JAPAN FRANCIS PIRON Ph D 2008 PRELIMINARY THOUGHTS

JAPAN FRANCIS PIRON Ph. D. , 2008

PRELIMINARY THOUGHTS • • • LONG & INDEPENDENT HISTORY UNIQUE HERITAGE HIGHLY DISCIPLINED PEOPLE 1 st WESTERN STATE IN ASIA CONFUCIAN-GROUNDED DEMOCRACY

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • “MIRACULOUS TRANSFORMATION” FROM A FEUDAL TO A MODERN, DEMOCRATIC STATE • TRADITION OF PRODUCING THROUGH MODIFICATION OF EXISTING CONSTRAINTS • ABILITY OT ABSORB WESTERN KNOWLEDGE INTO ITS CULTURE, APPLY IT AND EXPORT IT IN AN ENHANCED FORMAT

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • FOUNDATION OF JAPANESE SOCIO-CULTURAL HERITAGE – ETHICS ARE ABSENT IN EARLY JAPANESE MYTHOLOGY – EARLY CULTURAL RATIONALE IS CONTEXTUAL => RELATIVISTIC SOCIO-CULTURAL SYSTEMS – ANCIENT CULTURAL LOGIC IN SUPPORT OF EMPEROR’S DIVINE RULE (UNBROKEN LINE OF 125 EMPERORS) => STRENGTH OF SOCIO-CULTURAL IDENTITY – SHINTO, THE NATIONAL RELIGION, BASED ON ANCESTORS WORSHIP & ANIMISM AS A RESPONSE TO BUDDHISM – EMPEROR’S ROLE & INFLUENCE HAVE DECLINED, BUT ARE THE BASE OF SOCIO-CULTURAL DEVELOPMENT PATH

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • REGIONAL INFLUENCE OF CHINA – JAPANESE MIGRATED FROM CHINA OR KOREA – CHINESE INSTITUTIONS WERE INSTRUMENTAL IN JAPAN’S EARLY DEVELOPMENT – SINCE SUCH INSTITUTIONS WERE NOT IMPOSED (I. E. , WAR, OCCUPATION), THEY REMAINED BECAUSE USEFUL AND WERE ADAPTED • “JAPANISATION” OF CHINESE RELIGIONS & PHILOSOPHIES – CONFUCIANISM PRODUCED LOYALTY – TAOISM DEVELOPED INTO SHINTO – BHUDDISM DEVELOPPED INTO ZEN BUDDHISM – THE 3 PRODUCED BUSHIDO

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • BUSHIDO: IDEOLOGICAL FOUNDATION FOR A NATION – MORAL FRAMEWORK TOWARD LIFELONG COMMITMENT TO ENRICH VALUES AND MASTER MARTIAL ARTS, BASED ON 7 PRINCIPLES: • • CHUGI – DUTY, LOYALTY GI - RIGHTEOUSNESS YU – SPIRIT OF DARING, BEARING IN - BENEVOLENCE MEIYO - HONOR REI - POLITENESS SEI - SINCERITY – SERVING PUBLIC INTERESTS BY REPRESSING SELF -INTERESTS THROUGH SELF-SACRIFICE – MESSHI HOKO

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • BUSHIDO: IDEOLOGICAL FOUNDATION FOR A NATION – BUSHIDO VALUES WERE FURTHER REFINED AND INCORPORATED IN THE WIDER JAPANESE SOCIETY – EVENTUALLY BUSHIDO VALUES WERE DISSEMINATED TO COMMONERS AND BECAME THE MORAL IDEAL

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • NEW INFRASTRUCTURE SYSTEM – FUKOKU - KYOHEI – RICH COUNTRY, STRONG MILITARY – OITSUKE OYTSUKE CATCH UP AND OVERTAKE – WESTERN INSTITUTIONS WERE COPIED & LOCALIZED TO INCORPORATE TRADITIONAL JAPANESE SOCIO-CULTURAL VALUES • EDUCATION – KEY STRAT. VALUE FOR NAT’L DEVT – KEY OF RAPID MODERNIZATION – INCORPORATED NATIONALIST, CONFUCIAN AND SHINTO VALUES TO COUNTER WESTERN VALUES – LINKED TO BUSHIDO

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • CHANGING THE COMMERCIAL ETHOS – WITH THE ABSENCE OF COMMERCIAL INFRASTRUCTURE, THE STATE TOOK ON A CAPITALISTIC ROLE – EVENTUALLY, STATE TURNED OVER BUSINESS ASSETS TO LOCAL ELITE & ENTREPRENEURS – THESE WERE TO PURSUE SUCCESS FOR THE COLLECTIVE GOOD OF THE NATION Þ EMERGENT PATERN OF CLOSE WORKING RELATIONSHIPS BETWEEN POLITICIANS, BUREAUCRATS AND BUSINESS Þ JAPAN INC.

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • MGMT OF JAPANESE INSTITUTIONAL INFRASTRUCTURE – POWERFUL INDUSTRIAL CONGLOMERATES WITH BANKS AT THE CORE - ZAIBATSU – DEVELOPMENT OF HR MGMT MODELS • EXISTING PATERNALISTIC LONG-TERM APPROACHES • 3 SACRED TREASURES: – SHUSHIN KOYO – LIFETIME EMPLOYMENT – NENKO JORETSU – SENIORITY-BASED WAGES – KIGYOBETSU KUMIAI – COMPANY-BASED UNIONS • SEARCH FOR MGMT MODELS THAT INCORPORATE HUMANITY INTO ECONOMIC RATIONALITY – INTEGRATION OF BUSHIDO INTO BUSINESS

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • MGMT OF JAPANESE INSTITUTIONAL INFRASTRUCTURE – POST-WAR PERIOD: DEMILITARIZATION & DEMOCRATIZATION • INDUSTRIAL, LAND LABOR SYSTEMS WERE DEMOCRATIZED • BUSHIDO VALUES ARE REPLACED IMPORTED DEMOCRATIC VALUES – KEIRETSU – MODERN INDUSTRY STRUCTURE • LARGE BANKS & TRADING COMPANIES AT THE CORE – CORPORATE CAPITALISM – GROUP-ENTERPRISE CAPITALISM – ALLIANCE CAPITALISM • MAINTAIN THEIR EXISTENCE THROUGH MUTUAL CROSS-SHARE HOLDINGS: – BANK PROVIDES FINANCING – BANK HOLDS SHARES IN TRADING COMPANY

LOCAL ISSUES & EXTERNAL FORCES INFLUENCING THE MGMT CONTEXT OF JAPAN • MGMT OF JAPANESE INSTITUTIONAL INFRASTRUCTURE – CORPORATE MGMT & HRM SYSTEM REFORM • YOUNGER MANAGERS => REJUVENATION • JAPANISM HUMANISM IS EXPRESSED IN TERMS OF GROUP WELFARE & MAINTENANCE OF HARMONY – GOVERNMENT INFLUENCE IS IN TERMS OF GUIDANCE, RATHER THAN DIRECT INTERVENTION OR COERCION

CONTEMPORARY MICRO-LEVEL MANAGERIAL APPROACHES TO SUSTAIN NAT’L DEVT • JAPAN CAUGHT BTW RISE OF CHINA (MANUFACTURING) AND INDIA (IT SECTORS) • 3 MAJOR CHALLENGES: – COMMUNITY SOCIO-CULTURAL VALUES – CORPORATE BEHAVIOR – HUMAN RESOURCES MANAGEMENT

CONTEMPORARY MICRO-LEVEL MANAGERIAL APPROACHES TO SUSTAIN NAT’L DEVT – COMMUNITY SOCIO-CULTURAL VALUES • WORK FORCE IS AGING • ALL EMPLOYEES MUST HAVE A SENSE OF OWNERSHIP – ON (SUPERIOR-INFERIOR RELATIONSHIP) & KO (DUTY OF THE SUPERIOR) ARE INSTRUMENTAL TO HUMANISTIC MGMT – MGMT APPLICATION OF IE CONCEPT(SMALL UNITS) SIMILAR TO ONE FOR ALL & ALL FOR ONE – GENERATIONAL VALUE SHIFT

CONTEMPORARY MICRO-LEVEL MANAGERIAL APPROACHES TO SUSTAIN NAT’L DEVT • TRANSFORMING CORPORATE BEHAVIOR – ISSUES OF CORPORATE GOVERNANCE • CORPORATE SCANDALS • GROWING PUBLIC HOSTILITY AGAINST CORP. JAPAN – IMPORTANCE OF CULTURE IN MAINTAINING CONTROL MECHANISMS • COLLECTIVE PROMOTION OF CORPORATE INTEGRITY THROUGH KEIDANREN – JAPANESE BUSINESS FEDERATION – LONG WAY TO GO TO ASSIMILATE GLOBAL PERSPECTIVE • ADOPTION OF DECENTRALIZED, LEAN DECISION-MAKING SYSTEM • MAINTENANCE OF INTRA-COMPANY HARMONY – RINGI SYSTEM WHEREBY CHANGE IS BROUGHT THROUGH SERIES OF INFORMAL MEETINGS TO SEEK SUPPORT AND EVENTUAL FORMAL ANNOUNCEMENT AND IMPLEMENTATION

CONTEMPORARY MICRO-LEVEL MANAGERIAL APPROACHES TO SUSTAIN NAT’L DEVT • HUMAN RESOURCE MANAGEMENT REFORM – INTERNAL & EXTERNAL CHALLENGES TO THE SYSTEM – NO INTEREST IN WHOLESALE REFORMS … HUGE SOCIAL CONSEQUENCES – IN RESPONSE TO KAIZEN SYSTEM OF CONTINUOUS AND INCREMENTAL PROBLEM SOLVING – LIFETIME EMPLOYMENT ONLY TO “CORE” EMPLOYEES • WOMEN ARE NOT CONSIDERED “CORE” • “CORE” EMPLOYEES ARE NOW ONLYTHE ELITE EMPLOYEES – RETHINKING LIFETIME EMPLOYMENT NECESSARILY FORCES RETHINKING OF SENIORITY-BASED WAGE SYSTEM – EXPERIEMNTATION WITH THE MERIT-BASED SYSTEM

• WHAT HAVE YOU LEARNED? • SIMILARITIES BETWEEN JAPANESE MANAGEMENT, AND CHINESE AND INDIAN?