The Influence of Culture on Japanese
Management Practices and Principles.
Emma Frazer
Submitted in partial-fulfilment of a Bachelor of
Arts in European Business Studies and
Languages (K4).
Written under the supervision
of Alan Sharkey.
National College of Ireland,
Sandford Road,
Ranelagh,
Dublin 6.
11
v .-
DECLARATION
I hereby certify that this material, which I now submit for
assessment as part of the programme of study leading to
the award of BA, is entirely my own work and that it has
not been taken from the work of others save and to the
extent that such work has been cited and acknowledged
within the text of my work.
Signed:
Date:
ACKNOWLEDGEMENTS
I would like to thank the following people for their help
and support in the writing of this dissertation.
To my family and friends, thank you all for your support
throughout this project and over the past four years.
To my supervisor, Alan Sharkey, thank you for all your
help and guidance.
To Ian McLeod, thank you also for your advice and
support, it was very much appreciated.
I would also like to thank the five interviewees who
willingly gave their time and knowledge for the purposes
of this dissertation.
CONTENTS
Page Number
Title Page
i
Declaration
ii
Acknowledgements
iii
Contents
iv
Abstract
vii
Preface
viii
Chapter One
1.0 Introduction
1
1.1 Objectives of the research
2
1.2 Research questions
2
1.3 Structure of research process
3
Chapter 2
Literature Review
2.0
Introduction
5
2.1
National Culture
6
2.2
National Culture in Japan
7
2.2.1
Education in Japan
7
2.2.2
Cultural Values and Attitudes in Japan
9
2.3
Work Related Practices in Japan
13
2.3.1
Japanese Organisational Culture
13
2.3.2
Employee Involvement
14
2.3.3
Quality Circles in Japan
16
2.3.4
Groupsand Decision Making in Japan
18
2.3.5
Lifetime Employment in Japan
23
2.4
Conclusion
26
iv
Chapter 3
Theory development and Hypothesis
3.0
Introduction
29
3.1
Research hypothesis
29
Chapter 4
Methodology
4.0
Introduction
31
4.1
Secondary Data
31
4.2
Primary data
32
4.3
The Participants
33
4.4
The Research Instrument
34
4.5
Advantages of the Semi-structured Interview
35
4.6
Disadvantages of the Semi-structured Interview
36
4.7
Problems Encountered
36
Chapter 5 Presentation of Findings
5.0
Introduction
37
5.1
Interviews with the Managing Directors
37
5.1.1
Japanese Culture
38
5.1.2
Communication, Participation and
Decision Making
44
5.1.3
Labour Management
47
5.2
Interview with Martyn Field, Laboratory M anager
50
5.2.1
Japanese Culture
51
5.2.2
Communication, Participation and
Decision Making
54
5.2.3
Labour Management
55
5.3
Interview with Akiyo Noda, Secretary
56
5.3.1
Japanese Culture
57
5.3.2
Communication, Participation and
5.3.3
Decision Making
58
Labour Management
59
Chapter 6
Testing of Hypothesis
6.0
Introduction
60
6.1
Japanese Culture
60
6.2
Communication, Participation and
6.3
Decision Making
64
Labour Management
68
Chapter 7
7.0
7.1
7.2
Conclusions and Recommendations
70
Conclusions
74
Recommendations
Recommendation for further Study
75
Appendices
Appendix One
77
Appendix Two
79
Appendix Three
81
Bibliography
84
vi
ABSTRACT
Culture is a strong determinant o f people’s behaviour. The concept
of culture employed in this paper embraces its traditional meaning
as an underlining framework which guides an individuals personal
interaction, thinking, values and behaviour.
It is the researcher’s intention to outline a comprehensive study of
the concept of national culture in Japan and its influence on
Japanese organisations.
Five interviews were conducted for the purpose of this dissertation.
Each interviewee contributed his/her own opinions and
experiences of Japanese management and the cultural influences of
Japan in their companies.
The research continues on the analysis of the interviews conducted
with the conclusion that elements of national culture are infact
repressing growth and prosperity for Japan but still remain intact in
Japanese organisations.
PREFACE
The design and management of organisations requires the
thoughtful application of knowledge concerning the behaviour of
people at work.
The chapters of this dissertation combine the study of culture and
Japanese organisations in order to investigate the influence of
national culture in Japan on Japanese management practices and
principles.
In order to ascertain how Japanese companies have been
influenced by their national culture, it was undertaken to carry out
an extensive examination of all available and pertinent literature in
this field. Five interviews were conducted in order to evaluate the
prominent features of Japanese management, which have been
influenced by culture.
The predominant areas covered, investigated, analysed and tested
were: Japanese Culture, Communication, Participation and
Decision Making and Labour Management.
Japanese culture is examined through elements of education,
cultural values and attitudes. Communication, participation and
decision making comprises of areas such as employee
involvement, quality circles and groups and finally labour
management is examined through the lifetime employment system
which is still primarily active in Japanese companies.
CHAPTER ONE
Introduction
August 15th 1945, the Emperor Hirohito of Japan addressed his
people for the very first time, the war was over.
The voice of the Emperor spoke to his people in words o f hope for
the future of their country.
“ Unite your total strength to be devoted to the construction fo r the
fu tu re .... keep pace with the progress o f the world”.
Morita (1987:35)
The culture of Japan is one of a collectivist society, which creates
family-like ties with people whoa re socially integrated into one’s
group.
M aintenance harmony with the social environment is a key virtue
of the Japanese, which extends from the family, to school, to
university and to their organisations. In such a society there is a
stress on adaptation to the skills and virtues necessary to be an
acceptable group member.
The Japanese emphasis on the group is demonstrable in many
aspects of Japanese life. Students obtain group identification with
their class, their school and university.
In Japan, having a job means identification with a larger group
through which one can gain a sense of pride and belonging.
Organisational culture is a system of shared meaning within an
organisation. It represents a common perception held by the
members of an organisation.
1
It is the researcher’s goal to prove the connecting impact of
Japanese national culture on Japanese organisational culture, thus
illustrating that as influential as organisational culture is in shaping
management practices and principles, national culture is even more
influential.
1.1
Research Objectives
This dissertation seeks to examine the influence of Japanese
culture on Japanese management practices and principles.
The researcher purposes to fulfil the following research objectives.
-To examine the elements of Japanese culture; predominantly
through education and cultural values and attitudes and consider its
influence on Japanese organisations.
-To investigate whether communication, decision making and
employee participation in Japanese organisations are based on the
societal values of group effectiveness, harmony, interdependency
and social order.
-To
examine
the lifetime employment system
of Japanese
organisations and investigate the characteristics the policies of the
system with regard to loyalty, motivation and security.
1.2
Research Questions
The following research questions are derived from the above
objectives.
2
-Have elements of Japanese culture such as education, societal
values, and attitudes influenced the management practices of
Japanese organisations?
-Do the management practices of communication, decision making
and employee participation reflect Japanese cultural influence in
Japanese organisations?
-What are the influences of Japanese culture on the policies of
lifetime employment in Japan?
1.3
Structure of the Research Process
Chapter two reviews the published literature of the authors who
have influenced the study of culture, organisational behaviour and
management practices.
Japanese
national culture, communication,
participation
and
decision making and labour management are firstly examined here
encompassing areas such as education, work attitudes, quality
circles, groups and lifetime employment.
Chapter three outlines the development o f the study and the
proposed research hypotheses.
Chapter four outlines the research methods used in order to meet
the objectives of the dissertation. It is the researcher’s intention to
carry out up to five semi-structured interviews for the primary
research of this paper. Effectively, the chosen methodology has
been modelled to elucidate the extent to which Japanese culture
has influenced Japanese organisations.
3
Chapter five illustrates the presentation of findings based on the
gathered information of the interviews conducted. This chapter
seeks to develop the areas to be analysed in relation to the testing
of hypotheses in chapter six.
Chapter six encompasses the areas of Japanese national culture,
communication, participation and decision making and labour
management with respect to the literature reviewed in chapter two
These areas will also be examined in light of the interview findings
as in the literature review.
Chapter seven provides for the conclusions derived from chapter
six in connection with what has been said in the literature review.
The conclusions of this chapter will follow logically from the data
presented throughout this dissertation. Perceived recommendations
will also be made in relation to the findings of the study as will
recommendations for further study.
4
CHAPTER TWO
Literature Review
2.0
Introduction
This chapter reviews the relevant works o f authors who have
influenced the phenomena of culture, organisational behaviour and
management styles. Books and journals of such topics are used as
references for the purpose of investigating the following research
question :
“How has Culture Influenced Japanese Management Practices and
Principles”?
The concept of culture and its influence on Japanese organisations
is reviewed using the following subject areas as a framework of
investigation.
National Culture and national culture in Japan, these areas explore
the elements of education, cultural values and the work attitudes of
the Japanese society. Secondly work related practices in Japan are
illustrated which consists of Japanese organisational culture,
employee involvement, groups and decision making and lifetime
employment.
5
2.1
National Culture
Kroeber (1948: 8) explores culture as a powerful force on human
behaviour. People are ‘influenced by the culture they grow up in
and are dependent on it for most of the specific things they do in
their lives’. Culture is seen as a force affecting all human beings
both socially and individually. Kroeber (1948) believes the extent
by
which an individual is moulded by his/her culture is
‘enormous’. The shaping of an individual can go unnoticed as it
occurs gradually. The deliberate moulding of culture is done
through education, religion, manners, morals and family.
Capon (2000:140) introduces the concept of culture and how it
influences personal efficiency and effectiveness in organisations.
‘National culture can carry a certain stereotype and prejudice, as
characteristics are adopted by one national group and attributed by
one nation to another4.
An understanding of national culture allows managers to develop
the awareness that they need to create a smooth and effective
organisational culture. It allows employees to appreciate the fact
that employees from other organisations will have different
cultures.
The most important factor to be learned in order to understand how
other cultures work is the appreciation and understanding o f one’s
own culture.George and Jones (1996:540) define national culture
as, ‘the particular set of economic, political, and social values that
exist in a particular nation’.
Characteristics of a nation according to George and Jones
(1996:140) can influence the way people live and work.
6
For example, T h e US national culture is based on capitalistic
economic values, democratic political values, and individualistic
and competitive social values’.
National culture can guide the control of people‘s behaviour
through values and norms.
2.2
National Culture in Japan
National culture in Japan is explored using the elements of education,
cultural values and attitudes.
2.2.1
Education in Japan
Holdenson et al (1988:18) explore the role of education in
Japanese society. Education is seen as Japan’s most important
social priority with a great concern for learning. The strict and
rigorous curriculum has proved to be effective where 99% of the
population are literate despite the difficulty in learning the
Japanese language. Attendance in school is very high and students
are required to finish six years of grammar school and three years
of Junior high.
Entrance exams are taken by students from nursery school to
University in order to gain admittance.
These exams are considered to be vital for the future of a child.
Although said to be difficult a good result in an entrance exam puts
a child on the road to a prestigious education. During the school
years, Juku, or after school cram schools, prepare students for the
intense exams ahead.
Holdenson (1988:18) continues that ‘admission to a Japanese
University is quite difficult but once you’re in you’re in’!
7
The college years in University in Japan are referred to as an
academic romp where students are rarely failed. Every Japanese
student knows the ranking of the nation’s colleges, just as he/she
knows what jobs are offered to graduates of which Universities. As
a result students can predict what they could be doing for the rest
of their career and for which company he/she will work for.
Correspondingly Deborah Fallows in Fatehi (1996) writes of her
family’s time spent living in Japan and their experience with the
Japanese education system.
The learning of the Japanese cultural values was emphasised far
more than academic or language teachings. Students played a
significant role in society just as it was their father’s role to work
and their mother’s to take care of the house and family.
Co-ordination and attention by the students was practised in their
daily lives by following the rules, schedules and instructions
provided by their teachers.
Group-work and group decision
making
was
also
another
important lesson taught to the children, where success and failure
was judged by the performance of the group and not by any
individual.
Fatehi (1996:248) stresses that ‘the cultural values taught to
children in schools consist of learning one’s place, how to blend in
with the group, to follow the rules and to try your hardest, these
messages comprised of the non-academic core o f education in
Japan taught by mothers and teachers alike’.
Similarly Trice and Beyer (1993) summarise the importance of
education to the Japanese people. A high standard is set for
students in school and students are expected to make every effort
to excel in their studies. Although their achievement is very
important, direct and interpersonal competition between pupils is
avoided. Trice and Beyer (1993:341) writes that ‘an impersonal
standard exam is set for students as a basis for ranking and
determining their success to higher education where their futures
are more or less assured once admitted to University’,
2.2.2
Cultural Values and Attitudes in Japan
Fatehi (1996:174/175) examines the attitudes towards age in Japan.
In many Asian countries, including Japan, ‘the elderly and senior
citizens have a high place in society and there is a clear ascending
order of status according to age’. Older people are in positions of
authority and power, where higher value is placed on seniority than
performance in filling a position.
Luthans (1998) notes how societies can vary towards their
orientation of time. Some societies are orientated towards the past,
others the present and others towards the future. The Japanese have
a very long-term future orientated time horizon.
De Mente (1998:46/47) adds how Western businessmen see the
concept of time as one of the biggest problems facing cross
cultural negotiations. ‘While the Americans have been conditioned
to live by the minute, the Japanese connect time with moods,
events and seasons’ and they are seen to be completely oblivious to
the passage of time.
9
Fatehi (1996:171) claims that ‘the Japanese people are very much
concerned with strict observance of the rules of interpersonal
relationships, manners and discipline’.
Earlier in Japan, in the days of Samurai Rule, a disregard for
manners and a failure to show proper respect to a Samurai could be
punishable by death. Eating, greeting, walking and sleeping were
practised in a prescribed manner. Even nowadays the daily lives of
the Japanese are governed by a strict code of conduct.
The exchange of business cards in Japan according to Fatehi
(1996:171) carries a certain code of conduct. The ceremonial
exchange reflects a person’s relative position in a social or work
group.
When
the
cards
are
received
each
individual
is
acknowledged, his card studied and is then respectfully put away.
T h e Japanese allow for tact and diplomacy in their interpersonal
relationships where social acceptance, preserving harmony and
saving face are considered important’. They are reluctant to
criticise others in public, give direct answers and put people on the
spot.
W hitehill (1991:51) discusses the impact of value orientations on
the Japanese management system.
T h e Japanese believe the world consists of two groups, ‘We
Japanese’ (Ware Ware Nippon-Jin) and everybody else’. Gaijin
used by the Japanese, which can be interpreted as foreigner or
outsider, can tell us much about this value orientation. They are
predominantly a homogenous ethnic group, a nation family, where
everybody speaks the language, looks Japanese and thinks
Japanese.
10
The Japanese value the sense of security in being an insider. The
expression “We Japanese” which is frequently used by the
Japanese not only reflects the insider-outsider syndrome but also
implies a uniqueness of which they are very proud.
Fatehi (1996:234) adds ‘all organisational activities are based on
the assumptions regarding the individual, their interpersonal
relationships and how they relate to society’. The concept of the
“person” and the status of a person in society can differ among
cultures.
In Western society a “person” is individually recognised and
separate from his/her environment. In Japanese there is no
equivalent for the word “I”, individuals are recognised by their
relationship with others.
According to Fatehi (1996:168) Americans are seen to work hard
because work is considered a virtue, Japanese people work hard
because of their loyalty and obligation to the group. High
performance is considered a duty where the success o f the
individual depends on the success of the group.
For an individual member to fail in a group usually results in a
deep sense of agony and shame.
Since everybody seems to work hard, most individuals feel obliged
to do the same. Doing the contrary could result in collective failure
and losing face. In Japan “If you lose face once, you lose face
forever” .
11
Fatehi (1996) also explores how the importance or centrality of
work in people’s lives can vary from culture to culture. In a study
carried out on seven countries, researchers found a wide range of
work centrality among these counties. It was found to be the
highest in Japan and the lowest in the United Kingdom.
Jyuji Misumi reconfirmed the importance of work for the Japanese
in a study among four countries where work centrality was the
highest among the Japanese. Fatehi (1996:233) claims that
‘attitudes towards work can carry different meanings for people,
work can be seen as a person’s identity and many define
themselves and others by what they do, elsewhere people will
identify themselves by their family, religion or village’.
Personal introductions according to Fatehi (1996:232) vary among
the Japanese and Americans. ‘In Japan, people would mostly
identify themselves by a reference to their employer such as
“Morio of Mitsubishi” or “Tanaka of Toyota” .
Americans on the other hand will typically talk about themselves
individually with personal characteristics and the content o f their
work, for example “I am a teacher” or “I am a lawyer” . Work is
valued on different levels of importance. People work for many
reasons, the most obvious being, work in order to live. People are
motivated to work in order to satisfy their needs and to live and
lead a comfortable and dignified life.
Fatehi (1996:231/233) writes that ‘techniques such as fringe
benefits, wages and bonuses are devised by organisations to
motivate their employees’.
12
However, work can also provide people with an opportunity to
socialise and learn from interaction with others.
It is accepted in principle that there are differences among people
of different cultures.
The perception of time, space and attitudes towards work and
authority influence people’s motivation. The efforts exerted by
employees at work are also influenced by their motivation;
therefore culture plays an important role in managing work
organisations, which is examined in greater detail later in the
chapter.
2.3
2.3.1
Work Related Practices in Japan
Japanese Organisational Culture
Schein (1992:12) defines the culture of a group as,
‘A pattern of shared basic assumptions that the group learned
as it solved its problems of external adaptation and internal
integration, that has worked well enough to be considered
valid and therefore to be taught to new members as the correct
way to perceive, think and feel in relation to those problems’.
Schein (1992:51) believes that ‘if the dynamics o f culture are
understood then the people who have to work in that culture are
more likely to understand the reasoning behind situations that may
arise’. The understanding of culture within an organisation makes
it easier for people to work in an environment where groups can
differ but work under the same organisational values.
13
Similarly, Tieman et al (1996) explore the effect of organisational
culture on management and the critical role that it plays in the
success of organisations.
Tieman et al (1996:37) writes that the culture of an organisation
comprises of ‘ the shared values, beliefs and assumptions of its
members commonly communicated through symbolic m eans’.
Tieman et al (1996:38) add that the success of organisations can be
determined by the behaviours within an organisation. They
recommend that effective management is established in an
organisation by ‘focusing on the culture rather than the structures
and systems’.
2.3.2
Employee Involvement
Fatehi (1996:400) explores employee involvement as ‘a concept
adopted by companies to involve their employees in managing the
company and decision making by sharing information and pow er’.
Employee involvement can also be referred to as w orker’s
participation, participative management, quality circles, quality of
work life, self-managed teams and employee empowerment.
The concept is used in the hope that higher involvement of
employees will result in a better understanding of one’s job, better
decisions,
higher
dedication,
commitment
and
greater
performance.
Trice and Beyer (1993:340/341) consider the basis of Japanese
work
relations
and
their historical
ideologies.
14
basis
of organisational
‘The culture of Japan up until the end of the 19th century closed its
borders to foreigners and their influences where their society
developed with homogenous and persistent beliefs and values’.
In effect the Japanese culture shaped its members to be more
willing to surrender some personal control to create a greater
harmony between themselves and their environment.
‘The Japanese are somewhat preoccupied with maintaining social
order and value harmony among others with a strong importance
on the power of collectivity’.
Trice and Beyer (1993:343) also add, ‘the Ringi system (the way
decisions are made in Japanese organisations) is perhaps the
clearest expression of the Japanese values towards collectivity and
co-operation’.
This system as explained by Trice and Beyer (1993: 343)
emphasises group consensus using a bottom up decision making
system.
Lower and middle management are normally the sources proposing
and recommending a new decision. The proposal is then circulated
among other managers whose involvement would be necessary to
implement any proposals made. Only then is any proposal brought
forward to senior management. The proposal then climbs the
hierarchical ladder where it is either accepted (as it is or further
recommendations are made) or rejected.
The Ringi system according to Trice and Beyer (1993:343) allows
for managers to communicate with each other and discuss the
proposal in order to reach a consensus. Employees are also
encouraged to make suggestions through Quality Circles.
15
Fatehi (1996) adds that a primary use of employee involvement in
industries is the global competition that has led to a tougher
competitive environment. Companies that utilise their resources,
including human resources to their best capacity and ability have
the opportunity to survive and prosper in such a competitive
environment. A primary resource for any company is a trained and
dedicated workforce, which gives the company adaptability.
Organisations need to be adaptable where speed and flexibility are
critical for success.
2.3.3
Quality Circles in Japan
Baird et al (1990:405) define a quality circle as, ‘a problem­
solving group in which workers and their supervisors meet to
identify, analyse and solve productivity problems’.
Baird et al (1990) discuss how the quality circle, although
originated in the U.S, can be effectively developed and put into
practice in Japan.
Naylor (1999) adds, the succession of quality circles in Japan since
1962 adapts well to the Japanese organisational culture.
This implies the emphasis placed on the importance of quality to
the Japanese managers, who rely on quality to be practised
effectively at every level of their company with the intention of
producing a system of quality output. Quality circles are seen as
the responsibility of the management and they retain most of the
control.
16
Hannagan (1998: 182) in figure 2.1 below contributes to this
concept by illustrating the stages involved in the quality circle
process.
Identification of problem
Prioritisation
Presentation
to managers
Action if
Discussion &
Authorised
investigation
Solution
Figure 2.1 Hannagan( 1998:182)
Similar to Naylor (1999), Hannagan (1998) believes the quality
circle compliments the Japanese’ organisational culture with a
participative focus on solving problems and producing action
plans. Japanese employee involvement contributes to its successful
organisational communication strategies.
17
Pascale and Athos in Hannagan (1998:290) believe the technique
of Quality Circles has become an essential part of the Japanese
business culture and the understanding of why Quality Circles are
well suited to Japanese organisations. ’Owing to the central
importance of group efforts in their thinking, the Japanese are
extremely sensitive to and concerned about group interactions and
relationships’.
Daft (2000) reviews the Quality Circle process as a technique to
implement the Total Quality Management (TQM) approach.
Problems are identified and solutions are sought. Quality Circles,
although mostly implemented on the approval of management, are
used to include recommendations of employees skilled in a
particular area; hence, recommended solutions come from those
who understand the job better than anyone does.
2.3.4
Groups and Decision-Making in Japan.
In referring to the works of Dr. Kazutaka W atanabe, De Mente
(1986:74) states, ‘as group-orientated people, most Japanese find it
difficult or impossible to act as individuals. This explains, he says,
why they are so obedient and effective as a mass, but generally so
restrained and ineffective as individuals’.
W hitehill (1991:51) adds that ‘to be isolated from one’s group, to
be lonely or to be a stranger are constant dreads among Japanese
people’. Therefore, groupism and identification to a group are
treasured cultural values in Japan.
18
This groupism starts at an early age with close family ties.
Kazokushugi, Japanese familism, is a basic value, which is
reflected in many aspects o f management such as lifetime
employment and seniority.
Tt is considered right and good to be dedicated and loyal to the
groups that are part of life in Japan. Groups such as one’s family,
class, university, corporate department or even Japan itse lf.
D e'M ente (1986) explores how difficult it can be for a foreign
businessman to achieve and maintain good relations with his
Japanese staff and counterparts in other countries.
The three primary requirements to achieve successful negotiations
with Japanese businessmen are identified below by De Mente
(1986:19).
1) Getting into the family circle.
2) Establishing a strict hierarchy.
3) Maintaining surface harmony with business associates.
According to one above, De Mente (1986:19) stresses that ‘getting
into the family circle is the most important for Japanese
businessmen’. This is because in order for anyone to become close
to a Japanese is to become a member of his group.
‘The idea of group/family can incorporate exclusivity to the point
of hostility to non-members’.
Drinking together has proved to be the most successful and
important of such groups because of its less formal setting and
atmosphere.
19
People become more relaxed in their environment and loose any
inhibitions they may have. Having had several social meetings
with a Japanese business associate, a dinner invitation to your
home is then usually customary.
These steps according to De Mente (1986:20) the three most
important areas in the life of a Japanese businessman.
a) The official company-to-company relationship.
b) The man-to-man contact during leisure time.
c) The family relationship.
De Mente (1986) also illustrates how the hierarchical system is
formed when two Japanese meet for the first time. There is a lot of
caution taken where they are very careful of what they say and
how they behave until each other’s hierarchical position has been
revealed.
Tf the associates happen to be within the same company and there
is not an apparent age difference, both of them will be
quite
unsettled until they know when each entered the company, how far
they went in school, which school they attended and to which
“group” in the company they belong1.
This information allows the Japanese to know how they should
behave towards each other, either by senior-junior role or equal
roles. In maintaining a proper relationship among their associates,
subordinates must never show up their superiors in any way.
20
Muller-Hansen (1997) writes of his time living in Japan studying
intercultural communication. In a study with 22 Japanese students,
he conducted case studies by watching various documentaries and
afterwards forming discussion groups to evaluate their opinions
and ideas.
Muller-Hansen (1997) found it hard to raise an issue for discussion
but even harder to keep the talk going. His reasoning for this was
simply that the Japanese could not relate to his openness and direct
communication. He found that even in a case where they may not
have agreed with his opinions, none of the students would criticise
an opinion or conclusion in front of the group.
De Mente (1986:34/35) considers ‘that in general, decision making
in Japan is a communal affair requiring unanimous approval by
management’.
M ost Japanese companies, as mentioned earlier by Trice and Beyer
(1993), use a system of decision making known as Ringi-seido
(document system). ‘The larger the company, the more complex
the process will be because of the amount of people involved
whose primary concern is their own personal interest and the
interest of their department’.
At boardroom level all decisions are expected to reach a
unanimous agreement, although to prevent this tradition from
becoming ineffective many organisations have an elder statesman
whose services may be used during times of crisis.
‘This elder statesman may be a former president or director or
member of a family owning a majority of the company’s stock’.
His services may be required if the board failed to reach a
unanimous decision.
21
De Mente (1986) adds The Japanese are renowned for their slow
decision making but fast implementation. They can often take from
3 to 6 months to reach a full agreement or decision. The process
can be quite cumbersome but decisions are usually implemented
quickly and easily because everyone has been thoroughly informed
and is familiar with the project and knows what has to be done.
To quote Muller-Hansen (1997:2) ‘when given the parameters, the
Japanese group becomes very powerful and energetic’.
Group decision making creates an open communication among
people at different levels of the organisational hierarchy with a
great deal of collaboration and recognition of mutual dependence.
Greenberg and Baron (2000) acknowledge that cultures can differ
regarding their decision making processes.
In Japan,
it is
inconceivable for someone to make a decision without first gaining
approval from his colleagues. Building consensus among the
Japanese is embedded in their culture. Everybody from the
organisation needs to be involved before anything can be done.
The Japanese government in De Mente (1986) has made some
points to be noted in order to explain how corporate decisions are
made in larger Japanese companies. These explanations show that
there are a number of factors that make the decision making
process different in Japan from what it is in other countries.
1) It is not the structure of Japanese companies that creates a
difference in their company decision policies, rather the formal and
informal lines of communication that exist between lower, middle
and senior management.
22
2) Despite the vertical structure of management and society in
Japan, employees are generally treated alike within their age and
educational categories. Employees tend to be quite similar in their
educational background, attitudes and aspirations.
Rank is generally on a seniority basis rather than performance and
ability and rewards are psychological rather than financial.
3) Japanese managers are trained to think as generalists rather than
as specialists and are considered more flexible in a company where
they can be moved to different departments within the company.
4) In personnel evaluations and promotions for senior management
positions, employees are expected to develop and maintain a close
working relationship with his/her own department as well as other
departments.
His ability to obtain output from other people in the company and
transmit to senior management is also examined when reviewing
his/her ability for a senior management position.
5) Outsiders are expected to deal with the company as a group and
not with individual managers in order to adjust to the collective
decision making approach used by Japanese companies.
2.3.5
Lifetime employment in Japan
The Japan Institute of Labour (2000:26) examines the lifetime
employment system in Japan. The system became evident in
companies during the 1960’s when the Japanese economy was
experiencing rapid growth.
23
‘Companies adopted in-house training for their employees in order
to keep up with the growth of both their economy and the
technology revolution’.
Japanese employees embraced the long-term system, which offered
them a secure job as well as opportunities for promotion and salary
increases.
Companies in Japan, according to The Japan Institute o f Labour
(2000:26) have ‘adapted the lifetime employment system to avoid
laying off their employees’, or as a last resort, Japanese companies
may ask their employees to retire early or voluntarily. However,
only about 20% of corporate group employees work continuously
at the same company until the age of 60.
The JETRO Business Information series (1989:pg) similarly
writes, ‘the custom of lifetime employment and seniority can be
raised as characteristics of Japanese labour management’. Both
large Japanese companies and government organisations utilise
these practices as their labour management systems.
The system of lifetime employment is especially prevalent in large
Japanese corporations where once a company hires an employee,
that person is likely to remain there until retirement.
Greenberg and Baron (2000:220) contribute that ‘the tradition of
lifetime employment in Japan remains largely intact in the bigger
Japanese companies despite the weakness in Japan’s economy’.
Strict laws prohibit the firing of full time employees in Japan,
which allows employees to feel secure in their jobs even during
recessions.
24
In comparison to large Japanese corporations, the Japan Institute of
Labour (2000:26) writes that ‘employees in their 20’s and 30’s
working for the smaller and medium sized companies are more
likely to resign from their jobs in order to work for another
company’.
Furthermore, there is also a transfer system among the larger
corporations whereby middle managers and older employees are
transferred to another company within the group, hence, there are
few employees aged 45 and over who have remained with a
specific company throughout their career.
Factors such as low corporate growth and an ageing society have
forced Japanese companies to address the subject of reforming the
lifetime employment system. However, those in favour of doing
away with the system are still a minority while others simply wish
to review the system in its current state.
A survey conducted by the Economic Planning Agency in 1997 in
the Japan Institute of Labour (2000:26) of corporate practices in
Japan revealed that ‘the traditional recruitment and selection
methods used in Japan were still “the norm” for the majority of
Japanese companies’. Such companies also added that ‘such
methods were likely to become more prominent between 1998 and
2003’. However, the system has been criticised for its ability to
create complacency among workers and prevents a more flexible
recruitment system. Companies are obliged never to dismiss
someone once hired. Japanese companies seldom lay off workers
and see dismissal as a last resort. Instead redundant personnel are
moved in to subsidiaries or related organisations.
25
Koontz and Weihrich (1988) similarly add that employees will
spend their working life with one company and in return gain a
sense of security and a feeling of belonging.
The concept introduced by this system is called “ Wa” (harmony)
resulting in employee loyalty and close identification with the
goals of the company. Consequently, they also criticise the system
as it adds to business costs whereby employees are kept on the
payroll yet there may be insufficient work.
Hannagan (1998:631) correspondingly adds that ‘the loyalty of
f
workers to their companies contributes to a committed and
<
motivated workforce whereby employees gain a sense of belonging
and a concern for the welfare of their group’. W orkers in Japanese
companies are viewed as critical resources to a company and are
/
protected and nurtured.
i
Whitehill (1991:199) adds that ‘lifetime employment is regarded as
one of the factors in Japanese companies, which motivates
\
employees to work long and hard to achieve corporate goals’. With
lifetime employment, employees enjoy a secure career with
»
gradual progression and salary increases. Em ployees in Japan often
devote their full energy to achieving group and corporate
objectives.
2.3
Conclusion
This chapter has examined the variables o f both national and
organisational culture that have influenced the behaviours and
attitudes of Japanese society which in turn contribute to the
practices and principles of Japanese organisations.
26
The Japanese
culture can be
described
as
their
society’s
personality, where the concept of working with groups, the values
of people, harmony, dignity and social cohesion create an
expectation for long-term relationships, unity and conformity.
There is a close link between Japanese culture and the influence it
has on organisations.
Education is seen as a social priority where a prestigious education
can determine the desirable employees for recruiting companies.
The non-academic core of education teaches the cultural values of
blending with a group, learning one’s place and to work to your
best ability. These values are evidently practised in Japanese
organisations. Employees are involved the sharing of information
and power, group consensus in decision making and quality
circles.
The organisational hierarchy of Japanese companies reflects the
learning of one’s place in society and at work where title and status
determine the code of behaviour.
Students endure intense schooling and obedience
schedules and instructions are practised.
Similarly
o f rules,
in their
companies the Japanese are concerned with strict observance o f the
rules of interpersonal relationships, manners and discipline.
Attitude
towards age
and gender are
predominantly
male
dominated and the elderly and senior citizens have a high place in
society.
Such attitudes are evident in Japanese organisations where higher
value is placed on seniority.
27
Japanese organisational culture can be described as a unique
hierarchical system of loyalty, group interaction, appreciation of
human resources and communication which has been manifested
by the social values and priorities of Japanese society.
28
Chapter Three
Theory Development and Hypothesis
3.0
Introduction
The elements of Japanese culture identified in chapter two
prompted the examination into the role o f culture in Japanese
organisations.
This chapter outlines the hypotheses formulated by the objectives
and questions stated in chapter one and the literature reviewed
from chapter two.
The aim of this study is to examine the impact of culture on
Japanese organisational practices and principles.
3.1
Research Hypotheses
From the literature reviewed in chapter two, the proposed
questions and objectives of chapter one, the researcher formulates
the influence that culture has on Japanese management practices
and principles with the following hypotheses.
HI
The evidence of cultural influence on Japanese society is
predominantly
seen
through
cultural values.
29
education
and
common
H2
Communication,
decision
making
and
employee
participation in Japanese organisations is based on the
effectiveness
of
group
consensus
and
harmony,
interdependency and social order in Japanese society.
H3
The labour management system in Japan o f lifetime
employment remains intact due characteristics o f loyalty, a
sense of belonging and the need for security embedded in
Japanese people.
30
Chapter Four
Research Methodology
4.0
Introduction
In writing this dissertation the author used both secondary and
primary data sources so as to gain the best possible insight into the
intriguing
influence
of culture
on
Japanese
organisational
philosophies.
After considering the options available to the researcher in order to
carry out primary research, it was decided the interview was the
most suitable method to use.
Five interviews were undertaken to obtain descriptions of the lived
world (i.e. Japan) of the interviewees with respect to interpreting
their
meaning
and subsequent cultural
influences
of their
•organisational practices and principles.
4.1
Secondary Data
Brannick and Roche (1997:215) wrote,secondary data is ‘data that
was developed for some purpose other than helping to solve the
problem in hand’.
The predominant secondary sources used for the purpose of this
dissertation were published books which are reviewed in chapter
two of the study.
31
Secondary data offers the researcher a number o f advantages.
D
Secondary data are readily available and less time is wasted
in gathering data needed for research.
D
Secondary data are more economical.
Z>
Secondary
data
can
assist
in
framing
the
research
investigation.
D
Despite it‘s advantages, secondary data also has some
negative attributes.
D
The data researched are not developed to suit the specific
research in question.
Z)
The author did not collect the data nor derive the results.
Z>
Results can possibly contain a bias judgement.
Z)
Research data may be out of date.
4.2
Primary Data
In contrast to secondary data, primary research is conducted for the
purpose of collecting information for the researcher’s own specific
requirements.
The semi-structured interview was chosen for this dissertation
because it is efficient, quick and concise in nature.
32
The author justifies this choice as it seeks to interpret the meaning
of culture and its influence on organisational behaviour in the life
world of the subject.
The author did not consider the quantitative methods available for
research as a suitable technique for this paper as a face to face
approach was considered a more appropriate method for this
dissertation. A case study was also an option for the researcher but
was
decided
against due to
restricted
access
o f relevant
information needed to investigate Japanese management practices
and principles.
4.3
The Participants
Interviewees selected for this study were members o f Japanese
subsidiary companies operating in Ireland whose headquarters are
located in Japan. (For company and Participant profile see
appendix three).
Five interviews were conducted in all, three o f which were with
Managing Directors of the Japanese subsidiary companies, the
fourth, a European Laboratory manager working for a leading
Japanese company and the fifth, a Japanese company secretary
working for the Irish subsidiary of the Kanematsu Corporation of
Tokyo.
Four out of five of the interviews were conducted using a
Dictaphone.
33
4.4
The Research Instrument
The interview was used to encourage an interaction between the
interviewer and the participant to go beyond a polite conversation
in order to learn and exchange ideas.
Throughout the interviews the researcher introduced topics of
conversation and through further questions directed the course of
the interview.
The qualitative interviewing methods are as follows:
1) Depth
2) Exploratory
3) Semi-structured
4) Unstructured
The semi-structured interview was chosen for the purposes of this
dissertation.
The interviews were formulated with a balance of open and
specific questions to be answered. Prior to the interviews, the
•researcher outlined interview topics in the form of questions,
which were of relevant importance to the topic of investigation.
With regard to the flexibility of the interview, the researcher
applied a common opening question to start each interview.
As mentioned earlier in the chapter, three o f the five interviews
conducted were with Managing Directors o f Japanese subsidiary
companies in Ireland.
34
The purpose of this was to obtain qualitative descriptions of culture
in Japan and how it has influenced the practices and principles of
both their parent and subsidiary companies.
The fourth interviewee, a European Laboratory manager, was
interviewed to learn from his experiences in working for a
Japanese company and how, if at all, his managerial principles
differed from those of the Japanese.
The fifth and final interviewee was a secretary for a Japanese
Corporation whose subsidiary is located in Ireland. The interview
was relevant for similar reasons to that of the M anaging Directors,
even though the principles were investigated from a different
perspective.
4.5
Advantages of the Semi-structured Interview
The advantages of a semi-structured interview are as follows:
D
The interviewees are more likely to give more information
in contrast to a survey questionnaire or telephone interview
as both parties are face to face.
D
Semi-structured interviews can be used to examine the
relevant broad issues of national and organisational culture.
Z>
Semi-structured interviews can also address quite focused
aspects of organisational life, such as decision making.
35
Z>
The
interview
is
conducted
in
a
non-competitive
environment where there can be more time allocated to the
individual’s detailed information.
D
Establishing a good rapport with the interviewee will allow
a better flow of information where participants can be more
relaxed and co-operative.
4.6
Disadvantages of the Semi-structured Interview
Z)
It may be that the researcher will experience ‘difficult’
interviewees, hostile or unwilling to focus on the topic at
hand.
D
There is a possibility of bias on the part of the interviewer
regarding his/her opinion of the interviewee.
4.7
Problems Encountered
O
The interviews had to be conducted within a specified time
frame.
Z>
Both the researcher and interviewees due to language
barriers
encountered
misinterpretation
and
misunderstanding of questions and answers.
D
The researcher also encountered short ‘yes’ ‘n o ’ answers
from one particular interviewee.
Z>
Project time constrains.
36
Chapter Five
Presentation of Findings
5.0
Introduction
In this chapter the collection of data from the interviews conducted
by the researcher will be examined. Five interviews in all are to be
analysed and in the following chapter the hypotheses stated will be
measured against the data found. The interviews are categorised
into three groups, the first group are the three managing directors,
as analysis is taken from a manager’s perspective.
The second group includes Martyn Field of Hitachi, the researcher
was
able
to gain
a W esterner’s perspective
on
Japanese
management principles.
The third, Akiyo Noda, an employee’s perspective can be
effectively measured against that of senior management.
The chapter examines the findings interpreted from the questions
addressed to the participants during each interview.
5.1
Interviews with the Managing Directors.
The following points will
serve as subject areas
for the
interpretation of the first three interviews with the managing
directors (see above).
1) Japanese culture.
2) Communication, Participation and Decision making
3) Labour Management.
37
In order to avoid confusion with names, the managing directors
will be referred to as Participants A, B and C exclusively.
5.1.1
Japanese Culture.
-Western cultures have stereotyped the Japanese as self-effacing
conformists who long to belong and are dependent on group
approval. Participant A’s own perception of such a stereotype does
not contradict such a statement. In Japanese society and even more
so in Japanese organisations people value the group to a much
larger
extent
than
they
do
the
individual.
Participant
A
acknowledges that such a stereotype is evidenced in everyday life
where the shy and timid Japanese is evident in their schools,
universities and organisations. The example given by participant A
reveals, where Japanese students or workers find it difficult to pick
a strong leader to direct them in a group.
Some
Japanese
manufacturing
plants
are
now
therefore
experiencing large bad debts, his reasoning for this is due to their
time-consuming decision making process. Failure to have a strong
leader in a group, to take charge and control of a situation has
resulted in such problems for Japanese companies.
-Participant B, also acknowledges such a stereotype, however he
has remarked that such a stereotype is not as evident in Japanese
companies such as Sunrock.
The reason being, although there are two Japanese managers
within the Irish subsidiary the workforce of nine are predominantly
Irish and English, so Japanese influence is not as evident.
38
Participant B allows for different cultural behaviours to cause a
conflict in principles and policies of the company and neither him
nor his co-managing director would force and could not force “the
Japanese way” on those who are used to the western working
environment. On the contrary, Participant B claimed that he felt he
had to force himself to think as a Western in order to adjust to their
organisational values.
-Participant C also agrees with the stereotype attached to the
Japanese people. Similar to Participant B, he acknowledges how
difficult it is for Japanese managers to work outside of their
cultural boundaries and try to keep a Japanese influence within a
company where most employees are Western.
Having lived for some years in America, Participant C finds the
Western culture less intense and strict as it is in Japan, and even
though both he and his family have kept some Japanese traditions
they are becoming gradually more W esternised in their way of
thinking.
During his time in America, Participant C insisted on his children
attending Japanese school, while he as the older man has kept
Japanese influence embedded in his value system. He feared that
his children would lose out and grow to forget any Japanese values
that they may have had as younger children. During the interview,
it was discovered that Participant C ’s family had permanently
moved back to Japan while he continued to work for Itochu in
Ireland.
-The educational system in Japan is seen as an important social
priority, the Participants were questioned on their education and
how or whether it has had a homogeneous influence on Japanese
society.
39
-Participant A spoke very proudly of the uniqueness of the
Japanese education system. Participant A proceeded to talk of the
standard set for Japanese students, which is expected of every
student. There is little time for hobbies and extra activities until a
student has reached university level. Participant A believes these
university years are the most important for Japanese students
where they can learn a lot more practical and fundamental matters.
However, in the opinion of Participant A, Japanese students waste
their years at university. Students he says suffer from exhaustion as
a result of the intense and strict schooling they must go through.
Nevertheless he acknowledges how important it is for Japan to
produce the same level and standard student so society has no
losers and no winners, everyone has equally accomplished the set
standard.
-Participant B spoke of the relationship between universities and
companies, where companies recruit their potential employees
from specific universities searching for a particular quality and
similarity to their own company’s culture. Participant B expands
on this relationship explaining to the researcher how companies
look
out for certain behavioural patterns
of their current
employees.
Such patterns may be common between employees who attended
the same university, in which case those students are targeted and
approached as potential employees for that company.
-Participant C had quite a contrasting view on the Japanese
educational system and to quote him he said, “I am not a typical
Japanese” . Participant C disagreed with the strict and rigorous
system operated in Japan.
40
After living for six years in America and now currently living in
Ireland, Participant C has much appreciation for the Irish education
system. As a child he attended cram schools so he could keep up
with the high standard that was expected of him as a student.
Students during school, he said, are not really encouraged to
develop any talents they may have, this may be done in university
or after school hours if you could find the time. Participant C
disagrees with the homogenous teachings in Japanese education
and thinks that the old values and traditions held by the older
Japanese population are holding back a lot of changes that will
soon have to happen because of the intense competition with
America.
-The exchange of business cards reflects a person’s status or title in
a social or work group. Title or status can carry a certain code of
conduct and behaviour among the Japanese, the participants were
asked as to the importance of title in their companies.
-Participant A acknowledges the importance of title for him and his
company. Japanese managers are very cautious when meeting new
people for the first time. Each must exchange business cards to put
each other at ease. The title on the business card allows the
manager to know how they should behave.
According to Participant A, social status in Japan can also be taken
into account on the grounds that you are of good marriage material.
-Participant B claims, in Japan it is better to know a person’s title
but the level of its importance can depend on a com pany’s
corporate culture. He added that throughout a person’s time with a
company there is a “strange “ system of gaining respect.
41
A person is generally judged on his title and not ability. For
example, when a General Manager exchanges his card with
someone, this allows that person to show the proper respect and
behaviour to be shown to him.
On the other hand, if there were no title on the business card and
the person looked older then people would consider this very
strange. The Japanese expect title to be allocated with age, the
older you are the higher you are in the hierarchy. Should any
business card show otherwise, this could be seen as very odd.
-Participant C similarly to Participant B does not make a big issue
of title in Ireland, though his parent company Itochu Airlease
Corporation in Tokyo naturally has a greater Japanese influence
where title is recognised and respected by everybody.
-Participants were questioned on the centrality or importance of
work in their lives. Attitudes towards work can carry different
meanings for people. The centrality of work in the lives of the
three managing directors was examined.
-Participant A works out of an inner urge to develop and grow in
his job. His company emphasises the importance for the customer
and he believes that he is in his job to work and provide for his
customers. To quote, Participant A addressed the situation by
adding, “We are working fo r customers and fo r ourselves” .
-Participant B also believes in the inner urge of the Japanese to
work hard. He adds that Western people fail to realise the
philosophies that are adopted by the Japanese people. The
following example, given by participant B shows the different
work mentalities of the Japanese and American people.
42
During his many visits to America, Participant B was astounded by
the concept of having to give a tip or service charge to waitresses
in a restaurant. In Japan, he says, you never have to pay a tip but in
America if you don’t it can easily be taken as personal criticism or
as an insult of a person’s work. The thinking behind work for
Americans is the harder you work the more money you earn.
In Japan the philosophy to work hard is “deep inside the Japanese
p e o p l e Whether you get a tip or not slacking in your work is
totally unacceptable.
Participant B clarifies that such a mentality has nothing to do with
money, that it’s all about behaviour.
“You have to be a good man and work hard, “ explained
Participant B; this kind of philosophy he observed is very weak in
Western countries.
-Participant C, similar to A and B agrees that the Japanese consider
their work a high priority in life. Work was also seen as a time for
friendship and family. Time spent with your work colleagues is
longer than time spent with your family, he admitted. This has a lot
to do with one’s company becoming like a family.
Colleagues become friends and socialise quite often with each
other.
Japanese people commute to and from work for a relatively longer
distance than Western people according to Participant C. This can
mean arriving home quite late at night for some people, so
colleagues would normally eat together after work and go for a
drink to relax before taking the long drive home.
43
This allows people the opportunity to build friendships and discuss
business matters on a less formal scale.
5.1.2
Communication, Participation and Decision Making.
-Participants were analysed on the levels of communication within
their company and the influence of Japanese principles from the
Japanese parent company.
-Participant A informed the researcher that due to the relatively
small size of the subsidiary in Ireland, the staff inevitably
depended on each other.
There are regular meetings between managers in order to keep
communication levels running smoothly.
Participant A also added that constant communication between
Ireland and headquarters in Japan before any company decisions
are made is vital. All company subsidiaries rely on headquarters
for their co-operation and support. Participant A ’s company is a
100% subsidiary of the parent company in Tokyo.
-Participant B adds that there are differences between working in
the parent company in Tokyo and Ireland. Approval from
headquarters on a business contract or decision is essential. In
order to get this, Participant B and his co-managing director must
harmonise the opinion between Tokyo and Ireland.
-Participant C’s company like that of Participant A and B is 100%
subsidiary of the parent company in Japan. All important decisions
made in Ireland have to be approved by headquarters in Tokyo.
The parent company expects that all subsidiaries behave and work
as they do therefore whatever recommendations are made, it is
expected that they will be implemented.
44
It has happened that they have not always agreed on certain
recommendations in the past and subsequently hesitated in
implementing them.
-The parent company has been asked to recognise the differences
in Eastern and Western management styles and the impossibility of
exporting and forcing Japanese organisational culture on Western
companies. In the end, however, they must follow the decision of
the parent company otherwise it would cause upset and tension
between them. The parent company recognise that incorporating a
Japanese hierarchy and Japanese style of business does not fit in
with the Western environment and so in order to keep harmony
and to achieve the common goals it is not forced upon them.
-Participant A also added that constant communication between
Ireland and headquarters in Japan before any company decisions
are made is vital. All company subsidiaries rely on headquarters
for their co-operation and support. Participant A ’s company is a
\
100% subsidiary of the parent company in Tokyo. As a manager,
Participant A encourages all staff members to voice any opinions
or suggestions they may have for the company. However, certain
decisions to be made cannot involve everybody but if the
opportunity is there for employees to partake in company
decisions, Participant A welcomes such participation.
-In the Irish subsidiary itself, managers hold weekly staff meetings.
Similarly to participant A ’s company, it is relatively small in size
and it is easy for company members to meet in the same room to
discuss the weekly objectives.
45
Directors push for group consensus. All staff are informed of
proposed decisions, why they are being proposed and what result
they hope to achieve. This is discussed so everybody is sufficiently
informed, can understand what is going on and will agree to form a
consensus of approval.
-Participant C contributes by stating that everybody’s opinion is
valued the same within the Irish subsidiary. In contrast to Ireland,
however, Japanese senior management expects junior management
to follow decisions made by them. There are no written rules or
regulations stating this but it is up to the employees themselves to
have the common sense to respect and agree with decisions made
by senior management.
-How much input do employees have in decision making?
In Japan, the parent company of participant A has what they refer
to as the “lubrication oil” This is time after work when employees
from top to bottom go to a restaurant or a bar and discuss business
matters quite openly (this subject was also raised, as previously
stated, by participant C). This scene is used to change the
atmosphere
from
an
office
situation
to
a
more
relaxed
environment.
Matters that may be prohibited to discuss by younger and lower
ranked employees can be put to senior management, which helps
them evaluate employee moral and build a better working
relationship.
-Participant B discusses how in Japan Company directors or board
members are not the developers of new projects.
46
Employees are grouped together or in most cases form their own
groups from within their departments in order to decide on a
task/project. The project is only then put forward to the board of
directors from whom all projects need unanimous approval.
The company always operates from the bottom-up and is in use
everyday in Japanese companies.
-Participant C believes in strong communication links between
management and employees. Senior management makes decisions
and all employees are brought through the stages and informed of
the decisions that are to be made. For Participant C, it is important
for as many people as possible to participate in the decisions of the
company.
5.1.3
Labour Management
-Participant A voices his comments and views on lifetime
employment in Japan, Traditionally all the larger Japanese
companies offer lifetime employment to their employees. Japanese
people have held on to traditions such as lifetime employment
because of the security that it offers and their family like company
guarantees them a job until retirement.
However, the resistance to change tradition in Japan is high but
global competition now forces many Japanese companies to review
their labour systems.
Japanese people, he said are only now realising that they have
something to offer to the world’s employment market and not just
Japan’s.
47
-In contrast to such views, Participant C believes it is time that the
Japanese system adjusted to the competitive markets where
motivation to work is driven by performance. On a personal
experience, Participant C living presently in Ireland, while his
family is living in Japan, must wait until retirement to leave his
company. Under the lifetime employment policy, his salary
increases with his time spent with the company and as a man o f 50
he has not yet reached retirement level to get a company pension.
The pension schemes in Japan he believes are not developed
enough nor are the salaries of employees large enough for people
to manage their own. Employees rely on their com pany’s pension
scheme and yearly salary increases to finally earn enough to retire.
-Similarly to Participant A, Participant B ’s views of lifetime
employment are that such a system although still relatively active
in companies must change to keep up with global competition.
After working for some years in Ireland, Participant B sees the
level
of
global
competition
increasing
and
believes
that
employment systems in Japan will have to adjust to keep up.
-The social system he adds is not as developed in Japan as in
Europe or America. Participant B sees the changes of the Japanese
system as being long and cumbersome.
“ 20 years from now, Japan will be more like Western style
-Participant B addresses the stages of rank to be achieved by
Japanese managers.
The lifetime employment system of Participant B ’s parent
company comprises of the following stages of employment. An
employee joins a company at around 22 years of age where for the
first 10-15 years with his company partakes in many group
projects.
48
After 15 years, he will progress to management level, provided he
has worked well for the company without any critical mistakes. To
progress to management level in Japan is not considered too
difficult.
“ Becoming a manager is almost automatic” (Participant B)
-Similarly Participant A considers the relatively easy promotional
system in Japanese companies. For the first 10 years in the
company, employees are treated the same with the same gradual
increase in salary .After these 10 years, there is an opportunity to
become a manager or even director. Some are kept in Japan while
others are moved to subsidiary companies to run the company as a
Japanese manager or director.
-Participant C argues that although the lifetime employment
system has worked for several decades, such a system has to be
changed to allow for high achievers to help the Japanese economy
to grow
“ Keeping people at work when there is no work is doing the
economy no good'.
Japanese society will have to change its entire system for the
economy to pick itself up and compete with the tough competition
it faces with the world, especially with America.
-For
a
personal
sense
of accomplishment having
lifetime
employment gives little reward, remarked Participant A however,
salary is unaffected by performance which means it can work
whether someone has a good year or a bad year. The system he
adds can still work in a society where people value security and
stability.
49
-Participant B, discusses how there is a value embedded in the
Japanese people to work hard for themselves, their family, their
company and their economy. People, especially the younger
generation are not driven totally by money, it is not a sole reason to
work for Japanese employees.
-Participant C adds that nowadays in Japan, the younger generation
of graduates and employees do not feel as tied to a company as it
was when he was starting out.
“The younger generation are more flexible, freelance I g u e ss ” he
said.
Lifetime employment is no longer a motivating factor for younger
people but still remains a priority for older managers who have to
work to provide for their for families and who will not be changing
jobs so late in life. Loyalty will remain with the same company
until retirement.
5.2
Interview with Martyn Field, Laboratory Manager.
The next section of the interview findings will be the interview
analysis of Martyn Field, Laboratory M anager of Hitachi Europe
Ltd.
The interview analysis is divided into three divisions.
1) Japanese Culture
2) Communication, Participation and Decision making.
3) Labour Management.
50
5.2.1
Japanese Culture
-Participant D explains that the division in Ireland of his company
is unique with a very casual atmosphere. It is quite isolated from
Japanese influence but there is a large and obvious influence in the
headquarters in the U.K.
Participant D has been manager in Dublin since September 2001
and is the only European manager out of five research laboratories
in Europe, the remaining four are Japanese.
All negotiations are done in Japanese and Participant D must rely
on his manager to keep him informed as to what is going on.
Participant D describes such dealings as
“It's a cultural thing, they feel they can't express their feelings
fu lly in English”
-Participant D had not studied Japanese management or culture
while at university. He felt that if he had been based in the U.K.
headquarters a greater knowledge of how Japanese like their
companies to be run and their organisational values would have
been an advantage to him but nevertheless he is learning as he
goes.
In Ireland, because there is no longer a Japanese manager, there is
less of a Japanese influence in the daily activities at work.
-Participant D also commented on how the Japanese were so
dedicated to their work,
“They take their work very seriously and work very long hours,
work is very much a priority with the Japanese” he said.
51
-Participant D claims that the hierarchical system in Japanese
organisations is very confusing and frustrating. The distinctions are
not as obvious as they are in Europe but there is still a hidden
hierarchy, which is even more confusing and complicated than
W estern cultures.
Title is very important to the Japanese he added, although you may
not always know someone’s position in the hierarchy it is better
that you do.
“It's very frustrating, I can't tell w ho’s who in the hierarchy, they
have
very long confusing titles fo r everybody.
They have
managers, executive managers, general executive managers, and
general managers. You do n ’t know which o n e ’s which, where they
all fit into the scheme
-Although accepted in principle that differences will and can occur
among people of different cultures Participant D found that his
company expected an all round value system from managers
regardless of one’s culture.
“They love meetings, that drives me mad. Very long meetings not
like here, we focus on one single point and getting everything
discussed. They have very long rambling meetings”.
-Clashes can occur between the Western and Japanese way of
thinking. Participant D at present is having a disagreement with the
Japanese in Japan where the company has decided to take the
current research projects of Ireland and turn them into a business
opportunity.
52
The Japanese want to take the move slowly and cautiously,
keeping it all in-house whereas the division in Ireland want to go to
a venture capital company, get the money, start small, grow rapidly
and so on.
The Japanese do not want to take such a risk everything must be
thought out and analysed over and over.
Participant D finds the confusing indecisive manner of the
Japanese quite frustrating.
“They don't like to say no, it’s very true. You could go around in
big circular arguments and you suddenly think, they are trying to
say no”
-The parent company in Japan does not wish for reports to go
through headquarters in Europe but straight to them in Tokyo.
Participant D is often required to fly to Japan for meetings or
Japanese managers will fly to Ireland.
Having Japanese influence in the divisions is very important from
the viewpoint of the parent company in Tokyo, explains Participant
D. Up until very recently all managers were Japanese, now it is
beginning to change where, “ju st senior managers are Japanese,
exclusively
-Personal introductions noticed by and remarked on by Participant
D in Japan are related to and understood by referring to the
company that you work for. Participant D stated that the first thing
you do when you are introduced to somebody is say that you work
for Hitachi (parent company).
53
5.2.2
Communication, Participation and Decision making.
-All reports must to go through headquarters in Tokyo. Participant
D is often required to fly to Japan for meetings or Japanese
managers will fly to Ireland.
Having Japanese influence in the divisions is very important from
the viewpoint of the parent company in Tokyo, explains Participant
D. Up until very recently all managers were Japanese, now it is
beginning to change where, “ju st senior managers are Japanese,
exclusively
-Participant D has also recognised on his trips to Japan the value of
harmony and family like friendships between colleagues. After a
long meeting everybody goes out for dinner, all of those who were
at the meeting are expected to attend and socialise by eating and
drinking together. This is very important for all Japanese.
-With reference to company consensus among Hitachi groups,
Participant D said he believed this would be the way in Japan,
Hitachi, he claimed would like there to be a very collective view in
the company but the groups are different. Participant D added that
had there been a greater influence in Ireland then maybe “the
Japanese way” would be more evident.
-Sharing of information and employee participation as mentioned
earlier in the findings of Participants A, B and C are seen as one of
Japan’s most effective work practices.
-Participant D informed the researcher that “it is something that
Hitachi likes to say it does, but I don't believe it does, not here
anyway. I've seen no sign o f it at all”.
54
He also discusses his experiences with the tall “hierarchy” of
Japanese companies. He noticed that to get anything done you
have to go straight to the top of the hierarchy and then back down
to get to somebody at your own level.
“When it comes down to it, you work fo r the company, you* re all
one big fam ily but to actually get anything done you have to go up
the hierarchy
-However Participant D did acknowledge that the Japanese would
listen to any suggestions made by an employee, whether they take
it seriously or not he could not say.
He reasoned that such self-effacement is in their nature; they
would listen to anything someone had to say because they are so
polite in nature.
5.2.3
Labour Management.
-With regard to lifetime employment, the parent company does not
offer lifetime employment to it’s members in Europe. It is a labour
policy in Japan.
Participant D felt that such a policy would be ineffective in
Europe.
He felt that the Japanese should try to get out of such an old
tradition, this would maybe improve expertise in their companies
where skilled workers can join a company rather than having to
pay more training costs for lifetime employees.
He had spoken to his Japanese colleagues about their opinions on
the lifetime employment system and had felt however that they
were content with such a policy.
55
“ I guess it suits their culture, they are not risk takers by any
means. Lifetime employment offers them security fo r life, they are
big into security and stability, it will probably be in Japan fo r
another good while”
-Participant D concluded that the Japanese people liked routine and
were unlikely to change jobs, they are not as flexible as people in
the W est are he added.
Lifetime employment had never been discussed as an option for
Participant D when he joined the company yet in his parent
company in Japan most of the employees to his knowledge are
working under such a system.
Participant D felt that the Japanese valued lifetime employment
because it offered security to an employee from the day he starts
with the company until retirement. Although promotion and salary
increases were mostly based on seniority he felt that that’s what
they appreciated anyway so it worked for companies smoothly.
5.3
Interview with Akiyo Noda, secretary.
The third section and final interviewee for this dissertation was
conducted with Akiyo Noda, secretary of KG Aircraft Leasing Co.
Ltd. Ireland.
The following interviewee shall be referred to as Participant E.
(To note for reader, the researcher on interviewing Participant E
received short “Yes”, “No” answers for a lot of the questions
asked)
56
1) Japanese Culture.
2) Communication, Participation and Decision making.
3) Labour Management.
5.3.1
Japanese Culture.
-Participant E found that most Europeans thought and acted more
as individuals while the Japanese depended more on the groups
they belonged to, i.e. family, work, school, company.
-In Japan, personal introductions are done by identifying oneself in
relation to their company. The parent company of Participant E is a
well known company in Japan so for her it is easier to use her
company as personal introduction.
Participant E knew of there was a strong relationship between her
university and her parent company in Japan, but it was not the
reason why she decided to go there.
Although she had friends who intended to work for her company
from day one. Participant E however acknowledged that her
company knew of her university as they have had many employees
from the same university from previous years.
“My company knew my university, many o f my friends and
colleagues wanted to work fo r Kanematsu, it's a very large
company and well known too”.
-Participant E stated, as a young child in primary school, a lot of
school activities were done in groups of four and teachers
encouraged students to play learning games with the Alphabet.
57
Obedience in class was very important. Even now participant E is
taking a class in business in Ireland, and finds that students are
able to speak a lot more freely than they would in Japan.
5.3.2
Communication, Participation and Decision making.
-To have communication with managers is very important for
Participant E, however, she adds that it can be difficult for lower
ranked employees to express their feelings on certain matters.
Such situations can be deceptive for employees who are given the
opportunity to share their views whereas mostly managers are
expecting you to say what they want you to say.
-Relationships in Japan are a lot more formal between senior
management and employees. Most, if not the entire interaction
between Participant E and the managers of the company is done at
work, there are very few social occasions where the staff goes out
together.
“Here they talk more frankly, calling each other by the first name
but not so much in Japan”
5.3.3
Labour Management.
-Participant E sees lifetime employment as growing old in Japan.
Companies in Japan would not dismiss an employee easily; it was
just presumed that one would remain with the same company until
retirement. Participant E believed that employees remained with a
company for security reasons and similar to the opinion of
Participant B added that the younger generations no longer feel an
obligatory duty or loyalty towards a particular company.
58
-Participant E criticised the lifetime employment policy of many
Japanese companies saying that it contributed to lack of motivation
in employees, where employees were working with the same
people for years with only gradual salary increases which mostly
depended on the amount of years served with that company.
59
Chapter Six
Testing of Hypothesis
6.0
Introduction
The outlined hypotheses in chapter four are tested in this chapter
against the information gathered by the researcher from the five
interviews conducted and the literature reviewed in chapter two.
Each section has been analysed and tested with the following topic
headings:
1) Japanese Culture.
2) Communication, Participation and Decision Making.
3) Labour Management.
Each section contains the integrated results of each Participant
with justification from relevant resources reviewed in Chapter two
of this paper.
6.1
As
Japanese Culture
stated by Hannagan (1998:290)
‘owing to
the
central
importance of group efforts in their thinking, the Japanese are
extremely sensitive to and concerned about group interactions and
relationships’
There is evidence through the interviewing of all Participants
(A, B, C, D and E inclusive) that the Japanese people are a grouporientated society. The Japanese are self effacing conformists and
that it is often hard for them to find a strong leader in times of
crisis. Similarly it was also found that the W estern cultures acted
more individualistically than the Japanese people, who are more
dependent on groups for a sense of belonging.
60
The researcher believes that perhaps the qualities of a direct and
assertive leader in Western cultures are not as valued or possible in
Japanese society where unanimous approval and remaining an
‘insider’ are a high priority. This finding substantiates W hitehill’s
(1991:51) theory that ‘to be isolated from one’s group, to be lonely
or to be a stranger is a constant dread among the Japanese people’.
Therefore groupism and identification to a group are treasured
cultural values.
Japanese culture and its influence can not be forced on those who
are not Japanese. Different cultures must allow for different
behavioural patterns. Participants have accepted and acknowledged
that understanding such a concept will allow for Japanese
subsidiaries to work more effectively in Ireland. Capon (2000:141)
supports such thinking by stating how ‘an understanding of
national culture allows managers to develop the awareness that
they need to create a smooth and effective organisational culture’.
Disagreements on recommendations made for the Irish subsidiaries
by senior management in Japan are quite common for the
managing directors. Exporting Japanese values and management
practices cannot always work in a Western environment. Capon
(2000:141) appreciates that ‘the differences in national culture will
influence the way organisations interact with each other’.
The researcher found that although in principle cultural differences
are acknowledged and accepted, Japanese parent companies still
expected in reality for all divisions to carry the same company
principles and values regardless of location.
61
Out of four of the Japanese interviewed, all stated or implied that
as a result of working in Ireland, they have had to act more as
individuals in their work environments. Participants have had more
experience with a Western culture where people are far more open
and direct with each other. Although the value of the group work
remains evident in the companies, in an Irish subsidiary, where the
workforce is predominantly of Western cultures, it would be fatal
for the organisation and unethical to try to force or implement “the
Japanese way” of management on them.
As Schein (1992:51) believes, ‘if the dynamics of culture are
understood then the people who have to work in that culture are
more likely to understand the reasoning behind situations that may
arise’.
The researcher had expected the education of all Japanese
Participants to have a grounding and significant effect on the
shaping of their managerial and employee qualities.
While it was found that education standardised a certain level
among students, none of the Participants believed it to have had a
significant cultural influence on the principles of Japanese
management. The educational background rather than academic
achievement of students was noted as taking a higher social
priority.
Japanese companies searched for common behavioural patterns in
employees
when recruiting
new
graduates,
thus
employing
students from the same college/university who would have had
similar educational backgrounds.
62
Therefore as De Mente (1986:37) had stated ‘employees are
treated alike within their age and educational background because
of similar attitudes and aspirations’.
Education however is also seen as a dignified and social priority.
The Japanese pride themselves in a high standard of literacy
among
their population
and a standard
of high
academic
achievement for all students.
Holdenson et al (1988) supports a 99% literacy rate of Japan’s
large population and Trice and Beyer (1993) acknowledge the
importance of education to the Japanese people.
Education has taught Japanese children to be obedient, diligent and
to work with groups in correspondence with Fatehi (1996) who
indicates the non-academic core of education taught by teachers to
students.
Behavioural patterns and codes of conduct can be determined by
someone’s
title/position
in
a
company.
All
Participants
acknowledged that the ceremonial exchange of business cards
played a pivotal role in Japanese organisations. Knowing a
person’s title will determine how people should behave towards
each other.
Title can be considered important for social acceptance, pride and
dignity where people can be judged on their title rather than ability.
Fatehi (1996:171) supports the view that ‘the Japanese allow for
tact and diplomacy in their interpersonal relationships where social
acceptance, preserving harmony and saving face’ are considered
important.
63
Fatehi (1996:168) stated that’ Japanese people work hard because
of their loyalty and obligation to the group’.
There is an inner urge to work hard embedded in the Japanese and
it is certainly connected to their loyalty and obligation to their
companies. This urge however can be accelerated from different
aspects of the individual and company culture.
It was found that customer satisfaction was a factor for people to
work hard and it was also a value that is embedded in the cultural
philosophies of the Japanese people.
Contrary to the above it was also discovered that younger people in
Japan no longer felt a duty or loyalty to a company and worked for
more material and security reasons. It can be said that the younger
generation of Japan no longer work to contribute to and benefit
their group, company or society but work for more personal or
financial reasons.
6.2
Communication, Participation and Decision Making.
The companies of participants A, B, C and E are all 100%
subsidiaries of parent companies in Japan. Participant E works for
a division of his parent company based in Japan.
Japanese parent companies have retained a large amount of
control of each one of them requesting that all company decisions
or contracts must go through them first for approval.
The researcher deduces that the Japanese see themselves as more
effective in groups, decisions are forwarded by subsidiaries to
parent companies because they believe in the more people
involved the better the outcome for the company.
64
Therefore De Mente’s (1986:74) theory corresponds with the idea
that ‘the Japanese as a group-orientated people are so obedient and
effective as a mass, but generally so restrained and ineffective as
individuals’.
Employee participation in Japanese companies is highly valued
where managers appreciate and accept the suggestions and
opinions of their employees.
Regulations regarding the involvement of employees are not as
strict in the subsidiaries where there is little or no Japanese
influence.
Managers hold regular meetings to keep employees informed and
up to date on any decisions that are being made by the company.
Meetings held by the Japanese are long and somewhat unfocused.
Contrary to what Western businessmen are used to, Japanese
businessmen regard time as no obstacle or pressure when
reviewing business decisions.
Similarly Luthans (1998) noted how ‘societies can vary towards
their orientation of time’. It may seem, as pointed out in the
previous chapter by Participant D, that the Japanese have a
somewhat indecisive manner. The researcher, however, sees the
Japanese as ‘thinkers’, every detail and matter is discussed and
every possible risk analysed.
Before a final decision is made, a group consensus is sought
whereby a unanimous agreement must be established before any
decision can be implemented.
65
The culture of the Japanese people places a strong importance on
group approval and maintain harmony in their environment.
Trice and Beyer (1993:340/341) consider
‘the Japanese as
somewhat preoccupied with maintaining social order and value
harmony among others’.
Management makes the decisions; employees are informed and
given the opportunity to view their opinions both inside and
outside the office environment. However, the researcher questions
whether employees are deceived into believing that their criticism
is welcomed.
The polite nature of the Japanese people allows for them to respect
the right for every individual to voice his opinion. However, if any
employee disagreed with a group, especially if he is ranked lower
in the hierarchy, it may have an effect on his relationship with his
superiors where criticism may be taken personally and therefore
affect his chances of promotion.
Muller Hansen (1997) found that the Japanese would not criticise
an opinion whether they agreed with him or not. The researcher
believes that criticising a superior could damage the relationships
between associates.
Subordinates are expected to maintain a proper and respectful
relationship with their superiors and such matters will arise in
times of evaluation and promotion. De Mente (1986) outlined that
subordinates must never show up their superiors in any way and on
reviewing ability for senior positions an employee’s relationship
with his department head is examined.
66
As stated by De Mente (1986) in the literature review, drinking and
eating
together is
an important custom
for
the
Japanese
businessman. Social meetings create a family-like group where
inhibitions are lost and there is a far more relaxed atmosphere.
Results of the interviews showed that such occasions were quite
important and frequent with the Participants. It was interesting to
note that Participant E mentioned noting of such after hour social
activities. Communication and participation of employees is done
through meeting at work while the other Participants as managers
had often experienced such social events. Perhaps there is a hidden
hierarchy existing among the powerful and powerless where status
and title are more distinct in Japan than they like to admit.
Employee participation is regarded as one of Japan’s most
effective work practices. According to Fatehi (1996:400) ‘it is used
to involve employees in managing the company and decision
making by sharing information and power’.
Interestingly, it is seen as something that companies like to say
they do yet show no evidence of it and on the other hand it is seen
as something which is practised everyday in Japanese companies.
The researcher believes that due to the small size of the Japanese
subsidiaries in Ireland, employee participation and dependency on
each other for support is inevitable. However, the big sharks in
Japan retain most of the control over the small fish in Ireland. In
the Irish subsidiaries, managers have implied that they have to
adapt to and sometimes think like Western managers in order to
keep harmony within their companies, where most of the
workforce are Westerners.
67
Japanese managers in Ireland may have to rely on the involvement
of their Western employees for support or advice when faced with
tough competition from Western cultures.
Communication however between Ireland and Japan is frequent
where subsidiaries and parent companies are constantly involved in
discussions. As noted in the previous chapter, the Japanese love to
have meetings and discuss matters for as long as it needs. Such
involvement can be seen to suit the Japanese organisational culture
as supported by Hannagan (1998) and Naylor (1999).
6.3
Labour Management
It was found that common values among employees are perceived
by companies to contribute to a smoother and more harmonised
organisational culture.
Common educational background, common behavioural patterns
and cultural values are factors examined by companies when
recruiting new employees.
This corresponds with the literature review where De Mente
(1986:37) writes that ‘despite the vertical structure of management
and society in Japan, employees are generally treated alike within
their age and educational categories. Employees tend to be quite
similar in their educational background, attitudes and aspirations’.
The traditional homogeneous values of Japanese society are still
evident by using such recruitment techniques.
Lifetime employment is still very much a policy of the larger
companies.
68
The general majority of Participants believed that lifetime
employment in Japan needs to be changed and if not reviewed for
companies to keep pace with the growing competitive business
environment.
The system is beginning to be divided by an age gap where the
older employees traditionally remain with the same company until
retirement. The younger generation feels less obligated or tied to a
company where loyalty no longer remains a factor for employee
retention.
The researcher in contrast to Koontz and W eihrich (1988) believes
that older employees are no longer motivated by loyalty and a
feeling of belonging but are trapped in the system where they have
spent most of their working lives with the same company and are
very unlikely to change that.
Their pension is organised by their company and salary increases
and promotions are mostly based on seniority and as most other
Japanese Corporations offer lifetime employment they already
have their employees to fill their management positions.
The researcher agrees with the Japan Institute of Labour (2000:26)
that ‘factors such as low corporate growth and an ageing society
should force Japanese companies to address the subject of
reforming the lifetime employment system ’.
It is interesting to note that all of the parent companies in Japan
offered lifetime employment and only Participants A, B and C who
are managing directors transferred from Japan had employment
under such a policy. Lifetime employment is not a policy of
subsidiary companies outside of Japan.
69
Chapter Seven
Conclusions and Recommendations
7.0
Conclusions
The purpose of this dissertation is to analyse the elements of
Japanese culture and show how they have influenced the practices
and principles of Japanese management techniques.
It is the author’s opinion that this has been carried out effectively
through a concise review of literature and a good collection of
primary research.
Culture can be seen as a useful variable in discussing differences in
how people behave; and an understanding of how culture works in
an organisation can make better managers.
Evidence shows an appreciation that cultures will differ, illustrates
a better understanding of one’s own culture and an ability to work
in a different cultural environment.
In this interdependent world, managers must and need to be global
in their thinking. Japanese managers outside o f Japan seem to
understand this concept better than those who remain in Japan.
The Japanese are traditionally seen as a homogeneous society,
however there are significant signs of an incipient generation gap
where the younger generations are increasingly refusing the culture
of collectivist compliance and anti-individualism.
70
However, as long as education in Japan still holds its position as
the highest social priority, whereby students are expected to
achieve a set academic standard, it would seem unlikely that the
rebelliousness of the younger generation could do very much to
alter the fundamentals of the national cultural tradition. This may
be unfortunate both for the younger generation and for the nation,
as the recent well-documented problems of Japan, in economic,
social, political, and business terms, have amply suggested.
University
determines
one’s future
career
prospects
where
selection is often done by relationships between the company and
university.
Educational
background
is
examined
by
companies
as
a
determining factor for desirable employees. Interestingly they
seem to be judged on familiar behavioural patterns, shared
attitudes and aspirations and not academic achievement. Attitudes
towards work show a high rate of work centrality for the Japanese
people where it is considered a virtue and motivation to work hard
is embedded in their value system.
Senior citizens hold a high place in society, which mediates the
appropriate code of behaviour for title and status. Respect for
elders in society is a customary mannerism of the Japanese, as a
result older members of companies are in positions of authority
and power. Rank is more influential than name as it determines the
expedient interaction and communication between associates.
Japanese emphasis on the group is quite apparent and permeates
practically every aspect of Japanese life. Group orientation can be
seen in the values of society and the structure o f the business
organisation.
71
There is a large emphasis on group consensus and harmony,
managers tend to share information and delegate decision making.
In the primary research conducted it was found that managers who
are working in global settings and outside the national boundaries,
did not lose appreciation of Japanese influence but merely adjusted
to an environment with a different character than their own. This
was seen as essential for managers where harmony in their
companies remains a critical factor for them.
It was obvious that the parent companies of each subsidiary
retained a lot of control over company matters, keeping business
secure and close to home, communication frequent and Japanese
influence prevalent.
The Japanese business model and the Japanese economy have been
failing spectacularly for the last ten years. A prime discovery of the
researcher’s findings is that the policy of lifetime employment is a
possible repressing factor on the development and growth of
Japanese companies.
Nevertheless since a large number of companies in Japan still
operate this system it can and must be questioned why?
The economic conditions of Japan seem to have failed to persuade
companies to step back and explore areas in their company policies
that could be altered in order to relieve their struggling economy of
their fragile situation.
The feelings of the participants involved in this study suggest that
companies will be forced to review their labour management
systems due to the ageing society of Japan and global competition.
72
For a society whose cultural philosophies reflect a nation who
anchor their dedication and loyalty tot heir groups, families,
companies and country they have not shown much attention to
adapting to the changing economic environment of labour
management.
The stability of the core values of the Japanese organisational
culture may be on the brink of collapse. Persistence to keep
policies such as lifetime employment in their companies reflects a
maladaptation of the Japanese organisational culture to globalised
economic conditions.
The timely and fascinating research into Japanese organisational
and national culture has governed the suspense of whether Japan
can triumph as a learning culture or yield in their much needed
transition. Timing is crucial, there are huge and persistent
problems at present in Japan and the signs are that things are going
to have to change. Yet a reformation may be too adventurous for
the Japanese. The outcome could prove to be fatal for Japan as
society is segregated by a divergent generation gap.
This discrepancy lies between the reckoning of the older
generation and the younger, more flexible, liberal generation of
Japan.
The younger people of Japan appear to be more responsive to
global change and awareness while the older generations are
caught in a bubble where they can’t or w on’t move.
It is the researcher’s opinion that global competition is a
penetrating force on companies that will eventually burst this
bubble bringing the values system of Japan tumbling down.
73
As a society who structure their orientation of time as long-term
with a bearing on future horizons, the Japanese seem to have
neglected to prepare their labour policies to accommodate to
changes in the global employment market. Skilled workers develop
their expertise by improving their performance from which they
materially benefit and advance in their careers through more
flexibility, mobility and expertise on the market.
The researcher hence has reached the paradoxical conclusion that
Japanese
culture is riven by
an
as
yet unresolved
inner
contradiction between some of its most fundamental values. The
insistence on groupism is hurting the group interests because it is
the very thing that disables or undermines the element of long-term
thinking in Japanese culture. However if the Japanese national as
well as organisational dimensions were to embrace the core value
of a genuine long-range thinking, it would have to renounce the
core
value
of
putting
the
group
first.
Neither
Japanese
organisations or society have done do. Therefore, one can deduce
that groupism continues to be more fundamental in Japanese
culture than long-termism.
7.1
Recommendations
On the .author’s presentation of findings and review of literature,
the following recommendations may be made.
Respectfully, the elderly and senior citizens have a high standing
in Japanese society, however the future o f Japan must also be
recognised as being in the hands of their youth. The expansion and
prosperity of Japan should be seen in its people both young and
old.
74
Any organisation contemplating a strategic move for its business in
Japan should carefully and thoroughly develop an awareness of
Japanese business ethics, organisational culture and structure.
It is also imperative for businessmen to carry a business card when
dealing with the Japanese.
A global analysis of the task environment should be undertaken to
illustrate the external forces affecting the economic conditions of
Japan. The intense global competition should encourage Japanese
companies to review the system of lifetime employment in Japan.
7.2
Recommendations for further study.
Japan offers rich material for a deeper study in the dynamics of
change management and the resistance to change, both at the
macro level of society itself and at the micro level of particular
companies and their organisational culture.
Hence, to conclude, I venture to propose the following as a
hypothesis worth testing via further research: ‘That in Japan the
older generation who are in positions of power and authority have
hitherto been too successful in suppressing and retarding the vitally
needed process of change’.
75
Appendix One
Interview Questions for Participants A, B, C & E
-Westerners have stereotyped the Japanese as people who are
deferential, shy, self-effacing conformists and are dependent on
group approval.
Do you agree with this statement? Do you feel that the Japanese
are more dependent on conforming with others?
-The education system in Japan can be considered as quite unique.
W hat are your views on the system?
-Have you brought anything with you to your company that can be
classified as qualities, values and behaviours that are as a result of
educational influence?
-The ceremonial exchange of business cards in Japan reflects a
person’s relative position in a social or work group. How important
is social status or job title in Japan?
-The centrality of work in people’s lives can vary in different
cultures. What is the meaning of work to the Japanese people, how
important is it to work hard and for whom are you working for?
-The values of an organisation can be developed through a
connection between society and the organisation.
Did you find that when you joined the company other members
had similar values, attitudes and behaviours as you?
77
-Self-effacement has been linked as one of Japan’s secrets to
industrial success where groups of workers regularly join with
management to solve problems. Does your company operate such a
policy? If yes, Are they conducted in a co-operative manner where
everyone’s opinion/input is appreciated?
-Employment involvement is commonly seen as one of Japan’s
most effective and efficient work practices. To what extent are
employees involved in managing decisions, sharing of information
and power within the company?
-Is there consensus among your company’s members with regard
to company values or do different groups possess their own?
-Does your company operate a group/collective decision making
policy?
-Does your company offer lifetime employment?
-Japanese companies have been characterised by a strong loyalty to
the company by its employees; most of whom join until retirement.
W hat are the reasons for such long-term retention and commitment
to one company?
-How or Does lifetime employment affect employee motivation?
Give reasons.
-How important is it to you to have the security that you are able to
work for your company until retirement?
78
Appendix Two
Interview Questions for Participant D
Participant D was questioned on the same areas as Participants A,
B, C and E, however because Participant D is European questions
regarding education in Japan could not be addressed. Although
topics areas are the same, some questioned are phrased differently
in order to see Japanese culture and management from a Western
perspective.
-Westerners have stereotyped the Japanese as people who are
deferential, shy, self-effacing conformists and are dependent on
group approval.
Do you agree with this statement? Do you feel that the Japanese
are more dependent on conforming with others?
-Had you researched information on working for a Japanese
company before you started to work for your company? Do you
think that knowing the culture of Japan, their traditions and
management techniques would have helped your understanding of
company policies better?
-The values of an organisation can be developed through a
connection between society and the organisation.
-Did you find that when you joined the company other members
had similar values, attitudes and behaviours as you?
79
-The ceremonial exchange of business cards in Japan reflects a
person’s relative position in a social or work group. How important
is social status or job title in Japan?
-The centrality of work in people’s lives can vary in different
cultures. What is the meaning of work to the Japanese people, how
important is it to work hard and for whom are you working for?
-Self-effacement has been linked as one of Japan’s secrets to
industrial success where groups of workers regularly join with
management to solve problems. Does your company operate such a
policy? If yes, Are they conducted in a co-operative manner where
everybody’s opinion/input is appreciated?
-Employment involvement is commonly seen as one of Japan’s
most effective and efficient work practices. To what extent are
employees involved in managing decisions, sharing of information
and power within the company?
-Is there consensus among your company’s members with regard
to company values or do different groups possess their own?
-Does your company operate a group/collective decision making
policy?
-Does your company offer lifetime employment?
-How important is it to you to have the security that you are able to
work for your company until retirement?
80
Appendix Three
Company and Participant Profile
Participant A
Chosei Azuma, Managing Director of Orix Ireland Ltd.
Orix Ireland Limited is a financial services company located in the
International Financial Services Centre (IFSC). It is a 100%
subsidiary of the Orix Corporation in Japan. Orix Corporation is
Japan’s largest leasing company with almost 10,000 employees in
21 countries.
Chosei Azuma is the only Japanese of 14 employees in the Irish
subsidiary.
Participant B
M asahi
Kojima,
Managing
Director
of
Sunrock
Aircraft
Corporation Ltd.
Sunrock Aircraft Corporation is a 100% subsidiary of Nissho Iwai
Corporation in Japan. It owns 18 commercial jet aircraft which are
leased to various airlines throughout the world. There are 6 full­
time employees, two of whom are Japanese managers and three are
three consultants.
81
Participant C
Hideo Kudo, Managing Director of Itochu Airlease (Europe) Ltd.
Itochu Airlease Ltd is a 100% subsidiary of the Itochu Airlease
Corporation in Tokyo, Japan. Hideo Kudo id the managing director
of the Irish subsidiary among 15 other employees. Itochu Airlease
is located in the International Financial Services Centre (IFSC) in
Dublin.
Participant D
Martyn Field, Laboratory Manager for Technology Research for
Hitachi Europe.
Out of five research laboratories, Martyn Field is the only
European Research manager on the team, the other four are
Japanese. Hitachi Europe is a 100% of Hitachi Maxell Ltd. in
Ibaraki in Japan.
Participant E
Akiyo Noda, secretary of KG Leasing Co. Ltd.
KG Leasing is a 100% subsidiary of the Kanematsu Corporation in
Japan. Kg Leasing is a leading aircraft leasing company located in
Dublin with 7 employees.
82
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