Secondly, characteristics of Japanese business culture include "Tacit Agreement." (Iwata, 1982). The Japanese are trained throughout their lives to read each other’s minds. Hence it is not necessary to explain an idea in detail. This is applied in their way of business. In Japanese business society, workers do their best to read the circumstances they are placed in, for example, the surrounding situation, their colleagues’ reactions and their own situations. This mind-reading infuses strength in the members who carry out their work accurately without having to give them specific orders each time. To the contrary, in American and European societies, in order for an organization to carry out its tasks, it is needed to specify the individual tasks in writing beforehand. Koji Kobayashi, a former Chairman of NEC (Nippon Electric Company) said as follows:
“NEC has an office in Washington, D.C. If this were an entirely Japanese set-up, all that the manager would have do when he wants to step out of the office for a while is to say "Yoroshiku"∗ and the members of his staff would keep on working without him. There is no need for any written instructions. However, in our Washington office, only the manager is Japanese and all other staff members are Americans. Therefore, the phrase "Yoroshiku" doesn’t mean anything to them. The manager cannot leave the office until he prepares job instructions for each member.” (Iwata, 1982: 24)
Lastly, "Familiarity Relationship," a typical Japanese-style family-like relationship, is also brought into the world of business (Iwata, 1982). Although most people would think that the whole network of relations on businesses should be dry and detached, the concept of familiarity greatly affects the style of doing business in Japan. In American and European companies, it is generally recognized that business is conducted on the basis of cool calculations supported by careful and rational analysis. In Japan, the start of business is often marked by the establishment of the familiarity relationship. For instance, in order to shift from a totally unknown relationship to a familiar relationship, most Japanese salesman tend to have many short visits with an exchange of only few words, without talking about their products and services. It is important for Japanese businessmen to create intimacy with clients in an indirect way. Moreover, after the familiarity relationship is established, it is necessary to maintain this relationship by bringing gifts on every visit, sending special summer gift (chugen) and year-end gift (seibo), and exchanging the massive cards, such as summer cards, new year’s cards and sympathy cards. Japanese business deals depend largely on the personal acquaintance rather than the profit arithmetic.
As described previously, there are some unique customs in Japanese-style business. However, the characteristic of Japanese business culture which is even now ingrained has come under criticism. Clark, Professor of Economics at University of California argued that Japanese society was an anachronism that did not lose its ancient tribal character until quite recently, for which reason the Japanese people have been able to maintain their groupistic value orientation up to the present. (Okada, 1984) Actually, Japanese companies which consistently observe their traditional business practices are now under intense pressure to meet international management standards. It is pointed out that the Japanese business culture has some downsides and incongruities in the era of globalisation. For instance, the groupism would cause lack of individual’s personality and talents, and tacit agreement has a great possibility to lead to a lot of confusion. Under this circumstance, many Japanese companies have tried to incorporate universally accepted rules and styles into their business and management styles. A principle of competition and merit promotion are a kind of global trend that Japanese companies eagerly tend to introduce into their management. However, in pursuing a new direction for Japanese-style business, there is one thing which should not be overlooked. That is the fact that any other business culture cannot be transplanted in Japan without modification. Business culture is an embodiment of each country's long term heritage, same as other historical culture. If a company tries to force management styles of different countries into one particular standard, it will only encounter difficulties in various facets of business and management. Therefore, Managers should think carefully what Japanese practices must be changed and what must be preserved.
In conclusion, Japanese business culture which is typified by Groupism, Tacit understanding and Familiarity Relationship is one of the assets which Japanese companies have built for many years. The emphasis on the groupism fostered employees’ loyalty to the company which is necessary for corporate governance. Equally, the tacit understanding strengthened the power of risk management in a company. It is obvious that these original practices contributed to outstanding economic growth in Japan. Therefore, Japanese companies should get the best of their cultural strength, while mixing with other foreign business culture. Now, Japanese companies are facing the transitional stage in the further development in a global era.
References
Iwata, R. (1982): Japanese-Style Management: Its Foundations and Prospects. Tokyo: Asian Productivity Organization
Odaka, K (1986): Japanese Management: A Forward-Looking Analysis. Tokyo: Asian Productivity Organization
∗ The initial meaning is roughly, "Do as you think fit"
