Many people mistakenly attribute this phenomenon strictly to cultural differences.

The vision of
dedicated Japanese workers giving their life to the company for substandard wages surely
accounts for the difference, they reason. Of course, this view doesn't always square with reality.

Japanese believe in what they call "bottom round" management. This concept, sometimes
called consensus management or committee management, is an innate part of Japanese
culture. It involves a slow decision-making process that attempts to reach a true consensus
rather than a compromise. While the decision-making process is slow the implementation
process is quite fast.

Japanese managers use non-programmed decision making which entails

gathering and analyzing data and information for the purpose of identifying and
solving a problem. Two methods of non-programmed decision-making are:
rational decision-making and sacrificing decision-making. Rational decision-
making involves:
1. Investigating and defining the problem.
2. Establishing the criteria as a basis to make a decision.
3. Identifying alternative choices.
4. Evaluating each choice based on the established criteria.
5. Selecting the optimum choice (highest quantitative value).
6. Implementation.
In contrast, sacrificing decision-making is based on managers having incomplete
information, and therefore, managers have to sacrifice by making a decision
based on the first choice that meets the minimum criteria. Managers using this
decision making process do not identify alternative choices.

LIFETIME EMPLOYMENT

Lifetime employment is a distinctive characteristic of Japan’s postwar labor

system, although it never applied to many workers in the labor force and is now
declining. This is how the system works: Large companies hire regular
employees right out of school and keep them until retirement. New employees
are chosen for their general potential, not because of any special skills or
training. Such employees are considered the company’s human capital, to be
trained, cultivated, and assigned to posts in the company’s best interest.
Although there is no written contract guaranteeing lifetime employment, both
employer and employee understand their mutual obligations under this system.
The employee is to serve the company loyally and not try to leave for a better
position. The employer will not dismiss or lay off the employee even in severe
economic conditions. In addition, strong labor laws protect workers from being
dismissed. This system also means that large firms train and promote their own
employees to fill higher managerial positions, rather than hiring specialists or
senior managers from outside the company. This system worked well during
Japan’s long period of postwar economic growth with a young, energetic work
force. In the 1990, during a prolonged economic recession and with an aging
workforce, the lifetime employment system has begun to break down.

NEMAWASHI

Nemawashi is an informal participative decision making process of quietly laying

the foundation for some proposed change or project, by talking to the people
concerned, gathering support and feedback, and so forth. It is considered an
important element in any major change, before any formal steps are taken, and
successful nemawashi enables changes to be carried out with the consent of all
sides.

RINGI SYSTEM

A management technique in Japanese companies in which low-level managers

discuss a new idea among themselves and come to a consensus before
presenting it to higher managers. The higher ranking managers then discuss the
new idea themselves and arrive at their own consensus. This process continues
until the idea comes to the highest management level and the idea is (or is not)
implemented. Proponents claim that this system allows whole sections of a
company to take credit for a new idea, while critics contend that it is time-
consuming and hampers innovation.
(First Slide)
Leadership Style of Japanese
(Second Slide)
Japanese top executives have great power in conformity with Confucian hierarchy, but actually have
little involvement in the everyday affairs of the company. On appropriate occasions they initiative
policies which are conveyed to middle managers and rank and file. Ideas often originate on the
factory floor or with other lower level sources. Signatures are collected among the workers and
middle managers as suggestions, ideas and inventions make their way up the company hierarchy.
Many people are involved. Top executives take the final step in ratifying items which have won
sufficient approval.

(Third Slide)
Leadership Style

 Japanese management emphasizes the need for information to flow from the bottom of
the company to the top. This results in senior management having a largely supervisory
rather than hands-on approach.
 As a result, it has been noted that policy is often originated at the middle-levels of a
company before being passed upwards for ratification.
 The strength of this approach is obviously that those tasked with the implementation of
decisions have been actively involved in the shaping of policy.
 The higher a Japanese manager rises within an organization, the more important it is
that he appears unassuming and lacking ambition.
 Individual personality and forcefulness are not seen as the prerequisites for effective
leadership
(Fourth Slide)
 How is leadership style of Japanese is different?

http://www.dineshchapagain.com.np/admin/files/Japanese%20Style%20Management.pdf

https://hbr.org/1971/03/what-we-can-learn-from-japanese-management
JAPAN
JAPANESE BUSINESS MANAGEMENT STYLE
Japan as it stands today, is due to the efforts of Japanese people who were smart enough to adopt the
foreign technology and management philosophy and develop suitable technological and management
systems that can be effectively and efficiently applied for the development of the country.

Japanese management emphasises the need for information to flow from the bottom of
the company to the top.

This results in senior management having a largely supervisory rather than hands-on
approach. As a result, it has been noted that policy is often originated at the middle-
levels of a company before being passed upwards for ratification. The strength of this
approach is obviously that those tasked with the implementation of decisions have been
actively involved in the shaping of policy.

The higher a Japanese manager rises within an organisation, the more important it is
that he appears unassuming and lacking ambition. Individual personality and
forcefulness are not seen as the prerequisites for effective leadership.

The key task for a Japanese manager is to provide the environment in which the group
can flourish. In order to achieve this he must be accessible at all times and willing to
share knowledge within the group. In return for this open approach, he expects team
members to keep him fully informed of developments. This reciprocity of relationship
forms the basis of good management and teamwork.

Instructions from managers can seem extremely vague to western ears and this often
causes confusion and frustration. This difficulty is caused, in no short measure, by
problems around styles of communication. As users of coded-speech (where what one
says does not necessarily correspond to what one actually means), direct, clear
instructions are not needed. The Japanese subordinate will second-guess what the
boss wishes to happen and react accordingly. It is, therefore, often necessary to ask for
clarification if tasks seem vague or unclear. It is better to seek clear understanding at
the outset that to allow misunderstandings to produce poor results or tensions in the
relationship.

 How is leadership style of Japanese is different?

In Japan, teamwork and organization are extra important. As a manager or leader, you will be expected
to have great coordination skills, a clear vision for the future, and be able to keep peace amongst your
staff. Being charismatic and a strong communicator is still important, but honesty and seriousness are
generally valued more than having “the gift of the gab” in Japan.
If you’re applying for a leadership position in Japan, you can’t coast along on charm and likability alone 
– you may even be viewed with distrust if you don’t deliver on promises. Management roles in Japan
need individuality, but this can’t be at the expense of collective goals.