Abstract
Performance management is underpinned by the functioning of a number of distinct, but necessarily interconnected, organizational systems, including strategic planning systems, human resource planning systems, materials requirement planning systems, employee reward systems, and accounting information systems. This chapter provides a very brief history of Kyocera and the fundamental features of its amoeba management system. Amoeba management was designed by and introduced into Kyocera by the company's founder Dr Kazuo Inamori. The organizational sociology literature reveals that external environments characterized by high environmental uncertainty require organizations to adopt organic and more differentiated organizational structures. Kyocera's workers, though possessing a good grasp of and familiarity with the raw production and sales data, do not necessarily possess some of the analytical skills commonly associated with decision makers. Employee empowerment resides at the very core of amoeba management. According to the organizational behaviour literature, empowerment produces satisfied, motivated, and high-performing employees.