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09.04.2009 18:59 - Japanese Model of Firm Management – Creation, Nucleus and Future
Автор: bgjapanology Категория: Технологии   
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Associate Professor Nako R.Stefanov, Ph.D.
St. Kliment Ohridski Sofia University

The next information revolution is well under way… It is not a revolution in technology, machinery, techniques, software, or speed. It is a revolution in CONCEPTS…
                                                                                                     (Peter Drucker, 1998).


Introduction

The implementation of modern management approaches at the level of autonomous business organization – companies and enterprises, is one of the decisive factors for creating sustainable socio-economic development of the society as a whole. From this point of view the case of Japanese Model of Firm Management or simply speaking Japanese management is of great interest for broad auditorium. This case provokes us to characterise its distinctiveness, interpret its success and explain at least for ourselves what has happened with it in the recent years.
First we have to point out that under the term Japanese management or Japanese Model of Firm Management  is understood the practice in certain big Japanese companies. This practice step by step was created, starting from the 50-s of XX century and achieved its peak in the early 80-s of the same century. At that point the Japanese management became object of intensive studies around the entire world from the western countries – USA and Western Europe to that in Asia - Malaysia, Korea and even China. As basic conditions for the creation of this practice are shown the:
• The Lifelong Employment System;
• The Seniority System;
• The Company Unionism.
These are taken to be demonstration of the so called “kyodotai” (共同体), i.e. the Communal type of society. The latter was destroyed in the western societies during the process of Industrialization.  But, according to many researchers, during the catch up modernization in Japan basic elements of it were preserved and became construction blocs for the platform of Japanese management.    
Undoubtedly the study of Japanese management must be concerned with what is distinctive, and what is transferable. There are sceptics, who argue that the features of Japanese management had no relevance outside Japan and there is not possible to assimilate abroad since they originated in and reflected a profoundly different island society at the very edge of Asia.
But from organisational point of view it is possible to say that in Japanese management there are much more points, which are directed toward management rather than toward more general cultural or social issues. The latest practice in many countries from the East to the West, from South Korea to USA, where have been introduced many methods, mechanisms, and approaches, born by Japanese management system, is bearing testimony to this argument.   
Out of question Japan"s extraordinary post-war industrial success was defined in certain degree by Japanese Model of Firm Management. But, in the 90-s of XX century, when Japan felt in recession after the failure of so called Bubble Economy, it has been the country"s perceived weak points. Like the lifetime employment and seniority systems it has come to the forefront of the debate on the wisdom of Japan’s development if the above mentioned have to be preserved in the future.
In spite of all that the Japanese corporations, which were engaged in Japanese management, remain awesome global powerhouses. They succeeded to introduce some new practices.
  Today in the midst of global crisis new ideas and practices are emerging in the big Japanese Firms. Does it mean that there will be still plenty for the outside world to learn from Japan?


Creation and Parameters of Japanese Management

After W.W.II among the Japanese in those days the phrase “yasukaroo, warukaroo”,
i.e. “cheap, but bad”, concerning the quality of products, made by the Japanese firms, was in broad circulation. It must be pointed out that in the late 40-s till the early 60-s the low organizational and manufacturing culture was serious problem for the companies in Japan.   
            The first actions with the target of improving this situation were connected with the introduction of so called “Classical American Management”. American specialists like W. E. Deming and Dr. J. M. Juran were invited and the methods of statistical quality control were popularized. Through the Japanese Union of engineers and scientists (JUSE), created in 1946 and Japan Standardization association (1945) was fulfilled the forming of network, which unites the representatives of the practice (managers and entrepreneurs) and the representatives of the science in their efforts to improve at first the quality system.
But the massive introduction of western, especially American methods and systems was not enough for upgrading the management system. The simple coping of foreign experience is very useful, but it is not solution, because to copy means always to run after.
             But from the middle of 50-s to the middle of 60-s in Japan began development of own conceptions and ways, represented initially by the “Total Quality Control System”.
Lately the Japanese Model of Firm Management began to be expressed by the abbreviation “3-T”. This abbreviation comes from the first letter of the English words for:
 (1) Total Quality Management System;
 (2) Total Productive Maintenance System;
            (3) Toyota System, i.e. the Japanese name for “Just in time system”.
This model in certain sense has to be taken as opposite to the classical western model of the “3-S System”(from the terms in English “systematization”, “standardization” and “simplification”).
Lately other systems were putted into force like the Total Cost Down system, as well as the Total Working Environment System.

The Nucleus of Japanese Management
The key mechanisms of all these systems are the so called small group activities (SGA). We have to point out here that the very truth for the Japanese Model of Management lies in these group activities, which creates internal environment, freeing the creative potential of the grass and roots employees. This happens to be the first such experience in the framework of the Industrial type organization with its hierarchy, specialization, standardization and conscious limitation of creativity at line level.
We have to say that the small group activities are the basic approach for creating mechanisms of generating improvements in various areas of company activity. They are formed on the base of the participation of employees into activity for improvement.  Really speaking the small group activities became nucleus of new working moral. They happened to be an important mean for integration of the efforts of all employees for continuous improvements. Through the SGA management participation is executed, the work of the grass roots employees is intellectualized, the division between managerial work and line work is overriding step by step. There are several kinds of SGA, but all of them help to improve the level of quality of management. For example:
1. SGA, which on the base of use of various techniques like statistical techniques, Industrial Engineering(IE) techniques etc., are oriented directly to improve quality of the products or of the activity of the employees and the organization;
2. SGA, which with the help of maintenance specialists became nucleus for so called autonomous maintenance(i.e.. the operators themselves   maintain the equipment, they work with) and the system of total productive maintenance(TPM);
3. SGA, which take part in the improvement of materials management in the
4. Organization and improvement of the overall productivity with the help of IE techniques. From such point of view this kind of small groups has to be viewed as a base of the “Just in Time”(JIT) system;
5. SGA, which take part in the all-company efforts for reduction of expenses with the help of such methods as Value Engineering/Value Analysis (VE/VA) and others. They are base of total cost down system. 
There are also some other kinds of group activities like:
• Movement for good housekeeping and harmonization of working place. This movement also is called 5 “S”. This movement became the platform for Total Working Environment System.
• Suggestion movement – this is an effort to involve broad numbers of Employees into the process of continuous improvement;
• Cross-functional Groups – this is the case for example of the so called ”Design Review”  - an approach, according to which at the stage of planning, designing and creating the experimental product all specialists from the functional structures of the organization like marketing, design, production, sale, quality, etc. are taking part in planned meeting and discussions with the aim to improve various functional, quality, and cost parameters. The planned, systematically organized meetings and discussions between the specialists demonstrate the necessary focus toward such an important stage of the creation of the product like marketing and design. The creative involvement of all specialists concerned helps to improve the quality in very high degree.
 The total systems become possible thanks to a network of management approaches as the following:
• Group approaches, fully expressed by the above mentioned forms of so-called Small group activities (SGA). In practice this kind of activities becomes platform of continuous improvements;
• Positive approach –it means not emphasis on sanctions in case of some irregularities made by the employees, but accent on some kind of stimulations in case of excellent work and achievements. It is very well expressed by such slogan as “Ni-do to dasanai”. This means that the mistake for a first time is not considered mistake, but it has not to happen for a second time. Such approach means freeing the initiative of the grass and roots employees. This means not to be afraid of making mistake, when you are making something new. Making of something new means higher level of risk. So if there is a negative approach, which means sanctions for first mistake, this will de-motivate the employees to involve themselves into improvement activities;      
• Pro-active management approach – it means management, which is oriented not to react to what is happening, but always is struggling for actions in advance on the base of monitoring, analyzing, evaluating and forecasting;
• Continuous improvement approach, which means that the management and the organisation as well are functioning on the premise that the current state in every area must be object of continuous improvements;
• Process-oriented approach, which means that the management is concerned not with the results as itself, but with the process, i.e. if you want good result you have to create good process ;
For better understanding the features, essence and meaning of Japanese management we will try to give the following explanation. The so-called “Organizational Man”, i.e. the man in an organization has get three kind of potential as contribution to the achievement of organizational goals:
• Physical;
• Mental;
• Creative.
As a rule the first and the second potentials are limited in certain time framework.
The third one is without any limitations. It is possible to say that the strength of Japanese management is in it capability of using in full force the creative potential of the employees. This is the final result of all above-mentioned approaches like the group, the pro-active, the positive and the process approaches. Thank to all these approaches 80-90% of the potential of the personnel is used. 
We have to say that this using of human creativity at work, so well done by the Japanese management, is a matter of great importance. This new approach toward the “Organizational Man” returns the real meaning of human labor, which was lost during the Development of Industrial Epoch in the framework of the big organizations. It creates new system of work motivation. From this point of view it is possible to determine the System, created by the Japanese Management as Management Revolution. This happens to be the first such experience in the framework of the Industrial type organization with its limitation of creativity at line level.
It is necessary to point out that in spite of the fact that this Management Model was established in the framework of the indigenous national culture of Japan it main nucleus goes out of the national framework of the country of the Rising Sun. The Model of the Japanese management has universal features, which are making it world possesion.             
In the last reckoning the Japanese management means management actions on the base of the clear understanding of the organisation as a human, not material phenomenon, which is the key for understanding its success.


The Japanese Management – the new developments and the future
 The “Lost 10 years” in the 90-s, when the Japan’s Economy experienced stagnation spurred discussion about the wisdom of Japanese Management. Today in time of global financial and economic crisis, which influence Japan strongly the suspicion about it is climbing on new cycle. Does it mean that the Japanese management is something obsolete?
To give an answer we have to make some generalization about the future, i.e. it is a matter of formulating our roads to the future. For all now is clear that the Information Age is upon us. The cycle of technology development and implementation is accelerating. The number of Internet users world-wide continues to grow steeply. More than 50 per cent of Gross Domestic Product (GDP) in the major OECD economies is now based on the production and distribution of knowledge. We are leaving the Industrial Age behind and are moving into the Information Age.
During the last two centuries economists recognized only two basic productive factors: labor and capital. Today the situation is changing drastically.  Now we are witnessing deep changes of the whole environment, in the frames of which the economic and non-economic organizations are functioning. The basic terms, which are reflecting these changes are information epoch, knowledge economy and knowledge society. Without any doubt this all influences all aspects of society and economy philosophy, management and functioning.
The creation of social and economic processes, in the frameworks of which the knowledge is turning to be the key factor for positive dynamic, gave the impetus to speak about new stage or new type of development. Gradually emerged the terms and the concepts of which began to be called “knowledge economy” and “knowledge society”. This means that the Knowledge Economy and Society are such reproductions of the material life, social interactions and social cohesion, in which the innovations become the decisive factors of these reproductions.
One important condition for the creation of Knowledge Society and Knowledge Economy is the building of new type of organizational paradigm. The world practice shows us that the modern organization has to override the management philosophy, structures and practices, characterized by vertical-hierarchical type of thinking and acting. The creation of horizontal networks based on project approach, including management participation and philosophy of solidarism and partnerships are necessary. The basic resource in the new epoch is becoming the creativity. Creativity means creative ideas, means innovations – incremental and radical.
From this point of view we have to say that the Japanese management is the closest to the ideal management model of the future. Such newest development in the framework of Japanese management like the so called Intelligent group(IG) are proving this. The IG are formed with the participation of the employees of various units into groups, which are oriented under the leadership of the best specialists of the organization to generate radical improvements.
With its philosophy of partnership and solidarism, with its ability of creating the positive climate of unity the experience and lessons of Japanese management are inevitable if we want to develop Knowledge Society and Knowledge economy, where the creative work has to flourish. This means that it is a very early to neglect the Japanese management like some authors and researchers in the area are doing. The Japanese management will stay in the foreseeable future as an intelligent tool for creating knowledge economy and society, as  a mechanism for progressive dynamic.
Instead of Conclusion
Instead of conclusion we shall assume that the Japanese management not only is remaining awesome global powerhouse, but it is a platform for a radical new promising way to a better future. Today such ideas as Radical Innovations, 3-R (Reduce, Reuse, and Recycle) Approach, Green IT (Information Technology) Integration are a signal for the fact that Japanese management is under development. Is it in these ideas something useful for us to learn?
 




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Автор: bgjapanology
Категория: Технологии
Прочетен: 3778103
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