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JAPAN – Opportunities Galore!. Second largest economy in the world! Largest market for U.S. exporters! Firms always seeking new goods and services! Consumers very open to imported goods. Source: The World Bank. Snapshot of Japanese Culture. Self-Awareness, the Group, and Conformity
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JAPAN – Opportunities Galore! • Second largest economy in the world! • Largest market for U.S. exporters! • Firms always seeking new goods and services! • Consumers very open to imported goods
Snapshot of Japanese Culture Self-Awareness, the Group, and Conformity One of the most homogenous nations in the world Strongly aware and proud of their country High on fashion and technology “Islander” mentality Relationships take foremost priority, reflects in business too Hard work is a given, not a exception!
Snapshot of Japanese Work Culture • Only the Best is good enough • Cannot, cannot criticise in a group. Shame is almost suicidal! • For women – not the best! • Their main function of “OLs”is to be young, decorative, well dressed, and fragrant, in order to brighten up the men’s workday. In the evening they are expected to engage in mindless and frivolous entertainment.
Work Culture Business hours Weekdays Saturdays Sundays & National Holidays • Offices 09.00 - Closed Closed • Banks 09:00 – 15:00 Closed Closed • Post Offices 09:00 – 17:00 Closed Closed • Dept Stores 10:00 – 20:00 10:00 – 20:00 10:00 – 20:00 • Shops 10:00 – 20:00 10:00 – 20:00 10:00 – 20:00
Japanese Management Styles • Japanese companies, like Japanese society, are hierarchically organised with individuals knowing their position within a group and with regard to each other • Lets have a look at Canon’s Top Management Structure:
Joe Adachi President & CEO Shunuchi Azawa Executive VP & Chief Technology Officer Yuischi Ishizuka Executive Vice President & Consumer Imaging Mgmt Seymour Libman Executive President & Chief Admin Officer James Sharp Senior VP - Systems Junichi Yoshitake Senior VP & Consumer Imaging Mgmt Kunihiki Tedo Senior VP & CFO & Treasurer Country Head Head – Different functions – Finance, Marketing, etc Mid-level and below
Typical Japanese Management Styles • Some of the key practices associated with the Japanese Management Techniques are the: • In-house training of managers, • Consensual and decentralized decision-making, • Work standards, emphasis on creating harmonious relations among workers, • Lifetime employment and seniority-based compensation, • Extensive use of quality control methods.
In house Training of Managers • Recruitment - Most organizations hire their employees straight from school. • Emphasis on “knowledge” rather than “educational qualifications” • Training Methods – Mentor system taken on by mid-level & senior managers • Lifetime Employment Concept - in which an employee will be hired after the graduation and would stay in the firm until retirement. The lifetime employment system makes it probable that a firm will benefit from its investment in training, and also enables the firm to develop long-range plans for the training recruits. • Toyota Kirloskar Motor’s (TKM) young team members are regularly sent to Japan, Indonesia and Taiwan for training programs.
Consensual & Decentralised Decision Making • Collective decision-making • Ringi-sei - The circulation of consultative memorandums around a company in order to achieve consensus. • Information flow from the bottom of the company to the top. • Most policies originate at the mid-level management • Top Management plays only a “supervisory” and “encouraging” role.
Lifetime employment & Compensation • The concept of Amae • The boss owes a certain amount of protection to the employee, and the boss assumes a direct responsibility for the welfare of his employees. • The longer an employee has worked for a company, the higher his or her pay. • In return, the employee is very loyal to his or her company. • Some aspects to this "loyalty," are rather unfavorable. The employee will passively accept transfers to undesirable locations, and sometimes not take advantage of holiday entitlements
Harmony in Work Environment • Nomunication : The business practice of socializing after hours with business co-workers to establish a credibility and friendship, in order to increase business profitability • Nemawashi - Determines that agreement is sought before a formal meeting in order to avoid any direct confrontation. It is also important that group members maintain 'face' in front of other group members, which amongst other things means that people must be seen to be modest and humble.
Extensive use of high quality controls • Japanese products are know for their quality across global markets • Especially in products which require “universalization” like electronics and unlike, Food & Fashion BusinessWeek listed top 100 global brands (2008), out of which only 6 were Japanese brands • Toyota: #6, Honda: #19, Sony: #25, Canon: #36, Nintendo: #44 Panasonic: #78, Lexus (Toyota): #92, Nissan: #98 • all in electronics or automobiles!
Toyota – Example of Prime Quality • Toyota – The pioneer of Lean Production • Founded by - Engineer Taiichi Ohno • Focus on: • Eliminating waste • Empowering workers • Reduced inventory and • Improved productivity. • Toyota established partnerships with its suppliers & automobiles became made-to-order!
Ten Principles of Lean Management • Eliminate waste • Minimize inventory • Maximize flow • Pull production from customer demand • Meet customer requirements • Do it right the first time • Empower workers • Design for rapid changeover • Partner with suppliers • Create a culture of continuous improvement (Kaizen)
HR Team – Important role player • To pro-actively support management and employees in meeting their business targets by timely and effectively attracting, developing, rewarding and retaining highly committed and skilled people. • The group has over 150 members and is divided into the following areas: • The Employee Relations & Recruitment team • The Training team • The Organisation Development team supports managers on all Human Resource practices by informing, advising and coaching. • The Compensation & Planning team • The General Affairs team
Reference Links/ Notes • http://www.oppapers.com/essays/Toyota/97784 • http://www.toyotaacademy.com/news_detail.php?id=52&t=news2 • http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Toyota-confirms-new-management-under-Akio-Toyoda/articleshow/4691608.cms • Doing Business in Japan by PFK • Japan Tax Guide 2009 • The most important elements in Japanese culture – Kevin Bucknall • An American trade in Japan – Laurel Delaney
