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JAPANESE MANAGEMENT.
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Compared with Amer. management & applied to Amer. business problems. Factors that would impede such an application.... More...
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Paper Abstract:
Compared with Amer. management & applied to Amer. business problems. Factors that would impede such an application.
Paper Introduction:
This is a study of the character of Japanese business management, its strengths and weaknesses, how it compares with American management, and what lessons (if any) American business can learn from the Japanese system and experience of management. It will be argued that important lessons can indeed be learned from the Japanese, but that these are limited in many respects by fundamental differences of cultural values between the two societies.
In the 1980s, two independent but disturbing trends caught the attention of students of American business management and of the American public at large. One was purely domestic: evidence that American business was not performing as well as it had in the past. National economic growth was sluggish, and managers seemed more interested in short term financial manipulations than
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(1988). 31-34.Perhaps the most crucial Japanese lesson, though is simply that of beingtruly serious about the fundamental business of business. Nor, indeed, were management "officers," perhaps,really willing to accept the dictum, implicit in military values, whichholds that officers should tend to the needs of their men before attendingto their own. The second trend was the sudden emergence of Japan as an economicpowerhouse--most vividly brought home to Americans by the proliferation ofJapanese imported cars on our highways, and by their generally acknowledgedsuperiority to contemporary American cars. They are not unrelated,however, in the Japanese view, but are two facets of a unified Japaneseapproach to the problems of economic and business life. Yet the Japanese schools, though their disciplined approach ishighly successful in imparting basic skills, is weak in teaching orencouraging critical skills or creativity, qualities in which the bestAmerican students excel. (1982, November). American attempts to borrow some of these ideas in the 198 s haveoften been unproductive. The "classic text" of this new interest in Japanese managementapproaches was Theory Z, by William Ouchi. Yet, as Murray Sayle has pointed out, fewof us laugh when U.S. Lieberman, E. 9 ). 1 4-1 5). The Japanese university education system issurprisingly weak. Can we, then learn anything useful or applicable from the Japanese?One thing we can definitely learn from is Japanese management's pragmatism. 27-3 ff. In questioning the Americans' Japanese bosses, Ouchi found not amirror-image complaint, but the same complaint. (1989). They deal not with "management," but with militaryevents which took place several centuries ago. & H. Reading, MA: Addison-Wesley. In contrast, the ideal relationshipbetween the Japanese company management and its work force is modelled onthat between officers and enlisted men in an army: Tension may exist, butultimately the two depend on one another to pull together. 89). Harper's, 265, pp. Theapplication of the military model could never be complete. Between MITI and the market. Ouchi related a number ofanecdotes which vividly illustrated the difference in attitudes between thetwo management styles. This is a study of the character of Japanese business management, itsstrengths and weaknesses, how it compares with American management, andwhat lessons (if any) American business can learn from the Japanese systemand experience of management. Smaller firms have less status, and to go off on one's own is tobecome a sort of management ronin, holding only a marginal place inbusiness culture. 4 -41). "Cutthroat capitalism" may no longer have the literal meaning it didin the sixteenth century, but the American corporate raider of the 198 swas as eager to bear down on a fat corporation, rake it, and plunder itshold of divisions and real-estate, as his spiritual ancestor was to beardown on a Spanish galleon. In one instance, the frustratedproject manager of Sigma, a Japanese software development program, calledfor measures to "impose creativity" in Japanese industry. 27 -273). In the 198 s, two independent but disturbing trends caught theattention of students of American business management and of the Americanpublic at large. Strategic pragmatism. Moody, P. 1-2).Americans might have a "hidden" industrial policy in the form of Pentagonspending on advanced technologies (such spending on Boeing jet bombers inthe 194 s and 195 s, for example, laid the basis for that company'sjetliner business, modern America's greatest export success), but its roleas industrial policy could not be admitted to in public. One of them bade his time for severalyears, until the opportunity came to assassinate the rival who had killedhis leader. (1989). Even today, when identicalcars roll off a joint production facility, some bearing Japanese and somebearing American nameplates, those with the Japanese name are stronglypreferred by American consumers. 5 ff).Certainly the American workplace of the 198 s, where it was a commonplacefor top managements to lay off workers and force down wages while grantingthemselves hefty bonuses, was scarcely an environment in which the self-sacrificing samurai virtues of Japanese management could be expected tothrive. 27ff). The evolution of American management culture, in which the self-image role of loyal corporate "agent" is steadily eroded in favor of rolesas "professional" (accountable primarily to one's professional peers) or"entrepreneur" (accountable only to oneself), are moving us even fartherfrom the Japanese samurai model (Roomkin, 1989, p. What do thequality circles, the calisthenics and company songs, the long hours andnonexistent vacations, mean to those who participate in them. pp. Indeed, "Japanese management" (and the Japanese business culture moregenerally) are encountering some increasing difficulties, even in Japan.The Japanese economic miracle has in large measure been confined tomanufacturing. Okimoto, D. (1989). This was strikinglydemonstrated in a 1977 study by the Hertz rent-a-car company, whichevaluated the average number of repairs needed in the first 12, miles bycars purchased for its fleet. These words are not borrowed fromEnglish, like so much of Japanese business language (e.g., sarariman,"salaryman," the term for a white collar worker). Ouchi, W. Theory Z. Instead, the names formanagement ranks are simply the traditional Japanese names for militaryranks, which go back in unbroken lineage to the samurai era (Sayle, 1982,p. I. Now, it is true that a "military command" model was in many waysprevalent in American business, particularly in the Organization Man era ofthe 195 s--when, significantly, much of both management and the work forcehad prior military experience in World War II (Roomkin, 1989, p. One was purely domestic: evidence that American businesswas not performing as well as it had in the past. By the late 197 s, America'sindustrial plant was drifting into antiquation and obsolescence, yetmanagers were reluctant to plow resources back into capital development forfear that the expenditure would depress earnings and short-term return oninvestment--and, perhaps, cost them their jobs at the hands of iratesuperiors or shareholders (Moody, 199 , p. Our first story, or stories very much like it, is today a mainstay ofJapanese samurai movies. As an Americancommentator observed, this approach to the problem of creativity isunlikely to be the most productive course which could be followed(Lieberman, 1988, pp. To work for a great company is to be the vassal of a greatlord. New York: Atheneum. 57ff). Another problem recently encountered by Japan, and closely connectedto its management culture, is its educational system. Tounderstand these things, we must turn to the Japanese past, and contrast itto the American past. Workerscertainly were not ready to accept the discipline they tolerated asmilitary enlisted men. What applies to manager's self-concepts applies as well torelationships between management and labor. 4 -41)." What emerged was that the two sides had a radically differentconception of what they meant by "objectives." To the Americans,"objectives" meant specific performance targets and guidelines of thequantitative sort proposed by familiar American management techniques suchas Management by Objective (MBO). The Japanesehave no qualms about interfering in the operation of the free market whenthey believe that it is rational to do so (Okimoto, 1989, pp. General Motors, for example, attempted tointroduce "quality circles" into its plants in the early 198 s, but ranheadlong into traditional management-worker relationships. What, at bottom, is Japanese management all about, particularly ascontrasted to American management? Homewood, IL: DowJones-Irwin. At about the same time, half a world away, an English privateer inthe Azores bore down on a galleon bearing the flag of the King of Spain.After a fierce cannonade, he and his men succeeded in boarding and takingthe treasure ship. New Brunswick:Transaction Books.----------------------- 15 Stanford:Stanford UP. The Japanesesuccess with industrial policy led to an increased interest in suchapproaches in the United States--mainly among Democratic policymakers--butsuch approaches have been generally rejected by American business leadersand their supporters among public policymakers. 68-72).While many American workers might like to have their suggestions heard, ifthey chose to make them, it is unlikely that many are so involvedemotionally with their work that they are willing to take much extra timeto come up with suggestions in order to fulfil a management quotarequirement. Indeed, we tend to think of "management" and of public policymakingas independent, relatively unrelated topics. (1984, April 2). This clarifies the nature and meaning of that most mysterious (to us)of Japanese business customs, the group calisthenics and singing of thecompany song at the beginning of the work day. Americans began to hearabout exotic notions such as "lifetime employment" and "quality circles,"and strange customs such as the singing of company songs by employees atthe startof the workday. As economic progress becomes ever-more-closely associated with prowess in scientific research and development,educational reform becomes increasingly necessary for Japan. While generally satisfiedwith the Americans' performance, the Japanese said that "they just don'tunderstand objectives (1981, pp. By contrast, Hertz' Toyota cars averaged a mere 55repairs in the first 12, miles (p. So, too, the Japanese manager's stereotypical readiness to sacrificevacations, or even a home life, in favor of greater dedication to theoffice. (1981). 121-141). While the American concept ofobjectives was quantitative and narrowly "economic," the Japaneseconception was qualitative and more broadly "social." In other questioning, Ouchi found that American businessmen werefrustrated by Japanese partners' slowness in reaching agreements, while theJapanese found the Americans quick enough to reach agreements, butmaddeningly slow to implement them (1981, p. To the Japanese, it meant something lesseasily defined: the role of the firm in its relationships with customers,employees, the community at large. Distribution, retail, services, white-collar officefunctions, and other growingly important features of a modern economy haveby no means kept pace with Japan's world-class progress in manufacturing(Woronoff, 1986, p. 1 4-1 5). 1986. The very institutions ofmodern American capitalism were created in 16th-century freebootingexpeditions; Sir Francis Drake's raids on the Spanish Main, for example,were organized as joint stock companies (in which the Queen was a prominentshareholder) (Howarth, 1974, pp. New York:Praeger. Unfit to manage! The notion that the Japanese are good imitators, but uncreative, is along-standing Western stereotype, but there is enough truth behind it to bea serious concern to Japanese policy makers. Reforming Japan's schools willbe as difficult as it would be to reform American schools along Japaneselines, while even reform of the schools would not necessarily introduce anatmosphere conducive to creativity into Japan's hierarchical workplace. American managers mightwish that employees were willing to do such things for the company, butthey can't imagine that their workers would ever willingly actually do so.Indeed, Americans tend to find the whole custom vaguely absurd, a somewhatincomprehensible corporate game. Marines form up to salute the colors, performcalisthenics, and sing the Marine Hymn (1982, p. Likewise, Japanese management's fabled readiness to acceptsuggestions from workers is, in fact, often a requirement that each workgroup submit so many suggestions each month (Woronoff. 58)--slower still, and which has alsoacted to undermine the famous system of "lifetime employment" in Japan(Roomkin, 1989, pp. What follows are two brief stories, imaginary buttypical and indicative. Fortune, 1 9, p. Sovereign of the seas. In the course of the fighting, a Daimyo or "lord" had beenkilled by a rival. Inquestioning them, Ouchi found that the American managers were generallysatisfied with their employer, but were continually frustrated by theJapanese senior management's persistent refusal to set guidelines for them. Military service hasovertones of a religious vocation, and rightly so in our eyes, but thequasi-religious model is viewed as entirely inappropriate to economic life. How does it function? Woronoff, J. What red-blooded freebooter wouldn't rather command a frigate, with the sea beforehim and prizes for the taking, than be one more lieutenant on a flagship,trying to get the admiral to notice him? An element of public humiliation is thus embodied in this system. (1986). In one instance, a Japanese bank opened a branchoffice in the United States, and hired a number of American managers. In response, American management specialists began to look withincreasing interest at Japanese industrial management: how it functioned,what its values were, and why it seemed to be so much more effective thanlong-admired American approaches to management. Japan is a capitalist society and full participant in the worldmarket economy, but Japanese policymakers (in both government and business)have no ideological dedication to the "free market," such as is soconspicuous in the Unites States, particularly in the 198 s. D. There is, however, another side to this story. To understandJapanese management, we must include the Japanese approach to business andeconomic policy. J. The "gentleman's 'C'" is not unknown in Americanuniversity culture, to be sure, but American students still tend to makemore productive use of their college years. Schmeigelow, M. 45). Sayle, M. The Japanese manager, then, is a samurai in a business suit, and his"lord" is the company for which he works. An army wherethe soldiers regard their officers fundamentally as "the other side" is anarmy on the verge of mutiny, not victory. New York: Oxford UP. Managers as employees. American managers pride themselves on pragmatism, yet such fundamentaleconomic policies of the 198 s as "supply side" economics were driven notby pragmatism but by doctrine and ideology (Schmeigelow, 1989, pp. Since the 197 s, Japan has encountered a "glut" of middle-managementworkers, which has made the pace of promotions in Japan--never fast byAmerican standards (Ouchi, 1981, p. The dead Daimyo's samurai followers thus became ronin,or leaderless semi-outcast samurai. As noted earlier, this is not a policy issue isolated from management, buta question of "macromanagement" within an overall business culture.Likewise, American managers can learn from the Japanese to apply automationto increase quality and output, not merely-- as they often have--as a meansof driving line workers out of the loop (Lieberman (1988, pp. 68-72). Union shopstewards and line foremen alike regarded the quality circles as an attemptto erode their protective in the workplace, In general, American workershave tended to such measures (along with similar concepts such asParticipatory Management) as management "gimmicks" (Main, 1984, p. E. It is more than that, however, for the samuraicultural tradition remains very much alive. Chevrolet cars performed even worse: 425repairs on average. 11, 2 ). "Made in Japan"might still mean inexpensive, but it didn't mean "cheap" or shoddy, itmeant excellent quality and value for money. In short, theessential values of Japanese management grow almost directly out of thefeudal heritage of an earlier Japan. Strategic manufacturing. Likewise, the American businessman of today is in many ways thelineal descendent of the Elizabethan freebooter. Like the company song, this is alien to the values andoutlook of American workers, who are most unlikely to become "goodsoldiers" for their bosses. After a mad struggle to pass entrance exams for entryto the most prestigious universities-- exams which are very heavy on rotememorization--the successful Japanese student tends to regard hisuniversity years as a sort of rest-and-recreation period between the rigorsof secondary school and the future rigors of the workplace (Lieberman,1988, pp. This is somewhatironic, since Americans, concerned with our own failing public schools,have an image of Japanese schools with orderly students, among whomliteracy and basic skills--sadly lacking in American students--are almostuniversal. The yellow peril and the red-haireddevils. References Howarth, D. Thus the outstandingAmerican business-school graduate would rather join a small, fast-growingfirm, or strike out on his own, than join the ranks of, say, IBM. Yet theregimented character of Japan's schools is very much of a piece withJapanese business and management culture. The Japan syndrome. 5 ff. It is for this reason, forexample, that Japanese university graduates compete fiercely to be hired bythe largest firms, in preference to smaller firms that might offer fasterpromotion and more autonomy, or to going into business for themselves andentrepreneurs. Differences of "management style" applied not only to managementbehavior in individual firms, but to national economic policy approaches.Analogously to the well-known distinction between microeconomics andmacroeconomics, we might refer to these as "micromanagement" and"macromanagement." By micromanagement we mean the art of managing anindividual firm; by macromanagement we mean the art of managing a nationaleconomy. 44). It should be noted, however, thatthis acceptance is not entirely "voluntary," but is supported by a seriesof subtle social strictures--few of which Americans would find acceptable.American believers in participatory management, for example, have oftenbeen intrigued by the system whereby individual Japanese assembly-lineworkers can press a button and bring the line to a halt, so that a quality-control problem can be solved on the spot, rather than leaving it to bedealt with by inspection and repair (if detected) after the fact (Moody,199 , p. 39). Marines are singing for their outfit and theircountry, while people in business--from line employees to CEOs--areunderstood to be in it fundamentally for themselves. Detroit cars had a reputation forpoor quality which they have not yet altogether shed. National economic growthwas sluggish, and managers seemed more interested in short-term financialmanipulations than in business fundamentals. The trouble with managing Japanese style. Not so many years earlier, "Made in America" and been a worldwidebadge of quality, while "Made in Japan" was a joke, a sign of cheap, shoddymerchandise. While he is no longer expected to commit seppuku, self-sacrificeis still the duty and honor of the Japanese manager-samurai. 38). They had fought, indeed, for Queen, country, and theProtestant faith--but most of all, they had fought for the hundred thousanddoubloons in the galleon's hold. Roomkin, M. By 198 , when it came to that most American of products, theautomobile, the situation was reversed. As we shall see, however,the values embodied in these stories are fundamental, respectively, toJapanese and American approaches to the problem of management. When anyworker presses his button to stop the line, a red light goes on above hiswork station--in effect calling the attention of all his fellow-workers tothe fact that he is having a problem keeping up (Woronoff, 1986, pp. New York: McGraw Hill. 21)--a problem largely invisible to Americans, sincethese things are not exported from Japan, while Americans continue to seeToyotas on their streets and Sonys in their living rooms. In brief, we have seen that the character of Japanese management isvery much a creation of, and of a piece with, Japanese culture as a whole.Japanese management is based on a "feudal" model, while American managementis based (only slightly less explicitly) on a "privateering" model.Japanese ideas, from the company song to the quality circle, functionsuccessfully in Japanese business because they connect directly to this setof values. Having succeeded in his assassination plot, the ronin at oncecommitted seppuku (what Americans popularly call hara-kiri). Thus, for example, in spiteof the Japanese success in producing computer chips and other computercomponents, considerable Japanese efforts to develop their computersoftware industry have met little success. While England had alsobeen a feudal society, the culture of business did not derive directly fromthe traditions of the barons and knights, but from rebel peasants and semi-pirates on the fringes of feudal civilization. Main, J. In the late sixteenth century, Japan was being united by the TokagawaShogun, a warlord representing a shadow Emperor, following centuries ofcivil war. Many Americans,indeed, can be profoundly moved by this, and almost all take it seriously.The reason is that we accept military life as operating according to asomewhat different system of values than business life, and as being in onerespect more serious. A simple but profoundillustration of how alive it is can be taken from the terms used inJapanese for business management ranks--the equivalent of "chairman," "vice-president," "manager," and so on. (199 ). Americans regard management-labor conflict as virtually a given; if one gets more (money, power,autonomy), the other must have less. If his actions support some broader cause(e.g., restoring American competitiveness), the raider is pleased, as theprivateer was pleased to uphold the Queen and singe King Philip's beard.Ultimately, though, he is in business for himself. It will be argued that important lessons canindeed be learned from the Japanese, but that these are limited in manyrespects by fundamental differences of cultural values between the twosocieties. (1988). "They just don't understand objectives," the Americans complained (1981,pp. Other things being equal, theimplication was that the costs (and annoyances) of repair for Toyota carswere only one-sixth to one-eighth of those for American cars. Japanese managers and workers, in contrast, appear willing to acceptthe military model more wholeheartedly. Ford cars averaged 326 repairs, while theFord Pinto model averaged 3 6.
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