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BUSINESS & CULTURE IN U.S. & JAPAN.
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Compares cultures (individual & society, personal space) & examines effective Amer. use of Japanese management styles (just-in-time systems, work groups) in General Motors Saturn division.... More...
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Paper Abstract:
Compares cultures (individual & society, personal space) & examines effective Amer. use of Japanese management styles (just-in-time systems, work groups) in General Motors Saturn division.
Paper Introduction:
Introduction
Japanese management techniques, including just-in-time (JIT) manufacturing and quality circles (QC), have gained much attention in recent years as American companies have focused on improving their profit performance and their competitiveness in the international market. However, it is not possible to simply transport Japanese management approaches without taking into account some of the significant differences between the cultures of Japan and the United States. This research examines some of the critical cultural differences between the two countries and considers how those cultural differences affect business operations in the two nations, and, specifically, within the automotive industry.
Key Cultural Aspects Compared Between Japan and the USA
One of the greatest c
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For example, a person's rank within a specific hierarchy (such as acompany) determines how that person is addressed and how others behave inhis presence in Japan. Kim and Eiji Takeda, "The JIT Philosophy is the Culture inJapan," Production & Inventory Management Journal, Winter 1996, 48. Theory Z. each participant must be able toaccept at least 7 percent of all consensus decisions, and then be able todemonstrate 1 percent commitment to implementing the decision.[1 ] Saturn uses simultaneous engineering in order to integrate the humanresources into the process as much as possible. Saturn also implemented a just-in-time (JIT) inventory control systemto improve efficiency and minimize inventory carrying costs. In Japan, personal space is neither expected norgiven. There are exceptions, but ingeneral, decision making in Japan requires unanimous approval bymanagement. This researchexamines some of the critical cultural differences between the twocountries and considers how those cultural differences affect businessoperations in the two nations, and, specifically, within the automotiveindustry. [4]Robert J. Recognizing and understanding the differences between Japanese andAmerican culture is what enabled General Motors to implement some Japanesemanagement approaches in its Saturn operation. "In Orbit." Automotive Industries, November 199 , 64-68.England, Robert Stowe. A UAW advisor also is part of eachbusiness unit. Saturn and the American Auto Industry When General Motors decided to introduce an entirely new line, theSaturn, in 1983, it chose to completely change the way that American carmanufacturers have traditionally done business. Each of these individuals isconcerned with his own personal interest and the interest of his departmentor division. In the UnitedStates, formal titles and behaviors are often abandoned in organizationswhere all employees, for example, may be addressed by first name.[2] Personal space is also handled differently in Japan and the UnitedStates. The president anddirectors in these companies either have other duties, or serve as littlemore than figureheads.[5] The larger the company, the more complicated decision making becomesbecause dozens of people can be involved. Within Saturn, all stakeholders participate in resolving conflicts andhave access to all relevant information. Ouchi, Theory Z, New York: Avon Books, 1 4. This philosophy extends to eachprocess of assembly. [1 ]John Teresko, "Project Saturn," Industry Week 239 (November 19,199 ), 32. Most Japanese companies use a form of decision making known as theringi, or document system. Ballon, "Decision Making and Implementation," Journal ofJapanese Trade & Industry, March-April 1996, 54. New York: Avon Books, 1981.Taylor, Robert. "Oldsmobile's Swan Song?" Financial World, November 24, 1992, 26-27.Kim, Gyu C. BibliographyBallon, Robert J. If they disapprove, they eitherrefuse to stamp it or put their seals on it upside down. This extends to the depth and duration of bowing,and helps to maintain a social order based on the group. If these individuals approve it, afterstudy, they stamp their name seals on it. [5]William G. If there is not demand for the output of a process"downstream," the process is not performed. In the Saturn showroom,this means that dealers do not pay their sales representatives commissions,there is uniform pricing (no dealing on the sticker price), and a highlevel of commitment to customer service. Quality is required for the vendor's supplies, since any rejectedparts would have to be returned and delays would result. In addition making the decision making process moredifficult, this factor also hinders the efficiency and potential of acompany in other ways. [2]Robert Taylor, "Work Culture that Brings No Satisfaction,"Financial Times, August 23, 1995, 8. "The JIT Philosophy is the Culture in Japan." Production & Inventory Management Journal, Winter 1996, 47-5 ."The Nature Bestowed Upon Men." The Economist, July 13, 1996, S2 -S22.Ouchi, William G. ----------------------- [1]"The Nature Bestowed Upon Men," The Economist, July 13, 1996, S2 . Quality is alsorequired for the each assembly task since any delays in assembly have a"ripple" effect and result in delays throughout the assembly process.[7] The ways in which quality programs have been implemented vary fromcompany to company, but Japanese companies generally focus on qualitycircles. JIT thus begins with market demand: if demand for a product does notexist, the product is not manufactured. [3]Ibid. Introduction Japanese management techniques, including just-in-time (JIT)manufacturing and quality circles (QC), have gained much attention inrecent years as American companies have focused on improving their profitperformance and their competitiveness in the international market.However, it is not possible to simply transport Japanese managementapproaches without taking into account some of the significant differencesbetween the cultures of Japan and the United States. [11]Brooke, 68. "Lean Supply." European Rubber Journal, October 1994, 24-25. Pressure fromwithin the group encourages each member to meet the levels of quality thatthe group as a whole agrees on. These are small groups of workers who develop the best way inwhich to accomplish their tasks. This type of organizationmeans that product development is not divided into separate tasks which areaccomplished sequentially; instead, projects are shaped by teams. The Japanese Auto Industry Japanese management techniques involve an organization-wide approachto the manufacturing process. [6]Gyu C. At first, this can appear to be in contradiction to the high levelof respect which is paid in Japanese society, but upon closer examination,it again stems from the different emphasis on the individual and the groupin the two nations. Somewhere in the lower ranks of management,often at the section level, a manager drafts a proposal for a project hewants to initiate or has been asked to initiate. The goal is to have this be an ongoingprocess so that workers are always bringing up suggestions for ways toimprove their work flow and the quality of their work. Thislesson can be applied by other companies to be equally successful. Instead of merely imposingthe management techniques on its workers, General Motors made modificationswhich took into account the unique nature of the American automotiveindustry and the American worker, and which have proven successful. In Japan, the individual's own needs are secondary tothe needs of the group, be it the family, a company, or the country as awhole. The Japanese are comfortable in crowded situations, and there arevery few personal offices in business. [8]Robert Stowe England, "Oldsmobile's Swan Song?", Financial World161 (November 24, 1992), 26. Key Cultural Aspects Compared Between Japan and the USA One of the greatest cultural differences between Japan and the UnitedStates is the importance placed on the relationship of the individual tothe overall society. Under JIT,work-in-process inventory is driven towards zero, with days' or hours'supply kept on hand as opposed to a supply sufficient for weeks or months.At Saturn's Spring Hill plant, the factory works on a production scheduleof three days, and the production flow is recalculated and leveled eachweek, based on market demand received from dealers.[11] Conclusion Officials at General Motors developed the Saturn division based onlessons painfully learned from the Japanese, who were able to export smallcars to the United States and do so successfully in large part because oftheir management style. and Eiji Takeda. If all donot stamp it, the document is sent back to the originator with therecommendation that the proposal would benefit from more work. In the United States, each individual is considered to have rightswhich, except in rare circumstances, supersede those of any group.[1] Manyof the cultural differences in behavior stem from this fundamentaldifference. Such a technique can only work in an environment in which productionschedules are carefully coordinated, and where there are low levels ofrework. Such control at the showroomlevel is the result of close communication and co-operation between Saturnand its dealer network.[8] Saturn also has a close relationship with its workers, beginning withmembers of the United Auto Workers (UAW) union, which traditionally enjoysan adversarial relationship with American car manufacturers.[9] The UAWhas an official seated on the Saturn Strategic Action Council with a fullvoice in consensus decision-making. Thedocument stating the proposal and its rationale is circulated to the headsof other sections and departments. [9]Lindsay Brooke, "In Orbit," Automotive Industries 17 (November199 ), 64. By taking key aspects of that management style,including work groups, just-in-time inventory and production systems, and acommitment to providing a high quality work environment where individualcontributions are recognized, General Motors has created a division whichhas, in its brief history, established itself as a strong contender in theAmerican car market. "Decision Making and Implementation." Journal of Japanese Trade and Industry, March-April 1996, 54-55.Brooke, Lindsay. This proposal is draftedafter the manager has received consensus within his own group. "Project Saturn." Industry Week, November 19, 199 , 32-33.White, Liz. Eachteam includes representatives from finance, marketing, product design,manufacturing engineering, materials engineering, service and suppliers.The project is not done serially, but simultaneously. In either event,the document is then passed up through the different levels of managementuntil it reaches the president, who may or may not take it up with theboard of directors.[4] If everyone stamps the document, it becomes company policy. In the United States, individualsexpect far greater personal space and personal offices indicate aprofessional status which is not conferred in the same way in Japaneseorganizations.[3] Decision Making in Japanese Companies In a vertically structured, group-oriented business system that isoperated under a pattern of inferior-superior relations with no individualresponsibility, individual members within the system cannot make decisionson their own on matters of any consequence. These division and department chiefs, following typicalbehavior, tend to consider other executives within the company to becompetitors, and are prone to be uncooperative and sometimes directlyhostile toward them. [7]Liz White, "Lean Supply," European Rubber Journal, October 1994,25. In thisway, middle managers perform almost all the planning functions for thecompany, deciding what will be done, when and how. All aspects of an automobile factory,including human resources, technical resources, plant layout andrelationships with vendors are affected by the management philosophy.There is a high level of commitment to quality throughout all aspects ofthe organization and this commitment to quality extends to vendors, aswell.[6] Just in time (JIT) inventory techniques are commonly found in Japaneseplants; JIT strives to provide each step in the assembly process withexactly the number of inputs and resources needed to complete that process. "Work Culture that Brings No Satisfaction." Financial Times, August 23, 1995, 8.Teresko, John.
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