Dr Kazuo Inamori’s Management Praxis and Philosophy: A Response to the Profit-Maximisation Paradigm

Foreword
Preface
References
Acknowledgements
Contents
List of Figures
List of Tables
1 Introduction
	Appendix Research Methodology
		Methodological Considerations
		Research Process and Steps
	References
2 Inamori Management Philosophy: Schematic Representation
	IMP and Its Core Concept
		Inamori Management Philosophy (IMP) Schematic Representation
		Hypostasis (or Substratum)
		Substantiation (or Putting into Practice)
		Lynchpins Between Hypostasis and Substantiation
		Further Elaboration of the Components of Inamori Management Philosophy
		Appendix 2.1 Six efforts
		Appendix 2.2 The Twelve Articles and Other Principles (Seven fundamental Principles, and Kyocera Philosophy)
		Appendix 2.3 Anecdotal illustration of IMP from interviews in the Kyocera newsletter
		Appendix 2.4 Kazuo Inamori and Konosuke Matsushita
		Appendix 2.5 Comparison of Two Phronetic Business Leaders by Kawakami (2010)
	Annex Husserlian Phenomenology and Inamori Management Philosophy
		Summary
		Part 1: Essential Phenomenological Perspectives for Inamori Research
		Part 2: Sense Organs, Sense, and Knowledge
	References
Part I Hypostasis
3 Kazuo Inamori
	Early Days and the Foundation and Growth of Kyocera
		1932–: Early Days
			Goju Kyoiku and Saigo Takamori (Nanshu)
		Hidden Shin Buddhism
		1944–1951: Supplementary School and High School days
			1951–1955: Kagoshima Prefectural University
	1955–1959: Pre-Kyocera Foundation Days
	1959: Foundation of Kyocera
		Cathode-Ray Tubes
		Titanium Oxide-Based Condenser—Adhering to the Core Competency in Forsterite
		Multiform Glass
		Kyocera Manufacturing Policy—Old Machines,  Less Recruitment, In-house Production
		The Kyocera Way
	1961: Protest of the Newly Hired
		Awakening to the Need for Management Mission
		Reverence of Heaven and Love of People
		Difficulties in Selling Its Products
	1963–1966: Shiga Plant/Head Office—The Birth of Amoeba Management System and Explicit Formulation of Rita No Seishin
	1966: Securing Orders from US Companies: LSI Substrate
	1966: Assuming Kyocera’s Presidency
	1968: A Trial Order from Fairchild
	1969: Kyocera Trade Union
	1965–1971: Listing on the Stock Market
	1969–1972: New Plants in Sendai and Kokubu, and Kyoto Headquarters
	1968–1973: Kyocera International Inc. (KII) and the Acquisition of Fairchild’s Ceramic Package Plant
	1972–1974: Travel with Employees to Hong Kong and Employees Share-Holding Scheme
	1974: Oil Crisis
		Price-Setting
		Field Theory of Management
		Divisional Organisation Versus Amoeba Management System
	Road to Diversification
		The 1970s: Multi-business and Multiple Markets
	1972–1980: Crescent Vert Brand Emerald and Jewellery Business
	1972–: “BIOCERAM”
	1975–: Japan Solar Energy
	1971–1986: The Development of “Cerachip” and Ceramic Engine
	1976: Management Policy, ADR (American Depository Receipts), and No-Debt Policy
	1979: Trident and Cybernet Kogyo Acquisitions
	1983: Acquisition of Yashica
	1990–1994: The Third Special Administrative Reform Promotion Council and Kyoto Chamber of Commerce
	1998–2002: Turning Mita Around
	1983–2008: Foundation of DDI, a Telephone Carrier
	1989–: Acquisition of Elco and Merger with AVX
	2010–2013: Turnaround of Japan Airlines (JAL)
		Requested to Take Charge of JAL Turnaround
		JAL Situation Before the Crisis
		Undertaking the Turnaround
		Finding JAL’s Shortcomings
		Mindset Change
		Management Tools
		Socialisation
		Mission Statement and JAL Philosophy
		Performance Improvement
		Re-listing on the Stock-Market
	Personal Awakening to Zen Buddhism and Social Activities; Seiwajuku and Kyoto Prize
		1997–: Ordained as Zen Buddhist Monk and Cancer Operation
		Seiwajuku
		Kyoto Prize
		Management Philosophy
			Philosophy-Based Management
	Appendix A: Kazuo Inamori & Kyocera Chronology
	Appendix B: Kyocera’s Financial Statements
	Appendix C: KDDI’s Financial Figures
	Appendix D: JAL’s Financial Figures
	References
4 Ideology and Rules
	First Example: Saint Ignatius of Loyola: The Spiritual Exercises and the Constitutions—Perceived Behaviour Control System in Catholic Christianity
		Introduction
		Early Days of His Life
		Montserrat and Manresa
		Mystical Experiences
		The Pilgrimage to Jerusalem
		The Return to Spain/Alcalá
		Salamanca
		Paris
		Italy
		Society of Jesus
		Appendix 1: St Ignatius of Loyola in the light of the spirit of the time and “genius loci” according to Unamuno: the parallels between Ignatius and Don Quixote
		Appendix 2: Portrait of St Ignatius and Madariaga’s Man of Passion vs Man of Thought and Man of Action
		Appendix 3: Spiritual Exercises
			Theoretical Foundation
			Introductory Observations
			Duration
			Putting the Exercises into Practice
		Appendix 4: Constitutions of the Society of Jesus
			Introductory Comments
			Content and Some Extracts from the Constitutions,
		Appendix 5 Chronology of St Ignatius’s Life
	Second Example: Master Dogen. Eihei Shingi and Shobo Genzo—Perceived Behaviour Control System in Soto Zen Buddhism
		Introduction
		Early Days in His Life
		Ordained as Monk
		Encounter with Master Eisai and Master Myozen
		Zen Practices in China
		Life at Mt Tiantong
		Encounter with Master Rujing
		Dropping-Off of Mind–Body Dualism/Enlightenment
		Homecoming to Japan
		Appendix 1 Landmark Events in Dogen’s Life
		Appendix 2 Satori and an Extract from Shobo Genzo
			Satori
		Shobo Genzo—Chapter Genjo Koan
		Appendix 3 Eihei Shingi
			The Model for Engaging the Way—Bendoho
	Third Example: Saigo Nanshu Ikun or Saigo’s Sayings and Inamori’s Management Philosophy (Saigo, 2015)
		Saigo’s Sayings
			Classification of Nanshu Ikun’s Messages
		Comparison with Kyocera Philosophy
	References
5 Leadership
	Inamori’s Purposive View of (After)Life and Its Implications for His Management Philosophy
		Inamori’s Belief in Life After Death
		Purposive or Teleological View of Life
		Socrates
		Hilty
		Comparison of Different Purposive Views of Life
	The Purposive View of Life Reflected in Inamori’s Behaviour Governance
	Appendix A: Views on Death in Japan
	Inamori’s Leadership
	Inamori’s Management Philosophy, Including Saigo Nanshu’s Teaching
		Philosophy-Based Management
		Management Responding Customers’ Needs
		Innovative Management that Offers a Challenge to the Future
		The Intense Solid Desire that Penetrates the Subconscious
		You Can Only Get What You Desire
		No Joy Without Alloy and No Alloy Without Joy
		High-Mindedness Is the Source of Energy
		Treasure-Trove
		Altruism
		Equation of Life and Work
		Religion and Death
		Laborare est orare
		Inamori on Quiddity
		Satori and the Capturing of Quiddity Through Satori
		Wrapping Up: Inamori’s Philosophy, According to Kawakami (2010)
	Appendix A: Twelve Articles of Inamori’s Management Philosophy
	Appendix B: Saigo Nanshu Ikun or Saigo’s Sayings and Inamori’s Management Philosophy
		Saigo’s Sayings
		Classification of Nanshu Ikun’s Messages
		Comparison with Kyocera Philosophy
	Review of Literature on Leadership
	Trait Theory
	The Behavioural Leadership Theory
	Contingency Leadership Theories
	Integrated Psychological Theory
	Transactional and Transformational Theories
	Motivation and Leadership
		Content Theories
		Process Theories
		Anthropological Model of Motivation
	References
Part II Substantiation
6 Amoeba Management and Hourly Profit System (AMS)
	The Starting Point—Management Rationale That Gives Rise to AMS
	Objectives of Amoeba Management System
		To Establish a Market-Oriented Divisional Accounting System: Hourly Efficiency
			Hourly Efficiency: Historical Background
			Hourly Efficiency: Labour Cost
			Meaning of the Hourly Efficiency System for IMP and AMS: Double-Decked Aspect of Efficiency at Micro, Operational Level and Macro, Corporate Level
			Amoeba Cells or Units
		To Foster a Sense of Management Among the Personnel
			Dissolving Labour-Management Confrontation
		To Realise the Concept of ‘Management by All’
			Remuneration Not Linked to the Performance of the Amoeba Cells—Extrinsic Motivation Decoupled from Intrinsic and Transcendental Motivations
	Organisation of Amoebas
		Comparison with Division (Jigyobu) and Division Company (Kanpani-Sei)
		Functions and Processes
		Three Conditions for the Subdivision of the Organisation
		Four Basic Organisational Requirements
		The Flexibility of Amoeba Organisation Adapting to Markets
	The Hourly Efficiency System (HES)
		Objectives and Meaning
		Evaluation of Performance
		Creativity and Hourly Efficiency
		Research and Development (R + D) in Amoeba Management System
		Capital Expenditure
		Administration Units in AMS
		Inter-Amoeba Prices
		Conflicts of Interest Among Amoebas
		Kyocera’s Annual Budget and Planning System
		Amoeba Management System Versus Financial Control Company: Objective-Setting
		The Amoeba Management System Versus the Standard Cost Accounting Method
	Management Rules and Kyocera Accounting Principles
		Three Methods for the Explicit Recognition of the Revenue—Linkage with Market Price
			The Custom-Order Method
			The Stock Sales Business Method
			The Handling of Expenses
		Amoeba Management System in Other Companies
	Conclusion and Discussion
	References
7 Inamori’s Strategy Analysed Through Financial Statements: Inception-1981, 1973–1974, 1974–1979, 1979–1983, 1983–1985, and 1973–1989
	Analysis of Stream of Funds
		Inception-1981: Basic Policy
		1973–1974: Listing of Kyocera’s Shares on the Stock Exchange
		1974–1979: Expansion by Acquisition/Merger
		1979–1983: Diversifications Inside and Outside Kyocera’s Original Business Domain
		1983–1985: Inamori as Kyocera’s Chairman
		1985–1998: Inamori as Kyocera’s Emeritus Chairman
		2019: Kyocera After Inamori’s Departure from Kyocera’s Daily Management
		Equity Stakes as of 2019: KDDI and Other Investments
		Summary of Flows of Funds Analysis
		Summary of Dupont Ratio Analysis
	The Macroeconomic Factor and Kyocera Management
		1961–1980
		1998–2018
	Conclusions and Discussions
	References
8 Kyocera’s Accounting System
	Inamori’s Basic Notion of Accounting
	Inamori’s Idea About the Relations Between Accounting and Management
	Accounting for Management: Inamori’s Seven Basic Principles for Accounting
		Principle of Cash-Basis Management
		Principle of One-to-One Correspondence
		Principles of “Muscular Management”
		Principles of “Perfectionism”
		Principles of Double-Check
		Principle of Profitability Improvement
		Principle of Transparent Management
	Conclusions and Discussions
	References
9 Inamori Management Philosophy and Its Substantiation Tools (Amoeba Management Systems, Kyocera Accounting System, Finances) in the Light of Management Control Literature
	Management Control System
		Closedness-Openness and Rationality-Naturalness in the Development of an Organisation
	Management Accounting and MCS
	MCS and Strategy
	Conclusion: Inamori Management and Amoeba Management System in the light of Management control literature
	References
10 Conclusions and Discussions
	Kazuo Inamori’s Figure and Inamori Management Philosophy
		Question (1): Universality of IMP
		Binomial or Two-Tier Structure of IMP
		Question (2): IMP Without Inamori
		IMP and Praxis—Embodied Knowledge
		Question (3): Embodied Knowledge and Its Implications and Applicability
		Discussions of Questions (1), (2), and (3)
		Future Research
	References
Bibliographical References
Index