comparision of germany, the US and japan management style

1. Japanese contribution to world
class manufacturing
Germany, the U.S.
and Japan
Md Asad Amin
M. Tech.(mechanical)
11-MEM-225

2. What is management ?
Takeo Fujisawa, Founder of Honda Motor
Company:
„Japanese and American management are
95 per cent the same, yet differ in all
important respects.“
Introduction

3. Management
 management in Japan has to
coordinate, integrate and motivate
 in America management rather means
supervising others
Informal and Formal Company
Structure

4. Management Control
 Assure that resources are obtained and used
effectively and efficiently in the
accomplishment of the organization’s objective
 Has financial and non financial performance
measurement
 Concerned with the implementation of
strategies and Task control

5. Career perception
Japan Germany
 Life-long employment  Short-time employment
possible
 Seniority promotion  Promotion on merit
 Increased mobility
 Ultimate goal: broad  Specialists
experience
Career development

6. HRM Japan - USA
JAPAN USA
top priority given to primary importance
human assets in will be accorded to
management numbers and laws
rather than to people
regular employees ∼ employees =
fixed assets semi-variable assets
well-being is crucial can be hired and
fired as needed
Conclusion

7. HRM in Japan
„people-centered management“
 Japanese companies exist primarily “for the
well-being of Japan and its people”
 people before profit ?
Conclusion

8. Decision Making
 popular view:
JAPAN USA
group process individual process
catchwords:
JAPAN USA
bottom up top down
 but reality is a little more subtle...
Communication

9. Decision Making - Japan
RINGI system of decision making
 nemawashi: „preparing the ground“
frequent „sound-outs“ on views and positions
(uchiawase)
 ringi-seido: circling process
Communication

10. Decision Making – Japan
ringi-seido 1
ok? ok! decision form
(„ringisho“)
sound discussion proposal
with the affected
sections/ people
fills out
Communication

11. Decision Making – Japan
ringi-seido 2
 proposal is forwarded to all relevant sections/ people
section x section y
...
 each will make comments on a sheet attached to the
back of the proposal
Communication

12. Decision Making – Japan
ringi-seido 3
 the decision will be
made by top
management based on
the comments from all
people involved in the
process
 official announcement of
the approval
Communication

13. Decision Making – Japan
Pros:
 elimination of dissension through participation of a
large number of people
 participation of employees even at lower levels
 cumulated expertise
 gradual improvement/correction
 no individual responsibility -> daring and progressive
decisions
 gather opinions of other sections (no “nicht mein Bier”)
 smooth/ more efficient implementation
Communication

14. Management and working styles 1
JAPAN WEST
generalists specialists
promotion by seniority promotion by performance
conflict is solved privately conflict is solved in public
people-oriented task-oriented
long-term planning short-term planning
informal communication formal communication
decision by consensus decision by majority
interdependency interdependency is viewed sceptically
Summary

15. Management and working styles 2
JAPAN WEST
reciprocal commitment between less bonds
managers and workers
open-plan offices working space is structured according
to individual needs
formalized and ritualized interactions informal interactions more common
intuitive, nonverbal communication is analytical, logical argumentation style
important
face-to-face communication more written communication more important
important
Summary

16. Target Cost
Japan Germany
 Costs estimated by „cost  Costs estimated by
engineers“ accountants
 What are customers  Design first, then
willing to pay? calculate the costs
Organization and Planning

17. Just-in-Time (JIT) Systems
Receive
customer Complete products
orders. just in time to
ship customers.
Schedule
production.
Receive materials Complete parts
just in time for just in time for
production. assembly into products.
Nov2011 Asad 17/ 20

18. JIT Consequences
Improved Zero production
plant layout defects
Reduced Flexible
setup time workforce
JIT purchasing
Fewer, but more ultrareliable suppliers.
Frequent JIT deliveries in small lots.
Defect-free supplier deliveries.
Nov2011 Asad 16/ 20

19. Benefits of a JIT System
Reduced Freed-up funds
inventory
costs
Greater
customer
Higher quality satisfaction
products
More rapid
response to
Increased customer orders
throughput
Nov 2011 Asad 19/20

20. Thank you
for your
attention.
For any feed back
E-mail: mdasad.amin@gmail.com
20/20