Not For Bread Alone: A Business Ethos, A Management Ethic

FOR A Business Ethos, A Management Ethic Konosuke Matsushita The author is founder, and presently executive advisor, of Matsushita Electric Industrial Company, Ltd. KONOSUKE MATSUSHITA was born in 1894. the youngest of eight children of a fa rm er. Undeterred by chronic illness and meager funds, he started his business in a single rented room. He went on to build one of the biggest and most respected electrical appliance firms in the world. This volume, containing his observations and insights over the years, is testimony to the quality of experience that has helped make Mr. Matsushita the manager par excellence in Japanese, and world, industry. He says: "Eighty years have passed since I became an apprentice at the age of nine. 1 have watched the world change, and through it all, I have accumulated a great deal of experience. No matter how chaotic the world may see m, I am convinced that one can improve his management techniques and make his business prosper." His philosophy of business is idealistic, and it is inspired by an alirlOst religious sense of mission. It centers on people, on his earthy, realistic understanding of human nature. This combination gives his comments on business a vital immediacy. Not jor Bread Alone offers the serious businessman valuable hints, some of them so commonsensical as to be unorthodox, on conducting himself and guiding his company to prosperity, as well as maintaining personal balance and integrity in the process. PHP INSTITUTE, INe. ISBN-4-569-21089-9 C0034 ~1800E USS8.25 Printed in Japan A Business Ethos, A Management Ethic Konosuke Matsushita PHP INSTITUTE, INC. Kyoto, Tokyo, Japan This book is based on selections from four books in Japanese by Konosuke Matsushita published by PHP Institute, Inc.: Shobai kokoroe-cho (1973), Keiei kokoroe-cho (1974), Ketsudan no keiei (1979), and Keiei no kotsu koko nari to kizuita kachi wa hyakumanryo (1980). Published by PHP Institute, Inc. Head OffIce: 11 Kitanouchi-cho, Nishikujo, Minami-ku, 601 Kyoto, Japan Tokyo Branch OffIce: Tokyo Konoike Bldg., 2-3-11 Kanda, Surugadai, Chiyoda-ku, 101 Tokyo, Japan Distributed by PHP Institute, Inc., and in Asia and Oceania by PHP International (S) Pte. Ltd., 202 Bedok South Avenue 1, Singapore 1646, Republic of Singapore. Copyright © 1984 by PHP Institute, Inc. All rights reserved, including the right to reproduce this book or portions thereof in any form without prior permission of the publisher. Printed in Japan by Dai Nippon Printing Co., Ltd. Cover design by Minoru Imai First Edition, June 1984 Second Impression, July 1984 ISBN4-569-21089-9 Not for Bread Alone Contents Acknowledgements Preface 13 Introduction 11 17 PART ONE Chapter One: 1. 2. 3. 4. 5. 6. An Objective Sense of Self 30 Trust Your Employees 31 A Priceless Opportunity 33 Everyone Is an Asset 34 For Bread and Values 36 On-the-Job Experience 37 Chapter Two: 1. 2. 3. 4. 5. 6. 7. 8. HUMAN RESOURCES COLLECTIVE WISDOM Tail Trails the Head 42 Bottom-up Communication 44 Bureaucratism Blocks Communication Delegate Responsibility 47 Rewards of Good Rapport 48 An Honest Hand 49 Employees Need Dreams 50 Participatory Management 51 45 7 Contents Chapter Three: CREATIVE MANAGEMENT 1. Complacency Deters Progress 56 2. The Creative Merchant 57 3. Incentives for Zero Defects 58 4. Intuition Makes Sense 60 5. The Independent Spirit 61 6. Losses Are for the Losers 63 7. Don't Rest on Your Laurels 64 8. Business Shapes Society 65 Chapter Four: 1. 2. 3. 4. 5. 6. 7. 8. The Unwritten Contract Advertising Is Evangelizing 70 Service Comes First "Hello" Service 71 72 Persuasion Pays Off Good Quality, Good Price 75 Treasure Com