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JAPANESE MANAGEMENT & DECISION-MAKING.
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Includes social, educational & political influences on management. Compares Japanese & U.S. management.... More...
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Paper Abstract:
Includes social, educational & political influences on management. Compares Japanese & U.S. management.
Paper Introduction:
Japanese management and decision-making techniques have shown a great deal of success in recent years. In contrast with the American style, Japanese management places more focus on the people within the organization than on the organization itself. Also in contrast with the American way, Japanese decision-making is considered to be a responsibility of the group rather than that of a single individual. One area in which these factors have had particularly strong success is that of long-term planning. Because of the managerial concern for people, the average Japanese employee is hired for a lifetime. In addition, because they share the communal interests of the group as a whole, Japanese managers tend to work on goals which emphasize the long-term growth of their companies (Sheldon & Kleiner, 1990, May/June, p. 17). This way of thinking is sharply contrasted
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19). 24). In aneffort to strengthen its place in the international market, the Japanesegovernment willingly assists local companies in their efforts. This attitude of caution also has aninfluence on the Japanese tendency toward collective decision making.Thus, Japanese managers are conditioned to allow decisions to happen oftheir own accord. How to do business with the Japanese. 12 ). For example, the Japanese language contains a written conceptknown as ma. U.S. This helps to explain why Japanese decision-makersprefer to take their time rather than rushing into things. This helps explain why many Japanese firmsgrow and prosper over the years while many of their U.S. In some cases, a single person will be responsible for makingall important decisions. Nevertheless, it is probable thatAmerican managers can help improve the U.S. Rather, individual decisions areusually handled by teams which specialize in their own areas of expertise.Charles E. 93). In contrast with the American way,Japanese businesses follow a system known as keiretsu, in which an effortis made to develop this type of relationship with a primary supplier. Theory X designates an approach to management in which there isone strong, authoritarian-style boss. 21). 8). Managing. In addition, because they share the communalinterests of the group as a whole, Japanese managers tend to work on goalswhich emphasize the long-term growth of their companies (Sheldon & Kleiner,199 , May/June, p. In making such decisions, the U.S. (1988, September). Linguistic elements suchas ma have had a powerful influence on the way Japanese management isconducted. U.S. Shintoism gives the Japanese person a sense of humility andthus reduces the importance of personal decisions. There is also another way in which the education of Japanese childrenhas an influence on management and decision-making styles in later life.Specifically, Japanese students are faced with a great deal of pressure andare required to be extremely loyal and committed to their studies(Zimmerman, 1985, p. 471-472). These teams have acertain amount of autonomy over those decisions, although it may be notedthat "teams will need help with anything that requires an organization-widedecision or with relations between teams" (p. As in the case of communal decision-making, thistype of relationship generally has a strong impact on increasing bothproductivity and quality. The contrasts that exists between the American and Japanese ways ofthinking are strongly influenced by the differences in the languages of thetwo nations. There is little doubt that the Japanese system encourages not onlyincreased cooperation but also increased competitiveness, higherproductivity and improved quality. Theflexibility of concepts in the Japanese language enables its speakers toaccept the idea that not everything is divided into black or white all thetime. The way of thinking which differentiates the Japanese from Americansis reinforced in the educational practices of the two nations. For example, in return for beingtreated well, "the Japanese worker toils at his or her job with a devotedloyalty to his or her company that is equal to his or her love of familyand country (p. 19). Theymust strive to make their own way and are expected to climb up thecorporate ladder on the basis of their own individual achievements. The U.S.style of management, like that of the Japanese, is based on years oftradition. 19). firms can learn from Japan. All of these unique values areinstilled in Japanese children through the processes of education. There are a number of advantages to be seen in this style of decision-making. approachis individualistic. The reasons for the differences which exist between Japanese andAmerican managers can be found in social, educational, and politicalfactors. E. Nevertheless, having all of the employeesinvolved voice their own opinions is still a far more people-orientedapproach to decision-making than found in most U.S. This grouployalty has profoundly influenced the modern Japanese way of thinking and,by extension, the Japanese style of management. 17). 22). 17-19). All aspects of theemployees' lives, both on and off the job, are taken into considerationduring long-term planning by management. Thus, whereas the Japanese language encouragessuch qualities as interdependence and vagueness, the structures of theEnglish language compels American managers toward "a forced communicationmodel that strives for complete openness, explicitness, and direction tominimize ambiguity and uncertainty" (Sheldon & Kleiner, 199 , May/June, pp.18-19). Theory Y, on the other hand,indicates a more participatory approach to management. Despite these benefits, it is neither likely nor desirable thatAmerican managers adopt Japanese techniques on a wholesale basis. In this regard, American managers often do not understand whyJapanese decision-making is so slow and why it so often lacks definiteness. The values ofConfucianism include a respect for elders and tradition. One area in which these factorshave had particularly strong success is that of long-term planning.Because of the managerial concern for people, the average Japanese employeeis hired for a lifetime. As pointed out by Mark Zimmerman: "This doesnot mean that a collective decision is made; all it means is that everyoneis required to voice his opinion about a problem so that it can be clearlyidentified" (1985, p. 18). Also in contrast with the American way,Japanese decision-making is considered to be a responsibility of the grouprather than that of a single individual. It is very important that Japanese students dowell in passing their examinations; otherwise, their job opportunitiesfollowing school will be virtually non-existent. Zen Buddhism placesemphasis on discipline and simplicity and provides a "belief incontemplation and silence as essential prerequisites in the development ofthe human character" (Zimmerman, 1985, p. Thecooperative approach of Japanese business has had proven success over theyears. 5). Berezin, C. TheAmerican approach to decision-making, on the other hand, is primarilyconcerned with the individualistic goals of the decision-makers themselves. In the United States, society has been influenced by a historicaltradition which glorifies individualism. In the United States, on the otherhand, the government is focused more on defense spending and is thusincapable of providing assistance to its nation's businesses in the waythat the Japanese government is. Sheldon, R., & Kleiner, B. focus on the "hard S's"(strategy, structure and systems) (p. Collective responsibility is a concept which plays an important partin Japanese management and decision-making. (1991, August 8). (199 , May/June). After all, the concept ofparticipatory management is strikingly similar to the practice of groupdecision-making which exists in Japanese businesses. An important benefit of this government support is the fact that itincreases the ability of Japanese managers to conduct long-term planning.Japanese managers are able to plan for the long run because they areassured of assistance from the government in case there are any problems inthe future. Aconsensus of opinion must be reached, and then a final decision is madebased upon that consensus. 354). Japanese management has been described as having a "holistic concernfor people" (Sheldon & Kleiner, 199 , May/June, p. The individualism which is inherent in American businesspractices is culturally ingrained just as much as the communal values ofthe average Japanese worker are. One reason that the Japanese government is able toprovide direct support to its nation's companies is because "there is a lowlevel of national resources committed by the government to defenseexpenditures" (Sheldon & Kleiner, 199 , May/June, p. By working together toward mutual goals, boththe company and its primary supplier become united in the quest forcompetitive success. In fact, it wouldprobably not benefit most American businesses to try to imitate theJapanese too closely. Thus, in a manner which is unknown to the English language, "theJapanese culture instructs its members not to plunge straight ahead, but tomove knowingly and deftly through time" (p.93). Specifically, the pay decisions of thesemanagers were analyzed. 122). In addition to social and educational factors, it can be seen thatpolitics plays a role in the style of management which is typical for theJapanese. Not really a word, ma simply instructs the Japanese reader"to pause, wait, and experience before proceeding" (Pascale & Athos, 1981,p. R., McCune, J. 17). Leapfrogging Japan: Japanesetechniques for Americans?" Productivity Review 8, 349-356. A study byBeatty, McCune and Beatty (1988) compared the decision-making policies of41 Japanese and 63 U.S. (1989, Autumn). In addition, ithelps to explain why the Japanese seek greater reliance on communaldecisions than Americans do. Directly prior to themodernization which occurred in the twentieth century, Japan was primarilya farming society. (1984). In turn, American managers are oftenforced to think in terms of short-term survival rather than planning aheadfor long-term growth. In contrast with the American style,Japanese management places more focus on the people within the organizationthan on the organization itself. By contrast, Japanese managers try to remove their own egos fromtheir decisions and seek to "flow" with the situation at hand. This way of thinking is sharply contrasted withthat of most managers in the United States. Thetraditional approaches in the United States have been divided into TheoriesX and Y. Berezin in Productivity Review (1989, Autumn) describes suchteams as representative groups, "each responsible for a clearly defined setof inputs and outputs while sharing a common mission, philosophy, andgoals" (p. position in the global marketthrough the adaptation of some of the principles of Japanese management.Many American managers are already familiar with these principles as aresult of their knowledge of Theory Y. T., & Beatty, R. 21). In both cases, the emphasis is on the idea ofgetting the decision made correctly the first time, rather than having towork through the problems that might come with haste. Thus, inshort, Japan has a "national industrial policy," whereas the United Statesdoes not (Geneen & Moscow, 1984, p. Pascale, R. firms. Oka, T. Japanese management and decision-making techniques have shown a greatdeal of success in recent years. The Japanese approach can be described as a participatory style ofmanagement because it seeks the cooperation of all the people involved. Bycontrast, in an American company, managers must go through the processes ofimplementing a decision once it has been made. In thewords of Pascale and Athos: "The Japanese image of a good decision maker isthe man who can resist the drive for closure until he really sees what'srequired" (1981, p. Another advantage of thecommunal decision-making found in Japanese companies is that it encouragesloyalty among employees. NewYork: Random House.----------------------- 3 Successfully operating a farm requires a great deal ofcooperation and group loyalty. Contrasting the American way, "Japanese management shunsindividual accountability and credit in favor of collective or groupresponsibility and rewards" (Sheldon & Kleiner, 199 , May/June, p. What Japanesemanagement techniques can (or should) be applied by American managers?Industrial Management 32, 17-19. Apolicy-capturing approach to the study of United States and Japanesemanagers' compensation decisions. W. In this way, the Japaneseperson is trained to accept vagueness and also gains an ability to havepatience before rushing into important decisions. This, in turn, "creates a hard-working, orderly work forcewhich, when combined with a high degree of goal congruence between employerand employee, produces cohesive, disciplined work groups dedicated to highproductivity and superior quality" (199 , May/June, pp. Thus,whereas the Japanese approach to management is communal, the U.S. Nevertheless, it is probable that most Americanmanagers would benefit by seeking to incorporate the best of both worldsinto their future practices. 114). T., & Athos, A. (1981). Ina Japanese company, important decisions are shared by all of the peoplethroughout the organization who are concerned with the issue at hand. Inthis way, the company and its supplier develop "a sharing of interests, acommon sense of purpose, a recognition that they are true partners" (Oka,1991, August 8, p. The art of Japanesemanagement: Applications for American executives. Geneen, H., & Moscow, A. Journal of Management 14, 465-474. This reinforces the cut-throat individualism whichis inherent in the American way of doing business. Japanese society, on the otherhand, has always placed more emphasis on the needs of the group rather thanthose of the individual. G. 8). In this way, "the supportive role of the Japanese governmenthelps make the concentration on long-term profitability feasible" (Sheldon& Kleiner, 199 , May/June, p. 17). As noted by former ITT Chairman Harold Geneen, theAmerican style of management is characterized by values which are virtuallythe opposite of these: "relatively short-term employment, rapid promotionsand dismissals, individual decision-making and responsibilities withcommensurate rewards and punishments, specialized careers, and a sense ofpersonal loyalties rather than corporate loyalties" (p. Thus,Confucianism contributes to the Japanese capacity for sharingresponsibility with the group as a whole. According to the American wayof thinking, the people within the organization are on their own. (1985). By contrast, the Japanese emphasis is on thecommitment of the individual to the company's overall success. By contrast, the Japanese managers placed lessemphasis on job performance and more emphasis on such factors as job worth,organizational commitment, and years with the organization (pp. The researchers were not surprised to find thatmanagers in the U.S. 19). The differences which exist in Japanese and American styles ofmanagement have been eloquently explained in the Theories X, Y, and Z. In addition, such cooperation was importantfor the mutual protection of the group against outside invaders. Itmay be noted that this cooperation often does not involve every singleperson within the total organization. This concept is virtuallyunheard of in the individualistic style of the traditional Americanmanager. They do not wish to allow their own egos to decide onparticular issues, but rather to wait and see what is best for allconcerned. In theUnited States, education (as well as most other aspects of culture) stemsfrom the so-called work ethic which is wrapped up in Protestant religiousvalues. 21). As noted by one commentator,American managers generally suffer from "too much short-term thinking"(Oka, 191, August 8, p. In particular, such elements encourage Japanese managements toplace less emphasis on making hasty decisions and more emphasis on makingcareful and accurate decisions. Zimmermannotes: "Certain elements of the old community structure have persisted tothe present day, the most important and basic of which is the famousJapanese sense of commitment to the group" (1985, p. TheChristian Science Monitor, 8. As a result, it can be seen that the Japaneseidea of collective decision-making "is rooted in the Japanese culturaltraditions emphasizing interdependence, collaboration, and cooperation"(Sheldon & Kleiner, 199 , May/June, p. Zimmerman, M. In Americancompanies, major decisions are generally made by a small group of topmanagers. managers. It is interesting to note that the Japanese attitude of communalsharing extends beyond the company itself. The extreme emphasison individualism which has characterized American business to date hascaused a variety of problems. The dog-eat-dogattitude which is characteristic of the American businessman sharplycontrasts the Japanese idea of a group working together for its mutualbenefit. The Japanese language also permits a great deal of vagueness, anattribute which is generally rejected by American managers. In a typical Japanese company, teams are set up to dealwith decisions which pertain to individual departments. It can be seen that the Japanese language itself encourages theseattributes. generally place emphasis on individual job performancein making such decisions. In contrast to bothof these, Theory Z is an adaptation of the Japanese style of management.As such, it emphasizes such factors as communal sharing, lifetimeemployment, and treating employees "with the loving care of a concernedparent" (Geneen & Moscow, 1984, p. The Western approach to planningis quite different. This ethic sees the person as an individual and sees all aspectsof reality as being clearly defined in one way or another. However, as noted, the cultural backgroundof U.S. Garden City: Doubledayand Company. counterparts areexperiencing failure within the first few years of operation. 353). In direct contrast to the situation that exists in the UnitedStates, Japanese businesses enjoy a system of government support. There is a great deal to be saidfor the Theory Z approach to management. The support of the Japanesegovernment is one more way in which the communal spirit of Japanesebusiness is enhanced. References Beatty, J. The result of this typeof educational training is that Japanese managers, as well as employees,tend to be "compulsive" in studying all sides of an issue before making adecision (p. American managers are uncomfortable with this type of ambiguity andlike to think that they are in control whenever there is a decision to bemade. By contrast,Japanese children are indoctrinated at an early age into religious valueswhich stem from the combined beliefs of Shintoism, Zen Buddhism andConfucianism. Whereas Japanese managers are concerned with the "softS's" (staff, skill and style), managers in the U.S. 18). Most Japanese managers arebaffled by the individualism of their American colleagues. These differences are reflected in the managerialdecisions which Japanese and American managers make regarding compensationsand pay raises. emphasis is generallyon individual merit. Thus, for example, it istypical for Japanese managers to seek a cooperative relationship withsuppliers as well as with employees. For example, in a Japanese company, "making a decision andimplementing it amount to the same thing" (Zimmerman, 1985, p. New York: Simon andSchuster. As noted by Sheldon and Kleiner, collectivedecision-making brings workers together for the purpose of working toward amutual goal. Thus, it can be seen thatthere are ingrained cultural differences which exist between American andJapanese managers. business cannot be eliminated overnight. managers are strictly on their own in runningtheir businesses and this has a strong influence on the continuedindividualism of the typical American worker.
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