Management Effectiveness In Japan

We will now give a clear and concrete example of effective governance. The Japanese miracle in the economy is incomprehensible to many. Governance in Japan has ushered in management methodologies such as Kaizen, Kanban, Lean, and many other techniques that we now call Agile methodologies and productive practices.

After the end of World War II, the Japanese economy underwent a radical transformation. Important to its development is the decision of the Allies / rather the US Government / to lift the ban on the existence of large Japanese enterprises. This restores the "two-storey structure" of the Japanese economy, that is, the presence of a large and small business. A rapid growth in important industries such as mechanical engineering, metallurgy, electrical engineering and so on begins. At the top of each industry stands a large firm, beneath it there are many smaller ones that have subcontracted relations with their larger sister. Below are second- and even third-party companies that are in business contact with each other. In a nutshell, this is the skeleton of Japan's vertical economy. These groups are called "keiretsu". Paying for larger companies is better. Naturally, working conditions are at a higher level, leave is higher and there are other preferences. That is why more skilled workers work in large enterprises. Of course, large companies have programs to attract professionals from elite universities and high schools.

There are different categories of staff across the board: depending on the nature of the hiring relationship, they are permanent and non-permanent employees. The latter are mostly women who work about 4-6 hours a day. The seasonal, seconded, as well as students, are part-time workers, something typical for Bulgarian students. Former permanent workers over 55 years of age are unstable. Interestingly, women are hardly hired as permanent assistants because it is customary for a woman in Japan to work until she is married and only when her presence at home is unnecessary to start working again. Women earn significantly lower salaries than men, even when working as full-time workers. With this apparent discrimination, Japanese law is trying to deal with a series of laws.

The opportunity to accumulate large capital in Japan is due to cheap labor. In the 1960s, a Japanese worker was paid 7 times less than an American worker. Today, the Japanese take more than their American counterparts. In addition, the Japanese work the most hours in the world. Compared to countries like the United States and the United Kingdom, Japan's average hours are around 200 hours, which is 25 working days if we consider the working day to be 8 hours. However, due to strikes or other irregularities, the hours were reduced to a solid figure of 2189 for 1988. But it should be noted that labor conflict is one of the smallest in the world. Some Japanese scholars explain this fact with the presence of a national spirit and consciousness formed under Buddhist and Confucian ideas. This explanation strikingly resembles Max Weber's theory of the emergence of industrialization under the influence of Protestant ethics. More important, however, is the focused management of Japanese management in creating a corporate personnel management mechanism.

The mechanism is new, as the old one (before the war) turns out to be wrong and inferior. The system of governance becomes complete in the period 50-60 years of the XX century. It is introduced by all Japanese companies. For comparison, in American companies, the supreme governing body is the general meeting of shareholders and the board of directors. If the detectors have more shares in total than the others, the general meeting is dropped. In Japan, shareholders rarely part with them, in other words, shareholders are an extremely stable contingent. On the soil of this reciprocity, there is also control over the supreme authority.

Kaizen and skilled workers

Kaizen is a popular term today describing efficiency in the product line an product development practices and manufacturing activities. Japan is characterized by the creation of a core of highly skilled workers with a work ethic and culture-specific to the company. Each enterprise has a long-term strategy that addresses the personal development of the "company worker". The policy of each company is aimed at long-term profit, which will be easier to achieve through the work of "permanent associates". Typically, senior executives rise from within the company, any worker can become president in their company. As a rule, it holds a maximum of 2-3 terms but develops a development plan for 10-20 years in advance. This builds a solid foundation for those who come after it. A guarantee for the company to flourish is, of course, profit. To this end, we are working on a long-term perspective. In this sense, every general manager works. As I noted above, anyone can rise to senior management, with his career being closely monitored. It involves going through all levels of government. Almost all directors of Japanese companies are around 60-65 years old.

The decision-making system

The decision-making system has two varieties - one and a collective. For the US and Europe, decisions are often one-to-one, while Japan's decisions are often collective in nature, called "ringing this." The decision-makers require lower-level project managers to discuss a written project that can be discussed within the units concerned. In this way, the staff becomes involved in management decisions. This is undoubtedly a stimulating factor for workers, and the decisions are timely and adequate. Decisions are not made in special meetings (which would take too long), but are made in a flash without much delay. Ringi sei is not absolutely mandatory. After careful consideration, the President adopts the best project. The management scheme also includes trade union organizations whose presence requires a flexible policy towards the human factor in production. Interestingly, each company has its own union.

Long-term goals

Each company associates its long-term goals with the interests of the company. Initially, Japanese companies had strategies to hire new permanent employees. Each candidate has been carefully researched long before being appointed. The following is an interview that examines the applicant's personality, family, health, general culture and the type of work he or she is seeking. The close connection between the employee and the company is through his future career. In general, the worker changes several types of work and by 15 years of his / her internship, he/she already has 2-3 occupations, which may not even be related to his / her previous training. This creates an internal market for a hand-held company. The associate's career is directly related to the principle of "life-long rent".

Workers Grading System

Each worker goes through a system of grades. For example, Sony develops three main activities: sales and marketing; production; technology and research. Each worker can be raised in all three directions if he or she meets the relevant requirements. Similar is the pattern with other companies. It's common for everyone that every beginner starts from the lowest place with the lowest salary. In the beginning, the worker receives a training course in administrative and technological practice, while further improving the skills of the employee. This course is compulsory, also observing the relevant period during which the trainee must "stay". Production associates have the lowest rank corresponding to their secondary education. But everyone has the opportunity to rise in the company hierarchy. Reference: Google Books

This happens only when the person applying for a post meets the strict project requirements. The procedure is as follows: within one year from the end of the promotion period, the worker submits an application. It is approved or not on the basis of an evaluation by the immediate supervisor. An independent assessment of compliance is then followed. Those who have exceptional capabilities do not wait for one year, but they must pass the special exam plus the traditional compliance test. The assessment is determined by two people - the immediate supervisor and a representative of the personnel department. The assessment is by no means trendy because it is formed by 2 independent sources. Naturally, with the increase in rank, the pay increases. It increases reciprocally and with an increase in an internship in the company.

If the worker moves to another company, the worker starts from scratch. That is why every worker additionally strives to work in an enterprise, and the opportunity to rise in the hierarchy makes him diligent and conscientious in his activity. Vacancies are announced in a competition, in which anyone can participate if he meets the relevant conditions. This automatically leads to further self-improvement and worker efficiency. It is significant how companies encourage their workers by setting up temporary groups to solve specific problems. As the group is temporary, with almost no bureaucratic impediments, the task is one for everyone, which in turn allows for the free expression of abilities, thus also promoting the internal stimulation of competition between the members of the group. This undoubtedly leads to professional growth, with conflicts almost eliminated as the group is temporary and people are from different divisions.

Agile and Kaizen is the responsibility, practical skills, and habits

Agile project management and Kaizen also promote responsibility, practical skills, and habits. This is the very essence of the Agile methodologies today and the origin of Scrum, Kanban and more. Kaizen aims primarily at self-esteem in the worker, a sense of responsibility, practical skills and habits, and even improving his physical fitness. This is followed by on-the-job training - this allows for the aforementioned promotion or job rotation. Most proficient professions make the associate capable of practically managing or replacing himself if needed by his colleagues. The training program is divided into 6 levels: 1. Acquisition of basic skills and knowledge; 2. A thorough understanding of the type of work entrusted; 3. Understanding to the highest extent / in detail / the work plus the ability to troubleshoot problems; 4. In case of unforeseen problems to come up with the necessary plan; 5. Possibility for improvement and efficiency of production; 6. Ability to anticipate prospects and properly link them to work outcomes. In Honda, a Level 5 employee is responsible for the rank of foreman or manager, and a senior technologist at Level 6. Training can also be provided not at the workplace itself, but the level at both places is at an exceptional level, even better than the university level. The training is regulated in the relevant documentation by the respective project manager. Reference: Project Management roles

Linking of the interests of the personnel with the long-term goals of the company

The linking of the interests of the personnel with the long-term goals of the company is enhanced by the "internal social security system".

The modern Agile teaching of BVOP also promotes this idea by establishing a special culture oriented to both people and the organization. Reference: BVOP.org

Most important is the provision of housing for permanent workers. To this end, companies lend long-term low-interest loans or accommodate people in hostels. Japanese companies scare off health insurance, drop money for big family holidays, own sports bases, vacation spots, etc. A Japanese mining company owns a cemetery. "This helps build the conviction among the workers that they are one," says the head of the company.

This employee involvement in the interests of the company is of general social importance. Attracting employees to the long-term prospects of the company is done through 3 types of participation: 1. System for participation in the ownership of the company - providing shares; 2 System for participation in the management of the company; 3 System for participation in the distribution of profits. All workers receive a six-month bonus. There are also separate cash incentives.

Mechanisms for linking the purposes of production to the interests of staff.

Each company sets up "quality control groups" -GCC. It is made up of people from the production itself. The group is managed by the unit manager. In solving the problems, a specific problem manager is appointed separately, who studies and develops the problem. Individual group members take a course in gathering information on problems. The group is in constant contact with others. At conferences that may be national, the best are awarded prizes. Each quality control group strives to become a permanent generator of workplace innovation. That's why production in Japan is so impressive. In addition, advisory committees are being set up to assist quality control groups in solving complex technical tasks. Thus, further the educational level of the members of the group, the production habits, the connection between people improves, the creative work becomes more active. The activities of the quality control groups further increase not only the quality but also the number of products produced. Reference: Quality control and quality assurance in Project Management and Agile practices

Integration into the Japanese type of personnel management system is also played by "informal groups". They include associates who meet outside working hours in cafes, community clubs. This is where conflicts are smoothed, confidence is created, and the climate at work and out-of-work experiences are generally improved.

Each company has systems for evaluating the results of the employee's employment. Assessments are often of two types: 1. Assessment by the supervisor, the personnel department, and the administrative management of the form. The results of work are evaluated - workload, quality and a special paragraph for carrying out optional activities. It also assesses attitudes towards work responsibilities - work discipline, group work, activity, and independence. Striving for development and growth - self-development, activity efficiency and finally specific manifestations and results. This is how the company pays a lot of attention to each of its employees, it evaluates its personality, gives it the opportunity to develop, takes care of its domestic disturbances. In addition to all of them, the worker makes a self-assessment. This is the feedback between a subordinate and a supervisor, from which the latter gets an immediate idea of ​​the goals his subordinate sets. The assessment is given twice a year. For the first time, valuation decisions affect the amount of remuneration, if there is a corresponding achievement above the desired award. The issue of the regular annual increase is addressed for the second time.

Training programs

All training programs are paid for by companies. Other activities such as meetings, creation, and printing of programs and material, recording of results are performed by the personnel department. Here, every worker is given considerable attention, his or her professional development is monitored, etc. All this is noted in the relevant forms and cards. The process of working in the department itself is in the direction of continuous improvement. The department employs a team of professional psychologists, sociologists, etc., who further analyze and process the data, and are free to comment and draw conclusions. The evaluation activity of each contributor is strictly regulated. It is divided into two phases - starting in April, a one-month assessment of the employee begins. It is given individually to each collaborator in the crew. He meets with everyone and discusses the activities of subordinates in a business conversation. According to him and the administrative leadership, the corresponding half-year premium is formed. It also fills in the relevant map, which assesses how the assistant has coped with the training. The second stage is somewhat repetitive of the first but begins in mid-autumn. The final estimate is adjusted by the HR department and the administration and influences the award. The second assessment also determines the annual salary increase.
Valuation creates dynamics within the company. It has a great influence on staff management. The evaluation itself is the result of several independent factors, which makes it extremely objective. Wage formation is a free and dynamic mechanism. Each company has its own strategies for determining the remuneration, but it has many similarities with other companies. In Japan, the pay is generally made up of two main components - standard pay and overtime pay. Take Toshiba as an example. It pays remuneration according to the following scheme: basic payment and payment for adjustment, for housing, harmful, payment for the maintenance of the family. Reference: Management Structure, Officers.

The Japanese way of staff decline is constantly evolving and refining. First is the introduction of automation into data processing. This trend marks the beginning of the "information revolution". Another area is the so-called "factory automation" - the introduction of machines with digital-software devices connected through a common system and commanded by computers.

Agile and Kaizen are new staff management strategy

There is a new staff management strategy. These are qualitative changes to the organization of enterprises and industry. It is envisaged to fragment the large companies into controlled manufacturing centers. This will eliminate the "pyramidal nature" of the production organization. The new production units will be linked with a horizontal link - this will avoid attracting the best associates from the same company and open up the opportunity for smaller companies to appear. Each unit will have a maximum of three levels of governance, automatically affecting bureaucratic control. Workers will be freely recruited, thus replacing the logic of forming a "company man". For the time being, Japanese management will go into developing the production of goods of individual and national character.

Based on the views of science, psychology will show that every action requires motivation. The strength of Japanese personnel management lies primarily in the non-trivial, individualistic approach to motivation. The need has been achieved after today that a Japanese worker has been working for more than 25 days compared to those who compete with them. Of course, the focus on the development of leading industries in the economy such as mechanical engineering (in all its sub-sectors), electronics, software, and hardware creation should be noted.

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