Montclair State University

A s our economy continues to dive in recession and fresh news of job losses increases insecurity in peoples’ lives, the new waves of business graduates are beginning to show serious interest in learning about alternative models of doing business and managing human resources popular elsewhere in the world. Responding to that interest, The Center for International Business at the School of Business invited Dr. Jan Rudy, Director of MBA Programs at Comenius University in Bratislava, to offer an 8-lecture workshop series on Japanese business practices and Human Resource Management in March 2009.

Dr. Rudy’s week-long Workshop comprised of both undergraduate and graduate level discourses on Japanese corporate culture and HR management style. He not only addressed some fundamentals, but also delved into the strategies of Japanese approach to management. He noted that there is no miracle in Japan’s emergence as the second largest economy in the world. Instead it has been the outcome of some practical strategic decisions in the past. He elaborated by saying that “the Japanese know that their only resource is their educated workforce and they have used that resource quite wisely.”

He explained that while, compensation in the US is based on performance, in Japan, it is based on the combination of performance and years spent within a company. One’s seniority would be a bigger criterion for a promotion rather than performance during one fiscal year. He added by informing the students that the HR system in Japan places significant importance on the hierarchy of schools in Japan. The chances of getting a job in the best company depends on the type of school the candidate attended. In addition, instead of looking for a plethora of jobs and internships on the candidate’s resume as we would in the US, Japanese employers look for personal characteristics and flexibility. Someone who could fit in well with the company’s “vibe” and has the ability to wear different hats when need arises, would receive preference in the search process. The rationale for such preference is reflected in the practice of heavy rotation within the Japanese companies.

This of course, completely changes the career management and planning for job seekers in Japan. While switching from one job to another within the first 5 years of employment is considered a norm in the US, Japanese employers hire new graduates with a lifelong commitment for their respective companies. “In the US, people don’t have a problem leaving a company to go elsewhere,” Dr. Rudy noted. “However, in Japan, when one gets hired at his first job, he stays there for his entire working life.” Therefore, Japanese employers look for harmonization abilities in the candidate seeking to be a member of the company; someone who’s personal work ethics are similar to that of the company’s, who can simply follow company policy instead of questioning it.

This, in turn affects the Japanese working environment. Guided by the need to harmonize with the company culture and the pressure to accept and obey the company rules and policies, workers are not encouraged to develop their individual talents independent of the company guidelines. A lot of the time, one’s task highly depends on that of another. The production process is, thus, one long group project. This work place culture is rooted primarily in the ancient Japanese family system and the Confucian philosophical tradition. Everyone is dependent on everyone else to get a task done. If one person slips, the entire group takes the blame.

According to Dr. Rudy, the fact that the Japanese economy stands unharmed during the global crisis is not a coincidence. The concept of “lifetime employment” and the amalgamation of the Japanese history with current corporate practices have kept the Japanese economy afloat for years. He concludes by saying that “the Japanese corporate culture is a mix of the past, present and future decisions. It has brought about efficiency and never compromised on quality”. Dr. Rudy firmly believes that “Western scholars should study it.”