By Hidemasa Morikawa
This publication analyzes the head administration of top jap organisations. Drawing at the paintings of Alfred Chandler, Morikawa demonstrates the adaptation among family-owned organizations and professionally controlled firms.
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Additional info for A History of Top Management in Japan: Managerial Enterprises and Family Enterprises
Mitsui and Sumitomo, for example, became managerial enterprises. Suzuki became a managerial enterprise controlled by an outside ﬁnancial institution. Mitsubishi was being transformed into a managerial enterprise where cooperation between family and salaried managers was the order of the day, and others like Asano and Yasuda stubbornly maintained their status as family enterprises. From these examples alone it should be clear that zaibatsu took on many forms and, as a next step, in the following section, I’d like to explain how both zaibatsu and other large enterprises became part of a trend toward the development of managerial enterprises.
Given the above, if a family enterprise wants to grow and move beyond mere existence, cooperation with salaried managers, particularly those engaged as top-level managers, becomes necessary. At this stage, the overall framework of the family enterprise is still intact and the enterprise has not yet become a managerial enterprise, or one in which the salaried managers are delegated the overall power of top management. Within the family-enterprise structure, the cooperation of salaried managers at the top level can be 32 History of Top Management in Japan obtained by reorganizing top management and by sharing the positions among the family members and salaried managers.
Key posts may be given to the founder’s family and/or salaried managers, or the business may be operated under a council system. Inoue also notes that, recently, when management gets handed over from founder to family, one of two things tends to happen. The ﬁrst is that the top-management post goes to someone in the family who is capable enough to handle the job.
A History of Top Management in Japan: Managerial Enterprises and Family Enterprises by Hidemasa Morikawa