Lecturer: Chengchang Wang

Charley
Key Points:

Japanese Cultural
Background

Japanese Culture

Japanese Style of
Management
 Question:

What come to you first when

Japan is mentioned?
 1. Japanese cultural background

(1) Impacts of geographical

conditions
4% of
Japan is an China
island
country, with
an area of
380000 km2
but short of
resources.
 1. Japanese cultural background

(1) Impacts of geographical

conditions
Japan is an
country of
disasters. It
is located on
the Pacific
seismic belt.
 1. Japanese cultural background

(1) Impacts of geographical

conditions
aggressive
Island country
Many disasters Strong sense
of crisis
Shortage of
resources
 1. Japanese cultural background

(2) Impacts of World War Ⅱ

After World War Ⅱ, Japanese
economy fell into total crisis.
In 1955, Japanese GDP was 6%
of American.
National income per capita was
198USD, less than 10% of
American.
 1. Japanese cultural background

(3) Influences by Chinese

traditional culture
Japanese management has
been shaped by Japanese
national culture together with
Chinese traditional culture,
especially Confucianism.
 1. Japanese cultural background

The 5 most influential books on

Japanese business circles?
The Analects of Confucius
is a collection of
sayings and ideas
attributed to Confucius
and his followers.

The core is 仁 .
 1. Japanese cultural background

The 5 most influential books on

Japanese business circles?
Master Sun's Art of War
is an ancient
Chinese military tre
atise
(roughly 771 to
476 BC).
 1. Japanese cultural background

The 5 most influential books on

Japanese business circles?
The Romance of the
Three Kingdoms
The story – part
historical, part legend,
and part mythical –
dramatises the lives of
feudal lords.
 1. Japanese cultural background

The 5 most influential books on

Japanese business circles?
The Pilgrimage
to the West
 1. Japanese cultural background

The 5 most influential books on

Japanese business circles?

All Men Are

Brothers
 1. Japanese cultural background

The 5 most influential books on

Japanese business circles?
The Analects of Confucius
All are Chinese
Master Sun's Art of Warbooks
The Romance of the Three Kingdoms
The Pilgrimage to the West
All Men Are Brothers
 1. Japanese cultural background

The Confucianism has been affecting

Japanese business by affecting Japanese
people.
Confucius’ teachings like “kind human
nature”, “loyalty & filial piety” and
“altruism” have been principles of
Japanese education.
As a result of Japanese education,
Japanese people are disciplined, loyal and
helpful to others, and consider enjoyment
as disgraceful.
 1. Japanese cultural background

Confucius’ doctrines have been

telling enterprises to seek for
economic benefits and serve the
society at the same time.
As a result, for Japanese managers
profits are not as important as
satisfying employees and providing
job opportunities.
 1. Japanese cultural background

(4) Influences of Buddhism

Japanese nation
are highly
religious, with
long history of
Buddhism, which
teaches people to
be harmonious in
communities.
 1. Japanese cultural background

(5) Influences of Bushido

Traditional code of Samurai
the Japanese samurai
which stresses
courage, loyalty, self-
sacrifice and simple
living.
忠、勇、献身、耻感

The longest overtime work

in the world
 1. Japanese cultural background

(5) Influences of Bushido

The essence of Bushido lies in
outguessing death. They value
“death without regret or
hesitate”, as well as self-sacrifice
for the master.
 1. Japanese cultural background

(5) Influences of Bushido

Japanese
national
flower?

sakura
oriental cherry
 花数樱花，人数武士
Sakura is the best of flowers
while samurai is the best of men.
 (5) Influences of Bushido

Sakura flowers for 10 days.

some flowers are blossoming
while others are falling, coming
and going like clouds, regretting
and hesitating at nothing. It is so
fearless, just like samurai.
 1. Japanese cultural background

(5) Influences of Bushido

For a
samurai,
loyalty is a
absolute
value.
A disloyal man will be belittled
and will never be entrusted with
an important post.
 1. Japanese cultural background

(5) Influences of Bushido

Bushido - a loyal man will never
serve the second master, has
great impacts on Japanese
attitudes towards job.
They will not change jobs for
their own consideration.
( s )o
4bIg 1. Japanese cultural background

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 2. Factors shaping Japanese corporate culture

Yamato
大和民族
和文化

Harmony is the cultural hub of

the nation.
 2. Factors shaping Japanese corporate culture

Yamato
Farming nation
Tribalism

Strong sense of responsibility

to the social group
 2. Factors shaping Japanese corporate culture

Yamato
Confucianism
Strong sense of hierarchy,
loyalty and filial piety as well as
legality
 2. Factors shaping Japanese corporate culture

Yamato
Island short of material
resources but with many disasters
Strong sense of national crisis
and solidarity
2. Factors shaping Japanese corporate culture

Farming
nation
Confucianism

country
Island
Japanese
corporate
culture

Bushido
 3. Description of Japanese corporate culture

A question asked by the

President of Sumitomo Bank
when recruiting:
“what will you do if our bank
conflicts with the nation on
interests?”
 3. Description of Japanese
corporate culture
“what will you do if our bank
conflicts with the nation on
interests?”
OK, but…

“I will think for the bank.”

 3. Description of Japanese
corporate culture
“what will you do if our bank
conflicts with the nation on
interests?”
yes, you will…

“The bank should never have a

finger in anything against the
nation.”
 3. Description of Japanese
corporate culture
(1) It is a culture of dual value
orientation – pursuing for
economic benefits and
devoting to the nation.
Japanese enterprises are
intended to seek for both
economic and social interests.
 3. Description of Japanese
corporate culture
(2) It is a culture of familism.
Familism: considering the
enterprise as the family in which
each employee is thought of as a
family member.
 3. Description of Japanese
corporate culture
(3) It is a culture of tribalism.
Managerial activities are
targeted to keep “the family” in
harmony, protect it’s interests,
take advantage of it’s
superiorities and improve it’s
efficiency.
 3. Description of Japanese
corporate culture
(3) It is a culture of tribalism.
 Group decision making
 Big-office Organization:
many people working in one big
office
Common efforts in

production
TQM What is TQM?
 3. Description of Japanese
corporate culture
(4) It is a culture of stressing
experiences.
As a result of Lifelong
employment and seniority wage
system, Japanese enterprise
pays special attention to
qualifications and experiences.
 3. Description of Japanese
corporate culture
(5) It is a culture of harmony.
As a result of enterprise union,
the relation between employees
and employers are in harmony.
 3. Description of Japanese
corporate culture
It is a culture of
dual value orientation;
familism;
tribalism;
stressing experiences;
harmony.
 4. Japanese basic HRM systems

Three
pillars of
Japanese
operation?

Lifelong employment
Seniority Wage System
Enterprise Union
 4. Japanese basic HRM systems

(1) Lifelong employment

A system in which an employee
will work in the enterprise for
one life once he is employed.
Except for the employee’s own
reasons, he will not be fired.
 4. Japanese basic HRM systems

(1) Lifelong employment

The system was
started by
Panasonic in
1928 whose
entrepreneur was
admired as
“business god”?
Konosuke Matsushita
 4. Japanese basic HRM systems

(1) Lifelong employment

Konosuke Matsushita:
“Panasonic men will be free of
worries from unemployment
because Panasonic will not fire
any ‘Panasonic men’”.
 4. Japanese basic HRM systems

(1) Lifelong employment

The Lifelong employment
system is not a law or a written
rule.
Females are usually out of
consideration of the system
because they stay at home after
marriage.
 4. Japanese basic HRM systems

(1) Lifelong employment

Discuss: what do you think of
the system?
 4. Japanese basic HRM systems

(1) Lifelong employment

1. It frees employees of their
worries about unemployment so
that they can make long-term
plans for their careers.

Advantage 1
 4. Japanese basic HRM systems

(1) Lifelong employment

2. It helps cultivate employees’
commitment so that the
enterprise may make long-term
plan for training.
Advantage 2
 4. Japanese basic HRM systems

(1) Lifelong employment

3. It forces the enterprise to
upgrade their management to
absorb the surplus manpower
when in economic crisis.

Advantage 3
 4. Japanese basic HRM systems

(1) Lifelong employment

1. It obstructs mobility of
talented personnel and results in
lack of vigor and loss of
efficiency, from the angle of the
whole nation.

Disadvantage 1
 4. Japanese basic HRM systems

(1) Lifelong employment

2. It leads to higher labor costs

especially in economic crisis.

Disadvantage 2
 4. Japanese basic HRM systems

(1) Lifelong employment

3. Young people do not agree
with it.

Disadvantage 3
 4. Japanese basic HRM systems

(2) Seniority wage system

A system in which salaries are
based on length of service rather
than performance.
Age, experiences and service
length are important factors to
decide wages.
 4. Japanese basic HRM systems

(2) Seniority wage system

Discuss:
what do
you think
of the
system?
 4. Japanese basic HRM systems

(2) Seniority wage system

1. It prevents over-competition
between members so that they
can maintain harmonious.

Advantage 1
 4. Japanese basic HRM systems

(2) Seniority wage system

1. It leads to lack of competition
and lack of vigor

Disdvantage 1
 4. Japanese basic HRM systems

(3) Enterprise Union

In the America, trade unions are
organized by occupation or
industry.
In Japan, labor unions are
organized in the enterprise. All
employees of all professions
belong to the same union.
 4. Japanese basic HRM systems

(3) Enterprise Union

American trade unions stand for
employees to fight against
employers.
Japanese labor unions stand for
employees to take part in
management and keep a
harmonious employee-employer
relation.
America
Trade
Employees Employers
union

Japan
Enterprise Employers
Employees
union

China
Labor
Employees Employers
union
 4. Japanese basic HRM systems

(3) Enterprise Union

Discuss:
what do
you think
of the
system?
 4. Japanese basic HRM systems

(3) Enterprise Union

Maintain harmonious.

Advantage 1
 4. Japanese basic HRM systems

(3) Enterprise Union

Fail to stand for and protect

employees’ interests.

Disadvantage 1
 5. Japanese style of Management

(1) In-enterprise training

Japanese enterprises believe
that high-quality staff will be
qualified for any jobs after
training, thus in-house training is
the major way to meet HR
demands.
 5. Japanese style of Management

(1) In-enterprise training

A new post?
In America? In Japan?

Recruit Promote
from the from inside
market after
training
 5. Japanese style of Management

(1) In-enterprise training

Japanese enterprises invest twice
as much as American in employee
training.
They train the staff not only with
hard techniques but also soft
knowledge like interpersonal
relations and rules and regulations.
 5. Japanese style of Management

(1) In-enterprise training

Discuss: what
do you think of
the system?
 5. Japanese style of Management

(1) In-enterprise training

Staff are stable because staff
are willing to stay in a familiar
enterprise and the enterprise are
unwilling to let go the employees
they train.
Advantage
 5. Japanese style of Management

(1) In-house training

It increases training expenses
and obstructs free mobility of HR
in the society.

Disdvantage
 5. Japanese style of Management

(2) Soft management

As a result of Japanese culture,
managers in Japan are more likely
to treat staff members equally and
take it as an responsibility to
provide job opportunity and meet
employees’ demands.
 5. Japanese style of Management

(2) Soft management

The management are inclined to
implant beliefs and values in
employees to unconsciously affect
them and keep them in line with
the corporate targets.
 America Style Japan Style

Tends to be ( hard ) Tends to be ( soft )

Stresses ( Stresses (
)
Instrumental approaches ) self-regulation
People’s

Relies on ( rules ), ( Relies on (

common
), ( values)
regulations) and ( beliefs
and ( ).
contracts
). culture

Loyal to (contract ) Loyal to ( enterprise )

To retain employees?

America? Japan?
 To retain employees?
America Style Japan Style
Americans will Japanese will
retain employees retain employees
through ( salary ) through (
or ( contracts ). )affections
or ( ).
warmth

Hard Soft
instruments approaches
 5. Japanese style of Management

(3) lifelong employment

In Japan, the labor market for
changing jobs is far from
developed.
Because the employment is so
stable that few people are seeking
change.
 5. Japanese style of Management

(3) lifelong employment

Those who often change jobs
will be looked down upon in Japan
and will be taken as disloyal and
disgraceful.
 5. Japanese style of Management

(4) Seniority wage system

The difference of salaries
between levels and professions
is not as big as that in America,
which is characteristic of
oriental equalitarianism.
 Performance appraisal
America Japan
contents professional professional
proficiency proficiency and
interpersonal
relationship

periods Half a year 5 or 8 years

or yearly
 5. Japanese style of Management

(5) Corporate democracy

Employee-employer conference
Suggestion system
 5. Japanese style of Management

(5) Corporate democracy

Japanese
employee-
employer
conference
happens twice a
year. If necessary,
it will be held on
the proposal of any
party.
 5. Japanese style of Management

(5) Corporate democracy

The conference will discuss
such common concerns as
employment conditions,
working conditions as well as
welfares.
 5. Japanese style of Management

(5) Corporate democracy

The Suggestion system
is traced back to 1903 in
a Japanese textile
factory.
In order to collect workers’
problems or advice, the
management hang a wooden box
on the wall of the shop.
 5. Japanese style of Management

(5) Corporate democracy

The system proved to be good.
Japanese managerial experts
summarized and spread it to the
business cycle.
 5. Japanese style of Management

(5) Corporate democracy

The Suggestion system is
popular in Japan. Two
mechanisms – Suggestion system
promotion committee and
Suggestion examination
committee are set to guarantee
its implementation.
(5) Corporate democracy
Toyota set over 130 green
suggestion boxes which were
opened 1-3 times/month. In
1980, the company collected
859000 pieces of suggestion,
93% of which were adopted and
for which the company paid 0.9
billion Japanese Yuan as bonus.
 5. Japanese style of Management

(5) Corporate democracy

For those whose suggestion
denied, Toyota pays them 500
yuan as spiritual bonus to
encourage them give better
ones.
 5. Japanese style of Management

(1) In-enterprise training

(2) Soft management
(3) lifelong employment
(4) Seniority wage system
(5) Corporate democracy
 Groupwork:

Compare
east and west
culture and
management.
 Classwork:
What do you
think of
Japanese
culture and
Japanese
enterprise
management?