Japanese management culture

The culture of Japanese management that is often portrayed in Western media is generally limited to Japan's large corporations. These flagships of the Japanese economy provide their workers with excellent salaries, secure employment, and working conditions. These companies and their employees are the business elite of Japan. Though not as much for the new generation, a career with such a company is the dream of many young people in Japan, but only a select few attain these jobs. Qualification for corporate employment is limited to the few who graduate from the top thirty colleges and universities in Japan.

The Japanese term "hourensou" (also rendered as “Ho-Ren-So”) refers to frequent reporting, touching base and discussing -- important attributes that are said to characterize collaboration and information flow within effective Japanese corporate culture. "Genchi Genbutsu" refers to "getting your hands dirty", to identify or solve immediate problems and leaders are not exempt from this. Aspects of these principles are often mistaken by western managers "micromanagement." In contrast, these principles are used as tools to shepherd processes.

Mohammed Ala and William Cordeiro (1999) described the Japanese decision-making process of “ringiseido.” “Ringiseido” provides the opportunity for equal ranking managers or employees of a group within a company to partake in an individual’s idea. The process adheres to the Japanese cultural desire of harmony among people. The physical action of “ringiseido” is referred to as the “ringi decision-making process.” It fosters an environment of support and agreement for a decision once a higher ranking manager has reviewed and accepted the recommended decision.

The term of “ringi” has two meanings. The first meaning being of “rin," ‘submitting a proposal to one’s supervisors and receiving their approval,’ and "gi" meaning ‘deliberations and decisions.’ Corporate policy is not clearly defined by the executive leadership of a Japanese company. Rather, the managers at all levels below executives must raise decisions to the next level except for routine decisions. The process of “ringi decision-making” is conducted through a document called a “ringisho.” The “ringisho” is created and circulated by the individual who created the idea. As the “ringisho” reaches a peer for review, the peer places his or her “personal seal (hanko) right side up” to agree, “upside down” to disagree, and sideways to indicate being undecided. Once all peers have reviewed the “ringisho” the peers’ manager reviews the “ringisho” and places his or her hanko on it. The upper level manager’s decision is final and the “ringisho” is sent back to the originator who either initiates the idea or re-evaluates, based on the “hanko” of the upper level manager.

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