Japanese Management Systems Essay Example | Topics and Well Written Essays - 3000 words

Japanese Management Systems - Essay Example To generate profit, the organisation cannot take random decision; this will rather decline the shareholder value and also can affect the reputation of the organisation. Shareholder value is dependent on the perception and the trend of the market in which the organisation is operating and towards the ability of the corporation to produce returns to its shareholders in present as well as future context. Providing maximum returns on the investments of the shareholders help in holding their interests in the organisation. Putting it in the equation, Shareholder Value = Current Performance + Expectations for Future Performance (Davis, 2011). This helps the organisation to gain the sustainable growth by enhancing their short term and long term goals and achievements. This further helps the organisation to retain its shareholders interests in the long term basis. The paper will study the reason behind the Japanese organisations to be more oriented towards the shareholders’ value. The paper also includes the consequences faced by the management of the organisations due to incorporating of the shareholders’ value. Japanese Management System Industrialisation has always been an essential part of the Japanese development. The management systems practiced in the organisations are highly dominant in nature. And, in addition to this, economy of the nation plays a vital part in influencing the organisational development as well as tended the management to modernise in the process. During 1980s, Japan was considered to be the second largest economy in the world. This was possible because of the contribution from the industrial sectors. After the Second World War, the country is observed to have changed tremendously with regard to its economical... The paper tells that industrialisation has always been an essential part of the Japanese development. The management systems practiced in the organisations are highly dominant in nature. And, in addition to this, economy of the nation plays a vital part in influencing the organisational development as well as tended the management to modernise in the process. During 1980s, Japan was considered to be the second largest economy in the world. This was possible because of the contribution from the industrial sectors. After the Second World War, the country is observed to have changed tremendously with regard to its economical growth and industrial growth as well. This economic well doing of the country was termed as ‘economic miracle’ but later, after it burst, was named ‘the bubble’. The management system practiced in Japan was very different than the management system practiced in other nations. Confucianism can be observed in the management practice of the or ganisations. This signifies the loyalties of the Japanese labours are undoubted or Confucian. But with the changes in the market, the management system too has changed in the process. In the modernisation of Japan, the liberal market forces have played a dominant role in the organisational operations. The capital market and the stock market prices are very sensitive in nature that further tends to change the functioning of the organisations. Management practices were highly influenced by the price hike in the stock market, so managers needed to change in accordance with the price change.