Kaizen and employee performance: A path analysis

Abstract

Kaizen (Japanese) means continuous improvement or change to achieve a better result and focuses on continuous improvement of the manufacturing, engineering, or business management process. Kaizen philosophy is based on the principle that the way of human life, including work life, social life and family life, should be continuously improved. The aim of this study is to path analyzed the effect of kaizen on improving employee performance. In this study, Kaizen was implemented in unit of one of the products of an automotive company in Iran, in 2018 and then its effect on the performance of the personnel was investigated. Data were analyzed by SPSS-22 and Lisrel-8.8 software using statistical path analysis. According to the 􀅫indings, the 􀅫inal path model 􀅫itted based on CFI =0.25, RMSEA=0.51 index. Also among direct paths, Automation" with β=7.66 and "order at work (5S)" with -0.38 had the greatest and least impact on employees' performance, respectively. It is very important to use standard devices and tools to automate activities to have better results on employee performance. The overall impact of kaizen on performance is clear, but one way to determine which dimension has the greatest impact is through path analysis, so that by identifying direct and indirect effects on performance, we can focus more on identifying drivers and barriers to kaizen implementation. Convincing managers to implement kaizen in their system, teaching its implementation steps to managers and personnel with different views and expertise at different organizational levels. In fact, the impact of kaizen on the performance and productivity of the organization may take some time, but the of􀅫icials of the organization expect to see the result of this implementation faster and have a signi􀅫icant increase, especially in the 􀅫ield of 􀅫inancial pro􀅫it.