Comparison of Japanese & U.S. Cultures in Business

Japanese management techniques, including just-in-time (JIT) manufacturing and quality circles (QC), have gained much attention in recent years as American companies have focused on improving their profit performance and their competitiveness in the international market. However, it is not possible to simply transport Japanese management approaches without taking into account some of the significant differences between the cultures of Japan and the United States. This research examines some of the critical cultural differences between the two countries and considers how those cultural differences affect business operations in the two nations, and, specifically, within the automotive industry.

Key Cultural Aspects Compared Between Japan and the USA

One of the greatest cultural differences between Japan and the United States is the importance placed on the relationship of the individual to the overall society. In Japan, the individual's own needs are secondary to the needs of the group, be it the family, a company, or the country as a whole. In the United States, each individual is considered to have rights which, except in rare circumstances, supersede those of any group. Many of the cultural differences in behavior stem from this fundamental difference.

For example, a person's rank within a specific hierarchy (such as a company) determines how that person is addressed and how others behave in his presence in Japan. This extends to the depth and duratio

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rve as little more than figureheads. The larger the company, the more complicated decision making becomes because dozens of people can be involved. Each of these individuals is concerned with his own personal interest and the interest of his department or division. These division and department chiefs, following typical behavior, tend to consider other executives within the company to be competitors, and are prone to be uncooperative and sometimes directly hostile toward them. In addition making the decision making process more difficult, this factor also hinders the efficiency and potential of a company in other ways. The Japanese Auto Industry Japanese management techniques involve an organization-wide approach to the manufacturing process. All aspects of an automobile factory, including human resources, technical resources, plant layout and relationships with vendors are affected by the management philosophy. There is a high level of commitment to quality throughout all aspects of the organization and this commitment to quality extends to vendors, as well. Just in time (JIT) inventory techniques are commonly found in Japanese plants; JIT strives to provide each step in the assembly process with exactly the number of

Category: Business - C