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Panasonic History:
1933

Konosuke Matsushita institutes divisional system


Strong managers fostered with the concept of individual responsibility

In May 1933, Matsushita devised and instituted a system of autonomously managed corporate divisions, grouped according to the products they produced. The First Division produced radios, the Second Division handled lamps and dry cells, and the Third Division was in charge of wiring devices, synthetic resins and electrothermal products. Each division was responsible for managing its factories and offices, developing, manufacturing and selling products and maintaining profitable operations.
Because of health problems, Matsushita had always been a person to delegate responsibility. He had also seen that people fully exercise their creativity and initiative when they were placed fully in charge of a task. For example, in 1927 he had given the manager of the Electric Heating Appliance Department full responsibility for manufacturing and selling Panasonic's first iron, resulting in a major success for the company.
Matsushita stated two main aims for the division system: to ensure autonomous management and develop capable managers.
The system was a major innovation at that time. Panasonic was the first single proprietorship in Japan to be organized along such lines, and the principle of autonomous management continues to distinguish the company's operation to this day.

Konosuke Matsushita explains the new system of business divisions.

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