Japanese Vs American Management Style

ACKNOWLEDGEMENT
It gives us immense pleasure to take this opportunity to thank all those who left no stone unturned & helped us in successfully completion of the report. At the very offset, I would like to thank my university MAJU for providing me to be a part of this university. I would like to say thanks to Miss Anita Laila for his able guidance and support; she had extended to me through the project period. His timely suggestions and tips helped me a lot in challenging the efforts fruitfully and in successfully completing the project. I would like to say thanks to all management Gurus who have posted their subject related content (U.S. vs. Japanese Management) on different websites. This project helped me immensely in increasing my analytical, managerial and decision making skills and also helps me in shaping my personality as a successful corporative entrepreneur in future.

Japanese Vs American Management Style

TABLE OF CONTEXTS

Acknowledgement.1 Table Of Contexts..2 Summary.3 Introduction.4 History.5 A Comparison of US and American management.6 Japanese Management Concepts And Techniques.........7 American Management Techniques...9 US-Japan Human Resource Management.10 Japanese Vs American Management Style11 Characteristics13 Recommendation...15

Japanese Vs American Management Style

SUMMARY
There are quite marked differences between the two management styles.
In Japan, the employees consider it an honor to spend their entire career at one

organization while this does not happen in US as a result these managers know each and every thing about their companies and stay there long enough to get their plans implemented.
In Japan their experience is also limited and the US manager has more experience in

dealing with ambiguous situations.

The management of people in Japanese firms revolves around company loyalty but

the US managers accept that even their best employees can leave.
The salary and benefits in the US are linked to the performance of the employees but

in Japanese culture employees have job security and the firms do not cut down when there is an economic downturn.
The basics of the work systems are different and the management styles differ

according to these work ethics. Management in Japan has to coordinate, integrate and motivate. In America management rather means supervising others.
American business is based on performance. Japanese business is based on a

hierarchal structure.
American are performances oriented unlike Japanese who are perfectionist. This is

one of the major differences in both.

The major strength of the Japanese approach is the recognition of human creativity.

As Taiichi Ohno, who pioneered the Toyota Production System said: "Manpower is something that is beyond measurement. Capabilities can be extended indefinitely when everybody begins to think".

Japanese Vs American Management Style

INTRODUCTION
What is Management?
The term management encompasses an array of different functions undertaken to accomplish a task successfully. In the simplest of terms, management is all about getting things done. However, it is the way and the process of how one achieves ones target or goals and it is in this respect that management is considered an art and a science as well. There are four management functions:

Planning: Defining goals, establishing strategies to achieve goals, developing

plans to integrate and coordinate activities.

Organizing: Arranging and structuring work to accomplish organizational

goals.

Leading: Working with and through people to accomplish goals. Controlling: Monitoring, comparing, and correcting work.

JAPANESE MANAGEMENT
Japanese management is called Omikoshi management. Omikoshi refers to the young men who carry the portable shrine in festival parades. Japan has consistently maintained its position as one of the world's top economies and technological innovators. Japan's leading companies in fields such as automobiles and electronics originally introduced management methodology and technology from western sources. Japanese will never leave a company once they joined it and are sincere to their companies unlike others who continue to hop job to jobs. Japanese companies also look after their employees properly.
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Japanese Vs American Management Style

AMERICAN MANAGEMENT
American management style can be described as individualistic in approach, in so far as managers are accountable for the decisions made within their areas of responsibility. Although important decisions might be discussed in open forum, the ultimate responsibility for the consequences of the decision lies with the boss. American are worldwide leaders but American firms are least consider about the global warming, pollution and green house .effect. There firms are profit making machines

HISTORY
HISTORY OF JAPANESE MANAGEMENT
Japan's culture developed late in Asians terms and

was much influenced by China and later west. ruling elite of powerful clans.

Early in Japan's history, society was controlled by

The most powerful emerged as a kingly line and

later as the imperial family in Yamato modern Nara Prefecture or possibly in Kyushu in the third century A.D.

In the late 16th century, began a process of

reunification followed by the period of great stability and peace.

Japan rebuilt itself based on a new and earnest

desire for peaceful development, becoming an economic superpower in 2nd half of the 20th century.

HISTORY OF AMERICAN MANAGEMENT

Americans consider this following seven

components very important (super ordinate goals, strategy, structure, administrative staff (the concern for having the right kind of people), skills (training and developing

Japanese Vs American Management Style the people), and style (the manner in which management handles subordinates, peers, and superiors) are followed by Americans very strongly. decision. American management does not involve much

feedback from the employee when taking decision only the top manager makes the

A COMPARISON OF U.S. AND JAPANESE MANAGEMENT AND WORKING STYLES

JAPAN
Generalists Promotion by seniority Conflict is solved privately People-oriented Long-term planning Informal communication Decision by consensus Open plan offices

US
Specialists Promotion by performance Conflict is solved in public Task-oriented Short-term planning Formal communication Decision by majority Working space is structured according to individual needs

Non-verbal communication is important Face-to-face communication more important

Analytical, logical argumentation style Written communication more important

Model for Management Style and Unit Effectiveness

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Japanese Vs American Management Style The conceptual model of management style and unit effectiveness consists of six principal dimensions by which a comparison of management systems can be made. These six dimensions are as follows:

Supervisory Style: managerial behavior related to the subordinate's

expectations that his effort would result in desired rewards

Decision Making: the process in which decisions are made within the unit

and the extent to which employees contribute to or participate to managerial decisions

Communication Pattern: information flow within organizations and

departments, and barriers to information flow

Control Mechanism: used to check operations conducted and results

achieved by the employees meeting the standards

Interdepartmental Relationships: interactions and deals with other units Paternalistic Orientation: supervisory concern for employee's non-work

related matters.

JAPANESE MANAGEMENT CONCEPTS AND TECHNIQUES

The Japanese economy was totally devastated after the World War II. The country's turnaround strategy to revive its economy was largely influenced by the Management Philosophy that emerged in Japan. The strong pillars of Japanese Management are Concern for Customers to the extent of putting him on the pedestal of God, Control of the Access of Cost, Quality and Time (Wastage elimination, JIT, TQM, TPM, DOE, Poka Yoke, Kamban, SMED etc.), Excellence in all areas (5-S, Kaizen, Poka Yoke) and Total Employee Involvement. Underlying principle embedded in all these is recognition of the Kaizen need to satisfy all stakeholders. These Management Principles developed in Japan are gaining wide currency all over the world, and practiced by industry, business and governments Just-InLean because of the enormous power of these concepts that can make any organization highly Time Producti successful. ((JIT on Techniqu e

5S 3M
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TQM SMED

Japanese Vs American Management Style

1. Continuous Improvement (Kaizen)

The foundation of the Kaizen method consists of 5 founding elements: teamwork, personal discipline, improved morale, quality circles, and Suggestions for improvement.

2. Lean Production/ Manufacturing

Five areas drive lean manufacturing/production: Cost Quality Delivery Safety, and Morale

3. Total Quality Management (TQM)

TQM, also known as Total Quality Control (TQC), is a management tool for improving total performance. Areas targeted by TQM are
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Japanese Vs American Management Style Product Quality Improvement Quality assurance New product development

4. SMED (Single Minute Exchange of Die)

Changing a die on a forming or stamping machine in a minute or less; broadly, the ability to perform any setup activity in a minute or less of machine or process downtime; the key to doing this is frequently the capability to convert internal setup time to external setup time

5. 5S framework, 3M
5 S is a very popular concept in Japanese companies. 5S'' is a tool with Japanese roots, focused on fostering and sustaining high quality house keeping. In Japanese Language 3M is associated with reducing wastage and lowering of load due to inconsistency. The terminology commonly used by the Japanese has the following meaning: 1. Muda (waste) 2. Mura (inconsistency) 3. Muri (un reasonableness)

AMERICAN MANAGEMENT TECHNIQUES

North American cultural systems value individualism. As a result, innovation and self-sufficiency are prized cultural goals and North American management techniques are profit-oriented and based on the belief that the shareholders interests are the most significant. Successful management techniques must avail themselves of the business cultural background to ensure the right conditions for implementing management strategies by influencing the way managers think and act. Under this system, management acts in the interest of the shareholder because it is the individual shareholder who supplies the risk capital in exchange for control over the business.
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Japanese Vs American Management Style

US-JAPAN HUMAN RESOURCE MANAGEMENT

With increasingly fierce competition in the U.S. and Japanese companies have found their respective human resource management weaknesses; learn from each other in each other's strengths. As we all know, 70 years ago, as U.S. companies in the world hegemonic status, the U.S. model has become a business success of the symbol of many companies including Japanese enterprises have Xuexi the model; after the mid-70s, Japanese companies of Guan Li ways to gradually show its strong competitiveness, particularly in the manufacturing of U.S. counterparts constitute a strong impact on the Japanese model has become the object of many companies to follow. By the early 90s, the U.S. and Japanese enterprises in international competition in the market situation has been reversed by the bubble economy and economic crises. Japan's medium-sized enterprises, especially in the financial services industry operating performance significantly declined; on the contrary, the U.S. high-tech enterprises are singing the song of victory in the international arena.

U.S. HUMAN RESOURCE MANAGEMENT MODEL

As the economy develops, more and more U.S. companies have begun to traditional human resource management necessary changes, but history features formed on the continued existence of: Flexible human resource allocation Segregation of duties in detail based on the institutionalization of management Intensive training A strong material incentive-based wage system

JAPANESE HUMAN RESOURCE MANAGEMENT MODEL

Human resource management of Japanese companies after World War II model, with the economic recovery, gradually establish and improve the development of, and for Japan economic take-off made outstanding contributions. There are still many enterprises, especially manufacturing, still maintain its identity: Lifetime employment system

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Japanese Vs American Management Style Annual Merits Focus on job training Emphasis on generalist training Focus on the spirit of encouraging Comparative Analysis

JAPAN
Top priority given to human assets in management Regular employees - fixed assets well being is crucial

US
primary importance will be accorded to numbers and laws rather than to people Employees = semi-variable assets Can be hired and fired as needed

JAPANESE VS. AMERICAN MANAGEMENT STYLE U.S.A

The United States is a democratic country and it is more difficult to determine to what extent authority is centered at the top and to what extent it is balanced by the authority of the working population exercising their power through the withdrawal of their labor. The TaftHartley Act limits the right to strike, seemingly shifting responsibility for declaring a strike from the factory floor to the union head office. A cooling-off period may be ordered which delays the beginning of a strike by some months, in this way giving management and workers another chance to negotiate an agreement before engaging in open confrontation, giving both sides another chance to avoid large scale national economic damage which could otherwise arise.

JAPAN

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Japanese Vs American Management Style Japan is a democratic country. Life is in many ways restrained, stylized and formal. Strikes are legal and the workforce does strike. In Japan pressure is exerted in a different way. For centuries the Japanese were governed by means of a strict code of adherence to the collective will of the group. At home, in school, at work or at play, individualism is frowned upon. The Japanese do not start a project until some kind of agreement has been reached. For example a larger capital investment program would be discussed by the company, by the union, by the ministry, with the banks and of course within the enterprise. It would be discussed extensively until it takes a firm form.

Example: A Japanese company (Toyota) and an American company (General Motors) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile. The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing. Feeling a deeper study was in order; American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were rowing. Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program, with meetings, dinners and free pens and a certificate of completion for the rower. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for
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Japanese Vs American Management Style practices and bonuses. The next year the Japanese won by two miles. Humiliated, the American management laid off the rower (a reduction in workforce) for poor performance, halted development of a new canoe, sold the paddles, and cancelled all capital invest ments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was "out-sourced" to India. However, sad, but oh so true! Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US, claiming they can't make money paying American wages. Toyota has spent the last thirty years building more than a dozen plants inside the US the last quarter's results: Toyota makes 4 billion in profits while Ford racked up 9 billion in losses. Ford folks are still scratching their heads.

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Japanese Vs American Management Style

CHARACTERISTICS

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Japanese Vs American Management Style Employees volunteer to assist the management in the eastern countries whereas in western countries employees do not take up the work unless otherwise the work is formally assigned to them. Information flows freely through all directions in eastern countries, whereas it flows with a direction though a particular channel in the western countries Employees in USA strive for individual achievements and rewards whereas the employees in JAPAN strive for group achievement and rewards. Team work is the culture of the Japanese firms and individual work is the culture of American firms. Employees in JAPAN mostly prefer empowerment while their counterparts in USA prefer close supervision. JAPANESE organizations used to employ the people throughout the life time. But, the globalization and information technology made the JAPANESE organization to develop the human resource of their employees, enhance their employability and provide employment. As such the employee turnover is almost nil in JAPANISE FIRM. Employment in USA is for a short run. USA companies fire the employees quite often as they follow hire-and fire policy. As such the employee turnover is high in USA. JAPANESE organizations follow humanistic approach in employing and managing people while the AMERICAN companies follow mechanistic approach or USE AND TROW policy in managing people. Japanese organizations follow long run and relationship-oriented approach

whereas American companies follow short-run and pure-business oriented approach in managing business.

CUSTOMER FIRST AND SHAREHOLDER LAST

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Japanese Vs American Management Style The priority order of customers and suppliers is different for U.S. and Japanese :businesses

JAPAN
Customer .1 Employee .2 Supplier .3 Community .4 Country .5 Shareholder .6

AMERICA
Shareholder .1 Customer .2 *Employee .3

* But the employee is told the customer is number 1

QUALITY FIRST, COST LAST

This is the proper ranking of quality in the organization: 1. Quality 2. Cost .Quality includes products, services, machines, layout, policy, planning and organization

RECOMMENDATIONS

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Japanese Vs American Management Style The findings indicate that U.S. and Japanese management styles differ significantly both in overall management styles. They also show that managerial perception of departmental (unit) effectiveness in each country differs significantly. This study of American and Japanese management styles has identified the salient features of both systems.

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