| The prevailing image of the Japanese management | | | | Shudanshugi can be seen with almost any social |
| system in very large companies is very similar, if not | | | | aspect of Japan, thus it is evident with both large |
| the same as the management system used in small | | | | and small Japanese companies. |
| Japanese companies, because business management | | | | Although this desire to be part of a group may be |
| systems are, after all, a product of their particular | | | | also apparent with other countries, Japan in particular |
| national culture. | | | | sees this group mentality as natural, not an exterior |
| This article will at first provide a brief overview of | | | | phenomenon as it may be seen with other cultures. |
| the history of Japanese business and management | | | | Individual responsibility is not important in Japan, as it |
| systems over the course of the late 20th century in | | | | is in the West. Instead, groups are given the |
| order to provide a context in which to base its | | | | responsibilites. This is another example of the |
| argument. It is, of course, also important to | | | | group-orientated ethics of Japan and the Japanese |
| understand what the prevailing image of the | | | | workforce. |
| Japanese management system is, and how it came | | | | There are also two types of attitudes towards |
| to be so dominant or influential with very large | | | | authority in Japan: kengen and ken'i, or simply, formal |
| Japanese companies. | | | | authority and personal influence. As such, Japanese |
| This article will also examine how the prevailing image | | | | companies both small and very large tend to be run |
| of Japanese management systems in very large | | | | on ken'i, personal influence, which is different from a |
| companies are similar to and different from the | | | | general Western perspective, where emphasis is |
| systems of small companies in Japan. There are | | | | usually placed on delegated authority. |
| some key similarities and differences with each | | | | The fourth important aspect of Japanese business |
| general type of management system, and although | | | | culture is based on regional competition, something |
| there isn't enough space in this essay to introduce all | | | | that has existed in Japan since feudal times. This is |
| aspects, a general overview and some examples of | | | | not so much an artificial construction of modern |
| the similarities and differences between the | | | | Japan, but something that has been rooted in |
| management systems of both very large and small | | | | Japanese culture for a long time. For one example, |
| companies of Japan will be provided. | | | | the competition between firms in Japan in the kantou |
| It is important to first understand how the modern | | | | and kansai regions in modern times reflects the |
| Japanese economy became what it is today. Since | | | | regional competition between these same areas as |
| the end of World War 2, until about the 1970's, Japan | | | | far back as the beginnings of the Tokugawa period. |
| had experienced a profound economic transformation. | | | | This cultural aspect of modern Japan is probably |
| By the 1980's, Japan had become the second largest | | | | reflected more visibly in the business management |
| economy in the world, to the envy and admiration of | | | | systems more often with very large companies, than |
| other nations. This remarkable period of economic | | | | smaller companies in Japan. |
| prosperity during the latter half of the 20th century | | | | There are two basic forms of obligation in Japanese |
| has become known as the Japanese 'Economic | | | | society, which can be seen in the business culture of |
| Miracle'. | | | | Japan. On refers to a debt that is not able to be |
| There are a range of arguments made by scholars | | | | repaid, for example one's debt to their parents or the |
| who have attempted to explain the reason behind | | | | debt incurred from saving another's life. While it |
| Japan's economic success in the late 20th century, | | | | cannot be repaid, one will try to repay it. This type |
| and these vary considerably. One of these reasons is | | | | of obligation is also apparent with entering into |
| that Japan's economic success has been solely as a | | | | lifetime employment with a very large Japanese |
| result of the culture and traditions of Japan. This | | | | company, and is tied in with the Confucian notion of |
| argument is based on the assumption that culture is | | | | loyalty. The second form of obligation, giri, is incurred |
| the main contributing factor of a nation's economy. | | | | from receiving a favour, such as leasing an apartment |
| Morishima has emphasized that in the context of | | | | to a tenant. |
| Japan's economic success, the Confucian tradition of | | | | Along with the aforementioned aspects of Japanese |
| Japan has played a key role, arguing that "religious | | | | culture, there are many more aspects present with |
| and ethical systems shape human economic behavior | | | | Japanese culture, and along with it the Japanese |
| and consequently the nature and performance of | | | | management systems of both small and very large |
| their economies". Other ideas have been used to | | | | companies. In simple terms, Japanese business |
| understand Japan's rise to success in the late 20th | | | | management styles are a by-product of the |
| century such as market regulation, for example, | | | | Japanese national culture, as such, each type of |
| Japan's response to market signals, bureaucratic | | | | management system is not much far removed from |
| regulation by selecting and fostering strategic | | | | the other. In fact, we see such cultural aspects in |
| industries and political, economic and social conditions | | | | almost any facet of society in Japan. |
| in Japan. | | | | It is immediately apparent that culture influences |
| Japan's successful economy started to decline in 1973 | | | | business practices and in effect business |
| during the oil crisis, when the price of oil quadrupled, | | | | management systems. Entire theses have been |
| acting as a catalyst for economic failure in Japan. | | | | written around this idea. One such example is Kahn's |
| Effectively, the high price of oil had negative effects | | | | 'Confucian Economic System', used to describe Japan, |
| on the Japanese manufacturing industry. Japan | | | | Hong Kong, Taiwan, Singapore and Korea's cultural |
| responded by focusing its attention from energy | | | | links to business practices. Kahn describes the |
| dependent industry to a more knowledge-based | | | | features of these 'neo-Confucian' economies to be |
| industry, thus averting the crisis from worsening, and | | | | related to a number of factors, including sobriety, a |
| enhancing the health of its economy. Japan | | | | high value for education, a desire to succeed, |
| experienced a 'bubble economy' in the years 1987 - | | | | seriousness about life and a hard-working ethic. Along |
| 90. This had come about as the result of asset prices | | | | with a culturally ingrained, Confucian sense of loyalty, |
| rising far beyond their actual value, particularly those | | | | there is also a sense of harmony in the Japanese |
| of land and shares. Land prices fell sharply in 1990 | | | | workplace, as there are with the group-oriented |
| when the Bank of Japan increased the official interest | | | | mindset of Japanese society. This is evidenced by |
| rate, thus triggering a massive sell-off of shares. | | | | strike-free workplaces in modern Japan, thus placing |
| Since this time Japan has faced challenges such as an | | | | an emphasis on co-operation and mutual obligation, |
| aging population and the currency crisis in Asia, but | | | | rather than equality. |
| has recovered considerably and today still has a | | | | The cultural values, relations and structure of modern |
| strong economy, rivaled by only the United States, | | | | Japan clearly affect how Japanese society operates, |
| China and the European Union. | | | | and this is also the case with modern Japanese |
| Almost every business policy that the Japanese are | | | | business management systems in both very large |
| well-known for is as a result of the post-World War | | | | and smaller Japanese companies, as has been proven |
| 2 economic reconstruction in Japan. The first root | | | | in this essay. Japan is a very unique country, in that |
| factor of the modern Japanese management system | | | | its culture does not completely resemble that of any |
| is a sense of national identity. This is mainly due to | | | | other one nation, although Japan has borrowed much |
| the fact that Japan is an isolated, island nation. | | | | from other countries to construct its own national |
| Actually, this sense of national identity has existed | | | | identity. |
| since feudal times in Japan. The second factor of the | | | | It is apparent that Confucianism plays an important |
| modern Japanese management system is the notion | | | | role in Japanese culture and in effect its society, |
| of Confucianism; while imported from China long ago, | | | | business practices and so on. What has been |
| the Japanese have their own version of | | | | covered in this essay is only a brief glimpse of the |
| Confucianism, which is central to understanding the | | | | complicated and detailed Japanese business |
| modern Japanese management system. Confucianism | | | | management world, including such cultural aspects as |
| in Japan has three main aspects; loyalty, filial piety | | | | group orientation, authority, regional competition, |
| and respect for learning. Loyalty and filial piety in | | | | obligations, and overall, the Confucian-based business |
| Japan are reflected in Japanese management with | | | | culture of Japan, which in itself has many important |
| honne and tatemae, or one's own feelings and one's | | | | aspects which are used in Japanese social practices |
| public stance, which may and often differ between | | | | and business management systems alike. |
| each other according to the individual. | | | | The reason why the prevailing image of Japanese |
| Loyalty is also seen in very large companies in Japan, | | | | management systems in very large companies and |
| where on graduating from high school or university | | | | small companies is very similar, if not the same, is |
| and entering into employment with a Japanese | | | | because the Japanese economy, and with it the |
| company, one will usually gain 'lifetime employment' | | | | business structure of virtually any kind of business or |
| with his or her company, thus reflecting the | | | | large company in Japan is directly influenced by |
| Confucian aspect of loyalty. In this sense, | | | | Japanese cultural values, relations and structure, in |
| Confucianism plays a major role with Japanese | | | | particular, those of Confucian origin. |
| management practices. | | | | Many scholars have argued about the reason why |
| Group orientation, or shudanshugi also plays an | | | | Japan has become so successful in the late 20th |
| important role in modern Japanese business | | | | century, in an attempt to describe the Japanese |
| management practices. This is also a prominent | | | | 'Economic Miracle'. The first argument that is usually |
| attribute in Japanese society, for example to see a | | | | presented is that Japan's recent economic success is |
| group of Japanese tourists in a foreign country, one | | | | as a result of her culture and tradition. While it has |
| will notice that the people in the group will always | | | | not been proven beyond doubt that this is the only |
| stay close together. This aspect of Japanese culture | | | | reason behind the 'Economic Miracle', it is certainly a |
| is of course also very apparent within Japanese | | | | compelling argument and clearly demonstrates the |
| companies, and has been deeply ingrained into | | | | powerful influence that culture has over the structure |
| Japanese society itself since the Tokugawa period. | | | | of a national society such as Japan. |