NEW PARADIGMS Continued 1 The Japanese Approach To Management

Learning Objectives 1. Describe the core elements of the Japanese approach to management 2. Understand the key advantages and disadvantages of Japanese approach

Japanese Approach to Management Features : William Ouchi Book : Theory Z : How American Business Can Meet The Japanese Challenge Can Meet The Japanese Challenge Japanese success from the involvement and commitment of the entire workforce. Japanese success from the involvement and commitment of the entire workforce. That was built upon a internally consistent norms, practices and behavior based on trust and strong personal ties between individual and the organization That was built upon a internally consistent norms, practices and behavior based on trust and strong personal ties between individual and the organization

Peter Wickens with his book “ The Road to Nissan”, argued that Japanese approach can be characterized by 3 factors : 1. Teamwork 2. Quality-consciousness 3. Flexibility The factors can be identified by 2 categories : 1. Personal issues 2. Business practices and work systems

Personal Issue The core of Japanese approach to personnel comprises a combination of practices and policies. The Principal practices and policies : 1. Lifetime employment 2. Internal labor markets 3. Seniority based promotion and reward system 4. Teamwork and bonding 5. Enterprise unions 6. Training and education 7. Company welfarism

Business practices and work systems It can be characterized by 3 interrelated elements : 1. Long term planning 2. Timeliness 3. Quality The future of Japanese approach 1. Female workers has been significant increase 2. The strong ties which bind workers and enterprise have not weakened.

Summary 1. Individual practices that have given Japanese competitive edge 2. Policies lifetime employment 3. Japanese workers work longer hours than Western workers