge in the workplace.
• Also called as intellectual worker or brain
  worker
• A Knowledge Worker's benefit to a company could
  be in the form of developing business
  intelligence, increasing the value of
  intellectual capital, gaining insight into
  customer preferences, or a variety of other
  important gains in knowledge that aid the
  business

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Knowledge Worker

• A knowledge worker is anyone who works for a
  living at the tasks of developing or using
  knowledge.
• For example, a knowledge worker might be someone
  who works at any of the tasks of planning,
  acquiring, searching, analyzing, organizing,
  storing, programming, distributing, marketing, or
  otherwise contributing to the transformation and
  commerce of information and those (often the same
  people) who work at using the knowledge so
  produced.

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Knowledge network of knowledge workers

• Knowledge workers work in an environment
  described as a knowledge network.
• Popper (1963) states there is always an
  increasing need for knowledge to grow and
  progress continually, whether tacit or explicit.
  Knowledge grows like organisms, with data serving
  as food to be assimilated rather than merely
  stored.
• All knowledge workers, particularly RD project
  managers, need to easily access and search
  internal and external knowledge bases

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Management of knowledge workers

• Knowledge workers are believed to produce more
  when empowered to make the most of their deepest
  skills
• they can often work on many projects at
  the same time
• they know how to allocate their time
  and
• they can multiply the results of their
  efforts through soft
• factors such as emotional
  intelligence and trust.
• ? Organizations designed around the knowledge
  worker (instead of just machine capital) are
  thought to integrate the best of hierarchy,
  self-organization and networking rather than the
  worst. Each dictates a different communications
  and rewards system, and requires activation of
  knowledge-sharing and action learning.

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The Knowledge Age

• The third wave of human socio-economic
  development is described by Charles Savage in
  "Fifth Generation Management." The first wave was
  the Agricultural Age with wealth defined as
  ownership of land. In the second wave, the
  Industrial Age, wealth was based on ownership of
  Capital, i.e. factories. In the Knowledge Age,
  wealth is based upon the ownership of knowledge
  and the ability to use that knowledge to create
  or improve goods and services. Product
  improvements include cost, durability,
  suitability, timeliness of delivery, and
  security.
• In the Knowledge Age, 2 of the working
  population will work on the land, 10 will work
  in Industry and the rest will be Knowledge
  Workers

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Hierarchy of knowledge Work

• Knowledge work, ranges from tasks performed by
  individual knowledge workers to global social
  networks. This framework spans every class of
  knowledge work that is being or is likely to be
  undertaken. There are seven levels or scales of
  knowledge work.
• Knowledge work, (e.g., writing, analyzing,
  advising) is performed by subject-matter
  specialists in all areas of an organization.
  Although knowledge work began with the origins of
  writing and counting, it was first identified as
  a category of work by Drucker (1973).
• Knowledge functions (e.g., capturing,
  organizing, and providing access to knowledge)
  are performed by technical staff, to support
  knowledge processes projects. Knowledge functions
  date from c. 450 BC, with the Chanakya, but their
  modern roots can be linked to the emergence of
  information management in the 1970s
• Knowledge processes (preserving, sharing,
  integration) are performed by professional
  groups, as part of a knowledge management
  program. Knowledge processes have evolved in
  concert with general-purpose technologies, such
  as the printing press, mail delivery, the
  telegraph, telephone networks, and the Internet.

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Hierarchy of knowledge Work

• Knowledge management programs link the generation
  of knowledge (e.g., from science, synthesis, or
  learning) with its use (e.g., policy analysis,
  reporting, program management) as well as
  facilitating organizational learning and
  adaptation in a knowledge organization. Knowledge
  management emerged as a discipline in the 1990s.
• Knowledge organizations transfer outputs
  (content, products, services, and solutions), in
  the form of knowledge services, to enable
  external use. The concept of knowledge
  organizations emerged in the 1990s.
• Knowledge services support other organizational
  services, yield sector outcomes, and result in
  benefits for citizens in the context of knowledge
  markets. Knowledge services emerged as a subject
  in the 2000s..
• Social networks enable knowledge organizations
  to co-produce knowledge outputs by leveraging
  their internal capacity with massive social
  networks. Social networking emerged in the 2000s.

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Corporate Social Responsibility

• Corporate Social Responsibility (CSR) is a
  concept which encourages organizations to
  consider the interests of society by taking
  responsibility for the impact of the
  organization's activities on customers,
  employees, shareholders, communities and the
  environment in all aspects of its operations.
• This obligation is seen to extend beyond the
  statutory obligation to comply with legislation
  and sees organizations voluntarily taking further
  steps to improve the quality of life for
  employees and their families as well as for the
  local community and society at large.

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Corporate Social Responsibility

• There is no universally accepted definition of
  CSR. Selected definitions by CSR organizations
  and actors include
• World Business Council for Sustainable
  Development
• "Corporate Social Responsibility is the
  continuing commitment by business to behave
  ethically and contribute to economic development
  while improving the quality of life of the
  workforce and their families as well as of the
  local community and society at large"
• Mallen Baker
• "CSR is about how companies manage the
  business processes to produce an overall positive
  impact on society."
• CSR Asia
• "CSR is a companys commitment to
  operating in an economically, socially and
  environmentally sustainable manner whilst
  balancing the interests of diverse stakeholders."
• International Finance Corporation
• "Corporate social responsibility is the
  commitment of businesses to contribute to
  sustainable economic development by working with
  employees, their families, the local community
  and society at large to improve their lives in
  ways that are good for business and for
  development
• European Commission "A concept whereby companies
  integrate social and environmental concerns in
  their business operations and in their
  interaction with their stakeholders on a
  voluntary basis."

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Corporate Social Responsibility

• Dr. Reddy's corporate social responsibility -
  Truly sustainable ...
• Corporate social responsibility - Dr. Reddy's
  believe that any high performance sustainable
  organization rests on the three pillars of
  economic, social and Emplioyees.

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ITCs e-Choupal

• e-Choupal also unshackles the potential of
  Indian farmer who has been trapped in a vicious
  cycle of low risk taking ability gt low investment
  gt low productivity gt weak market orientation gt
  low value addition gt low margin gt low risk taking
  ability. This made him and Indian agribusiness
  sector globally uncompetitive, despite rich
  abundant natural resources.

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Corporate Social Responsibility

• Infosys Foundation, the philanthropic arm of
  Infosys Technologies Ltd., came into existence on
  4th December 1996 with the objective of
  fulfilling the social responsibility of the
  company by supporting and encouraging the
  underprivileged sections of society. In a short
  span of time, the Foundation has implemented
  numerous projects in its chosen areas. The
  Foundation has undertaken various initiatives in
  providing medical facilities to remote rural
  areas, organizing novel pension schemes and in
  aiding orphans and street children. It has
  undertaken a large rural education program titled
  "A library for every school" under which 5500
  libraries have been set up in government schools
  spread across many villages. Other activities
  include the reconstruction of old school
  buildings, setting up of rural Science Centers
  and schemes to provide support to dying
  traditional art and culture forms

• THE SOCIAL COMMITMENT
• NTPC believes in growth with a human face, and
  pursuing people-centred development. NTPC is a
  socially committed organisation and a socially
  responsible corporate citizen. It attaches great
  importance to discharging its overall social
  responsibilities to the community and the society
  at large where its projects and stations are
  located. In this regard Resettlement and
  Rehabilitation (RR) program becomes an area of
  sharp focus, a program that addresses people
  affected directly or indirectly in the wake of
  the projects undertaken by NTPC.

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Corporate Social Responsibility
The term 'corporate social responsibility' or
sustainability is of relatively recent vintage.
Not so the philosophy of social responsibility
that underlines the Tata way of conducting its
businesses, and the manner of its interactions
with all the constituents that come under the
canopy of corporate social responsibility. The
multitude of initiatives the Group has nurtured
from its earliest days flows from a wellspring of
voluntary, as opposed to obligatory commitment
Principles first
An implicit sense of ethical business conduct has been the cornerstone of the Tata way in the corporate governance sphere. On issues ranging from customer care and business excellence to financial propriety and more, explicit rules and regulations supplement the traditional values on which the Tata Group companies has been shaped.
A feel for people
With some 2,46,000 members in its diverse and widespread family, the Tata Group is more than just another employer. The Group's many pioneering initiatives to benefit and empower employees have few parallels anywhere in the world, and it has blended its traditional benevolence with evolving human resource methodologies to deliver a whole lot beyond mere jobs
Green at heart
The Tata ethos places a special emphasis on environmental and ecological issues. The Group's efforts to preserve and regenerate the environment find expression in the slew of projects and programmes in has undertaken in and around its facilities and operations.
Caring and sharing
From health and education to livelihoods and women-children welfare, from tribal hamlets in Jharkhand and the rural outback of Gujarat to the high ranges of Kerala and disadvantaged villages in Andhra Pradesh the community work being undertaken by the companies and trusts of the Tata Group touches a multitude of Indians across the land. Beyond purely social work, this support extends to individuals and institutions pursuing artistic and sporting excellence.
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Assignment

• Discuss CSR with the examples of minimum 5
  different organisations.

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Thank you