CHANGING PARADIGMS IN ORGANIZATIONAL STRUCTURE OF JAPANESE MANUFACTURING ENTERPRISES

Abstract

This paper aims to clarify the organization structural transition as a result of the introduction of new technology in Japanese manufacturing enterprises. The introduction of information technology in business and microelectronics in manufacturing led to great modifications in the structure and functions of organizations today around the World. The revolution of micro-electronics technology forced manufacturing firms in Japan to adopt a multiproduct, small volume, lean production method. As a result, most of the manufacturing firms have embarked in the search and development of suitable forms of organizational structures in order to cope with challenges of new production method. In this background, a research question was probed in this study on what kind of organization structural patterns evolve among Japanese manufacturing firms? The research finding, which was based on a survey among 183 manufacturing companies, clarified that Japanese firms created a distinct style of organizational structure coupled with team working and workers’ knowledge utilization. The so-called Loosely Structured Organization (LSO), which is sometimes referred to as “knowledge-utilizing organizational structure”, has proved itself as a good strategy for managing the challenges of new technology and workers’ knowledge in a competitive environment. It was found that the combination of organic type of work organization and flat style of management organization forms the basis of LSO. The LSO is currently regarded as a new paradigm which determines the functional characteristics of firms today. Research findings also suggest that the tacit knowledge transfer is greatly facilitated by LSO, and many new knowledge utilization and transfer methods became easy to handle in an organizational climate supported by LSO.

Keywords: Organizational Structure, Work Organization, Management Organization, Loosely Structured Organization, New Technology, Knowledge Utilization

For full paper: fmscresearch@sjp.ac.lk