Japanese Management

.. le they are working. Job rotation is also a good training. Employee will learn from a different perspective in terms of a companys need. These transfers will bring a refresher to employees and they will be able to improve their skill. The future promotion is deepening on this transfer, therefore they will not refuse it.

In figure 1, we can see the effectiveness of job rotation in Japanese firms. Effect of Job rotation, 1982 ————————————————– ————————————- It was effective: 65.8 A specific knowledge/skill was required 25.6 Knowledge/skills were broad 25. 4 Managerial ability was improved 14.8 It was not effective: 25.8 Transferred by companys convenience 21.7 It was not at all effective for improving skill 4.1 Other: 8.4 ————————————————– ————————————————– – Figure 1 Note: The data are the number of respondents in percent of those who had experienced of job rotation. Others includes “do not know”. Source: MOL 1985f, p.

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251. Japanese firm usually train their workers outside the company for the specific need. The reason is to learn about the style of management techniques, those including from the westerner. The other reason for outside training is, that there an interaction between worker from different companies and perhaps in the future between companies. The last form in training and development is the informal training and self development.

Companies usually ask employees to develop their skill by themselves. This will give a benefit for the employee. Sometimes, the companies ask the senior employee to teach younger age. 3.3 Promotion Promotion in the Japanese firms is slow but steady. Every new guy must seek the knowledge from their ownselves and from CO-worker. The company also provides the training .

The new guys must take advantage from this system. They have to earned it to get promotion, there is no fast track. Many Japanese firms used a how much merit an employee gives to a company in order to promote someone. The long employee stays in the firm, the bigger chance they get promoted to a higher rank. Even though the employee in time may get promoted, the merit from a company is the one to decide how higher they get a promotion.

This kind a system of promotion is very fit to Japanese firm because it similar with Japanese culture. The job grading system is just introduced not long ago to Japanese culture. The promotion is a very sensitive issue, therefore, the company always takes extra attention ! because an extra promotion for a person in a group environment will bring unfairness. As a result, these will not bring harmony to the company. The Japanese firms are always trying to maintain the harmony in a firms. 3.3.

Disciplinary The act for disciplinary measures is very uncommon to a Japanese firm. Japanese firms are always trying to keep social harmony in the firm which is required for a new employee respect a senior and superior, and have strict observations to a group norm. These rules are not hard for a majority of the Japanese because they are match with their own culture. There are two kinds of punishment. First is informal punishment. This punishment is to ignore a person in a group. The CO-worker will not let this person work in a group.

The company will not give promotion to this person. The second kind of punishment is formal punishment. It means that the firm must take action according to the Rules of Employment. The First stage is to give a written statement to a person. Second, the firm usually asks for a written letter of apology.

This letter has a very truthful meaning to a Japanese. The third stage is to cut them financially in period times. The final stage is to ask for voluntary retirement with retirement pension. 3.5. Quality Control The Japanese learn quality control from America.

The name of the founder is Dr. Edwards Deming in 1950s. In the beginning the quality control was the only used the department of quality control. In 1962, quality control was being used in all the department of a firm. The quality control function is already being shifted from quality control to quality assurance.

In recent years, the emphasis is going back again to company viewed quality control or total quality control. Japanese firms have used small group activity on a daily basis, approximately 60% of companies have small groups are in operation (Hideo Inohara, 1990.p 148). Since there are a lot small groups then a firm must used a secretary to control these. The secretariat will report a development of this group to higher management. The Japanese firms are successful in developing quality control because the Japanese culture and tradition are support it. For example Japanese society rejected individualism they tend to make a group.

There are several steps regarding the quality circle process. First is problem identification, problem selection, problem analysis and resolution, and solution recommendation. Figure 2 is showed the QC process. From this process, the firm allows all individuals to make a contribution for problem solving in their small group. In this way, the individuals will have a sense of participation, contribution, belongings, and they will feel confident about themselves. When the small group made a decision, then the decision have to be pass to the upper management, to be reviewed again.

The final step is to get approved by the president of the company. This system is allow the lower management and upper management have a communication through QC. Quality Circle Process Problem Identification anyone Problem Selection members only Problem Analysis&Resolution members only Solution Implementation Solution Recommendation Management members. Decision Figure 2 3.6. Non-Regular Employee In the Japanese firms the non regular employee is divided in to two categories: first temporary employees, which are employed more than a month but less than a year.

Second are day laborers, who are employed daily, but not more that a months period of time. Number of employee by period of employment 1965-87 (unit: 1,000) Regular Temporary Daily Total male female male female male female male female ————————————————– ————————————————– —– 1965 17,920 7,720 650 800 670 410 19,240 8,930 1970 20,690 9,370 600 1,020 620 470 21,910 10,860 1975 23,360 9,920 580 1,160 650 510 24,590 11,590 1980 24,610 11,050 720 1,800 630 600 25,960 13,450 1985 26,040 12,430 830 2,340 580 650 27,450 15,420 1987 26,500 12,590 920 2,500 530 600 27,590 16 ,050 Figure 3 Sources: statistic Bureau 1965, 1970, 1975, 1980, 1985, 1987a. The non-regular are treated very differently compare to a regular employee. The salaries are low, they do not have any retirement benefit. Because this kind of employee is knew and the impact for a firm is less.

The Japanese labor market is characteristic by the regular employee and non employees. They have already been discussed in previous paragraph. The hiring for a non regular employees is limited by The Labor Standards Law to be not more than a year. The regular employees are expected to stay in a firm for long time, especially male graduates. The Japanese usually are concerned with males while females are expected to work until they are married or pregnant. Even though today, Japanese firm already started to employee female as future managers but in comparison to males, female employee still way to low.

Figure 4, show the number of employment regarding to age. From this table we can see that the labor market in Japan are very competitive. Job Availability ( Job Opening/Job Applicants): Midcareer and New Graduates Employee, 1966- 1987) ————————————————– ————————————————– —– 1965 1970 1975 1980 1985 1987 ————————————————– ————————————————– —– Mid-career Employment + 19 years and younger 1.6 5.1 2.8 2.6 1.64 1.85 20-24 0.6 1.3 0.7 1.1 0.73 0.90 25-29 0.6 1.8 0.7 0.9 0.89 1.07 30-34 0.6 2.1 1.1 0.9 1.09 1.50 35-39 0.6 1.9 0.9 1.0 0.92 1.14 40-44 0.8 1.5 0.7 0.9 0.88 1.15 45-49 1.1 0.5 0.6 0.6 0.60 0.73 50-54 0.1 0.6 0.3 0.5 0.38 0.44 55-59 0.1 0.2 0.1 0.2 0.10 0.10 65-years and older 0.1 0.2 0.0 0.1 0.15 0.22 Average 0.6 1.6 0.7 0.8 0.67 0.80 New school graduates * Middle school 3.7 5.8 5.9 2.8 1.83 1.72 High school 0.6 7.1 3.4 1.9 1.60 1.53 ————————————————– ————————————————– —– Figure 4 +This includes part timers also, except for 1985. The survey was conducted separately from that for new school graduates. *No survey was conducted for four years college. Source: MOL 1965a, 1070c, 1975d, 1980b, 1985I, 1987d.

4.0. Organizational Structure The Japanese firms established themselves as not just for the economic but also to be social organization. They usually have stressed about harmony within the company and with a social society. For inside company, all workers treated as a family members to reach a harmony environment. The firm usually give a contribution to benefit in a society.

4.1. Work Place The perfect workplace for a Japanese worker is a place where lives their life. These viewed is from the though of a corporation is a big family. The successful of a family is shared by all family members. The condition of family members is being treated well. Hiroshi Takeuchi, wrote Japanese treats employee as if they were family members.

An employee who becomes crippled from an automobile accident after several years of service with the firm will continue to be employed and will no be discharged even if his work efficiency has fallen. If he dies than the company will take his wife and children will took care by the company (The Management Challenge, 1985). The system will make employee to have sense of belonging to a firm and the long term relationship will be expected. 4.2. Work System A Japanese company have a three organizational principles: market orientation, continuos innovation, and emphasis on relationship.

A customer is believed to have an important role in successfully a firms. The firm goals are to served society. Therefore a firm have to take an extra attention to customer. The Japanese also always maintained a good image from a customer. The second principle is to have a continuous innovation. The technologic and managerial are always changed rapidly, therefore, they have followed this changes through continuously innovation. The last principle is to emphasis relationship.

The important role of managements role is to develop human resource, beside to developed their skill. The managers believed that harmony is the key element to achieve companys goal. The workforce is looked as one unit. All employees are participant on decision process, not just management can be make a decision. The management and employee have a very good relationship.

The different between these two only the time of staying and merit that manager have for company. JAPANESE STRUCTURE INVOLVEMENT Corporate Objective Group Stimuli Flow of Work/ People Manager Expectation Appeal (Hints and Suggestion) (Why?(why, whom)) Help Understand Backup We (employee) Harmonics Society WESTERN STRUCTURE OF COMMAND Chairman Personal Motives Flow Authority Manager Command Instruction Do What to do Do not How to do Threat and Section Standard and Incentive Worker Action or no Action Conflicting Society Figure 5 Source: Human Resource Development in Japanese Companies by Hideo Inohara. Japanese working method is to learned from the fellow worker since there is not manual guide. A job description usually only for a general job. A company is expected a worker to develop their own skill or ask a CO-worker.

The system is very important since a firm always use a team work. A group working is always sharing anything to solve a problem. The worker must have incentive what are benefits for the group and for company. Figure 5 show the different between the Japanese management structure and the western management structure. 4.3.

Personnel Department The Personnel Department have a function as the central agency in all personnel matters. Their function is not just in the economic but also responsibility of the people who work in firm. These have two implications; On the part of employee, a development is expected by the firm. On the firms part, the firm is responsibility for the worker well being. The Personnel Department have a job in term of general administration: documentation, research, planning and budget. The Employment Regulation is the most important document and have or be registered at the local Labor Standard Office. They have to collect data about of a workers do.

They also responsible for manpower used in a company. As the result for manpower that the Personnel Department have to set up a budget for it. In term of the employment relationship, the Personnel Department have to recruiting and job assignment, training and separation, salary administration, working condition and welfare, and labor relationship. The final decision for all activities is being take by the Personnel Department. 5.0.

Summary In summary, Japanese firm is using their culture in operating of a firms. Their basic management system based on: (1) an emphasis on the group rather that the individual; (2) an emphasis on human rather than functional relationship; (3) a viewed of top managers as generalist and facilitators rather than as a decision marker. A firms always see an employee as a family members. They expected to higher an employee for long term contract.

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