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Differences Between American and Japanese Management Systems

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Differences Between American and Japanese Management Systems
The interest in Japanese management systems arose from Japan’s productivity levels and production standards. In light of that, several business researchers sought to identify what factors made Japan a world leader in quality and productivity. The results of studies have highlighted critical differences in management and culture; these factors are most critical in explaining the stellar performance of Japanese companies.

The differences between the two systems of management are as clear as east versus west. Theorists like William Ouchi (Theory Z) and Peters and Waterman (Excellence theory) actually developed contemporary management theories based on these perceived differences. These theories helped American companies learn and apply some techniques, concepts and aspects of culture that affect business performance.

• Influence of theories

American and Japanese management systems have fundamentally different assumptions about workers. Peters and Waterman suggested that American management systems are based on the assumptions of Scientific Management, while the Japanese approach factors in a hybrid approach that accounts for human, technological and work elements. In terms of McGregor’s Theory X and Y, American management systems have a Theory X approach, while the Japanese management system has a Theory Y approach to workers. Theory X assumes that workers are unwilling to work and are economically motivated, while Theory Y assumes that they are motivated to work and seek rewards other than money.

• Individual versus collective culture

One of the differences in systems is the culture and style of management. The culture of Japan is identified as a collective one, whereas American society is typically individualistic. This affects the focus of managers, since a manager who behaves for the collective good has a fundamentally different view from one who is self-interested and concerned primarily about their own welfare. This difference often

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