Japanese Motor Industry Case Study

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During 1970s and 1980s, Japanese industry came to dominate global markets and experience rapid expansion, for example, heavy manufacturing, mining and service industry. The achievements of these both domestically- and export-oriented Japanese enterprises was commonly ascribed to their management. In particular, the ‘three pillars’ of Japanese employment relations were held to be central in explaining the success of these companies However, during the period 1991-2000, the country’s GDP slump sharply following the so-called ‘burst of the bubble economy’, and the importance of emerging market is significantly increased for Japanese companies to stable the economy. Therefore, it is appreciated that traditional Japanese management must to be changed…show more content…
Research focused on leading Japanese automotive producers such as Toyota, Nissan and Mazda (1990), discuss that their combination of just-in-time, total quality management (TQM), teamwork and reciprocal employment relations produced the most efficient and effective organization for car production and thus explained the Japanese motor industry’s global success during the 1980s and 1990s. More broadly, Abbass A’s.studies (1994) had shown that Japanese HRM directly or indirectly contributed to the huge achievement of Japanese industry, especially by contribution to efficient labour productivity, the implementation of TQM and quality circles, and continuous improvement. The idea of Japanese employment relations and its attendant personnel practices thus emerged as a fully formed management model during that period. 2.2…show more content…
Firstly, diversity is encouraged and more women, foreigners are recruited. For example, Shiseido, the largest cosmetic firm in Japan, hired a foreigner as its top executive for the international business and adopt one of Japan’s first up-or-out employment policies: if manager fail to promoted within a certain time, they will be asked to leave. Another good example is Daikin, one of the world’s largest air-conditioning manufacturers, it has appointed a local executive to manage its business in India, and empowered local executives with operation authority. The company also has more than 300 employees in China for product

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