Economic Models - Convex Optimization

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Toward a Theory of Japanese Organizational Culture 143 MIVs and MAVs. Micro-values (MIVs) are composed of several factors (Kahle et al., 1988). These are: (1) the sense of belonging; (2) respect and recognition from others and (3) a sense of life accomplishments and (4) self-respect. Macro-values, according to the opinions of the executives of the Japanese, firms are religious values, habitual values, and moral values. There may be other MAVs, which are important for other nations like geography, racial origin, etc., but for the Japanese, these are not so important (Basu, 1999). Although moral and habitual values can be the results of religious values, it is better to separate out these three values as distinct. The moral and habitual values are different in Japan from other East Asian nations. Honor and “respect from others” are central to the Japanese psychology. Ritual suicides (Harakiri) are honorable acts for the Japanese, if they fail in some way to do their duty. Habitual values are extreme politeness on the surface, beautifications of everything, community spirit, and cleanness are unique in Japan, which are not followed in any other countries in Asia. This is particularly true if we examine certain MEVs, which are neither MIV nor MAV values, but are derived from the NC. It is possible to identify five different MEVs, which are important outcomes of the Japanese NC. These are discussed as follows: (a) Exclusivity or insider-outsider (Uchi-Soto in Japanese) psychology by which Japanese exclude anyone who is not an ethnic Japanese from social discourse; (It is different from color or religious exclusivities. For example, the Chinese or Koreans, who are living in Japan for centuries, are excluded from the Japanese social circles.) (b) Conformity or the doctrine of “nail that sticks up should be beaten down”(Deru Kuiwa Utareru in Japanese) — deviations from the mainstream norms are not tolerated; (c) Seniority system (Senpai-Kohai in Japanese) by which every junior must obey and show respects to the seniors; (d) Collectivism in decision-making process (“Hou-Ren-Sou” system in Japanese) and (e) Continuous improvements (Keizen in Japanese), which is the fundamental philosophy of the Japanese society. These MEVs are exclusively Japanese, a reflection of the unique Japanese culture (Basu, 1999; Nakane, 1970) and is fundamental to the Japanese organizations.

144 Victoria Miroshnik National culture construct along with the MEVs affect both the organizational culture construct (OR), HRM system and leadership styles (LS) constructs. Japanese OR construct is affected by the NC, MEVs, and the HRM system. The similarities in OCs in different companies are due to the similarities in NC and MEV; the differences are due mainly to the differences in HRM. In Japan human resource practices vary from one company to another and as a result, OCs and performances vary. In Toyota, it is very consistent and strong culture with great emphasis on discipline, Keizen, TQM and just in time (JIT) production-inventory system. In many other companies in Japan, situations are not the same; as a result, OC differs. Organizational culture is affected by the NC, MEVs, and HRM. If the company’s leader is also the founder, then only the leadership style (LS) can affect the HRM and OC. Otherwise, when the leaders are professional managers trained and grown up within the company (In Japan and in Japanese companies abroad, it is out of practice to accept an outsider for the executive positions. All executives enter the company after their graduation and stay until they retire), appropriate LCs are developed by the OC and HRM. Due to the collective decision-making process (Hou-Ren-Sou) leadership, a MEV in the model, cannot affect an organizational culture or the HRM system. It is very different from the Western (America, European, or Australian) companies where the leaders are hired from outside and are expected to be innovative regarding the OC and HRM system. This is quite alien to the Japanese culture. Leadership style in Japan is an outcome, not an independent variable as in the Western companies. Leadership style is affected by the NC, MEVs, OC, and the HRM. Organizational culture (OC) is affected by four factors, according to this proposed model. These factors are: (a) stability; (b) flexibility; (c) internal focus and (d) external focus (Cameron and Quinn, 1999). These factors are universal, not restricted to the Japanese companies. However, how an OC is being affected by NC, MEVs, and HRM would vary from country to country. Leadership style is a function of four factors. These factors are leader: (a) as a facilitator; (b) as an innovator; (c) as a technical expert and (d) as an effective competitor for rival firms (Cameron and Quinn, 1999). These four characteristics of a leader are universal, but the emphasis varies from country to country. Finally, the corporate performance (CP) is affected by a number of influencing factors: (a) customers’ satisfaction, (b) employees’ satisfaction

144 Victoria Miroshnik<br />

National culture construct along with the MEVs affect both the organizational<br />

culture construct (OR), HRM system and leadership styles (LS)<br />

constructs. Japanese OR construct is affected by the NC, MEVs, and the<br />

HRM system. The similarities in OCs in different companies are due to<br />

the similarities in NC and MEV; the differences are due mainly to the differences<br />

in HRM. In Japan human resource practices vary from one company<br />

to another and as a result, OCs and performances vary. In Toyota,<br />

it is very consistent and strong culture with great emphasis on discipline,<br />

Keizen, TQM and just in time (JIT) production-inventory system.<br />

In many other companies in Japan, situations are not the same; as a result,<br />

OC differs.<br />

Organizational culture is affected by the NC, MEVs, and HRM. If the<br />

company’s leader is also the founder, then only the leadership style (LS) can<br />

affect the HRM and OC. Otherwise, when the leaders are professional managers<br />

trained and grown up within the company (In Japan and in Japanese<br />

companies abroad, it is out of practice to accept an outsider for the executive<br />

positions. All executives enter the company after their graduation and<br />

stay until they retire), appropriate LCs are developed by the OC and HRM.<br />

Due to the collective decision-making process (Hou-Ren-Sou) leadership,<br />

a MEV in the model, cannot affect an organizational culture or the<br />

HRM system. It is very different from the Western (America, European,<br />

or Australian) companies where the leaders are hired from outside and are<br />

expected to be innovative regarding the OC and HRM system. This is quite<br />

alien to the Japanese culture. Leadership style in Japan is an outcome, not<br />

an independent variable as in the Western companies. Leadership style is<br />

affected by the NC, MEVs, OC, and the HRM.<br />

Organizational culture (OC) is affected by four factors, according to this<br />

proposed model. These factors are: (a) stability; (b) flexibility; (c) internal<br />

focus and (d) external focus (Cameron and Quinn, 1999). These factors are<br />

universal, not restricted to the Japanese companies. However, how an OC<br />

is being affected by NC, MEVs, and HRM would vary from country to<br />

country.<br />

Leadership style is a function of four factors. These factors are leader:<br />

(a) as a facilitator; (b) as an innovator; (c) as a technical expert and (d) as<br />

an effective competitor for rival firms (Cameron and Quinn, 1999). These<br />

four characteristics of a leader are universal, but the emphasis varies from<br />

country to country.<br />

Finally, the corporate performance (CP) is affected by a number of<br />

influencing factors: (a) customers’ satisfaction, (b) employees’ satisfaction

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