Japan's cultural environment - Essay Example

?After suffering destruction during the Second World War, Japan has re-invented itself as one of the world’s richest and most industrialized nations (Ghimire, 2006). During the late 19th and early 20th centuries Japan attained regional power and defeated the forces of both China and Russia (CIA Factbook, 2012). Japan’s GDP is $4.497 trillion (2011 est.) as per CIA Factbook. Along with a high GDP, Japan also enjoys en educated population, a developed banking and services sector which makes the nation attractive for business and investments. With consistent Government policies, the country has now opened the agricultural and services sector to foreign competition. The country faces several challenges such as persistent deflation, reliance on exports for growth and an aging population. Investors have reservation because of the collectivist culture and high uncertainty avoidance culture. This is because the Japanese approach to business is a reflection of the Japanese society. Of all the business cultures in the world Japanese culture is the most deep-rooted in the belief that personal relationships get precedence over business (CDA Media, 2012). In order to work and interact successfully in Japan, an understanding of its national culture is considered important. While businesses have been guided by Hofstede’s dimensions of national culture, this paper evaluates if changes have taken place since the 1960s and 1970s when data was collected by Hofstede. Hofstede (1991) defines culture as “the collective programming of the mind that distinguishes the members of one group or category of people from another” (cited in Stedham & Yamamura, 2004). Japan’s dimension of national culture is represented in the chart below: Source: Geert-Hofstede. Power Distance Index (PDI) Japan, with a PDI of 54, is a mildly hierarchical society. Power distance is the extent to which the less powerful members of the institutions expect that power is distributed unequally (Geert-Hofstede). However, the Japanese society is not as hierarchical as most Asian societies, according to Hofstede. Foreigners consider Japan as being extremely hierarchical because the decisions making goes through different layers of management but at the same time, this also demonstrates that there is no one single person in authority. In addition, Japan has been a meritocratic society and believes that everyone is born equal and anyone who is keen to attain higher levels of education, is free to do so, and move ahead. Individualism (IDV) This is the degree to which the society maintains interdependence. Japan’s score of 46 suggests a collectivist society where the harmony of the group is more important than the individual opinions. People in such societies have a strong sense of shame in losing face. However, the Japanese society is not as collectivist as the Chinese society. This is because the Japanese do not have extended family system where collectivism is prevalent. The eldest son in Japanese families carries on the father’s name and inherits assets while the others have to leave home and find their own way in life. The Japanese are more loyal to their company or the organization to which they are attached than to the family. Thus, by western standards they are called collectivists but by Asian standards they are individualistic. Masculinity Index (MAS) Japan has a high score of 95 on this dimension which indicates it is one of the most masculine societies in the world. This, according to Hofstede suggests that the society will be driven by competition, achievement and success. However, the Japanese society does not demonstrate the behaviour expected in societies with high masculine scores, possibly because of their mild collectivist nature. There is severe competition but not between individuals; it is severe competition between groups which can be seen even at the primary school level. At the workplace also, employees are motivated when they are fighting against a team of competitors. The Japanese strive for excellence and perfection in all they do. The Japanese, according to Hofstede are workaholics, and it was difficult for women to match their male counterparts in rising up the career ladder. Uncertainty Avoidance Index (UAI) With a score of 92, Japan is one of the most uncertainty avoiding countries, possibly because Japan is constantly under the threat of natural disasters such as earthquakes, tsunamis and volcano eruptions. With experience, they have learned to be prepared for any eventuality. Life in Japan has thus become ritualized and is full of ceremonies. Businesses invest a lot in feasibility studies and the risk factors are worked out in detail. Decisions are based on facts and figures. Because of the high uncertainty avoidance culture, changes are difficult in Japan. Long-Term Orientation Japan’s score of 80 on this dimension shows they are a long-term oriented society. In businesses, long-term perspective leads them to invest heavily in R&D even in difficult times, and priority is given to steady growth of market share than to short-term profits. Their focus is not on the shareholders but they work towards the interest of all the stakeholders. Hofstede’s dimensions of culture differed across nations but they did not differ by age, gender, education and occupation (Stedham & Yamamura, 2004). Hofstede’s model of national culture was based on data gathered in the 1960s and changes have taken place in different societies. Changes have particularly been observed in areas such as education, legislation and workforce composition. While Hofstede’s study was conducted in the 1960s and 1970s, Hofstede did suggest that changes may occur due to changes in the external environment. Societal values may undergo change when there are changes in trade, in country’s geography, demography, economy, technology and urbanization. This study by Stedham and Yamamura (2004) revealed that globalization brought about significant changes in Japan. More women undertook tertiary education and the PDI changed as women in Japan started believing more strongly than men in the importance of equal power distribution. Since women received higher education than men, they demanded that PDI should either be eliminated or at least be minimized. However, they have been unable to break the glass ceiling and become equal to men. They have thus developed a need for belonging; need to receive support and protection. Japan had been mildly collectivist but over the years it is now more individualistic, possibly as a result of increased economic development and wealth (Stedham & Yamamura, 2004). The need for belonging to a group has decreased in Japan. However the Japanese society has become more feminine because of more involvement of women in all facets in the society. Changes have occurred in the women in the society and if any changes have occurred among the men’s attitudes and values, it is because of the changes in women’s capabilities. The Japanese organizations are undergoing transformation and the ‘keiretsu’’ model that incorporates mutual shareholding is weakening. However, the Japanese people continue to be guided by respect, modesty and politeness when dealing with people and this is embedded in their national cultural value system (Lee & Trim, 2008). The employees in an organization operate in a small group which ensures harmony is maintained as they continue to adhere to shared values and beliefs. Foreign investors need to recognize that the Japanese believe in long-term trustworthy relationships. Hence all business deals and negotiations are based on mutuality. The Japanese society continues to be an ethnically and religiously homogenous society (Ralston, Holt, Terpstra & Kai-Cheng, 2008). Its cultural heritage is based on the Confucian philosophy. Foreign investors would have to understand the nuances and the customs in the Japanese culture that influence the social as well as business behavior. Not much appears to have changed in the business environment as decision making still involves approval of all the people in the team or business function which delays the process (Ghimire, 2006). Loyalty is still considered a virtue and the Japanese culture is still dominated by the concept of ‘lifetime employment’ (Venture Japan, 2009). Long-term relationship creates strong bonds and the employees feel a part of the company. Strong ties continue to exist between the company and its suppliers thereby giving the impression of a ‘corporate family’. Foreign investors consider these to be barriers to business in Japan but these are bonds of trust built over years. Even today women are not given the privilege to be the decision-makers in business, thereby suggesting that the Japanese society continues to be a high masculine society. The findings suggest that not much has changed in the Japanese society as far as the dimensions of national culture are concerned. To some extent individualism can be seen as women are going in for higher education. However, when it comes to managerial positions and decision-making power, the women have not been able to break the glass ceiling. This implies that the Japanese society is a male-dominated society. Besides, strong family ties and strong bonds with the organization create feelings of harmony. Decision-making still follows the hierarchical procedure and respect and modesty continue to prevail in the society. Long-term relationships are still valued and they believe in creating strong bonds not only with the employees but also with their suppliers and other business associates. References CIA Factbook. (2012). The World Factbook: Japan. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html Geert Hofstede. Retrieved from http://geert-hofstede.com/japan.html Ghimire, B. (2006). Doing business in Japan. Retrieved from http://internationalbusiness.suite101.com/article.cfm/businessinjapan Lee, Y., & Trim, P.R.J. (2008). The link between cultural value systems and strategic marketing: Unlocking the mindset of Japanese and South Korean managers. Cross Cultural Management: An International Journal, 15 (1), 62-80 Ralston, D.A., Holt, D.H., Terpstra, R.H., & Kai-Cheng, Y. (2008). The impact of national culture and economic ideology on managerial work values: a study of the United States, Russia, Japan, and China. Journal of International Business Studies. 39, 8-26 Stedham, Yvonne E., & Yamamura, Jeanne H. (2004). Measuring national culture: does gender matter? Women in Management Review. 19 (5), 233-243 Venture Japan, (2009). Japanese business culture. Retrieved from http://www.venturejapan.com/japanese-business-culture.htm CDA Media. (2012). Doing Business in Japan. Retrieved from http://www.worldbusinessculture.com/Business-in-Japan.html Read More