Whether the Japanese HRM Model Is Relevant to the Contemporary Business Environment - Essay Example

Japanese Model Introduction Human resource management has been regarded as a major ingredient with respect to facilitating for the success of most firms in Japan in global markets in the yearly 1980s. Various suggestions regarding the way in which Western managers could adopt HRM practices that Japan adopted were plentiful. However, after a decade, Japan witnessed a recession, which it has not managed to recover from fully. The series of HRM practices that Japan adopted are the major cause of the malaise (Aoki, 2000). The traditional HRM model in Japan is today being regarded as being in crisis, and should be subjected to change so as to boost the performance of Japanese companies. In this case, an individual may argue about the extent to which Japan should adopt Western management practices so as to boost its performance in the global marketplace (Sakikawa, 2012). This paper will evaluate whether the Japanese HRM model is relevant to the contemporary business environment. Discussion Japanese HRM Model The Japanese HRM model is characterized by information flow and collaboration that is dominated by the Japanese culture. Japanese people believe in getting their hands dirty to help them identify the prevailing problems and come up with relevant solutions to address the challenges, and the leaders are not exempted from this initiative. These principles are usually mistaken by most western managers who believe in micromanagement, which is an unprincipled and constant practice that interferes with the processes (Rowley & Benson, 2004). However, according to the Japanese society, these tools are essential in terms of shepherding the underlying processes. The decision making process according to the Japanese is aimed at providing an opportunity that fosters equal ranking among employees and managers in a particular group in order to incorporate the idea that an individual stipulates. This process rhymes with the Japanese culture that focuses on harmonizing people. The physical action that is attributed to the decision making process aims at creating an environment that offers support as well as an agreement for a decision in case a manager who is in a higher position accepts and recommends a particular decision (Ruysseveldt, 2004). The Japanese people believe in the ringi decision making process. This means that a person should submit a proposal to his or her supervisors, and await their feedback. Though the executive leadership does not define the corporate policy clearly, all the managers regardless of the levels that they occupy are supposed to raise their decisions that can allow them to reach the next level except in cases where they are supposed to make routine decisions (Rao, 2008). This practice is carried out through a process referred to as ringisho, which means that it should be created as well as be circulated by those individuals who have generated the idea. Since the ringisho practice is capable of reaching various peer reviews, the peers are supposed to place their personal seal to either agree or reject the idea in case they disagree with it. After the peers have undertaken a review on all the requirements of the ringisho, they should make their own opinions on how they perceive it. Those managers who make decisions on the upper level are the ones who make the final proposal, who then send it back to the originator. The originator is then supposed to initiate the idea that has been proposed or re-evaluate it based on the suggestions that have been made by the upper level managers (Briscoe & Briscoe, 2009). There are various leadership values that are attributed to the culture that the Japanese business culture adopts. These values are aimed at fostering for the deep care of the employees in an enterprise as if they are family members. For instance, most Japanese families believe that large businesses should help a society to prosper, and not just to focus on those people who own the enterprise (Harzing, 2007). Japanese Culture Guiding Principles There are various guiding principles that are driven by the Japanese HRM model. One of the major issues that the Japanese culture lays emphasis on is addressing the needs of the public. This means that enterprises should offer quality goods and services to the public at prices that they can afford in order to improve their overall wellbeing. Fairness and honesty are also among the practices that the Japanese society embarks on. In this case, businesses are supposed to ensure that they remain fair and honest in all their business dealings as well as personal conduct (Harzing, 2007). Also, the Japanese HRM model facilitates for teamwork in order to address a common cause. Here they are supposed to pool the abilities of individuals based on mutual respect and trust (Price, 2011). The Japanese HRM model also lays emphasis on uniting the efforts of employees in order to improve their personal and corporate performance. Additionally, the Japanese society lays emphasis on courtesy and humility. This means that managers should be modest and cordial in terms of respecting the rights as well as the needs of other people, and in accordance with the natural laws (Price, 2011). In this case, managers are supposed to create room for the nature laws as well as adjust to the conditions that prevail among them. Lastly, Japanese culture believes in gratitude in order to realize blessings. This illustrates that managers and employees should be grateful for all the blessing and kindness they receive. However, despite the prevalence of these principles, the Japanese HRM model is incapable of outdoing the dominant American and European HRM models (Pudelko, 2009). Japanese HRM Model versus Western Nations With regard to the adoption of Western HRM practices, Japan has converged upon them, and this trend seems to be irreversible. Though significant research has been carried out regarding this issue, there is little evidence that Japanese managers have knowledge about other places based on the views that they have towards cross-national practices. This is regarded as a serious omission since the adoption of such processes is practiced by managers as opposed to academic. Also, there is little empirical research that can help one to understand the judgments and perceptions with which adoption of decisions relies upon (Rao, 2008). With regard to HRM practices that Japan can learn from western nations, Germany and the USA serve as perfect examples. Japan, Germany and USA are among the largest economies across the globe. Germany and the USA represent the three major market economies, whereby Germany is regarded as the social market economy in Europe, while USA represents a free market economy among the Anglo-Saxon countries (Rowley & Benson, 2004). Additionally, Japan represents the third major variety of market economies that have been induced by the government in East Asia. Also, Japan, Germany and the USA are referred to as role models because they are capable of offering best practice ideals, which most societies in the world can borrow ad utilize. Consequently, the models that these countries adopt have been subjected to significant comparative analysis. This is because their growth and performance paths vary based on role of which society should be dominant, and also rotates among the three nations (Rao, 2008). For instance, between 1950s and 1960s, as well as most of the 1970s, the management style that the American society adopted was the dominant force as well as the expectation that most countries around the world adopted. During the late 1970s up to early 1990s, this concept was largely attributed to Japan, and to a lesser context the German society. After the explosion of the Japanese economy, the stagnated German society and the emergence of globalization, this conventional wisdom was attributed to the management model that was adopted by the American society up until the recent economic crisis (Briscoe & Briscoe, 2009). This is because it was capable of offering the appropriate flexibility that provided a suitable condition that would allow nations to cope with the evolving technological and economic conditions. As a result the US became the leading role model. The HRM model that is attributed to the Japanese economy is attributed to giving rise to the Japanese economy. This is especially the case during the 1980s. However, it is the same Japanese HRM model that has been celebrated by the West, since it reflected a role-model that they could learn from. Today, the Japanese HRM model is being treated as being outmoded, and that it is in need of significant reform (Rao, 2008). However, there are those groups that still continue to argue on its inherent strengths, and that significant change to the model would influence its effectiveness in a negative manner. Additionally, the Japanese HRM model is regarded as being unique yet very competitive with western countries. The key traits that have contributed to the uniqueness of the model is the unique institutional and cultural practices that the country practices (Sakikawa, 2012). Inefficiency of Japanese HRM Model With respect to the HRM concept there has been significant adieu over the past few years regarding the management practices between the East and the West. This comparison mostly targets the HRM practices in japan, which are regarded as being slow in terms of adaption to the widening global competitiveness, while compared to the US counterparts. Though optimists stipulate that Japan is indicating signs of caching up, experts stipulate that this comparison has been oversimplified (Sakikawa, 2012). For instance, with respect to a study carried out by University of Edinburgh Management School, the seniority principle with which the Japanese outmoded HRM model is regarded as waning from other principles, and is likely to continue in the coming years. For instance, in a study that was carried out by the University of Melbourne in 2002 stipulated that one out of four firms were undergoing transformation. This is an indication that the Japanese are somehow resistant to change, despite the advancements that are being realized in the modern global environment (Aoki, 2000). Though the study that was carried out by the University of Melbourne has raised questions on the challenges that lie ahead of most Japanese firms, they are being noted to adopt to performance-based compensation and promotion systems. Also, experts stipulate that regardless of the changes that are being realized in this area, they should reflect the Japanese culture. There also other people who stipulate that not only compensation and promotion address the market needs, but also the HRM model that the Japanese adopt. They are also uncertain on the specific HRM model in japan that should be subjected to change. Though it has been agreed that significant emphasis should be laid on performance as opposed to seniority, the HRM model should target improving the morale as well as competitiveness of firms in the region. However, little has been done with respect to revamping the prevailing Japanese HRM model (Pudelko, 2009). There is prevailing perception that most companies in japan are aiming to become like those that are based in japan. This is in an aim to allow them to survive in the prevailing global competitiveness. For instance, in a survey that was carried out in 2005 on Japanese and US firms, it was revealed that Japanese companies are more likely to hire members of staff who are in the mid of their careers, and those who come from out of the country. Additionally, they are more likely to offer financial incentives like in the case of those that their US counterparts offer (Briscoe & Briscoe, 2009). The missing component among Japanese companies, though they still continue to play a major role in strategizing and performance management is that their HRM models remains static while other organizations keep on changing their strategies from time to time. Conclusion The paper has revealed that the Japanese HRM model plays a crucial role in terms of influencing the HRM strategies that other global companies adopt. However, most companies in japan tend to stick to their traditional HRM models, which means that they tend to be static in terms of formulating new strategies that can allow them to compete effectively in the modern business environment. As a result, it is true that the Japanese HRM model is not capable of addressing the business needs of the contemporary business environment. References Aoki, M 2000, The Japanese Firm: The Sources of Competitive Strengths, Oxford University Press, London. Briscoe, D & Briscoe, D R 2009, International Human Resource Management, Routledge, New York. Harzing, A W 2007, HRM Practices in Subsidiaries of US, Japanese and German MNCs: Country of Origin, Localization or Dominance Effect, viewed 26 March 2014, . Johnson, O 2014, Japanese HRM is more than meets the eye, viewed 16 March 2014, . Price, A 2011, Human Resource Management, Cengage Learning, New York. Pudelko, M 2009, Japanese Human Resource Management: Insirations from Abroad and Current Trends of Change, viewed 16 March 2014, . Rao, P L 2008, International Human Resource Management: Text and Cases, Excel Books India, Mumbai. Rowley, C & Benson, J 2004, The Management of Human Resources in the Asia Pacific Region: Convergence Revisited, Routledge, New York. Ruysseveldt, V J 2004, International Human Resource Management, SAGE Publications, New York. Sakikawa, T 2012, Transforming Japanese Workplaces, Palgrave Macmillan, Tokyo. Read More