The Japanese management style has changed due to the new international market aspects. Before they focused in industries and products that had not been affected by the international economy and areas and their goods that were at a disadvantage in the beginning, for example, cotton and wool. The new nature of the firm in Japan is much more like a community. Property firms are treated as the property of the shareholders but in entity firms, there is some sense of being like a school, university, or public institution which continues through time and has a reputation of its own. There are three pillars of Japanese industrial relations system: lifetime employment, the seniority wage and promotion system, and enterprise‐based unions.
Japanese management beliefs that with the participation of workers and middle management the organization starts building group loyalty. Decisions are taken in group because it is important for everyone to make part of the organization. Remember that they see the firm as a community in which everyone can give ideas. They also belief in harmony and it has to be really positive. They have a fast, flexible manufacturing process and product development. Suppliers, manufacturers and distributors are really important for them and they are seen as a business partner because they will give the company good information.
The "Zaibatsu" is “a powerful family-controlled commercial combine of Japan, a Japanese conglomerate or cartel.”1 Groups of companies that have been passed from generation to generation. These companies are from families that have been accumulating power. They are close to political parties and have grown due to governmental support. They control a great part of Japan economy not only with their companies but with the banks because they own them.
Korea was a Japanese colony form 1910 up until 1945 this is why they have an evident influence from Japan. Because of Japan’s economical growth and development they became Korea’s development model. They decided to have a governmental intervention in order to face the new international market with credits and export growth benefits. This helped firms to grow fast and diversify in a better way. But gaps between large and small firms widened even more.
Korea also has a group of companies that have a clear influence in the economy. They are also from family origins that have been keeping power for decades. These groups also have a name and are known as the "Chaebol". The Chaebol is a “Korean term for a conglomerate of many companies clustered around one parent company. The companies usually hold shares in each other and are often run by one family.”2They differ from the Japanese group of companies; they don’t own banks because banks were nationalized and they have strong ties with the government and use its financing. Korea had a financial crisis in 1999 due to all the loans the companies had made and they couldn’t pay on time.
In order to explain the convergence and divergence terms we can use these two countries mentioned above. There are some countries that decide to converge into a model found in a developed country due to international pressure. Countries have to adapt to the new market rules and conditions so that is why countries are pressured to adapt their management styles to a much more developed one. But they also have domestic pressure in order to retain culturally determines forms of management. That is why they have adapted their management style to much more developed ones but without losing their identity. This is really clear in the influence that Korea received from Japan. Japan was seen as an economic development model by Korea but they didn’t adapt all of Japans management style, they just adapt their management style to the Japanese style.
Questions
1. List the main similarities and differences of Japanese and Korean management styles.
The similarities of Japanese and Korean management styles are the way they work for the organization in order to grow even more and to become much more internationalized. Improvement and growth are their main objectives for the organization. The organization as a whole is what matters for them. For both cultures having a good relationship with the employees is really important and also counting with their opinions. Decisions are taken in group and the company is seen as a community. They have a good and straight relationship with their suppliers, manufacturers and distributors and see them as trading partners with important information.
The differences between Japan and Korea are pretty clear. These two cultures diverge in their hierarchical orientation and in the economic environment. Korean government tried to tie up with business corporations in order to have a successful economy. They help companies with credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promotes the import of raw materials, technology, and encouraged savings and investment. Korea recognizes the technology as an important tool to develop economies of scale. They compete in electronic products, machinery and equipment, automobiles, steel, shipbuilding, and clothing. Japan has a strong relationship between government and industries which work together and influence in one another. Japan is the second most technologically powerful economy in the world and third largest economy country. Japan emphasizes more on flexible manufacturing in order to have a rapid adaptation to market changes. They have been concentrated on automobile, semiconductors, office machinery, and chemicals.
2. Explain the phenomenon of convergence in terms of management styles. What are the forces or factors pushing for convergence?
As I mentioned above, convergence towards different management styles is really common when countries and companies develop. When an organization starts to grow and develop it has to start adding new ideas and considering new managerial ways. International pressure is one of the most important factors that take organizations into a managerial convergence. These companies have to make part of the international market place in order to keep growing so they start to adapt new concepts to their production systems and employees. In other words, organizations change or adapt their culture and environment in order for them to make part of the international market. They also have to converge because the international culture is in constant transformation so they have to adapt to new demands which sometimes cannot be satisfied if organizations are not aware of these. They have to adapt or converge to new production ways and norms. Also be aware of which management styles are more effective and can be helpful in the organization. Convergence in organizations is completely necessary in order to be competitive.
References
1. http://www.answers.com/topic/zaibatsu
2. http://www.investorwords.com/820/chaebol.html
- http://www.1000ventures.com/business_guide/mgmt_kaizen_main.html
- http://en.wikipedia.org/wiki/Japanese_management_culture
- http://www.applet-magic.com/zaibatsusp.htm
- http://es.wikipedia.org/wiki/Zaibatsu
- http://www.wordiq.com/definition/Zaibatsu
- http://www.worldbusinessculture.com/South-Korea-Management-Style.html
- http://www.applet-magic.com/chaebolsp.htm
Images Taken From:
- http://www.csudh.edu/global_options/375students-sp96/Japan/gifs/2.jpg
- http://www.istockphoto.com/file_thumbview_approve/2269764/2/istockphoto_2269764-south-korea-flag-icon.jpg
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