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AM Lecture 1ChangeLooking at the power of the keiretsus encouraged Western companies to observe their management strategies and attempt to emulate them. However, In the 1990s Japan suffered a recession and the keiretsus' power began wane. As a result a review of management practices was required and from this flaws in Japanese management was revealed. Management features Below are some management features, many of which were copied by the West. Many of them could only work inside Japan, as management practice is closely tied to culture. It is also demonstrated how the seemingly brilliant ideas found in Japanese management are, in fact, weaknesses. Lifetime employment. In order to cope, the Japan had to employ the Western system of a mobile labour force. The concept of lifetime employment (shushinkoyo) was such that companies picked the best graduates with the theory that they grew with the company.This was replaced by temporary work and short-term contracts. Job rotation was also introduced, which was hoped to increase motivation, efficiency and give workers full insight into the company. Seniority-based promotion (nenko joretsu). There were strict hierarchical relationships. Decision-making process (ringi). Nemawashi refers to the sounding out of ideas at all levels. This slowed down decisions and is not featured in Western management practice. Ringi Seido refers to deliberations being made at the same level Just in Time (JIT). This resulted in maximum efficiency, cost-reduction, and good supplier relationships. For this to work in the West, the organisation would have to be amazingly efficient. It worked in Japan, because of the keiretsu. Total Quality Control (TQC). Quality is built into every process It is inherent, not external - it is part of the mindset of the workers. There is no need to check other people's work, as working as hard as one can is part of the culture. This means that there are very low transaction costs in a Japanese plant. It also implies that TQC would be less effective in the West, as the culture does not foster this sort of behaviour. Quality Circles. Groups of employees meet to identify and solve work-related problems. The aim of this was to encourage commitment, a sense of ownership, improved communications and motivation. Unfortunately, Sheldon and Kleiner (1990) state that this is all a myth, as workers were found to be coerced into the meetings and the idea-sharing was a cheap way of solving problems. The worker was not valued at all, they were merely seen as a way for management not to do any work. Kaizen - "The key to competitive success". This involved constant improvement and a strong focus on the customer. There is a strong expectation of loyalty here, suggesting that it does not work as well in the West, where commitment to one's job is far lower than in Japan. Suggestion system. Like quality circles, workers are encouraged to effectively put suggestions in a suggestion box. It pervades all areas of the work environment and is again another way that managers can delegate responsibility, yet still get paid.
Downsides to Japanese management Dark side of Japanese management in the 1990s
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