How to Create a Successful Company: Location and Environment
The productivity and the spirits of the workers are connected to many factors. One of the major factors is the environment they are from and the environment they are put to work in. The governmental and cultural situation of the country where the company is located and the type of management in the environment created by the corporation.
The governmental and cultural environment of the country where the company is located would certainly impact the productivity growth of the firm. The government of the country could have enacted a policy that has made a massive impact on the country’s environment. One example is Germany. In hopes of having a well-educated and treated workforce, the German government made several different policies, such as the Employment Promotion Act which gave workers the right to receive paid training and education from the government. This policy created an environment in which the workforce is highly skilled and educated. This no doubt had a great impact on the productivity of the firm, making the German economy 4th in the world. Another factor is the cultural environment. The culture shapes the minds and ideas of the entire country since its birth. Naturally, this has a big impact on the working environment. One example of this is Japan’s tycoon culture. The Japanese working culture, as well as their economy, revolve around the Keiretsus (Japanese tycoons). The workforce is prepared to work in either the manufacturing or the service industries. Their preparedness and competition to get a high-paying job created a hard-working and fierce environment. Needless to say, this helped the growth of productivity in the firms.
The management environment created by the workplace greatly affects the growth of productivity. The types of management that the firm has in place determine whether the workers would be effective in their jobs. This could be a list of things, to reward systems to daily quotas. These managers determine what kind of environment the company would give off to its workers. Whether it be a hostile environment or constant progress. One of the most effective and well-known types of management that have greatly increased productivity was the Japanese Kaizen, or constant changes/improvements. The idea is that the management must always work to fix or improve their company. With these styles in mind, the Japanese experimented with different types of management, acquiring the data on which types of management worked and were the most efficient. The environment of constant progress that Kaizen created undoubtedly increased the productivity of Japanese companies.
