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Japanese Management |
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The first thing which must be mentioned on the Japanese style of management, is that it does not offer a completely new elixir to the 'woes' of industry. In fact a lot of the processes are actually taken from Western society. The main ideological focuses of the Japanese management systems include:
LIFETIME EMPLOYMENT - Workers in large organisations experience security of employment until they decide to retire. The principle is based on Japanese manufacturers treating employees as a means for competitive advantage. Not only do the employees enjoy security, but also management are able to derive commitment from the workforce. However the 1990's saw a lot of economic instability occur in Japan. This instability led to a much more diminished level o lifetime employment being implemented. Currently 'a job for life' is only offered to a small amount of the total workforce. DISCRIMINATION - Japanese ideology does reflect a tendency towards discrimination in the workplace. In the sense that Male workers will be offered a higher chance of 'a job for life', as opposed to Women who are expected to leave the business once they are married. If Women are not married they tend to suffer from discrimination in promotional issues. RECRUITMENT - With higher levels of educational attainment in Japan, the recruitment procedures for new employees is more rigorous than in the UK to ensure the 'cream of the crop' are identified, utilized and cultivated. SENIORITY WAGE PRINCIPLE - This is based on the wages of employees being linked to the number of years worked. It is used on the premise of securing long term loyalty to the firm. This has been used in the UK to some extent, in terms of annual bonuses, but not generally via financial rewards, moreover in terms of holiday and career breaks. UK pay structures are generally based on skills and status within the firm. TRAINING - A vital element of the Japanese system involves the continuous training of core staff to ensure their training needs match those which benefit the organisation. ENTERPRISE UNIONISM - There is a popular perception is that single union agreements are the cornerstones of the Japanese industrial relations system. However this does appear contradictory, where one would expect a single union to be originating from an external trade union, in fact it is not. The modern Japanese trade union originated from a series o lock-outs at Toyota and Nissan, which were supported by the Japanese government. This enabled the major corporations in Japan to extinguish independent trade unionism and replace it with the system of 'enterprise unionism'. It is therefore reasonable to assume that enterprise unionism is a means of allowing further exertion of management power upon workers. SHUNTO - The centre piece of the Japanese industrial relations system is the 'Shunto' or spring wage offensive. The Shunto began in 1955, shortly after the Japanese government implemented enterprise unionism. Basically, the trade unions agree wage settlements in the same period each year. The Shunto is seen as the leading indicator for annual wage rises throughout the Japanese economy. The Shunto tries to encompass wider roles in terms of national and social problems. Essentially the difference between the Shunto and the UK wage bargaining by trade unions, is that the mechanics of the Shunto result in decisions whereby neither side wins or loses. The Japanese trade unions aim for shared prosperity, with security of employment and the stability of the business being the main prerogatives. SINGLE STATUS - The visual differences between blue and white collar staff are viewed as being irrelevant for commercial advantage in the Japanese system. Management are often trained or some period on the shopfloor, wearing the same uniforms and sharing the same dining areas to become more appreciate of the shopfloor workers. Shopfloor workers also share common benefits which would normally show the differences between them and the office/management workers. The ethos is in improving the communication process and trying to 'in-doctor' all employees into a 'good of the team' environment. EMPLOYEE INVOLVEMENT - In the Japanese systems, employees are actively encouraged in the decision making process. From making suggestions on the shopfloor to improve efficiency and productivity, through to involvement in the business decision making process. The employee involvement process ties in with single status ethics to reduce conflicts between workers and management which can lead to industrial unrest. CORE & PERIPHERAL WORKERS - In the Japanese system, large organisations often recruit a core workforce (generally graduates) which are considered to be the long term permanent staff. The permanent staff enjoy all the usual staff benefits. The peripheral workers consist of part time and temporary staff. The peripheral workers have little or no benefits, they are used to meet fluctuating demand, allowing for reduced costs in terms of staff redundancies when demand is low. EMPLOYEE WELFARE - Recognizing that employees are of vital importance for competitive advantage, Japanese manufacturers provide a complete welfare packages for employees such as reduced priced goods, health care, low rent housing, low rate loans, etc. Observers of the Japanese system point out that using loans provide management with a form of indirect control over employees. INTERNAL LABOUR MARKET - The Japanese system sees employers promoting people from within the business as against external recruitment, thereby utilizing skills and experience from a wide range of workers within the organisation. OTHER - Other examples of the Japanese system include performance appraisal, daily team briefings, performance related pay, company councils and general housekeeping. Back to International Industrial Relations |
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