Management Style of firms in Japan and US - Thesis Proposal Example

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The differentiation of management style between US and Japanese firms is primarily related to their culture. The study address the following issues: which are the main characteristics of management styles, which are the benefits and drawbacks, how the financial performance of firms is affected by their management style, which are the implications of the countries management style for the remuneration of managers…
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Management Style of firms in Japan and US
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"Management Style of firms in Japan and US"

In Japan, in the context of the ‘kaisha’ principle, employees of all levels are considered as ‘part of the firm’s cost structure’; this results to the effort of Japanese firms to keep their employees in the long term. This trend is opposed with the practice of Western firms, which are likely to seek for employment schemes of a particular, usually short-term, duration. The above phenomenon is also highlighted in the study of Keeley, which emphasizes on the importance of ‘worker loyalty and paternalism’ for Japanese firms; at the same time, it is made clear that such values do not characterize the Western corporations which are based on the rules of the ‘capitalism-industrial society’. Another aspect of the Japanese management style is presented in the study of McMillan; in the above study it is noted that in Japanese firms, in opposition to the Western firms, the criteria for hiring top management staff are not always related to the candidates’ skills and level of education. Rather, emphasis is given on their ability to develop effective strategic plans.
The different characteristics of US and Japanese management styles, as indicatively presented above, have different consequences and implications for firms and managers in US and Japan. In this context, it has been proved that the financial performance of US and Japanese firms is highly affected by their management style; same assumptions have been made in regard to the remuneration of managers in US and Japanese firms. The specific phenomenon has been highlighted in the literature; in accordance with Pycraft the performance of Japanese firms is influenced by the Japanese management style; the above relationship is explained as follows: in Japanese firms ‘shop floor staff is empowered’ in order to support more effectively the firm’s operations. Read More
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