Management in Japan The kaisha in the 21 st Century

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1 Management in Japan The kaisha in the 21 st Century Dr. Parissa Haghirian Faculty of Liberal Arts Sophia University, Tokyo Copyright 2007 Keio University

2 Lecturer Dr. Parissa Haghirian Lecturer in International Management Faculty of Liberal Arts Sophia University, Yotsuya Campus, Bldg. 10, Room 535 Office Hours: Tuesday 2 pm to 4 pm Mobile: Copyright 2007 Keio University 2

3 The course aims to: review existing literature and theory in the field of Japanese management, Japanese business culture and comparative management provide an overview on the modern Japanese business environment explain the most important social concepts in Japanese society and their relevance for Japanese management and Japanese business culture discuss the most prominent aspects of Japanese management, such as production management, distribution and management activities within a Japanese corporation Copyright 2007 Keio University 3

4 Course Assessment Exam Report Attendance Participation Home Assignments 30% 30% 10% 10% 20% Copyright 2007 Keio University 4

5 Overview 1. Course Coordination, Management and Culture (Asian and Western Management Styles) 2. Social Concepts in Japan (Collectivism, harmony, hierarchy, achievement orientation) 3. Historical Development of Japanese Management 4. Industry Structure in Japan and the Japanese market 5. Production management in Japan 6. Human Resource Management in Japan 7. Japanese Distribution Systems 8. Knowledge Management in Japan 9. Strategy Formulation in the Japanese Firm 10. Decision Making and Negotiation Styles in Japan 11. Structural Changes in Japanese Business The Nissan-Renault Case 12. New Japanese Management Styles 13. The Future of Japanese Management Copyright 2007 Keio University 5

6 Report Topics 1. Recent Trends in Japanese Consumer Behavior 2. Changes in Japanese Distribution Systems 3. Japanese Silver Market Is Japan's Aging Population becoming the most important consumer group in the future? 4. Changes in Human Resource Management Practices in Japan 5. Competing against China Challenges and Opportunities 6. Is Japanese management really better? 7. Entrepreneurship in Japan 8. Preparing the Japanese workforce for a future in international management 9. Can Japanese management be exported to the West? 10. Foreign investment in Japan Copyright 2007 Keio University 6

7 Management and Culture (Asian and Western Management Styles) Copyright 2007 Keio University

8 Quote of the Day Japan is back - again and that`s the whole point. Mark B. Fuller and John C. Beck Copyright 2007 Keio University 8

9 This Lecture Management and Culture How are culture and management related? Why do we need to learn about it? Culture Classifications Kluckhohn and Strodtbeck Hall Hofstede Trompenaars How does culture affect management? Work behavior across countries Organizational culture and national culture Are organizations becoming more similar? Management in East and West Copyright 2007 Keio University 9

10 Culture.? What is culture? What is your/my/our culture? How can we define culture? Can we grasp culture as scientists? Why do cultural differences affect organizations and their members? Copyright 2007 Keio University 10

11 What is Culture? Something shared by all or almost all members of a social group Something older members of a group try to pass on to younger members Something (as in the case of morals, laws, and customs) that shapes behavior, or structures one`s perception of the world (Adler 2002, p.16) Copyright 2007 Keio University 11

12 When Does Culture Become Evident? Culture Behavior Values Attitudes Copyright 2007 Keio University 12

13 Values Values reflect general beliefs that either define what is right and wrong or specify general preferences. Attitudes Express values and dispose a person to act or react in a certain way towards something. Attitudes are present in the relationship between a person and some kind of object. Behavior Any form of human action. Copyright 2007 Keio University 13

14 How Do Cultural Differences Affect Organizations? Culture shapes people`s behavior including at the workplace (Adler) Manager s Values, Beliefs and Attributes Reinforcement Manager s Behavior Employees / Subordinates Behavior Copyright 2007 Keio University 14

15 How Do Cultural Differences Affect Organizations? (Adler) Manager s Belief: Employees can t be trusted Reinforcement Manager s Behavior: Install tight control systems Employees Behavior: Act as Irresponsible Kids, seeing what they can get away with Copyright 2007 Keio University 15

16 Kluckhohn and Strodtbeck Five Dimensions Who am I? (How people see themselves) How do I see the world? (People`s relationship to the World) How do I relate to other people? (Human Relationships: Individualism or Collectivism) What do I do? (Activity: Doing or Being) How do I use space and time? (Time: Present, Past, and Future; Space) Copyright 2007 Keio University 16

17 Hall and Hall`s Dimensions Dimensions Speed of Messages Structure of Space Structure of Time Context Orientation Characteristic fast - slow open - closed monochron - polychron low-context - high-context Copyright 2007 Keio University 17

18 Hall and Hall`s Concept of High- Context and Low-Context Japanese Chinese Spanish English French United States Scandinavian German Swiss Arab Greek Italian LOW CONTEXT HIGH CONTEXT Source: Hall and Hall (1990) Copyright 2007 Keio University 18

19 Monochronic vs. Polychronic (Hall and Hall) Monochronic Does one thing at a time Makes commitments (deadlines) Is committed to job Concentrates on job Emphasizes promptness Is accustomed to short-term relationships Is low context and needs information Adheres to plan Copyright 2007 Keio University 19 Polychronic Does many things at once Considers time commitments to be flexible and low priority Is committed to people and relationships Is easily distracted Bases promptness on relationships Tends to form lifelong relationships Is high context and already has infomation Changes plans often

20 Hofstede`s Dimensions Culture Dimension Identity Power Gender Time Uncertainty One Extreme Individualism High Power Distance Masculinity Long-Term Orientation Uncertainty Avoidance The Other Extreme Collectivism Low Power Distance Femininity Short-Term Orientation Uncertainty Tolerance Copyright 2007 Keio University 20

21 Trompenaars 7 Relationship Orienations Universalism vs. Particularism Individualism vs. Communitarism Neutral Culture vs. Affective Culture Specific Culture vs. Diffuse Culture Achievement Culture vs. Ascription Culture Sequential Time Orientation vs. Synchronic Time Orientation Inner-directed Culture vs. Outer-directed Culture Copyright 2007 Keio University 21

22 Asian and Westen Management Styles Western Management Hierarchical, egalitarian command, segmented concern Professional managers, position related to function Particularism, specialized career path possibly with rapid evaluation and promotion, individually oriented Decentralization of power Mobility Diversity Direct approach Systematic analysis, standardization, categorization, classification, conceptualization, precision Long-term set planning Explicit control mechanisms Organizations and systems adapt for change Eastern Management Free-form command, roles loosely defined, holistic concern Social leaders often with high sounding titles for low ranking jobs Non-specialized career paths, slow evaluation, regimented promotion, socially oriented Centralization of power Stability Unity Indirect approach Ambiguity, reaction, adaptation Often lack of formal set planning, high flexibility in adjustment Implicit control mechanisms Leaders/managers adapt to change Copyright 2007 Keio University 22

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