research paper-final

Human Resources Management in Japan

University of the Incarnate Word

Michael Martinez

Joshua Sladek

Alana Skinner

BMGT 6311 – Human Resources Management

February 24, 2010


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Table of Contents Country Profile ............................................................................................................................................. 3

Geography ................................................................................................................................................. 3

Population ................................................................................................................................................. 3

Government .............................................................................................................................................. 5

Economy ................................................................................................................................................... 6

Labor Force ............................................................................................................................................... 7

Industries................................................................................................................................................... 7

Military ..................................................................................................................................................... 7

Geert Hofstede’s Cultural Dimensions ..................................................................................................... 7

Power Distance Index (PDI) ................................................................................................................. 9

Individualism (IDV) ............................................................................................................................. 9

Masculinity (MAS) ............................................................................................................................... 9

Uncertainty Avoidance Index (UAI) .................................................................................................... 9

Long Term Orientation (LTO) .............................................................................................................. 9

Overview of Human Resources in Japan .................................................................................................... 10

Strategy & HR Planning ............................................................................................................................. 12

Recruitment & Careers, Employee Rights & Discipline ............................................................................ 13

Workplace Social Justice Issue ................................................................................................................... 13

Culture & International HR Management................................................................................................... 14

References ................................................................................................................................................... 15


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Country Profile

Geography

Japan is located in Eastern Asia between the North Pacific Ocean and the Sea of Japan. Its geographic

coordinates are 36 00 N and 138 00 E. The country’s total area is 377,915 square miles with land

representing 364,485 square miles and water 13,430 square miles. Japan’s area compares slightly with

that of California’s. The climate varies from tropical in the south to cool in the north, and the terrain

consists of mostly mountains. The lowest point is Hachiro-gata at -4m, and the highest is Mount Fuji at

3,776 m. Japan’s natural resources include minerals and fish. The country is also the largest importer of

coal and liquefied gas. Its land use can be broken down as follows: 11.64% arable land, 0.9% permanent

crops, and 87.6% other. Natural hazards include: active and dormant volcanoes, seismic occurrences,

typhoons, and tsunamis. A current environmental issue that the country is facing is air pollution, which

has resulted in acid rain and acidification of lakes and reservoirs.

Population

The country’s population is the tenth largest in the world and was estimated in 2009 at 127,078,679

people. The age structure can be broken down as follows: 0-14 years 13.5%, 15-64 years 64.3%, and 65

years and older 22.2%. The population growth rate is -0.191%, the birth rate is 7.64 births /1,000

population, and the death rate is 9.54/1,000 population. The infant mortality rate is 2.79 deaths /1,000

population. Life expectancy for the total population is 82.12 years--males at 78.8 years and females at

85.62 years. The total fertility rate is 1.21 children born per woman. In addition, 66% of the population

lives in an urban setting. The major ethnic groups include Japanese, which makes up 98.5% of the

population, Koreans 0.5%, Chinese 0.4%, and other 0.6%. Religion can be broken down as follows:

Shintoism 89.3%, Buddhism 71.4%, Christianity 2%, and other 7.8%. (See Figure 1). The dominant

language of the country is Japanese. Literacy is defined as meaning ages 15 and older can read and

represents 99% of the total population. The total school expectancy for males and females is 15 years.


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Government

The CIA World Fact Book describes Japan’s government as “a parliamentary government with a

constitutional monarchy.” Japan received its independence in 660 B.C. and the capital city is Tokyo.

The country’s constitution was written on May 3, 1947, and the legal system was modeled after European

civil laws, but included some English -American influences. The voting age in Japan is 20 years old. The

chief of state is Emperor Akihito, the head of government is Prime Minister Yukio Hatoyama, and Deputy

Prime Minister is Naoto Kan. In regards to elections in the executive branch, the monarch position is

hereditary, while the prime minister is designated. The leader of a majority party or leader of House of

Representatives usually becomes prime minister. The legislative branch is bicameral and consists of the

House of Councilors, which has 242 members that are elected for six-year terms and half that are re-

elected every three years. The House of Representatives has 480 members, who are elected for 4-year

terms. The prime minister has the right to dissolve the House of Representatives. The judicial branch

consists of the Supreme Court, and the monarch appoints the chief of justice. The major political parties

in Japan are as follows: the Japan Communist Party, Komeito, Liberal Democratic Party, People’s New

Party, Democratic Party of Japan, and the Social Democratic Party.

Figure 1. Major Religions of Japan.

83.90%

71.40%

2%7.80%

Shintoism Buddhism Christianity Other

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Major Religions

Major Religions


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Economy

The CIA World Fact Book states, “Japan is the third-largest economy in the world after the U.S. and

China.” After World War II, Japan became more technologically advanced, had close ties between

manufacturers, suppliers, and distributors, and had lifetime employment guarantee. However, now due

to globalization, these structures are changing. Japan’s industrial sector depends on imported raw

materials and fuel. Japan is also a major producer in rice and the fish industry; however, it imports about

60% of its food. Japan’s largest financial institution is Japan Post, which serves as a national postal

delivery system, bank, and insurance facility. Japan Post began being privatized in 2007, and was helping

improve structural reform until the Democratic Party of Japan halted the process. Two major issues for

Japan are its large government debt and the aging population. Japan’s GDP in 2009 was estimated to be

$4.141 trillion, while its GDP real growth rate was -5.7%. The country’s GDP per sector can be broken

down as follows: agriculture 1.6%, industry 23.1%, and services 75.4%. The country’s public debt in

2009 was estimated to be 192.1% of GDP, and inflation was -1.3%. According to the Economist (2010),

the Big Mac Index is based on purchasing power parity and compares the rates of a certain product (in

this case the McDonald’s Big Mac) across the world. Absolute purchasing power parity would exist when

products in differing countries would be equal when measured in the same currency. Figure 2 below

shows that the yen is undervalued by about 5%, while the dollar is overvalued by about 76%.

Figure 2. The Big Mac Index.


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Labor Force

The labor force is estimated to be around 65.07 million and ranked ninth in the world. The labor force

can be broken down as follows agriculture 4.4%, industry 27.9%, and services 66.4%. The

unemployment rate was estimated in 2009, to be around 5.6%. In regards to household income, the

lowest 10% represent 4.8% of the population, while the highest 10% account for 21.7% of the population.

Industries

The main agricultural products include: rice, sugar, beets, vegetables, fruit, pork, poultry, dairy products,

eggs, and fish. Japan is one of the largest producers of vehicles, electronics, ships, chemicals, and

processed foods. The industrial production growth rate in 2009 was -17%. In 2008, it was estimated that

Japan produces 133,100 barrels of oil per day and consumes 4.785 million barrels of oil per day. It was

also estimated in 2008 that the country exports 268,300 barrels of oil per day and imports 5.263 million

barrels of oil per day. Natural gas was estimated to be 5.36 billion cubic meters, and consumption was

101.1 billion cubic meters. Natural gas imports were also projected to be 95.39 billion cubic meters,

while exports were 0. In 2009, exports were estimated to be around $516.3 billion and included items

such as transport equipment, motor vehicles, semiconductors, electrical machinery, and chemicals. Major

export partners included United States 17.8%, China 16%, South Korea 7.6%, and Hong Kong 5.1%. (See

Table 1). The projections for 2009 for imports totaled $490.6 billion and included: machinery,

equipment, fuels, chemicals, textiles, and raw materials. The major import partners were China 18.9%,

United States 10.4%, Saudi Arabia 6.7%, Australia 6.2%, United Arab Emirates 6.1%, and Indonesia

4.3%. (See Table 2).

Table 1. Major Export Partners

United States 17.8%

China 16%

South Korea 7.6%

Hong Kong 5.1%

Table 2. Major Import Partners

China 18.9%

United States 10.4%

Saudi Arabia 6.7%

Australia 6.2%

United Arab Emirates 6.1%

Indonesia 4.3%

Military

The major military branches in Japan include the Japanese Ministry of Defense, Ground Self Defense

Force, Maritime Self-Defense Force, and the Air Self Defense Force. Military service is voluntary and

the required age is 18 years. Military expenditures account for 0.8% of GDP.

Geert Hofstede’s Cultural Dimensions

Geert Hofstede’s studies explain how values in the workplace are influenced by culture. Geert Hofstede

designates five fundamentals: the Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS),

Uncertainty Avoidance Index (UAI), and Long Term Orientation (LTO).


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Figure 3. Cultural Dimensions of Japan.

Figure 4. Cultural Dimensions of Asian Countries.

Figure 5. World Average of Cultural Dimensions.


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Power Distance Index (PDI)

The PDI explains how power is distributed unequally among organizations and the family. The PDI

states, “All societies are unequal, but some are more unequal than others.” (Geert Hofstede, 2009).

Figure 1 shows that Japan ranks 50% on the PDI, while figure 2 shows that Asian countries typically rank

60%. This conveys the idea that Japan is more equal with power than most Asian countries. Figure 3

shows that the world average PDI is slightly above 50%. It can be inferred that Japan’s PDI compares

similarly with the rest of the world.

Individualism (IDV)

The IDV dimension explains the concept that everyone is expected to look out for themselves and their

immediate family. Figure 1 shows that Japan’s IDV is 40%; while figure 2 shows that most Asian

countries have an IDV of 20%. By comparing both figures it is apparent that Japan focuses more on

embracing individualism, while most Asian countries strive for collectivism. Figure 3 shows that the

average IDV for the world is 40%, which explains that Japan is comparative with world on this

dimension.

Masculinity (MAS)

This cultural dimension refers to how gender plays a role in society. Figure 1 shows that Japan’s MAS is

90% and figure 2 shows that most Asian countries have a MAS of about 50%. It is apparent that in Japan

masculinity and power are highly valued. Japan’s MAS is significantly higher than most Asian countries

and alludes to the fact that women in this region are assertive and competitive. “The women in feminine

countries have the same modest, caring values as the men; in the masculine countries they are somewhat

assertive and competitive” (Geert Hofstede, 2009). Figure 3 shows that the average worldwide MAS is

close to 50% and Japan clearly surpasses it.

Uncertainty Avoidance Index (UAI)

UAI refers to how people behave in unstructured situations. Two types of culture fit into this dimension:

uncertainty avoiding cultures and accepting cultures. Figure 1 shows that Japan has a UAI of almost

90%; while figure 2 shows that most Asian countries have a UAI of 60%. Japan’s high UAI depicts that

the society tries to avoid uncertainty and has strict laws/rules. “People in uncertainty avoiding cultures

are also more emotional and motivated by inner nervous energy” (Geert Hofstede, 2009). Residents of

Japan have a more emotional culture than those in accepting cultures. Figure 3 shows that the world

average UAI is 60%, which is still relatively high.

Long Term Orientation (LTO)

LTO refers to values associated with long-term goals such as perseverance. Figure 1 shows that Japan

has an LTO of almost 80% and figure 2 conveys that most Asian countries have an LTO of almost 90%.

Even though Japan ranks slightly lower than most Asian countries it still has a high value for long-term

goals. Figure 3 depicts that the world’s average LTO is around 40%, which means on average people are

concerned about tradition and obligations.


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Overview of Human Resources in Japan The Japanese economy has grown to be the second largest national economy in the world. Japan can

largely attribute this success to its post World War II inception into the world economy as an infant

industry. This status gave Japan a virtual unlimited restriction in the free market until such time in the

future where it could stand on its own against national markets around the world. However, very little

attention is given to the Human Resources Management practices on Japan.

The Japanese Model for Human Resource Management is largely characterized by the institutional

concept referred to as Nenko. Nenko is a management approach based on merit, age based seniority

promotion, lifetime employment, and enterprise union. The Nenko system provides the necessary

conditions for long-term employment. Lifetime employment (shushinkoyo) is firmly embedded within

the firm where they select, grow, and develop their own, creating employee loyalty to the company. The

Japanese firms carefully select its workforce from young, inexperienced recruits hailing from prestigious

high schools and universities to make up its core workforce. Firm selection and recruitment of the

inexperienced workforce is based on the recruits adapting to the company culture rather than experience

or skill proficiency. Upon induction, new employees are placed through a specified development system

that involves skill development, job rotation, and instruction under the supervision of their immediate

supervisor. This on the job training is meant to foster teamwork, effective communication, and

information sharing. The firms expect its recruits to strive to continually develop themselves

professionally through in-house training and professional programs both inside and outside the company.

Indecently, new employees may have to seek outside development, such as specific skills requiring

certification credentials in such areas as health and safety that the firm is not equipped to provide. The

training process is mostly an individual process and at the discretion of the manager. Much of the process

is informal and takes place outside the regular training budget. The same training process is also used in

conjunction with employees in line for promotion (Salmon, 2004). From this process gives birth to the

Japanese mentor system sempai-kohai. The sempai-kohai system is something to be respected, because it

not only provides new employees with on the job training and a role model, but also establishes strong

personal bond between mentor and mentored. This strong bond and openness is not just limited to

business, but rather goes into the personal lives of both partners discussing subjects such as family and

personal experiences. Other characteristics of this relationship also extend to the fact that the two are

bonded to each other in terms of success and failure. If the mentor has good prospects for becoming a top

level executive the mentored will benefit from his mentors good fortune (Chen, 2004, pp. 159).

It can be seen that Japan places a lot of consideration and value towards its white-collar workforce,

nurturing what is called the “company man.” However, this impression leads to the claim of elitism and

“old boy” networking that is ill-suited to adapt to the changing human issues now being faced in today’s

business world. White-collar recruitment in Japan stresses generalist abilities over experience and

specific skill sets, such as computer programming or cyber security systems. As a result, this approach

has caused low growth and 70 percent of Japanese firms find themselves going outside the firm to hire

experienced mid-career workers who possess the specific transition skills that are need for new business

areas. This increased activity of pursuing outside talent is now causing alarm among the regular

workforce of Japanese firms. The Nenko system of lifetime job security and career development is being

questioned as the fear of layoffs, limited promotion opportunities, inter-worker competition and early

retirement’s rises. As Japanese firms continue to resort to implementing cost-cutting measures and

seeking new employee talent from the increasing workforce of part time, temporary and contractual

workers, the future of job security will continue to be in doubt for the core workforce of Japanese firms

(Salmon, 2004).

Seniority Promotion (nenko joretsu) is the merit in number of years an employee has served in the

company and shares a close relationship with the lifetime employment concept. The promotion system

starts when the employee is recruited and from this point at the employee’s age and length of service


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determines the appropriate level of promotion. The system was also enticing to prospective employees

since it offered an above average chance to become a section head (kacho) or department head (bucho).

The seniority promotion has its drawbacks as well; it challenges the notion of lifetime employment as

Japanese firms now have to face a workforce that is forced to retire later than the typical 55 to 60

retirement age, forcing firms to pay annual wage increases for additional years of service. Furthermore,

the younger generation is becoming impatient with the system forcing them to seek other means for

promotion by jumping to other companies, a practice now becoming more common than before. In

addition, this promotion system is creating an image of a firm that is less attractive to prospective

employees who are looking for a firm that appeals to the Japanese sense of job security (Chen, 2004, pp.

160).

Compensation in Japan is characterized by egalitarianism or equality. Income is spread around equally

creating a low degree of income inequality and a sense of common destiny. Depending on the size of the

company, Japanese CEO’s annual salaries range from $50,000 to $100,000, as compared to their

American counterparts, whose annual income exceeded $ 1 million dollars (Fortune, 19 March 1984).

The compensation system of Japan is one of the aspects of Japan’s management practices that

surprisingly has no negativity associated with it compared to others. One-third of the total compensation

is paid in the form of semi-annual bonuses which are distributed during the traditional gift-giving season;

a concept similar to the U.S. holiday bonuses. The advantages that bonuses render to a Japanese firm is

that it provides a large sum of working capital prior to issuing of bonuses, helps alleviate the burden of

retirement benefits and flexible payment system dependent upon company performance, and can be cut

back in the event of economic downturn. In addition, the compensation system has been an excellent

buffer for wage issues between management and unions. Japanese firms can lay off part-time and

temporary workers since they are not unionized. In result, bonus payments may be reduced, and

management will announce across-the-board executive wage cuts before negotiating with the unions on

additional employee wage reductions. Furthermore, the Japanese compensation system provides family

allowances, housing assistance, and separation pay, which reiterates the egalitarian ideology (Chen, 2004,

pp. 161-162).

The enterprise trade unions (kigyo-betsu kumiai) in Japan are not similar to typical unions in the United

States. The unions in Japan have an interdependent relationship with their companies and do not exist

separate of the company like the AFL/CIO or Teamsters. The unions consist of all white and blue collar

workers without regards to occupation or job status. Employees in low level management positions such

as assistant section leaders (kakaricho) are eligible to participate, as well, until they are promoted to

management positions and thus must quit the union. Japanese firms consider participation in union

leadership as a promising start towards future management positions. One in six senior executives of

major Japanese firms once held leadership positions within the unions. This interdependent relationship

provides a competitive advantage, in that, it links the success or failure of the company on the shoulders

of both union and company management. Unions are aware that their actions against the company can

effectively damage their own interests. This is why protests of unfair management practices are carried

out during lunch time or after work. Companies even provide office space within the company for unions

as means to promote effective communication between the two groups (Chen, 2004, pp. 161-162).

However, in recent years there has been a decline in union influence in Japan as expertise and

professional knowledge are becoming the new criteria for advancement. Moving toward rewarding

employees by ability and performance or lump sum wages instead of the fixed budget based on seniority

is another cause on the diminishing influence of the unions. As a result, Japanese unions are finding it

hard to fill its union leadership positions, as unemployment rose throughout the 1990s and reached a post-

war high of 5% in 2001. (Salmon, 2004).


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Strategy & HR Planning In 1995, Nikkeiren, a leading Employers Organization, published the “Japanese-style management for a

new era” that advocated a three-level classification of Japanese employment model. Long term

employees who make up the core workforce would comprise the tier one level of employment. The

second tier would consist of specialist and professional ability workforce that worked for a limited period.

The third tier was the flexible and unorganized workforce of part-time, temporary, contractual, unskilled,

and women workers. The theory behind this concept was that it would allow firms to maintain its lifetime

model with its core workforce, while still effectively able to draw from the talent pool of the second and

third tier labor force in times of adverse business conditions (Salmon, 2004). Chapter 33, The Dual

Theory of Human Resource Management and Business Performance: Lessons for HR Executives: The

Future of Human Resource Management argues a similar concept of labor issues in that a firm or

company should have a balanced labor force that incorporates a core and a periphery workforce to

achieve its objects and still maintain high work performance.

The diminishing prospects of promotion opportunities has forced Japanese management to move from a

single channel hierarchical approach to a structure that authorizes promotions based on work specialism

and professional expertise. An example can be seen in areas of research and development. Japanese

specialists in this field no longer need to worry about having to take a promotion that will take them

outside their realm of expertise. They are simply promoted to an equivalent management wage grade

while still continuing to develop their expertise. Another alternative is the creation of “ghost” positions.

Ghost positions are meant to promote long-serving employees during high levels of growth. An

employee is granted managerial status, but has no employees to supervise. It is way to satisfy the

importance of status in Japanese society (Salmon, 2004).

The wage system in Japan faces a lesser degree of pressure to change. The biggest change is the Japanese

switch from the traditional seniority based to a merit and performance based system. They are likely to

keep their biannual bonus packages since they give firms a greater competitive advantage. They are still

subject to a considerable amount of discretionary allocation by the firm based on individual performance

as well (Salmon, 2004).

Enterprise unionism influence in Japan is likely to continue to dwindle or even cease to exist as Japanese

firms continue to place emphasis on specialist and professional expertise, move into service sectors, and

see mid-level career workers move overseas for better promotional opportunities. Between 1977 to 1987,

the unionization rate in Japan decreased from 33.2 to 27.6 percent. What is currently preventing

increased unemployment in Japan is the judicial polices enacted in the past. The Labor Standard Law

requires that a 30-day notice or payment in lieu of notice is required to dismiss an employee. As well as

the Employment Insurance Law and the Employment Stabilization Fund that saw to avoid unemployment

by promoting job security and retention within the firm (Salmon, 2004).

The Japanese Human Resource Management style of merit, age based seniority promotion, lifetime

employment, and enterprise union is cause for difficulty in adjusting to the change of a new and diverse

labor market. As Japanese firms continue to emphasize the use of a more specialized labor force to

answer labor cost issues and move to a performance and ability based promotion and pay system, they are

likely to continue to struggle until such time when stronger adaptable solutions can be developed that will

appease both the ideology of Japanese job security and the firm’s goal of cost minimization and profit

maximization.


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Recruitment & Careers, Employee Rights & Discipline The culture and values of Japan construct a strong foundation in the recruiting process and run extremely

deep through the business environment. As previously mentioned, individuals are screened as early as

high school or college for recruitment, and the process can be elaborate. Japanese companies will usually

establish close connections to particular school networks. Informational events and seminars may also

take place at particular schools in order for companies to attract candidates. Remaining Candidates

remaining from a series of tests and interviews will engage in competition, only to have the top few

candidates end up being recruited.

As times progress, so do HR practices in Japan. While Japan continues to engage education networks, the

country also utilizes recruitment agencies, especially for executive search. Managerial experience and

leadership is important to Japanese companies maintaining success, and headhunting practices are able to

capture those aspects in individuals. Japanese companies will use other methods as well, and all of the

methods stem back to Japanese morals, such as trustworthiness, loyalty, and honor. It is important to note

that whatever the recruitment practice may be, there is no right or wrong way to recruit.

Much like the United States, Japan has a series of laws passed in order to protect employee’s rights at a

workplace. The following are some examples of labor laws of Japan:

Labor Relations Adjustment Act – the purpose of this act is to promote fair labor relations and to

prevent or settle labor disputes for the good of the economy and peace.

Defined Contribution Pension Law – the purpose of this law is to allow aged workers part of an

already birth rate declining country to receive pension payments provided by employer(s).

Employment Insurance Law – this law provides benefits to workers who are unemployed in

order to stabilize living of workers.

Minimum Wage Law – the purpose of this law is to guarantee a minimum amount of wages for

low-paid workers based on surrounding constraints.

Japan is obviously established and extremely sophisticated in their practices of disciple in the workplace.

Workplace Social Justice Issue Because of traditional Japanese standards, expectations are set high for workers in traditional Japanese

companies. And although workers’ rights are protected, that does not mean that workers do not fall

victim to the politics and social justice of Japanese culture and work ethic. “Those who quit a permanent

job at a Japanese company, for example, will be seen by some as untrustworthy (Gross & Minot, 2006).”

While this may not be a violation of any rights, it may present stigmas in the Japanese workplace.

Women also fall victim to workplace social injustices. “Very few women are able to make it to the

managerial level in Japan (about 9%), and they often seek out foreign companies in the expectation that

they will have better opportunity there (Gross & Minot, 2006).”

In 2008, a manager named Hiroshi Takano at a McDonald’s in Japan was denied overtime pay by the

company. Mr. Takano sued, won, and was awarded his wages. The company’s response to this was that

it would pay more overtime to store managers. This store manager is an example of the Japanese salary

men emerging from the bonds of loyalty workers were once bound to. “…A new generation of Japanese

like Mr. Takano is seeking to limit the demands of employers with more American-style legal protections.

These changing attitudes reflect a broader shift as Japan, Asia’s first high-growth success story, struggles

to mature into a postindustrial economy” (Fackler, 2008).


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Culture & International HR Management The Japanese workplace can best be described as a lifetime commitment. Venture Japan (2009) explains,

“A Japanese man and his family are socially ranked by the reputation of the company he works for and

the position and prospects he has there.” For example the same source explains that if a Japanese man

wants to marry a girl her family and her will want to be assured that he has a steady job and works for a

respectable company. Venture Japan (2009) states, “when a Japanese person applies to rent an apartment

in a respectable suburb, the landlord’s agent will want to know in detail which company the applicant

works for, how long he/she has worked there, how long the company has existed and what its revenues

and paid-in capital are. If two people are competing for a unit, the individual who works for the most

prestigious company will get the apartment. Also, if a Japanese person changes companies after renting

an apartment, he/she is obligated to inform the landlord. Last, when parents are looking for a good school

to enroll their children in factors such as father’s employer and length of employment will be considered.

Furthermore, it is not unusual for a Japanese employee to be hired after college and remain with the same

company until retirement. This leads to strong ties between co-workers, managers, companies, and

suppliers. Work hours are not centered on the typical 9-5 hour days, but are based on the amount of work

that needs to be completed. According to ELT News (2010), “Japanese take pride in the amount of hours

they work, and for most, work comes first, family second. Even their annual two-week holidays are often

forfeited because it would look like disloyalty to want to have a holiday from the company.” In the

Japanese culture, women are expected to be domestic and serve their families. Venture Japan (2009)

explains most women marry between the ages of 25-30 and leave their careers to raise children and stay at

home.

According to Venture Japan (2009), politeness and meeting manners are a key aspect of Japanese

business culture, which can mislead foreign executives. Venture Japan also explains that most business

meeting will follow this pattern, first a greeting by the initial contact and then being lead into a meeting

room, Japanese clients then enter the meeting room and exchange business cards, Japanese clients will

listen to your presentation and take a large amount of notes, and last will ask questions and leave you with

your initial contact. If the Japanese are interested in your product or service they will meet with you

again. While doing business in Japan one should know that business cards are extremely important,

should be printed in English on one side and Japanese on the other, should be accepted and given with

both hands, and should be treated with respect. Furthermore, “it is good Japanese business etiquette to

take lots of notes and many Japanese seldom shake hands” (Venture Japan, 2009).


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Chen, Min. (2004). Japanese Management Style: Asian Management Systems. Thomson Learning, 2nd Ed.

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http://www.eltnews.com/features/guide/2009/01/workplace.html.

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Focus.

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http://www.jil.go.jp/english/laborinfo/library/Laws.htm

http://www.venturejapan.com/japanese-business-etiquette.htm

http://www.venturejapan.com/japanese-business-culture.html

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