Description of a peculiar Organisation design that finds its application in a complex business environment.

1. PLUS
Amoeba Management
Lessons From Japan’s Kyocera
Summary based on the article published in
By Ralph W. Adler and Toshiro Hiromoto
September 18, 2012

2. Kyocera (Japan) PLUS
• Founded in 1959 as Kyoto Ceramic Co. Ltd
• Produces a range of industrial ceramics,
semiconductor components, electronics devices
and information and telecommunications
equipment.
• Key results : March 2012
– Revenues of $14.5 billion
– Net income of $1 billion
– and employed more than 70,000 people
• March 2012 — represented Kyocera’s 53rd
consecutive year of profitability.
Amol Gupta ©

3. Amoeba PLUS
• Single cell (unicellular) organisms
• move in search of food by extending
cytoplasm outward to form
pseudopodia (false feet).
• They have thin cell membranes, a
semirigid layer of ectoplasm, a
granular, jellylike endoplasm, and an
oval-shaped nucleus.
• A reaction to chemicals in their food
(smaller organisms) cause the
amoeba to form pairs of pseudopodia
which wrap around the organism
being eaten, and a cavity is formed.
• A mature amoeba reproduce by
splitting into two equal parts, each of
which split into two more equal parts
when they have matured.
Source : http://tutorskingdom.com/biology-assignment-help-4/amoeba/amoeba-characteristics/
Amol Gupta ©

4. PLUS
• 3000 amoeba’s.
• Every amoeba is an independent unit with 50
employees.
• Operate independently and develop own ways
of working with other amoeba’s to achieve
profitable growth.
• All transactions on cash basis thus avoiding
need to account for inventories and accurals.
• Make adjustments to price, Quality, Delivery
schedules.
Amol Gupta ©

5. Elements PLUS
• Formal Daily meetings
– Plan vs Actual.
– Review upcoming months budget
– Discuss prior days output.
– Brainstorm Ideas for continuous improvement.
- Machine operators and below attended average 30 minutes of meeting a day.
- Leaders and Vice Presidents attended formally scheduled meeting for around 45 to
60 minutes of meetings per day.
Amol Gupta ©

6. Elements PLUS
• Conflict Resolution
– Inter amoeba meetings.
– Individuals put organisations Interest above own interest.
• Simplified Accounting System
– No Labor cost !
• Kyocera Culture
– Individuals put organisations Interest above own interest.
– Employee selection process – Humility, Work Ethic
– Reference.
– Formal Interview.
Amol Gupta ©

7. Elements PLUS
• Profit Sharing
• Training
– Induction in Inamori’s management philosophy.
– Values re-inforced during meetings.
– Decision making compass.
• Trust and Transparency
– Information Sharing…even financial.
• Individual Contribution measurement.
– “hourly efficiency” = Value added / Labor hours
worked.
– Electronic Bulltein display – real time actual results of
the factory.
Amol Gupta ©

8. Risks PLUS
• Inamor’s Warning Influence.
• Burnout.
• High Challenge factor
Amol Gupta ©