August 1989: Organizational Flattening

Organizations Flattened to Respond Promptly to Rapid Changes

In the late 1980s, TMC was afflicted by the creeping onset of problems typical of large businesses, including bloated organizations and lack of flexibility. To counter these problems, TMC implemented a number of reforms to its personnel systems and development organizations.

Until that time, TMC had a pyramid-shaped organization based on divisions, sections, and sub-sections. The sub-sections were eliminated and sections were made more general, establishing a simpler, two-level organization. Organization heads were defined as one-person manager positions. As a result, the number of organizations on the section level decreased from 758 to 633 and the number of manager positions decreased from 1,800 to 900, with the remaining 900 providing practical support in staff positions.

In conjunction with these changes, the 'San Tsuke Campaign' and the 'Hanko Mitsu Campaign' were conducted, resulting in a more open organization, faster decision-making, and the delegation of authority.

Organizational Chart

Organizational Chart