CHEN, Aaron Jian-Da 12210407

JAPANESE MANAGEMENT

Study Question 2:
Which traditional Japanese management practices, in your judgment, could be successfully adopted or adapted in other countries?

In my opinion, first and foremost, it really does depend on the context of the culture (high, low or medium) of the country to see what kinds of Japanese management practices could be adapted. According to Hofstedes theory, Japan is considered as a high-context culture, thus if, or if any of the management cultures were to be adapted in another country, a similar culture context should already exist in that particular country. However, there are some Japanese management practices, which I think could be adopted in any countrys firms and organizations, which could perhaps in fact be for the greater good of that country. For instance, the first from the list that jumped at me was the modest salary differences between managers and between managers and other employers. To put it simply; in Japans western counterparts and some other countries, the salary difference is quite exponential and of enormous difference between top level executives of a company and that of the lower rank. I feel that if this was adapted in say America, there would be less detest from the citizens and entry-level staff in regards to this, and there would be more of a fair agreement. A better work satisfaction perhaps would be easily achieved as a result.

CHEN, Aaron Jian-Da 12210407

The second that I thought could work was the emphasis on entry-level recruiting and hiring. Japan as we know have a very rigorous recruiting process, where recruits are put through a multitude of interviews, and tests, which can be quite lengthy in process. However, due to the amount of time and effort for recruitment, recruits who are handpicked by the HR team end up being exceptionally skilled and of course, diligent and are keen to learn and work. If this were to be adapted by another country, there would perhaps be less layoffs due to recruits picked from a more careful process. Following this, comprehensive concern for the employee, corporate paternalism, extensive company-sponsored support services for employees would be ideal for countries to adopt. Were this to be adopted by another country, it would show much more of a focus on relationships between employees and the company itself, where employees would as a result feel more connected and feel more as if they belonged to their company. Once again, this could result in more of a desire for an employee to remain in that company until the end of his/her career, thus resulting in lower mobility. Finally, fusion of work life and private life, much after-hours socializing with the boss and colleagues, would be quite beneficial in creating a closer bond between employees, colleagues and their boss, and would ultimately create a better work environment at the office as everyone would feel comfortable with one another. Furthermore, its always a good idea to balance ones life, so that one can work and play at an equal level.

References: Edfelt, R. B. (2010), Global comparative management: A functional approach, Pages 243-257. SAGE Publications, Inc.

CHEN, Aaron Jian-Da 12210407 STUDY QUESTION 3

Discuss some unique strengths and limitations of traditional Japanese-style management and labor practices.

PLANNING Strengths: -Less formal and less detailed long-range planning compared to the US and European firms -More emphasis on direction taking and vision setting -Extensive environmental scanning -Less fixation on profits as a primary objective -Consensus-based decision making Weaknesses: -Less Creative, more imitative strategy (lack of unique strategy)

CONTROL: Strengths: -Capital markets guide control on behalf of owners -broad-based share ownership -Takeovers (hostile) less common (due to cross-held shares within keiretsu groups) -Meticulous screening of prospective employees -Tight communication and integration with suppliers to ensure quality and timely delivery (Toyota kanban system) -Price-driven (rather than cost-driven) system.

CHEN, Aaron Jian-Da 12210407

Weaknesses: -Hostile takeovers considered shameful for the acquire -Japanese company boards accept few independent (nonexecutive) directors, so there is no clear separation of execution (management) from supervision (governance). -Annual shareholder meetings are really occasion to challenge or criticize management -Shareholder interests secondary to other interests

ORGANIZING Strengths: -Hierarchy and centralized authority -When expanding abroad, less likely compared to American and European rivals to cede decision autonomy to their foreign subsidiaries (more towards putting a Japanese national in charge) -Flexibility in structuring and organization of work -Inter-firm groupings -Job rotation and cross-training of employees (within and across work units) -Whole group held accountable for completing a task or achieving a goal. (not dividing tasks and assigning parts to individuals). -Organizations look organic and entrepreneurial, not mechanistic and bureaucratic. Weaknesses: -Flexibility and structuring of work in firms are not shown in organization charts; confusing and unworkable from a Western corporate point of view

CHEN, Aaron Jian-Da 12210407

DIRECTING Strengths: -Employees in large firms are high motivated, diligent and loyal -Long-term promotion within the firm rather than short-term financial remuneration -Pay increments come yearly (nenko system), similar to a civil service pay system -Job security -Employers attend employees well-being beyond the immediate work setting. -Leaders are consensus builders -Messages implicit and indirect (carefully reasoned statements) Weaknesses: -Layoffs considered embarrassing or losing face; given a seniority-based pay structure and risk of having to start over, employees work hard to not be sacked. -Less driven than Westerners by money alone and much less than praise -Many employees work extra hours without additional pay -Nenko system reduces office politics to gain fast promotion and higher pay, but demotivates young employees. -Little attraction to charismatic leadership -Due to consensus building, person who holds out the longest will get their way; this discourages risk taking and doesnt encourage leadership

References: Edfelt, R. B. (2010), Global comparative management: A functional approach, Pages 243-257. SAGE Publications, Inc.

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