PRINCIPLES OF MANAGEMENT SEMINAR ON

“DIFFERENCE IN MANAGEMENT

PHILSOPHIES OF JAPANESE AND

AMERICANS CORPORATIONS”

USA JAPAN Primarily short-term

orientation Individual decision-

making Involvement of a few

people in making and “selling: the decision to people with divergent values

Decisions are initiated at the top and flow down

Fast decision-making; slow implementation requiring compromise, often resulting in suboptimal decisions

Long-term orientation Collective decision-making

(ring) with consensus Involvement of many

people in preparing and making the decision

Decision flow from bottom-to-top and back

Slow decision-making; fast implementation of the decision

Planning

USA JAPAN

Individual responsibility and accountability

Clarity and specificity of decision responsibility

Formal bureaucratic organizational structure

Lack of common organization culture; identification with profession rather than with company

Collective responsibility and accountability

Ambiguity of decision responsibility

Informal organization structure

Well-known common organization culture and philosophy; competitive spirit toward other enterprises

Organizing

USA JAPAN

People hired out of schools and from other companies; frequent company changes

Rapid advancement highly desired and demanded

Loyalty to the profession Frequent performance evaluation

for new employees Appraisal of short-term results !

Promotions based primarily on individual performance

Training and development undertaken with hesitation (employee may go to another firm)

Job insecurity prevails

Young people hired out of school; hardly any mobility of people among companies

Slow promotion through the ranks Loyalty to the company ! Very

infrequent formal performance evaluations for new (young) employees

Appraisal of long-term performance

Training and development considered a longterm investment

Lifetime employment common in large companies.

Staffing

USA JAPAN

Leader acts as decision-maker and head of group

Directive style (strong, firm, determined)

Often divergent values; individualism sometimes hinders cooperation

Face-to-face confrontation common; emphasis on clarity

Communication primarily top-down

Leader acting as social facilitator and group member

Paternalistic style Common values

facilitating cooperation Avoidance of

confrontation, sometimes leading to ambiguities; emphasis on harmony

Bottom-up communication

Leadership

USA JAPAN

Control by superior Control focus on

individual performance

Fix blame Limited use of

quality control circles

Control by peers Control focus on

group performance Saving face Extensive use of

quality control circles

Controlling

Difference in management philosophies

Comparison of U.S. and Japanese workers and management practices to show how the observed differences. This is divided into four main sections as indicated below.

1. Characteristics and attitudes of workers

2. Management attitudes and policies toward workers

3. Competitive focus of management and management policies

4. Management accounting and control

CASE STUDY … TOYATO FORD

Toyota Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan

History- The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. 

Current scenario- Toyota was the largest automobile manufacturer in 2012 (by production) ahead of the Volkswagen Group and General Motors. . In March 2014 the multinational corporation consisted of 338,875 employees worldwide and, as of November 2014, is the twelfth-largest company in the world by revenue.  It also holds a 51.2% stake in Daihatsu, a 16.66% stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, and a 0.27% stake in Tesla, as well as joint-ventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Ford The Ford Motor Company (commonly referred to as simply Ford) is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit.

History- Henry Ford's first attempt at a car company under his own name was the Henry Ford Company on November 3, 1901, which became the Cadillac Motor Company on August 22, 1902, after Ford left with the rights to his name. The Ford Motor Company was launched in a converted factory in 1903.

Current scenario- Ford is the second-largest U.S.-based automaker (preceded by General Motors) and the fifth-largest in the world based on 2010 vehicle sales. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion. . Ford owns a 2.1% stake in Mazda of Japan, an 8% stake in Aston Martin of the United Kingdom, and a 49% stake in Jiangling of China.

Difference in management

philosophies of both the

companies

Basis of difference

Toyota Ford

Production Philosophy

Relies on piece-meal style of production, i.e., produces only when there is pull from the customer.

Whereas Ford manufactured in large scale to create stock based on estimated demand.

Nature of work Designed the work so, that workers had to be multi- skilled to perform complex tasks.

Over simplified complex operations such that workers needed low level skills.

Pace of output Toyota production system was continual and produced in small quantities as each customer merited.

No pile up of finished goods.Held the policy of turning over at uniform pace to create huge pile up of stocks.

Set up time & cost

Fundamentally designed for continual flow meriting frequent changeovers and set ups, but this could be offset by the extra costs of blocking capital in the form of huge pile up of stocks, characteristic of

As the scheduling is done for continuous run, changeovers are less frequent and so, low set up time and cost.

Basis of difference

Toyota Ford

Developing people

Promotes development of exceptional individuals and teams.

Does not focus on developing experts as it has over simplified the tasks, rather, workers might gain efficiency as they do the single task repeatedly.

Problem solving Employees are nurtured in such a culture that they address a problem through the root cause instead of taking a perfunctory look.

Employees are not trained along making deeper efforts in addressing problems. They used to leave the problem at perfunctory levels.

Pay and incentives

Provides ample scope for personnel to grow as it nurtures innovation, employee participation and so on.

The policy is to pay and provide incentives based on results.

Worker’s discretion

Allowed certain amount of discretion to workers on the assembly line

Eliminated the scope for workers' discretion to be used at the work place

GROUP Members:

Shreyas Bajoria (Roll No.: 124)Simran Nathany (Roll No.: 125)Diksha Agarwal (Roll No.: 126)Ritika Agarwal (Roll No.: 127)Himanshu Gupta (Roll No.: 128)Pratik Shah (Roll No.: 129)Jason Anthony (Roll No.: 130)Karishma Somani (Roll No.: 131)Aishwarya Mohata (Roll No.: 132)Megha Duggar (Roll No.: 133)

Sources•www.wikipedia.com

•www.ukessays.com

•www.toyota.org

•“The Toyota way” – by Jeffery Liker

THANK YOU !!