CH�NA VS JAPAN

East Asia enjoyed rapid economic growth and development

� In 1980/1990�s Japan was regarded as miracle economy and China as potential
superpower
� Economic success in that region is explained in culturalist terms, notably
through Confucian and Daoist teachings and the influence of Bing Fa, or war
strategies
? These philosophies have influenced management:
1. fundamental version of ren (heartedness/benevolence) within the organization
�workplace is family� widespread amongst Chinese organizations
2. Collectivsm and interdependent rational value. Confucianism: individual is not
an isolated entity. Therefore, concept of family is in work setting
3. The doctrine of harmony between yin and yang: harmonization in the workplace and
equilibrium
4. Bing Fa (war strategy) leads to strategic thinking and strategic management
5. Virtues and Qualities of leadership of Confucianism have been adopted by
managers. This means, that managerial leadership needs: mutual love, virtousness,
honesty and reciprocation, group belonging. (wisdom, trust, benevolence, courage
and strictness.) if managers lack these, low productivity, shortage of support.

Cultural and contextual factors in Japan

� Highly industrialized, a free market economy, one of world�s largest economy

� Unprecedented boom in economy between 1960-1990s, due to loyal and high skilled
labours and the protection of the Japanese island economy from foreign competitors
� Major industries include banking, insurance, real esatate, retailing,
transportation, construction telecommunications
� Leading MNCs particularly in the technology and machinery industry

Japanese Business System:

� Keiretsu: a large, integrated group of companies cooperating and working closely
with each other to provide goods and services to end user
� Bound together by cross ownership, long-term business dealings, interlocking
directorates, social ties
� Horizontal keiretsu: networks of related producers of (Mitsubushi..)
1. offers stable financing, insulating from market pressures, risk reduction
� Vertical keiretsu: integration of members of the supply chain and buyers into a
network fostered by the mother company (e.g. Toyota, Honda)
1. offers stable market products, possibility of technical, managerial or financial
assistance from core companies and may encourage innovation

Pillars of Japanese Employment

1. Lifetime Employment: core employees assumed to stay with the company for their
working lives-strong emphasis on internal labour markets
2. seniority-based wages: incremental pay according to time served
3. Enterprise Unionism: collaborative relations without external influence between
management and union representatives

HRM in Japan (HRM�dan bahsetmen gerekirse, bunlara de�in!)

Recruitment:
� Often direct from educational establishments, careful screening and socialization
Pay:
� seniority based and range of other benefits
Training and development:
� links with schools and universities- philosophy of company man- multi skilling,
flexible working teams
Just-in time production
Team work, flexible and responsive form of wor�