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Management Concepts & Organisational Behaviour - Japanese Management Practices

The Inherent Weaknesses of Japanese Management

   Posted On :  19.05.2018 11:09 pm

The system of the life time commitment and groupism encouraged employee dependence and suppressed individual creativity.

The Inherent Weaknesses of Japanese Management
 
The system of the life time commitment and groupism encouraged employee dependence and suppressed individual creativity.
 
The employment system discriminated against non-life time employees and prevented the formation of a free horizontal labour market.

The seniority based system of rewards created a promotion grid lock for middle management and especially for the younger outstanding employee.
 
By the mid -1980s the entire system of Japanese management faced three major challenges:
 
After the dramatic rise in the value of Yen, the problem of cost containment became much more difficult. How to reduce labour cost and restructure without restoring to massive layoffs had become a problem.
 
How to continue to motivate employees in a new environment in which the system of evaluation and rewards, as well as employee attitudes and expectations are fast changing;
 
How to redesign employment relationships in a way that would blend the advantages of the order system of dependence in the company with the necessity to promote employees self-reliance, initiative and creativity.

 

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