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Comparison Of American And Japanese Management Model

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Comparison Of American And Japanese Management Model

  1. 1. AMERICAN MANAGEMEN T MODEL VERSES JAPANESE MANAGEMENT MODEL Vivek Goyal
  2. 2. American Versus Japanese Manage ment Model  Every country is different from other. There mana gement, food, way of living and standards are all d ifferent. In some countries government is very infl uencing while in other they are not much bother.  Such two different countries are America and Japa n.  They have different cultures and management syst ems as a by-product of culture manifests unique c haracteristics in both the countries.
  3. 3. MAJOR DIFFERENCE  American are performance oriented unlike Japanese who are perfectionist.
  4. 4. 1. LONG TERM COMMITMENT  Japanese tends to favor the development of long term relationships an d strategies over short-term gain.  They spend much more time up front with a potential customer or su pplier before making a commitment unlike Americans which then al lows Japanese to implement decisions much faster after a decision is made.  Moreover, in down times Japanese companies avoid layoffs and contr act terminations contrary to Americans.
  5. 5. 2. TRAINING AND EDUCATION  On the Job Training is an American ideology.  Communication Plaza Concept—Though this is fading in Japan, employee s meet with the executive informally over lunch or dinner to listen to each ot her.
  6. 6. 3. GET-IN-TOUCH, LEARNING FROM FACTS - Japanese mix with employees and customers: Japanese engineers, e.g., go to the factories, and don’t wear distinguishing ja ckets or hard-hats. An insight in Japanese culture…Japanese neighborhoods are less stratified in terms of economic class. CEOs may live next door to en gineers and factory workers where as most Americans would not consider liv ening next to a subordinate. - Learn from competitor: Americans are creative, but would be smart to do more copying. Japanese are world class at copying and improving upon an idea, but would b e smart to develop their creativity.
  7. 7. 4. EFFORT EVALUATION - Process versus Results: This seems to be the key difference between Americans and Japanese. Americans are more results oriented while Japanese focus on process im provements. Once they learn how to do something, they work on small improvements—th ey evaluate effort not results. Because Americans are process averse, they de pend on manuals to tell what the results should be. The down side of the process focus is to kill creativity. Overall, the two cultu res should learn from each other, and become more like each other. Neither c ompletely process nor completely results focused.
  8. 8. 5. CUSTOMER FIRST AND S HAREHOLDER LAST The priority order of customers and suppliers is different for U.S. and Japanese businesses: America 1. Shareholder 2. Customer 3. Employee Japan 1. Customer 2. Employee 3. Supplier 4. Community 5. Country 6. Shareholder Japanese firm is organized for the employee. It is a more human orientation
  9. 9. 6. TEAM WORK  The Japanese and Americans see two different meanings behind these words.  In Japan team work means to help others, here it means functional maximizat ion, that is to improve results.  This leads to a difference in the roles on the team. In Japan the team leader is always asking team members to help more, here the team leader is responsibl e for results.  Americans are more inclined towards individual tasks performance.
  10. 10. 7. QUALITY FIRST, COST LAST  This is the proper ranking of quality in the Japanese organization:  1. Quality  2. Quality  3. Quality  4. Cost  Profit is the result of the pursuit of quality—as quality improves, costs go d own.  Quality includes products, services, machines, layout, policy, planning and organization.
  11. 11. 8. LEARN FROM THE BEST  Always look at someone better. The problem is when you get to the top, you have to become more creative—this is Japan’s challenge  Short comings of Japans practices are:  Lack of Decisiveness: they are not transparent. Decisions sometimes take to o long and they loose their timing.  Individual Ability Ignored: miss creative opportunities.  Miss Strategic Opportunities: too much delay and time.
  12. 12. COMPARATIVE MANAGEMEN T  Because of the success of Japanese compa nies in world markets,  Researchers have paid a special attention t o the Japanese management style . As a res ult,  Many scholars compared the Japanese man agement system with the American and Eu ropean system
  13. 13. Short-Term Employment Individual Decision Making Individual Responsibility Rapid Evaluation and Promotion Explicit Control Mechanisms Specialized Career Path Segmented Concern for Employee as a Person Theory A (American) Lifetime Employment Collective Decision Making Collective Responsibility Slow Evaluation and Promotion Implicit Control Mechanisms Nonspecialized Career Path Holistic Concern for Employee as a Person Theory J (Japanese) Long-Term Employment Collective Decision Making Individual Responsibility Slow Evaluation and Promotion Implicit, Informal Control with Explicit, Formalized Measures Moderately Specialized Career Paths Holistic Concern, Including Family Theory Z (Modified American)
  14. 14. MODEL OF JAPANESE MANAG EMENT  Hatvany and Pucik (1981) offer a model of Japanese ma nagement in which they define three interrelated strategi es:  The authors assert that these general strategies are transl ated into specific management techniques including  Job rotation and slow promotion;  Evaluation of attributes and behavior;  Emphasis on work groups;  Open communication;  Consultative decision making; and concern for employe e.
  15. 15. SEVEN MAJOR CHARACTERIS TICS OF JAPANESE ORGANIZA TIONS  Lifetime employment,  Slow evaluation and promotion of employe es,  Non-specialized career paths,  Implicit control mechanism,  Collective decision making,  Collective responsibility,  And Holistic concern (building a complete r elationship between employer and employe e, including concerning with employee's no n-work, personal and family, matters).
  16. 16. The McKinsey 7-S Framework Followed by Americans Strategy Structure Systems Staff Style Skills Shared goa ls Organization Management
  17. 17. Pre Theory Z  Abraham Maslow (1908–1970) – Identified sets of basic human needs and suggested tha t they could be arranged in a hierarchy based on their i mportance to the individual.  Douglas McGregor (1906–1964) – Developed the Theory X (traditional—negative—management approach) and Theory Y (positive management approach) to workers an d work motivation.
  18. 18. Theory Z (Modified American Management)  Theory Z How American Business Can Meet the J apanese Challenge (Ouchi:1981)  Theory Z workers: – Ouchi explains that the employees must be very knowledgeable about the various issues of the c ompany, as well as possessing the competence t o make those decisions. – He also points out; however, that management s ometimes has a tendency to underestimate the a bility of the workers to effectively contribute to the decision making process
  19. 19. Implications of these types of theories f or leaders  Modern implications for companies using these theori es have shown:  An improvement of people skills,.  Empowering their employees.  Stimulating change.  Helping employees balance work with life conflicts.  Improving ethical behavior.  Improvements in turnover rates.  Productivity, effectiveness.  Efficiency.  Organizational behavior  Job satisfaction
  20. 20. CONCLUSION  Douglas McGregor’s Theory X and Y, and William Ouchi’s Theory Z have a ll proven to be useful in the management field.  Many companies have successfully integrated similar economic and human p rinciples in a management style from Theory’s Y and Z.  Theory’s Y and Z have both shown to be quite successful framework for Am erican companies. Theory X is not obsolete.  The results of an empirical test of the model show that American manageme nt style is different from the Japanese.  The variability between two countries lies among the all six managerial dim ensions as well.  While American managers emphasize supervisory style, decision making, an d control mechanism,  The Japanese are more concerned with communication process, interdepartm ental relations, and paternalistic approach.

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