Drawing on evidence from Japanese companies operating in the UK, Essay

Drawing on evidence from Japanese companies operating in the UK, critically evaluate the extent to which contextual factors (such as local labour markets, indus - Essay Example Management practices in UK and Japan are different because of differences in cultural, social and historical development of these countries. Wider social, political and economic conditions, incorporating enterprise unions, buyer-seller relationships, government support and economic structures cause the main differences between two models of management. In the era of globalization and internalization companies become dynamically evolving entities operating within a dynamically evolving environment, and some means of evaluation of the way in which the two interact has to be found to enable them to be better matched. Some contextual factors including local labour markets, industrial and HR relations mediate the transfer of "Japanese" management principles (Armstrong, 2003). The main techniques which was transferred include: Total Quality Control, Quality Circles, In-Process controls such as Statistical Process Control, Just-in-Time delivery and management systems and Continuous improvement. It should be noted that Japanese manufacturing techniques constitute the most tangible elements of the Japanese business system. They are essentially concerned with quality and efficiency and the improvement of competitiveness and thus it is unsurprising that it is these, more than any other aspects of Japanese management, which are now being adopted by UK firms. As increased global competition is placing more emphasis on local responsiveness, market segmentation, differentiation and product quality firms need to develop more flexible manufacturing systems and quality programmes to respond to the new demands. The manufacturing techniques were partially transferred taking into account cultural differences and strategy. Today, many companies tend to use a preventive TQM approach that overhauls procedures in every function from R&D to marketing and service to avoid errors, while cutting costs anywhere from 10% to 50%. The idea is to get products to a market faster, with fewer defects, and at a lower cost. According to Hill (1991) "top management determines quality priorities, establishes the systems of quality management and the procedures to be followed, provides resources and leads by example" (Hill, 1991). Manufacturing methods abound with references to teamwork and creative thinking. By focusing on the costs of poor quality, it saves money. It encompasses the notion of continuous improvement and, as such, it is essentially long-term. In Japan, TQM and Quality Circles are a core philosophy of a firm, but in UK they treats as management techniques. The industrial relations and manufacturing methods are not culturally based and serves as a useful methods of errors reduction and achieving customers satisfaction. Employee relations is another sphere of Japanese management principles. It should be noted that organisational structures are more ephemeral and difficult to replicate. They are reflective of family values and the country's national identity. It is often assumed that Japanese organisations are flat, with management being by consensus. Many Japanese organisations exhibit hierarchical characteristics, with decision-making coming from the top. Much resistance towards this principle has been displayed by UK employers in the adoption of employee involvement despite the apparent quality and productivity payouts.