Eastern & Western Management Styles

Germany, the U.S. and Japan

Carola Carstens, Nina Kummer, Britta Upsing

Introduction

What is Management?

Staffing Leadership and Career Development Compensation System Motivation and Evaluation

Communication

Introduction

What is management ?

Takeo Fujisawa, Founder of Honda Motor Company:

„Japanese and American management are 95 per cent the same, yet differ in all important respects.“

Career development

Recruitment in Japan

directly from school with a focus on general characteristics instead of technical skills as one is employed for a lifelong period

Career development

A successful career

After 10 years: promotion to kacho

After 20 years or more: promotion to bucho Not before the age of 50: possible promotion to

directorship

Career development

Career perception

Japan

Life-long employment

Seniority promotion

Ultimate goal: broad experience

Germany

Short-time employment possible

Promotion on merit Increased mobility Specialists

Compensation System

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

Motivation and Evaluation

Sources of Motivation

Similarities

Responsibility Challenge Interesting work Recognition Money is secondary

Differences

Seniority wage Promotion system Importance of the group

Motivation and Evaluation

The process of evaluation

In: Japanese Management, p. 154

Conclusion

HRM: Japan - USA

Importance of the company for Japanese and American employees:

In: Japanese Management, p. 155

73% of the Japanese

79% of the Americans

Conclusion

HRM Japan - USA

JAPAN USA

top priority given to human assets in management

primary importance will be accorded to numbers and laws rather than to people

regular employees ∼fixed assets

well-being is crucial

employees = semi-variable assets can be hired and fired as needed

Conclusion

HRM in Japan

„people-centered management“

Japanese companies exist primarily “for the well-being of Japan and its people”

people before profit ?

Conclusion

HRM in Japan

Uchi no kaisha*:

„Ein Unternehmen ist nichts Fremdes, Abstraktes oder Unangenehmes, sondern ein eminent nützlicher, allseits Wärme spendender Organismus.“

* kaisha = „Firma“, lit. „soziales Beisammensein“

Office Layout

Open-plan offices No cubicles or dividers Private space is avoided

Keep in touch

Office Layout

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)

Formal and Informal Company Structure

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

Formal and Informal Company Structure

Working groups

Group members are aware of their status Individual needs are deemphasized in order to

maintain harmony Dependency relationships

Formal and Informal Company Structure

Rice cultivation

until 100 years ago, 5/6 of the population was employed in rice cultivation

Only 10% of the land can be cultivated Crowdedness

Cooperation is necessary

Formal and Informal Company Structure

Habatsu (Cliques)

Informal groups

Membership is based on unchangeable criteria– Graduating from the same university– Having a common hometown

Communication

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

Communication

JAPAN USA

oral preferred form of communication

non-binding „inefficient“

written „last resort“, seen as formal, cold, lacking the reciprocal give-and-take

preferred form of communication: contracts, memos...

non-verbal

very important, subtle, „fine art of communicating desires and feelings without words“, „honne – tatemae“

not very developed

(low-context culture)

Communication

Decision Making

popular view:

catchwords:

but reality is a little more subtle...

JAPAN USA

bottom up top down

JAPAN USA

group process individual process

Communication

Decision Making - Japan

Cultural background: “Wa”: harmony - the essence of Japanese life „Kyodotai“: harmonic, organic cooperation of a

community with friendly mutual support and understanding

decisions are ideally made in this atmosphere of friendly cooperation unanimity  solidarity

Communication

Decision Making - Japan

RINGI system of decision making

nemawashi: „preparing the ground“

frequent „sound-outs“ on views and positions (uchiawase)

ringi-seido: circling process

Communication

Decision Making – Japan

ringi-seido 1

decision form („ringisho“)

ok!ok?

sound discussion with the affected sections/ people

proposal

fills out

Communication

Decision Making – Japan

ringi-seido 2 proposal is forwarded to all relevant sections/ people

each will make comments on a sheet attached to the back of the proposal

section x section y...

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

Communication

Decision Making – Japan

Too time-consuming ?

In: Japanese Management, p. 161

Communication

Decision Making – Japan

Pros: elimination of dissension through participation of a large

number of people participation of employees even at lower levels cumulated expertise gradual improvement/correction no individual responsibility -> daring and progressive

decisions gather opinions of other sections (no “nicht mein Bier”) smooth/ more efficient implementation

Formal and Informal Company Structure

Two sides of an organization

FORMAL INFORMAL

“official side” “working side”

organization charts cliques

designated work units informal leaders

job specifications channels of informal communication

titles  

ranks  

lines of authority  

Formal and Informal Company Structure

Kacho

Informal leader Head of department position between management and workforce mediator

Formal and Informal Company Structure

Informal Structure in Japan

Informal Informal leaders leaders groups groups channels of communicationchannels of communication

supplement a steep hierarchy.supplement a steep hierarchy.

Informal and Formal Company Structure

Organic versus Mechanistic View

Organic:Organic:

The organization as a living organismConstantly in progress

Mechanistic:Mechanistic: The organization as a static scheme

Strive for equilibrated states

Informal and Formal Company Structure

Management

management in Japan has to coordinate, integrate and motivate

in America management rather means supervising others

Hierarchy

Hierarchy

Strict hierarchical order Secured spheres of control

Managers are other-oriented In the West most managers are self-oriented

Hierarchy

Power

Power is based on a person‘s function In Western organizations power is based on a

person

Less competition in Japan than in Western cultures

Hierarchy

Leadership

an effective leader in Japan is above all:

- a catalyst

- a coach

- a source of inspiration for his team

 

Summary

Management and working styles 1

JAPAN WEST

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 WESTreciprocal commitment between managers and workers

less bonds

open-plan offices working space is structured according to individual needs

formalized and ritualized interactions informal interactions more common

intuitive, nonverbal communication is important

analytical, logical argumentation style

face-to-face communication more important

written communication more important

Organization and Planning

Total Quality Control

Method developed in the USA Quality assurance at every stage of production

In Japan:

Quality Circles

Target Cost

Organization and Planning

Quality Circles

„Quality Circles are small groups of people who do similar or related work who meet regularly to identify, analyse,and solve product-quality and production problems and to improve general operations.“ (Robert E. Cole, Director of the Center for Japanese Studies at the University of Michigan, S. 238)

Organization and Planning

Quality Circles

Core element of the Japanese application of Total Quality Control

Small groups of employees: 10-12 members to facilitate communication

Continously improving process = Kaizen

KAI = Change and ZEN = to the best

Organization and Planning

Benefits of Quality Circles

Improved communication Greater job satisfaction Improved morale Improved quality Cost savings

Organization and Planning

Target Cost

Japan

Costs estimated by „cost engineers“

What are customers willing to pay?

Germany

Costs estimated by accountants

Design first, then calculate the costs