Has Japanese style of management worked in the UK in the past 15 years?

Brief history:

• During the late 1970’s to 1990’s Japanese firms have created a reputation for high quality and high performance at reasonable prices in order to achieve high profits
• The success of Japanese firms is a result of the high-quality management styles that plan the introduction of new product over a number of years in order to eliminate problems and become as successful as possible
• Also quality circle mean that employees have the chance to make their own contributions
• UK businesses have been able to benefit from the way in which Japanese firms work by adapting this style to the way firms in the UK work

Japanese Firms in the UK:

• There was a lot of overseas investment from Japan during the 1980’s particularly in the UK.
• The bulk of the investment was for firms in the car industry such as Toyota, Nissan and Honda.
• Twice as many firms in the UK adopted Japanese style management practices from 1985 to present compared to the 30 years previous

• Between 1985 and 1990, Japanese overseas investment ran at twice the level as for the entire 30 year period prior to this.  
• This was possibly one of the reasons why there was such a boom in other UK based firms adopting Japanese management styles
• The increase in UK firms adopting Japanese management investment coming into the UK during the 1980's could be attributable the Conservative government of the time, which enforced a low wage policy.

Obstacles Facing Japanese Businesses within the UK:

• The obstacles which Japanese firms faced within the UK aren’t necessarily to do with employees disliking a more stricter management style, but to do with:

• inappropriate institutions
• unhelpful work traditions
• tradition of adversary industrial relations

Other Japanese management information:

• The classic Japanese practice of management is not democratic participation in decision making compared to most UK firms.

• In Japanese management firms the ideas and views of all people involved in the issue, including junior and shop-floor workers are gathered, then the most senior person takes a decision. (this means that even though workers may put forward good ideas, it is the most senior person that makes the final decision)

• This may result in workers feeling that their views are not considered and lead to de-motivation

UK Emulators:

• Due to the success of businesses that use Japanese style of management there are many UK firms that have adopted the Japanese style production and personnel practises.
• This was extremely common in the UK during the early 1980’s.

Examples of Emulators:

• Lucas Electrical
• Ford
• Rover

Conclusion:

• The success of the Japanese management in the UK can be evaluated by looking at the increase in production and profits within the majority of the cases mentioned.
• The issue of can this style be TRANSFERRED into the UK needs careful analysis, as most UK employees became unhappy as a result of a stricter management style, however, from a businesses point of view in most cases it increased profits and productive output.
• It is hard to say whether they should be used or not, because the industrial relations, cultural, political and economic conditions are different in the UK from that in Japan and so it can be a risk as:

• Employees may go on strike
• Employees may leave
• The workforce may become de-motivated
• May be complete disaster and resulting in bankruptcy

• To be successful UK firms need to realise that the move from standardisation to flexibility lies at the heart of the problem as well as manager/worker co-operation within the business.
• UK firms must construct a more democratic framework in which a two way flow of information exists, and provide greater autonomy for the workforce.
• Management must progress beyond the macho techniques displayed by Lucas Electrical.
• Any strategy adopted by a business needs to be done in a long-term approach. A one-off approach as shown by Ford will not work
• Any organisation contemplating moves towards Japanisation should be using long term time scales to fully utilise the benefits and carry out the desired cultural changes
• The most successful companies within the UK are those which nurture and value their employees and so it is important not to be too-strict when adopting this style such as Ford
• The adoption of Japanese style production and personnel practices with the aim enhancing competitive advantage should be investigated before being instigated
• It is important to remember that Japanese style of management may not be suitable for all UK firms