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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.

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? 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 PRICE 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!!!