Japanese
Organizations
&
American
Organizations
Organizational Structure
• An Organizational Structure is a description of
activities such as task allocation, coordination
and supervision, which are directed towards the
achievement of organizational aims.
• Organizational structure allows the expressed
allocation of responsibilities for different
functions and processes to different entities such
as the branch, department, workgroup and
individual
Takeo Fujisawa, Founder of Honda Motor Company:
„Japanese and American management are 95
per cent the same, yet differ in all important
respects.“
Company system
• Japan • US
Cross functional
Workers are assigned Vertical functional
various jobs within a
company Workers are promoted
within a department
Your career is developed
within a company Your career is developed
Ex)A marketing senior within a market
manager is promoted to
a HR Vice president
What is Management?
• Staffing
• Leadership and Career Development
• Compensation System
• Motivation and Evaluation
• Communication
Management
• management in Japan has to coordinate,
integrate and motivate
• in America management rather means
supervising others
Hierarchy
• Strict hierarchical order
• Secured spheres of control
Managers are other-oriented
In the West most managers are self-oriented
Recruiting and Promotion Decision
makers
• Japan • US
HR department Each department
They have the function There are recruiters but
of recruiting and each department often
promoting of allover the has recruiting functions
company too
Managers of each
department usually has
promotion functions
Skills required
• Japan • Japan
General skills is required General skills is required
in a company in a company
Workers try to get Workers try to get
overall skills that is overall skills that is
necessary to fulfill necessary to fulfill
various jobs in a various jobs in a
company company
HRM: Japan - USA
HRM Japan - USA
• JAPAN • USA
• top priority given to • primary importance will
human assets in be accorded to
management numbers and laws
• regular employees ∼ rather than to people
fixed assets • employees = semi-
• well-being is crucial variable assets can
be hired and fired as
needed
Decision Making
• popular view:
JAPAN USA
GROUP PROCESS INDIVIDUAL PROCESS
• catchwords:
JAPAN USA
bottom up top down
Decision Making – Japan
• ringi-seido 1
ok? ok! decision form
(„ringisho“)
sound discussion proposal
with the affected
sections/ people
fills out
Communication
Decision Making – Japan
ringi-seido 2
• proposal is forwarded to all relevant sections/ people
section x section y
...
• each will make comments on a sheet attached to the back of
the proposal
Communication
Decision Making – Japan
ringi-seido 3
• the decision will be
made by top
management based on
the comments from all
people involved in the
process
• official announcement
of the approval
Decision Making – Japan
Too time-consuming ?
In: Japanese Management, p. 161
Communication
Groups
• Working groups with family-like ties
• Identification with the group
• The group rather than a single individual is
rewarded or blamed in case of failure
Harmony is maintained
Working groups
• Group members are aware of their status
• Individual needs are deemphasized in order to
maintain harmony
• Dependency relationships
Office Layout
• Open-plan offices
• No cubicles or dividers
• Private space is avoided
Keep in touch
Office Layout
• “I share a spacious office area with other
administrative staff members. When we work
together in one big room, we can talk casually
to one another. There are a lot of suggestions
and ideas exchanged in these conversations.”
• (the president of Honda American Motors)
Communication
• office-layout supports the free flow of
information
• everybody is kept up-to-date
• communication even vertically is easy
• face-to-face communication is often
continued in a restaurant etc.
high-context situation
Communication
JAPAN USA
oral preferred form of non-binding
communication „inefficient“
written „last resort“, seen as preferred form of
formal, cold, lacking the communication:
reciprocal give-and-take contracts, memos...
non- very important, subtle, not very developed
verbal „fine art of communicating (low-context
desires and feelings culture)
without words“, „honne –
tatemae“
Communication
Sources of Motivation
Similarities Differences
• Responsibility • Seniority wage
• Challenge • Promotion system
• Interesting work • Importance of the group
• Recognition
• Money is secondary
Motivation and Evaluation
The process of evaluation
In: Japanese Management, p. 154
Motivation and Evaluation
Salary
• Japan • US
‘ 年功序列’
（ねんこうじょれつ）
－ You get higher salary as Your salary is based
you get older on your current
performance
Salary you get now is not
always related to your
current performance
Difference of salary you get and salary
based on your performance
Factors that determine salary
• Prevailing pay
• Bargaining power of unions
• Individual needs
• Job requirements
• Seniority and education
• Ability to pay
Compensation System
The pay-package in Japan
• Monthly base-pay
• Semi-annual bonus
• Allowances and benefits
Compensation System
Management and working styles 1
JAPAN USA
generalists specialists
promotion by seniority promotion by performance
conflict is solved privately conflict is solved in public
people-oriented task-oriented
long-term planning short-term planning
informal communication formal communication
decision by consensus decision by majority
interdependency interdependency is viewed sceptically
Summary
Management and working styles 2
JAPAN USA
reciprocal commitment between less bonds
managers and workers
open-plan offices working space is structured according
to individual needs
formalized and ritualized interactions informal interactions more common
intuitive, nonverbal communication is analytical, logical argumentation style
important
face-to-face communication more written communication more important
important
Summary
Career perception
Japan Germany
• Life-long employment • Short-time employment
possible
• Seniority promotion • Promotion on merit
• Increased mobility
• Ultimate goal: broad • Specialists
experience
Career development
