east west

Eastern & Western Management Styles : 

Eastern & Western Management Styles Germany, the U.S. and Japan Carola Carstens, Nina Kummer, Britta Upsing

What is Management? : 

Introduction What is Management? Staffing Leadership and Career Development Compensation System Motivation and Evaluation Communication

What is management ? : 

Introduction 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.“

Recruitment in Japan : 

Career development Recruitment in Japan directly from school with a focus on general characteristics instead of technical skills as one is employed for a lifelong period

A successful career : 

Career development A successful career After 10 years: promotion to kacho After 20 years or more: promotion to bucho Not before the age of 50: possible promotion to directorship

Career perception : 

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

Factors that determine salary : 

Compensation System Factors that determine salary Prevailing pay Bargaining power of unions Individual needs Job requirements Seniority and education Ability to pay

The pay-package in Japan : 

Compensation System The pay-package in Japan Monthly base-pay Semi-annual bonus Allowances and benefits

Sources of Motivation : 

Motivation and Evaluation Sources of Motivation Similarities Responsibility Challenge Interesting work Recognition Money is secondary Differences Seniority wage Promotion system Importance of the group

The process of evaluation : 

Motivation and Evaluation The process of evaluation In: Japanese Management, p. 154

HRM: Japan - USA : 

Conclusion HRM: Japan - USA Importance of the company for Japanese and American employees: In: Japanese Management, p. 155 73% of the Japanese 79% of the Americans

HRM Japan - USA : 

Conclusion HRM Japan - USA

HRM in Japan : 

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

HRM in Japan : 

Conclusion HRM in Japan Uchi no kaisha*: „Ein Unternehmen ist nichts Fremdes, Abstraktes oder Unangenehmes, sondern ein eminent nützlicher, allseits Wärme spendender Organismus.“ * kaisha = „Firma“, lit. „soziales Beisammensein“

Office Layout : 

Office Layout Open-plan offices No cubicles or dividers Private space is avoided Keep in touch

Office Layout : 

Office Layout Office Layout “I share a spacious office area with other administrative staff members. When we work together in one big room, we can talk casually to one another. There are a lot of suggestions and ideas exchanged in these conversations.” (the president of Honda American Motors)

Groups : 

Formal and Informal Company Structure Groups Working groups with family-like ties Identification with the group The group rather than a single individual is rewarded or blamed in case of failure Harmony is maintained

Working groups : 

Formal and Informal Company Structure Working groups Group members are aware of their status Individual needs are deemphasized in order to maintain harmony Dependency relationships

Rice cultivation : 

Formal and Informal Company Structure Rice cultivation until 100 years ago, 5/6 of the population was employed in rice cultivation Only 10% of the land can be cultivated Crowdedness Cooperation is necessary

Habatsu (Cliques) : 

Formal and Informal Company Structure Habatsu (Cliques) Informal groups Membership is based on unchangeable criteria Graduating from the same university Having a common hometown

Communication : 

Communication Communication office-layout supports the free flow of information everybody is kept up-to-date communication even vertically is easy face-to-face communication is often continued in a restaurant etc.  high-context situation

Communication : 

Communication Communication

Decision Making : 

Communication Decision Making popular view:  catchwords: but reality is a little more subtle...

Decision Making - Japan : 

Communication Decision Making - Japan Cultural background: “Wa”: harmony - the essence of Japanese life „Kyodotai“: harmonic, organic cooperation of a community with friendly mutual support and understanding decisions are ideally made in this atmosphere of friendly cooperation  unanimity  solidarity

Decision Making - Japan : 

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

Decision Making – Japan : 

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

Decision Making – Japan : 

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

Decision Making – Japan : 

Communication 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

Decision Making – Japan : 

Communication Decision Making – Japan Too time-consuming ? In: Japanese Management, p. 161

Decision Making – Japan : 

Communication 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

Two sides of an organization : 

Formal and Informal Company Structure Two sides of an organization

Kacho : 

Formal and Informal Company Structure Kacho Informal leader Head of department position between management and workforce mediator

Informal Structure in Japan : 

Formal and Informal Company Structure Informal Structure in Japan Informal leaders groups channels of communication supplement a steep hierarchy.

Organic versus Mechanistic View : 

Informal and Formal Company Structure Organic versus Mechanistic View Organic: The organization as a living organism Constantly in progress Mechanistic: The organization as a static scheme Strive for equilibrated states

Management : 

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

Hierarchy : 

Hierarchy Hierarchy Strict hierarchical order Secured spheres of control Managers are other-oriented In the West most managers are self-oriented

Power : 

Hierarchy Power Power is based on a person‘s function In Western organizations power is based on a person Less competition in Japan than in Western cultures

Leadership : 

Hierarchy Leadership an effective leader in Japan is above all: - a catalyst - a coach - a source of inspiration for his team

Management and working styles 1 : 

Summary Management and working styles 1

Management and working styles 2 : 

Summary Management and working styles 2

Total Quality Control : 

Organization and Planning Total Quality Control Method developed in the USA Quality assurance at every stage of production In Japan: Quality Circles Target Cost

Quality Circles : 

Organization and Planning Quality Circles „Quality Circles are small groups of people who do similar or related work who meet regularly to identify, analyse,and solve product-quality and production problems and to improve general operations.“ (Robert E. Cole, Director of the Center for Japanese Studies at the University of Michigan, S. 238)

Quality Circles : 

Organization and Planning Quality Circles Core element of the Japanese application of Total Quality Control Small groups of employees: 10-12 members to facilitate communication Continously improving process = Kaizen KAI = Change and ZEN = to the best

Benefits of Quality Circles : 

Organization and Planning Benefits of Quality Circles Improved communication Greater job satisfaction Improved morale Improved quality Cost savings

Target Cost : 

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