Analysis of Japanese Business Culture

Analysis of Japanese Business Culture

Along with recent globalization, the business market is now diffused

everywhere in the world. Consequently, mega-competition and

international co-operation are promoted simultaneously in the field of

business. Under this circumstance, learning and understanding the

business culture each country has is important to succeed in global

business. As business culture is indivisible from a country’s cultural

uniqueness, American-style business is formed in the United States,

and British-style business is adopted in England. Equally, Japan has

developed its own unique business culture which has been practiced for

a long time. This essay will analyze the characteristic Japanese

business culture which forms the foundation for their business.

To begin with, in Japanese corporations, there is a sense of unity

which is fostered beyond the boundaries between employers and

employees (Odaka, 1986). This is called "Groupism," which is based on

joint responsibility and respect for harmony on which most Japanese

companies emphasize. Once employees joined a company, they are

required to no longer think of themselves simply as an individual

instead they identify with the group. Thus, the group mentality always

prevails and all decisions are made within a group. Unifying the

efforts of employers and employees who share the same ideals leads to

significant advances in productivity. As Odaka described in his book,

postwar high growth 1950s-60s in Japan was largely encouraged by the

groupism which achieved a high productivity in manufacturing

industries.

Secondly, characteristics of Japanese business culture include "Tacit

Agreement." (Iwata, 1982). The Japanese are trained throughout their

lives to read each other’s minds. Hence it is not necessary to explain

an idea in detail. This is applied in their way of business. In

Japanese business society, workers do their best to read the

circumstances they are placed in, for example, the surrounding

situation, their colleagues’ reactions and their own situations. This

mind-reading infuses strength in the members who carry out their work

accurately without having to give them specific orders each time. To

the contrary, in American and European societies, in order for an

organization to carry out its tasks, it is needed to specify the

individual tasks in writin...

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...e particular standard, it will only

encounter difficulties in various facets of business and management.

Therefore, Managers should think carefully what Japanese practices

must be changed and what must be preserved.

In conclusion, Japanese business culture which is typified by

Groupism, Tacit understanding and Familiarity Relationship is one of

the assets which Japanese companies have built for many years. The

emphasis on the groupism fostered employees’ loyalty to the company

which is necessary for corporate governance. Equally, the tacit

understanding strengthened the power of risk management in a company.

It is obvious that these original practices contributed to outstanding

economic growth in Japan. Therefore, Japanese companies should get the

best of their cultural strength, while mixing with other foreign

business culture. Now, Japanese companies are facing the transitional

stage in the further development in a global era.

References

Iwata, R. (1982): Japanese-Style Management: Its Foundations and

Prospects. Tokyo: Asian Productivity Organization

Odaka, K (1986): Japanese Management: A Forward-Looking Analysis.

Tokyo: Asian Productivity Organization