Higashimaru Soya Company

? Higashimaru Shoyu Co Ltd was a manufacturer of Soy Sauce ? The company was established in 1942 by merger of Kikuichi Shoyu Goshi Gaisha and Asai Shoyu Gomei gaisha companies ? by 1992, the firm produced over 200 different products in approximately 650 packaging forms. ? Third largest firm in the industry with 5% Market share ? By the early 1980’s supply significantly exceeded demand and prices fell ? Profit ? With ratio dropped to about 8% from 10% increase in variety, fixed cost increased thus reducing the profitability ratio. Toshio Okuno was promoted as the Plant Manager in 1974 with a permission to revitalize the Corporation. ? Implemented a gradual step wise process ? Identified the need of change in worker behavior. ? Emphasized on increasing overall communication till the lowest levels of the firm. †¢ MONTHLY GROUP LEADER MEETINGS †¢ Reduced a group’s natural resistance to change †¢ Increase in Inter and Intra group Communication †¢ THE PRIC E CONTROL SYSTEM †¢ Developed a profit making attitude in groups †¢ Generate Cost and Quality awareness THE DRAFT SYSTEM †¢ Created a more efficient Job Rotation Program †¢ Corrected deficiencies in the job rotation program †¢ TATSUMAKI PROGRAM †¢ Improved management skills of group leaders †¢ Increased the group leader’s awareness of the issues faced by entire firm †¢ THE HANGEN GAME †¢ Designed to reduce head count †¢ Also motivated the groups for improvements ? Toshio Okuno displayed a Transformational Leadership style ? Realized the vision through small planned steps and small successes in the path for its full implementation Tried to enhance the morale, performance and motivation of the employees ? Challenged the employees to take greater ownership for their work through the Price Control System program ? Tried to inspire the employees and make them interested in the work by various activities like creating the fictitious Higashimaru bank ? Okuno was also able to quickly identify problems faced by employees during the job rotation process and rectified them by implementing the Draft System ? Okuno also motivated group leaders to think beyond heir group and tried to improve their leadership qualities through the Tatsumaki Program Unfreeze: Change: Refreeze: †¢ Reaction mix †¢ Monthly group Leader met. †¢ Came up with Sagyo- Shigoto †¢ He thought the group leaders to think for themselves †¢ Increasing communication among the group. †¢ Participation and involvement of the employees into the decision making processes. †¢ Draft system †¢ Hangen game forced the employees to work more efficiently †¢ Reduce dependence on group leaders. ?Thank You!!!