CHAPTER 3 APPROACHES TO ORGANISATION AND MANAGEMENT
97
This quote reveals much about employee suggestions, team-
work, and consensual management. Employee suggestion
schemes in the West once thought to have some use are, in
fact, essential. In addition knowledge must be distributed
throughout the organisation.
93
CAN JAPANESE MANAGEMENT BE APPLIED
INTERNATIONALLY?
Critics of Japanese management point to difficulties in apply-
ing Japanese management techniques internationally due to
cultural and historic factors. Either the absence of team factors
or historical factors are seen as preventing the assimilation of
HRM practices from Japan. However, recent research by the
DTI has found that a synthesis of Japanese and European
practices was present in the best performing UK
organisations.
94
Findings are shown in itemised form below:
■ All staff shared in business planning;
■ People are continuously developed;
■ Communication is three way: up, down and across;
■ Employees work in teams, co-operation is between teams
as well as within them.
Readers are left to form their own opinion of the value of
international human relations!
There is a lot of evidence to support the transfer of
Japanese management internationally. Yet within these
organisations Japanese concepts are not all applied whole-
sale.
95
How many companies follow the practice of morning
company exercises or sing the company song? In reality only
certain aspects of Japanese practices have transferred. Chief
amongst them is ‘teamwork’. Many organisations rate this
factor as an essential in job descriptions nowadays. However,
the model used is a derivative of the Japanese model.
Similarly ‘Just In Time’ (JIT) is just one aspect of the ‘Kanban’
or card assembly system in car production. This seeks to
match parts supply rate with production rate with sales rate
or what we refer to now as material requirements planning.
Target cost management within companies is now part of
strategic accounting, yet many organisations in the UK are
not using these techniques. Externally to a company, cost
reduction via management of the supply chain is only recently
gaining in importance.
Training and an educated workforce
An idea of the emphasis Japanese companies place on the
correct mental attitude and skill level may be gauged by their
attention to training, as mentioned above. In addition and
especially in the case of overseas divisions, company pro-
grammes are designed ‘to re-educate’ their prospective
workforce. At Matsushita specific efforts are focused to instil
‘team effort’ and an ‘egalitarian ethos’. This tends to have an
adverse reaction on American employees, for example, who
are used to individual responsibility and advancement.
96
Another important difference concerns ‘information dis-
semination’. At NEC in Scotland employees were surprised at
the need to attend daily meetings. This allows everyone to be
informed and to express opinions and to be involved.
97
It
appears that for successful introduction of Japanese man-
agement techniques, two requirements are training and an
educated workforce. In Mexico, the absence of education in
some Japanese plant locations led to high turnover of
employees and only partial implementation of Japanese man-
agement techniques.
98
In the case of quality circles, when a quality leader
emerged other members of the team would not accept that
person as leader. Hence the concept had to be changed to
‘Mariachi circles’. The hidden acceptance was due to the fact
that ‘Mariachi’ musical bands in Mexico do not have a leader.
Research into ‘Maquiladoras’, that is, Japanese overseas
divisions in Mexico, regarding the adoption of Japanese man-
agement techniques, found that initially they were low skilled
locations which did not use advanced manufacturing tech-
niques. However, in recent time consumer electronics
companies were found to be using advanced techniques.
99
RECENT CHANGES IN JAPANESE MANAGEMENT
Important changes in the Japanese economy have exerted
an influence on Japanese management. The question is
now whether or not the once-heralded practices can them-
selves adapt.
The labour market in Japan has had to adapt to cost cut-
ting within industry.
100
This has affected the conditions
underpinning lifetime employment. Companies have had to
shed labour in addition to early retirement. Women have also
been discriminated against as part of cost-cutting plans.
Companies have decided to outsource some business func-
tions such as accountancy and to take on temporary
employees. Another casualty has been middle management.
Typically this has been large in Japanese companies. As a
result middle managers are joining ‘unions for management’.
In addition, the tradition of promotion for length of service is
giving way to performance remuneration.
101
The advent of the
global economy means that shareholders can now exert influ-
ences on business and its performance.
Against the arguments concerning the impacts of labour
surplus and company cost cutting, it is often mentioned by
demographers that Japan’s ageing population may soon rec-
tify the imbalance of work availability, volitionally. Culturally it
should be remembered that Japanese people do not like
changing jobs. They view with suspicion anyone who
changes jobs frequently (if at all). They regard it as shameful
to switch one’s loyalty to another company.
102
Legally the Employment Security Law of 1947 forbade
employers from advertising for labour and from hiring any
worker whose job change required a change of residence.
103
However, the presence of temporary, short-term employment
bureaux is an example of the way in which economic conditions
are forcing companies to rethink their employment policies.
An interesting approach to overstaffing has been to move
employees to suppliers, ‘Shukko’. As mentioned previously,
suppliers owe an obligation to their parent company. Hence
they accepted these surplus workers but at a reduced salary
level. Those in this category included middle managers over
55 years of age, surplus technical managers and workers
from curtailed production lines.
104
This in turn has led to ten-
sions between the accepting supplier companies called
‘ukezara’ and the parent companies. The former comment