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KEY TO JAPANESE ECONOMIC MIRACLE
MAY 30, 1999 -
THE STAR
MANY countries and organisations outside Japan are amazed by
the sustained success of its economy in the last four decades.
They now start looking at the Japanese management system for
some answers. They look for reasons for its success and the
tools used in the process.
One of the greatest strengths in Japanese management systems
is human resources management and people development. The
emphasis is on more soft-skill development or human
development.
This article explains the practical meaning of Kaizen and how
the Japanese successfully apply this concept to their work
life.
Kaizen utilises the soft skills by getting people prepared to
initiate and support change for the betterment of the
organisation.
In any organisation, big or small, there is a need to
understand that change is a fact of life. However, this fact
is not so clear to many Malaysian employees and even
employers. They still stick to the old management saying of
"people resist change."
Kaizen basically means gradual Continuous improvement, be it
to one's social life, family life, or work life; The key word
here is improvement, which means having things done in a new
and better way.
Without some form of gradual and continuous change to meet the
fast pace of development in almost all fields, any business
will lose its competitive edge.
The most common and simple tool in the implementation of
Kaizen is the PDCA cycle. The 'P' denotes plan, which
generally is a course of action undertaken to fulfil an
objective. The 'D' means do -doing what was planned, and the
'C' means check, where a comparison is made between planning
and doing. When the task performed does not follow the set
plan, then the 'A' for action is to re-plan and go through the
cycle again.
But when things are done according to plan, the question "what
then?" arises. This is the vital part of Kaizen, because it
becomes part of the Japanese work culture to challenge
targets.
Once tasks are accomplished according to plan, the work
culture is such that the question automatically asked is: Can
this be done better the next time around?
No doubt, the Japanese did not have 100% success all the way
in business. What we don't see is, perhaps; their failures.
But one work habit that has ensured more success than failure
is Kaizen.
How is the idea of Kaizen incorporated into most successful
Japanese businesses?
The preliminary groundwork is done outside the business
context. The early days in school teach the Japanese to be
independent and to take up challenges. Thus the learning of
martial arts, for example, is a must for young Japanese
children.
School teaches the way of life or basis culture (mental
programming) by ensuring that youths understand the need to
respect-talk less and listen more to-their elders.
It is, therefore, not surprising to see Japanese businesses
paying a great deal of attention to human resources management
and development.
Top management support
Can Malaysian businesses incorporate the practice of Kaizen
into their work environment?
The answer depends on the corporate culture that is the values
norms and beliefs of the owners. The first step in
implementing Kaizen is to have top management desire a
continuous improvement in the organisation.
This means that the top management must trade off some of
authority and decision-making functions for higher
productivity and a dynamic workforce.
In general, a Japanese company is managed almost like a simple
traditional family, where the chief executive officer is like
a father or paternal master, which tends to lead to a close
interpersonal relationship or "groupism."
This was clearly shown in a study carried out by Dr William
Ouchi (of Theory Z fame) in 1981 in the United States. In his
research on issues pertaining to productivity, he concluded
that the Japanese clocked greater productivity than the
Americans because they paid a great deal of attention to
managing people.
Although technology is important for organisational growth,
the Japanese believe that people will make things happen.
Ringi and Nemawashi
Groupism is introduced into an organisation to ensure that all
the departments operate as an integrated whole-and not as
separate entities-to bring about overall results.
The "Ringi system" is a collective bottom-up decision-making
process which actually gives ownership to the person on the
floor for decisions on what action is needed to achieve the
objective. The Western world calls this the empowering of the
workforce.
In the practice of Nemawashi, which is the application of
broad consultation and consensus-building, almost everyone
agrees on what and how to achieve objectives.
Kaizen, then, is the application of soft skills that is
directed at improving the individual, the group and the
organisation.
This will, in turn, create a healthy organisation.
This approach is similar to the organisational development
(OD) approach, except that OD generally works on a
project-by-project basis involving a change agent, whereas
Kaizen is an on-going process where the individual and the
groups are culturally committed.
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