Management 335 Country Manager Training Paper
Management 335
Country Manager Training Module- Japan
Matt Hachey, Madison Brewer, Christie Charnetski
3/28/2013
Executive Summary
Japan prides its self on a hardworking, honest culture. Many individuals and businesses from around the world find Japan an attractive culture to work with because of their success in the global market place. It is said that they’re organized, dedicated and follow timely work ethics, these are some of the foundations to their success. Two common phrases that Japanese culture reflects are “war is work” and “live to work”.
These facts and figures on Japan will give you an idea on what the culture is like in Japan and how it positively affects their businesses.
Population: 127 million people
GDP: …show more content…
$5,069 billion
GDP per person: $40,000
Unemployment Rate: 5%
Adult Literacy: 99%
High School Diploma: 95% of population of old enough age
Obtaining and maintaining harmony is a key value in the Japanese Society. Harmony also referred to as Wa, in Japanese, is strongly emphasized in the Japanese corporate world. Managers and HR’s main responsibilities include sorting out any disputes or other issues that might get in the way of harmony between people. They strongly believe that the best work and success comes from situations where everyone works together and does not let disputes get in the way of work.
Due to the importance of harmony in the Japanese society, being indirect and opinionated in feedback and conversation is not considered rude, but polite. Being less critical and linear when giving your opinion or feedback avoids unnecessary disruption of harmony. It is best to generally avoid the word ‘no’, and try and use less direct ways of expressing your differences.
Their attitude towards work is different from the United States’, but it works. They work until the job gets done and rarely take time off. Due to this their co-workers become family and respect is of the utmost importance. As a business person traveling to Japan it is of paramount importance to be respectful of superiors in the workplace, as well as anyone else you plan on doing business with. Without respect you have no business in the Japanese corporate environment.
Their perspective on time differs from the United States style but that reflects from what they consider to be important, they are very punctual and strongly believe in making the most of time. It is expected that you meet deadlines, make it to meetings and other events cordially and always be cautious of not wasting time. They may take more time, but adjustments will need to be made to deal with that, Japanese are comfortable with that style and they do their best work following that structure. The pursuit of perfection is important to Japanese workers and realizing that fact and showing consideration for every task will make Japanese workers respect you more. Taking these tasks as well as the ones that follow and implementing them into your business trip to Japan will supply you will all tools to seal the deal. And remember, that Japanese companies look to work with past successful business partners so following these tips are very important.
Country Culture
Dress
The general dress in Japan is formal. Business workers are more or less required to wear a gray, black or navy neutral suit to work. Workers are expected to be clean-shaven with an appropriate hairstyle. Tattoos and piecing are views as unacceptable and must be hidden during the workday. In the summer business workers are allowed to dress down due to the hot weather but still must look presentable and professional. You must not take of your jacket in any situation unless directed to do so. People in the service industry like taxi drivers, store clerks and secretaries are also required to dress formally if they do not wear a required uniform.
Food
Japanese view breakfast as the most important meal of the day. Breakfast in Japan consists of more than just cereal. Rice, fried eggs, green tea, pickles, fish and soups are a common choice for Japanese. Lunch in the business world is considered to be a light meal. Many business workers will eat a bento box, which consists of rice and a meat quickly at their desk. Dinner is more formal and is the time where clients are treated to a meal. Japanese enjoy snacking on nut and other snacks throughout the day and while drinking.
Dining Protocols
Learn how to use chopsticks
When a side or dish is shared, serving utensils will not be provided. Eat people sharing should use their own chopsticks
Always leave a little bit of food on your plate to indicate you have eaten enough.
Rice is to be eaten plain without condiments like soy sauce
Conversation is normally limited during meal time
All courses are served at once
Bring bowl to mouth when eating rice and shovel it in using the chopsticks.
Never stick your chopsticks in the bowl of rice, plate them on top of bowl
When done your meal, place your chopsticks together at an angle across your plate.
At the beginning of the meal you must say, Ita daki masu, which means (I will eat with gratitude) and at the end you must say, Gochiso sama, (it has been a feast).
Business related guest are normally treated to more expensive meals. A Ryotie is where high end Japanese food is served with live traditional music being played. A Setti is a less expensive dining experience, which is like a banquette. This is normally for out of town guests and also may include live entertainment and site seeing or other activities. Karaoke is often performed at dinners and it is considered disrespectful if you turn down your chance to sing. Sushi bars are also used to entertain for less formal events but is considered more of a luxury that in the US. Noodle bars are also very popular for both dining and snacks. Noodle bars consist of hot broth, ramen noodles with a choice of meats, vegetables and or seasonings. MacDonald’s and KFC are both a popular chain for both locals and visitors to visit. One addition to the menu is burger with a fried egg in top.
Greetings
Japanese are generally preserved unaggressive, personal people. When you introduce yourself to someone that does not begin your trust with him or her, they must get to know you much better in a distant way before starting to gain your trust. It is better to get a mutual member to introduce the individuals or group. Japanese many times hire a formal introducer called a Shkainin. These people make their living by introducing different business people and making new connections by constantly networking. Both the Japanese and American Chamber of Commerce’s will help you find an introducer.
Apologies
I Apologize (Sumimasen)
Apology Letter (Shimatsu Sho)
Japanese always strive from harmony with one another. Harmony is referred to as Wa. To remain at Wa you will find Japanese apologizing a lot, even for small incidences. Japanese repeat their words to stress their importance, so you will hear sorry being repeated many times during an apology. Letters are frequently sent whenever tensions build in a situation or relationship; for example, if you get in a disagreement during a meeting, one would normally send a letter expressing their apology for the disagreement. Even if you get in a car crash and the police are called, the individual will send a letter to the police apologizing for the time they wasted him or her.
Responses
Polite restraint- When you are offered something like a tea or beverage, the correct answer to reply with is No thank you. This shows that you are not being needy or greedy. Enro means to hold back. It is normal that they will keep asking you the same question, “are you sure you would not like a drink”. After a few refusals it then becomes ok to say Yes Please. If you are gathered with a group of people from different cultural backgrounds, you will find that the Japanese hold their words back. They are taught in their culture to never dominate a conversation, so don’t think they are being shy or are uninterested. When they do respond to a question or conversation, many times they will say, maybe, perhaps or I think in order not to sound to dominating.
Conversational Feedback- Japanese will nod or say “yes” when replying to someone in agreement. When the individual says ‘I See’, this means that they are actively listening, but not always does it mean that they clearly understand. Silence as a response tends to indicate disagreement or confusion. Because Japanese are always in the search for perfection, they might pause and carefully think about their response. It is rude to push for an immediate response. This goes for personal conversations or emails.
Gestures
Pointing is considered very rude and insulting
Pointing is done with whole hand
To indicate yourself place first finger on nose
Also means come here
Use open palm to indicate a chart or object
Putting index finger on nose means “I’ll do it” or “come here”
Sucking in of air means disagreement or you unsatisfied
Waving vertical hand means “excuse me”
Companies have their own internal gestures that mean different things
Customs
In Japan, the culture is ‘live-to-work’. Dating back to post war time, that was the way of live. They had to make money somehow, either exporting or competing in international markets in order to make a living. This is where the dedication and strong work ethic to their job stems from. Businessmen view the survival and success of their company to be a bigger reward then profit and the money they make. They work hard for their country and not mainly for themselves. Their constant search for perfection is exemplified in their strong work ethics.
“…people are always under the impression that the enemy is strong, and so tend to become cautious, but if you have good soldiers, and if you understand the principles of strategy… there is nothing to worry about.”
They also strongly believe that everyone can be successful if they have strong determination and will in what they do. It is expected that everyone can learn to successful if you give it you all.
Japanese are considered to be very slow in making decisions and getting work done because of their constant search for perfection. Japanese follow the “zero default” rule, which words their search for 100% perfection in everything they do. They are always looking for ways to improve things to always make them better; they are afraid of failure. If they are analyzing A, B, C & D, they are going to go further into research and analyze E, F & G as well. Kids are taught at a young age to pay attention to concern for detail.
The Japanese are known to always meet deadlines, as well as always being on time to meetings or appointments. In contrast, they are always striving for perfection so they tend to be slow and precise when coming to decision-making. Japanese frown upon people who choose to waste time. They are considered polychromic, as they believe that there is always time for perfection. They are always following a well thought out schedule in total detail. If invited to even a casual dinner, it is considered very rude to cancel as Japanese take their schedules very seriously. The biggest mistake you can make with the Japanese is being impatient.
Tips when working with the Japanese-
Work Hard
Indicate loyalty
Brag less
Be less linear
Less Critical
More socializing and networking
Less praise
Be patient
Do not come on strong
Never interrupt
Respect hierarchy
Pay attention to Detail
Never say No
Loyalty
Apologetic
Country Cultural Dimensions When looking at Hofstede’s Cultural Dimensions, it makes for simple comparisons to American styles of work, knowing Japan’s cultural dimensions though is important to gain knowledge about how the Japanese work and live.
In regards to Power Distance, Japan has a moderate rating. Seniority and hierarchy are recognized within Japanese companies but they also consider the opinions of all of their workers, regardless of rank. They consider their co-workers to be almost on the same level of importance as their families. It is important for a manager to have positive relationships with all people working under them. Individuality in Japan is low, many workers look to fit into a group and look for guidance from higher ups within their companies. Companies in Japan are an extension of a worker’s family so bonds within those companies often consist of similar types of people working together. Masculinity is Japan is their highest rating on the Hofstede’s model mainly because males are considered to be the breadwinners in Japanese families. Japanese workers tend to “live to work” versus “work to live” and emotion is always left out of the workplace. Showing emotion in an office setting can be seen as a sign of weakness and thus males try to appear strong willed and confident at all times. Japanese are often described as workaholics and go through extensive training and long hours to get the job done, and a majority of the Japanese workforce is male, especially in an office …show more content…
setting. Uncertainty avoidance also has a high score in terms of Japan’s culture. The Japanese prefer a very structured, regulated workplace and sometimes struggle when unexpected obstacles arise. Once they find an effective way of doing something, they like to stick to that process and try not to stray too far away from what they are accustomed to. Japanese managers are required to follow protocol and guidelines and if an obstacle arises then they should ask for assistance before proceeding. Japanese typically have a long term orientation, meaning they are looking at the big picture far ahead than just the immediate future. Companies will make plans that lay out three years of more of detailed expectations and protocol to be followed. The idea of lifetime employment at one company makes this more possible because workers aren’t expecting to move elsewhere, and managers know that they can take their time will drawn out plans. The Japanese prefer this because it encourages workers to always be working towards a long term goal and not worrying about short term successes. Pride, morals, and respect are preached often in Japanese culture and they show throughout dimensions as well. Being able to recognize these differences compared to American’s style of working can make for effective transitioning to a Japanese company and build relationships too (Hofstede Cultural Dimension of Japan, 2012).
When looking at Japan’s management styles in terms of Tropenaar’s seven cultural dimensions, it is clear to see that Japan’s styles versus American styles differ. Japan’s style focuses heavily on building relationships which would make them more towards a particularistic style versus universal. They tend to make decisions using emotion and taking time to consider how all people will be affected. Relating to the first dimension the Japanese are highly communitarianism, they tend to put the group aspect first and do not particularly favor roles in the workplace. They typically follow structure and don’t stray too far from cultural norms. The Japanese are more of a diffused culture versus being specific. They take into consideration past relationships and like to build on those, using respect is essential in business dealing. They are personable with their co-workers and consider the people they work with to be like family. Japanese manage their emotions effectively making them a more neutral culture system versus being emotional. They tend to leave emotion out of their business decisions and almost never show emotion in the workplace, it can actually be seen as weakness to show emotion in an office setting. Japanese value position making them an ascription culture versus achievement culture. People are expected to show the highest levels of respect to their superiors and position is seen as a level of power and knowledge. Regardless of position though, respect is expected to be shown on all levels. Japanese are a synchronous culture in that they consider time to be important, meetings are expected to be met, and often working on several projects at once too. They do take a longer term look at projects, considering long term goals over short term gains. The Japanese tend to be more of an outer direction culture versus inner direction. They expect to be focus on their actions, and avoid conflict to save face and not build a negative image towards them. They believe in being responsible for your actions and paying a price at a later time if acting poorly, respect again is the most important factor for the Japanese and going away from that is completely frowned upon in Japanese Culture (Mind Tools).
Business & Management Practices
HR Practices
Human resource practices revolve widely around the long term employment practice in Japan. While having a dependable team in a company is great, it also can lead to a static work environment where workers can struggle to find motivation. Promotions are rare in Japan due to the fact that most raises come from being at a company for a long time, not basing promotions on performance which is the way of doing things in the United States. It also has advantages though; these companies can keep their talent in-house and mold employees to specific positions that they can grow into during years of employment. Typically in Japan you work more when you’re young and get paid laid, and the opposite as you age you work less and make more. This seniority/age based system is the standard but even some Japanese companies are moving towards a more western style of promotion from performance. Much of the training a worker will receive in their lifetime will be through their company, they will learn everything they need on the job, unlike in America where college degrees typically are a worker’s training and stepping stones in the work force (HR Central, 2010).
Visa Policies
To travel to Japan you do not need to obtain a visa, simply a passport will gain you entrance. If you plan on staying in Japan for more than 90 days you will need to acquire a work or general visa. Students are considered for general visas, but most other professional jobs will require a working visa if planning on being in the country for more than 90 days as previously noted (MOFA, 2013). Fees for a visa are in the $500 range but can be more expensive depending on the reasoning for travel into Japan. Business trips will require a work visa, and those need to be applied for at a Japanese Embassy (MOFA, 2013).
Vacation Policies
Vacation days in Japan are rare, in fact Japanese workers take the fewest amount of vacation days worldwide (Japan Vacation Days, 2010). This relates back to the mindset that Japanese workers live to work, they are extremely hard working and don’t really see the justification in taking days off while they can be working instead. They often take pride in working consistently through a year and enjoy spending time with their co-workers out of office too. They are permitted fifteen days of paid vacation but typically only take about seven. Sick days are often not tolerated and many times if a worker is sick, they will need to use a vacation day of theirs to stay home. True sick days are only recognized for long term illnesses and usually require hospitalization to be accepted as well as doctor’s notice and approval.
Holidays
Japanese holidays do as expected clash with American holidays. Like America though, New Year’s Day is recognized on the 1st of January but many of Japan’s businesses will stay closed through the 3rd of January (Facts About Japan, 2013). Golden Week in Japan consists of four national holidays of Japan in a seven day span. The four holidays are Showa Day (April 29), Constitution Day (May 3), Greenery Day (May 4), and Children’s Day (May 5). Tourists flood the country during that week and most businesses do shut up, although some stay open if the holidays fall on typical work days (Doing Business in Japan, 2002). Obon occurs in mid-August and is considered one of the busiest holiday seasons in Japan along with Golden Week and New Year’s week. Obon is a Buddhist even commemorating one’s ancestors.
Business Language vs. Interpreters
When conducting business in Japan it is very important to understand their business culture language and hire interpreters.
Understanding the business culture in Japan is a must before traveling abroad. The Japanese find a handshake appropriate upon meeting. The handshake can be limp with little to no eye contact; staring is considered very rude. Along with a handshake a bow shows respect they will appreciate this and consider you respectful. The Japanese also similarly to Americans enjoy their personal space they do not like being touched. Lastly you must always be on time or earlier, punctuality is a must! When conducting business in Japan you must hire an interpreter. There are many benefits to having an interpreter such as allowing yourself to be able to speak your native language and most importantly you avoid costly misunderstandings that can not only hurt your business but your reputation. "Language is one of the common issues most Americans encounter when doing business in Japan. Do not expect to have a business meeting in English. Although English is spoken in many countries, it is not the case in Japan. You will rely heavily on an interpreter" (Ostrowski,
2011).
Useful Phrases
Ohayogozaimasu - Good morning (before 10:00am)
Konnichiwa - Good day (10:00am to 6:00pm)
Kombanwa - Good evening (after 6:00pm)
Hajimemashite - Hello, I am pleased to make your acquaintance (used only the first time you meet someone)
Watashi no namae wa Smith desu - My name is Smith (formal)
Smith desu – I am Smith (informal)
Domo arigato gozaimasu - Thank you
Onegaishimasu - If you please
Sumimasen - Excuse me
Meeting Management
When doing business in Japan, many of a person’s interactions will take place in a business meeting. Meetings are meant to be formal and Japanese meeting etiquette differs from styles from other Asian countries. Respect and preparedness are huge factors when meeting in Japan, natives will expect that you are respectful of their behaviors, and not doing so could result in loss of partnership for your company. A meeting in Japan will begin with the exchange of business cards which is a ritual called meishi kokan (Rocha). When you receive the Japanese workers business card you are expected to read all information carefully, repeat it aloud, and then place it in front of where you are seated in order to reference it if needed during the meeting. Never place the business card in your pocket or wallet since that is considered a huge sign of disrespect. Doing this shows that you value not just the result of the meeting, but you value the people you are interacting with and are looking to build the relationship. When handing out your own business card it is polite to bow slightly and place the Japanese side of your own card (Japanese translation should be on opposite of English side) facing up to the recipient. Along with having your hosts business cards in front of you on the table, it is also acceptable to have a note pad for recording notes which shows interest in learning. The seating arrangement within a Japanese meeting will be determined by the status of the people within. As a guest you will likely be directed where to sit, and it is rude to pick your own seat. Typically the highest ranking member within the meeting will seat at the head of the table, with the most senior members of a team sitting closest and digressing further away from the head member (Doing Business in Japan, 2002). When the meeting is underway it is proper to wait to be called upon when speaking your opinion, do not just speak out. If a superior is speaking, you will be expected to give them your utmost attention and do not interrupt. Superiors speak first and then also speak when they desire, their opinions are expected to be heard entirely and will not take interjections from others. When speaking, speak in a direct, even leveled tone and try to leave emotional tones out of your speaking (Doing Business in Japan, 2002). Gift giving is pretty common in Japanese meetings and you will likely receive a small gift from the host. It is acceptable for you to return the gesture by giving them a gift as well. To impress your hosts most, wrap your gift, particularly in a pastel colored paper (Kwintessential). Gifts do not need to be expensive; a box of chocolates or cake is acceptable as well as flowers. Flowers need to be chosen carefully though; lilies, camellias, lotus blossoms, and any white flowers are associated with funerals. Potted flowers are also typically linked to sickness although Bonsai plants are ok. Gifts should also be giving in odd numbers, but not in groups of nine (Kwintessential). Initially a Japanese company may give you a small amount of business as a trial run to see if you can be trusted and depended on, and after that a more significant business relationship may evolve.
Business Negotiations Japanese business types are well known for their negotiating abilities, and their styles differ from American practices. Japanese companies will do everything within their power to “save face” which is probably the most significant factor for all Japanese business employees. Japanese will never try to embarrass or insult a colleague by tricking them or confusing them while in negotiation, they will treat every negotiation with the highest level of respect (Doing Business in Japan, 2002). Saving face relates to Japanese wanting to always represent their company at the highest level of respect since they believe in building a strong company over being independently successful. While hierarchy matters within Japanese companies, a solid complete company from top to bottom is more important. They consider respect to be paramount and confrontational behaviors will never occur from their end, and they won’t be tolerated from guests either. Compared to American negotiations, Japanese negotiations will have much more silence and those periods are usually viewed as time of consideration and thought. Many questions will be asked as a way to gain information and insight from potential partners (Jackson, 2006). They will ask many questions but it is often hard to get answers from them in return, it is ideal to ask the Japanese questions in the form of a yes or no question. Doing so will allow for a definite answer versus getting minimal details from another question. Try to get a “yes” answer in particular because they have a difficult time saying “no” and will often word their answers with terms like “it will be considered” or “possibly” instead of giving a definitive no. In reality though if one of those terms is given then it is likely their way of politely rejecting. Not having an interpreter can make negotiation even harder, very few Japanese speak English and it would be a good idea to bring a translator with you to a negotiation as to not mix up answers or terms of an agreement (Jackson, 2006). Coming to an agreement will likely only happen after a consensus decision has been made by the entire Japanese group. They will take in considerations and thoughts from all members of their team before deciding to go forth or not. As previously noted silence is not a bad thing and will likely happen at the negotiation table. Some Japanese workers will even close their eyes at the table to envision certain things and focus on what they are dealing with (Kwintessential). A written contract will be required for a business agreement but the agreement may be broad in order to keep flexibility within. That may be frustrating since many American companies like to leave no stone left unturned, taking away any possibility of later changes or alteration. Having a Japanese lawyer present at the negotiation and contract agreement will be seen as a respectful gesture, but having an American lawyer present is essential since the two lawyer types are very different (Kwintessential).
Decision Making & Communication As previously discussed, the Japanese prefer a consensus style of decision making. Personal relationships are honored highly within a Japanese company and consider credibility and respect during decision making (Barton). They try to build long term relationships and will take past workings into consideration when deciding whether to collaborate again. The decision making process of choice is the consensus style which is known as the ringi system (Barton). A proposal may be presented by a middle manager or be brought up by top level executives. The proposal will then be sent out to all levels or departments being affected by the future decision and opinions will be taken in from all levels. After all options are considered and heard out then a final decision will be made. Never will a singular person make a decision for a company, not even a company’s owner. The decisions are based on long term sustainability and growth for the entire company (Barton). As far as communication goes, Japanese companies base many of their decisions of on past relationships and how comfortable they are with the prospective partner. If a company had successful past workings then Japanese workers will feel that they can trust, respect and continue to communicate and work with those groups. Japanese appreciate being reached out to even when not doing business at a specific time, particularly using greeting cards or personalized messages can build a strong bond with a Japanese worker (Kwintessential). When contacted by a Japanese worker or company it is essential to give a fast response. Delaying in response will be seen as a sign of disrespect and loss of interest, therefore giving the impression that business does not need to be done. In meetings or when out to eat with Japanese employees then may ask very direct questions such as “How much money do you make?” To Americans that may seem forward but it is normal for Japanese to do so, so you must be prepared to answer and do not avoid answering as that may be seen as disrespectful and deceptive.
Addressing Co-Workers or Superiors As has been noted multiple times already, Japanese business is all about respect. How one interacts with co-workers or superiors within a company is directly related to the hierarchy levels of respect. Age and status are the primary factors of hierarchy, whether it is in family life or in a business setting. The oldest member of a group is respected the most and looked upon as a leader. While in America a person’s skills usually define hierarchy, Japan is strictly based on age and time within a company. Disobeying the hierarchy is almost unheard of with Japanese companies because respect for elders is preached and taught from a very young age and followed all the way through a person’s career. Workers in Japan are hired into a company for life and are expected to start at the bottom and build their career within the company as years pass (Barton). As discussed in meeting etiquette, workers are expected to yield their opinion to superior’s opinions first. Workers are expected to be called upon by superiors and only expected to talk when given permission. Speaking out of turn is not tolerated and is one of the most disrespectful things that can be done. When greeting superiors you are to bow, the lower one bows, the more respect they are said to have for that person. When preparing to sit during a meeting you should be instructed when to do so by the top level position in the room, and upon the meeting ending you should not stand until the highest position stands. Addressing co-workers or superiors in Japan is always based on respect, if you show respect towards all, then you will likely be respected in return. Hearing our each person completely and also responding thoroughly to all you are working with is key to building strong relationships. Since many Japanese companies have the same employees for many years it is useful to make bonds early and build upon those relationships for future partnerships. The hierarchy should be respected both in office and out of office, never feel as though you may lower your formalness with higher-ups just because you are not in a formal office setting.
Business Etiquette
The Bow
It is important that you perfect and take the bowing procedure very seriously. The head is nodded minimally and lowered while the torso learns forward. Bows are even expected while on the phone. People with high power bow less deeply than a person with lower rank. Men bow with their hand flat on the sides of each thigh and women hold their hands together in front of them. Bow slightly to the right to ensure you do not bump heads with the person in front of you. Sometimes Japanese will shake hands with westerns nut it is considered rude to create eye contact.
Business Card Etiquette
This is considered the first part of formal introductions. In Japan the exchange of business cards is done very frequently and considered rude if not done. The exchange of business cards is done as a step towards creating a personal relationship in business. One must always exchange a business card if one is given to you. In order to give a business card, you must turn it so its facing the other person and present with 2 hands. Upon receiving the business card, you must accept with two hands out of respect.
Card Expectations
Must be of good quality to reflect on owners
Must be stored in a card case in your hand bag or front pant pocket
Card should never be folded or defaced
Name of company comes first, then title, then the person’s name
Travel Advice Doing business in a foreign country can be confusing, but knowing where to go and having some preparedness before landing in a country can surely help. Japan has 98 airports, ranging in size from very small privately owned ones to international hubs, serving all airlines and route plans. The two primary airports are Tokyo International Airport and Narita International Airport (Japan Airports). Osaka and Kansai International are two other larger airports in Japan that bring in many flights to the Tokyo area. Like most international travel, a valid passport is needed for entry into Japan as well as a work visa if staying in Japan for more than 90 days. Taxi service and public transport via subway or other rail service is readily available in Japan. In most cases public transport is more than sufficient since they will allow you to travel through the large cities easiest, without worrying about parking or traffic if using rail service. If you need to rent a car in Japan there are some requirements. First off you need to be 18, the minimum driving age in Japan, as well as having a Japanese driver’s license or an International Driving Permit (IDP) (Car Rental in Japan). If you know you will be driving in Japan you will need to acquire an IDP in your home country because they are not available in Japan. The main rental companies in Japan use Toyota, Nippon, Mazda, and Nissan. They are significantly smaller than a typical vehicle of the US, but use the same gasoline and will feel the same as a US vehicle. Parking within Japan’s major cities is extremely expensive and often difficult to find. They have elevator lots which allow cars to be parked in towers but still charge a large fee for hourly parking (Car Rental in Japan). For that reason most tourists or business travelers tend to use public transport to avoid the troubles that come with having a car in a highly populated city. The currency used in Japan is the Yen, 1 Yen converts to about 1 cent in American money. There is no limit as to how much money may be brought into or out of Japan but if 1,000,000 is moved then a customs declaration needs to be made (Japan National Tourism Organization, 2013). Yen can be exchanged from dollars at foreign exchange banks, among other currency exchangers. At the airports there are exchange booths that typically operate only during business hours, so if arriving at a odd time then it may be difficult to exchange your American money. Within the major cities credit and debit cards will likely be accepted, as well as traveler’s checks. If traveling out of the major cities it is unlikely that anything except physical Yen will be accepted. ATMs are available but American ATMs such as Citibank are sometimes difficult to locate, Japan Post Bank and Seven Bank are more likely options for taking out money. ATMs can be found at post offices, as well as train stations and food markets (Japan National Tourism Organization, 2013). Where to stay in Japan can be a burden as well, mainly because there are so many options for accommodations. There is variety within Japan; some hotels are styled with Japanese functions while some are styled after western inspired hotels like the ones in America (Kwintessential). In some cases travelers may stay in locations that are actually full houses or apartments for their stay, to give them space and the feeling of being at their own home. These will typically have modern furniture that can be adjusted to by many cultures that travel to Japan. The western style hotels in Japan are usually modeled after those of the hotels in America, having a simple set up that is expected of American travelers, and similar to any city hotel of the states. Those are usually run by chains, either being a Japanese chain or one of the many international hotel chains that have set a location in Japan to cater to travelers. Another option, although not usually utilized by business types are hostels or dormitories. They cater to very low budget levels but still allow for a space to sleep and a location to feel safe (Kwintessential). While often times a business traveler may have an extended stay, there are options for weekly or monthly apartment rentals. These rentals are usually very inexpensive since they are trying to keep the visitor under their roof for as long as possible, even if just for an extended business stay. Dining out with business partners is a popular activity for Japanese companies. Refusing or rejecting an offer to go out for food or drinks is considered very rude and can even kill business opportunities with Japanese workers. If a guest of the Japanese company you will likely not have to pay for the meal you go out for. Showing intent to pay is a nice gesture regardless; the Japanese host will likely turn away your money and pay for your part of the meal. These dinner meetings are often held at restaurants and will almost never be held in a private home, going out for a coffee or tea are also possibilities (Doing Business in Japan, 2002). Eating in Japan is expected to be an experience every time you go out, you are not simply eating to eat, you are eating to enjoy. Many Japanese foods have been exposed worldwide like raw fish such as sushi or sashimi. Popular restaurants in Japan will often have your meal cooked right at your table, allowing you to pick out what you’d like to eat and watch it be prepared in front of you. Fish, beef, chicken, and vegetables are the most popular items served, often being combined into a dish with much smaller portion sizes that those of America (Japan National Tourism Organization, 2013). Rice is also a staple of Japanese food that is served with almost every meal. Popular noodles dishes or raw fish meals are typically chosen by American visitors due to the fact that they have probably been exposed to them in the states already. Even with previous exposure, naturally Japanese food will taste differently due to spices, oils, and cooking methods that are different from those used in America. Tea and sake are the most popular drinks for Japanese visitors, often green tea is the drink of choice. When eating you will likely be placed at a tatami mat which are mats placed on the floor, taking off your shoes and sitting on the ground is very common, if not doing that some restaurants will have western style settings with tables and chairs. It is polite to compliment the host on their food before even tasting it, just being appreciative for their invitation is very important. Sharing at the table is acceptable and common, but never pass food using chopsticks as it is seen as a sign of moving bones. Using said chopsticks can be difficult but it expected that you will use them, even if you are a visitor. Some preparation before going to Japan is the only real way to get good at it, and some practice should be applied if you know you will be going to Japan. Some basic rules are to never jab at food with chopsticks and also don’t use chopsticks to point, both practices are considered disrespectful. Practice makes perfect with chopsticks, and being good at the use of them can show experience and knowledge towards Japanese culture. Alcohol is very popular with meals and before or after meals. It is uncommon though to drink directly from a bottle, pouring the alcohol into a cup is more proper in Japanese dining (Doing Business in Japan, 2002). Drinking of any drink, especially alcohol will start after a toast, most likely by the most senior member. The most senior member will also be served first and the serving order will descend in order of position at the table. Also do not drink any beverage until everyone is served, wait until the entire table has a drink, toast, and then begin. While eating in another country may be a challenge to you due to taste differences, play it off as if you are satisfied and are enjoying the meal much as it will show gratification to the host or rest of the party.
Country Information The economy of Japan is amongst the world’s strongest, ranking third largest in terms of nominal GDP. They operate a market economy, similar to the United States and is considered to be the world’s second most developed country (2013 Index of Economic Freedom, 2013). They have a successful, powerful economy but are not as strong as they were about thirty years ago. They took hits in the marketplace when most other world markets had also taken hits but are reviving their economy through trade (Doing Business in Japan, 2002). Much of Japan’s business is based off of the automotive, technology, real estate, and manufacturing. They export mainly with the United States and China, but also export to mainly other countries as well. Japan’s lack of agriculture makes them huge importers of raw materials and some foods, mainly importing oil, and food necessities. Their talents in electronics, technology, and the automotive fields have made them a leader worldwide, especially since the popularity of hybrid and sustainable energy has rose lately (Doing Business in Japan, 2002). In 2011 Japan’s GDP was at $5,870,357 ranking them third behind China and the United States (World Bank, 2013). From 2008-2012 thought Japan’s growth rate has been at -0.7. The recent tsunami and adjustments to political changes within Japan have made for some difficult stagnant times but the outlook is still bright moving forward for Japan (World Bank, 2013). They have low military defense costs, as well as many valuable exportable assets which give them an edge and positive aspects to grow with. Japan has a very high literacy rate at 99% which is a good indicator as to why the unemployment rate of Japan is only 4%, much lower than that of the United States (Facts About Japan, 2013). Salaries are similar in Japan as the pay rates go in the United States. Japan has a somewhat flatter pay scale at management levels, meaning that managers don’t make dramatically more money than an hourly worker might make. Japanese workers make out better in terms of income tax though, each workers tax depends on their pay level but it is generally lower than that of United States’ tax levels. Japanese major cities are much like American cities in the way that city living is very expensive, in fact Tokyo and Osaka were recently named the two most expensive cities in the world to live in (Hicken, 2013). Other than income tax, Japanese residents have to pay enterprise tax for owning a business, property tax, consumption tax, vehicle taxes, as well as taxes on gas, liquor, and tobacco (Taxes in Japan, 2013).
Conclusion
Overall, Japan’s well-structured and hard working business culture is the foundation to the large amount of success that comes from Japanese Business. Workers in Japanese companies pride themselves on strict, hardworking work ethics and the ability to cherish and prioritize their relationships within their corporate life. Creating and retaining ‘Wa’ (harmony) within their company, and the companies network of valued clients and other relationships, is one of the up most important aspects to Japanese business. Japanese also treat their highly valued relationships with others as a main key to success. Three main characteristics in which are highly valued in a successful business person, is the ability to be patient, loyal, and less linear. These characteristics will help open the doors to successful business and networking.
Works Cited
(n.d.)
2013 Index of Economic Freedom. (2013). Retrieved March 26, 2013, from heritage.org: http://www.heritage.org/index/country/japan
Barton, M. (n.d.). Japanese Management Decision-Making Styles. Retrieved March 24, 2013, from ehow.com: http://www.ehow.com/info_8251788_japanese-management-decisionmaking-styles.html
Car Rental in Japan. (n.d.). Retrieved March 26, 2013, from japan-guide.com: http://www.japan-guide.com/e/e2024.html
Doing Business in Japan. (2002, October 23). Retrieved March 24, 2013, from japan-guide.com: http://www.japan-guide.com/e/e2195.html
Facts About Japan. (2013). Retrieved March 26, 2013, from facts-about-japan.com: http://www.facts-about-japan.com/
Hicken, M. (2013, February 6). World 's Most Expensive Cities. Retrieved March 26, 2013, from cnn.com: http://money.cnn.com/gallery/pf/2013/02/06/most-expensive-cities/4.html
Hofstede Cultural Dimension of Japan. (2012). Retrieved March 26, 2013, from docstoc.com: http://www.docstoc.com/docs/23541900/Hofstede-Cultural-Dimension-of-Japan
HR Central. (2010, April 11). Japanese HRM 101. Retrieved March 26, 2013, from slideshare.net: http://www.slideshare.net/junkabs/japanese-hrm-101-understanding-the-japanese-way-of-people-management
Jackson, J. B. (2006, November 22). Japanese Negotiation Style. Retrieved March 24, 2013, from firstbestordifferent.com: http://www.firstbestordifferent.com/blog/?p=49
Japan Airports. (n.d.). Retrieved March 26, 2013, from mapsofworld.com: http://www.mapsofworld.com/international-airports/asia/japan.html
Japan National Tourism Organization. (2013). Currency and Money Exchange. Retrieved March 26, 2013, from jnto.go.jp: http://www.jnto.go.jp/eng/arrange/essential/money.html
Japan Vacation Days. (2010, June 26). Retrieved March 26, 2013, from japanator.com: http://www.japanator.com/japan-takes-least-vacation-days-french-most-15401.phtml
Kwintessential. (n.d.). Japan- Language, Culture, Customs, and Etiquette. Retrieved March 24, 2013, from kwintessential.co.uk: http://www.kwintessential.co.uk/resources/global-etiquette/japan-country-profiles.html
MOFA. (2013). Guide to Japanese Visas. Retrieved March 26, 2013, from mofa.go.jp: http://www.mofa.go.jp/j_info/visit/visa/
Rocha, R. (n.d.). 6 Lessons from Japanese Business Culture. Retrieved March 24, 2013, from askmen.com: http://www.askmen.com/money/successful_100/134_success.html
Taxes in Japan. (2013, March 16). Retrieved March 26, 2013, from Japan-guide.com: http://www.japan-guide.com/e/e2206.html
World Bank. (2013). GDP Rankings. Retrieved March 26, 2013, from worldbank.org: http://data.worldbank.org/data-catalog/GDP-ranking-table
Country Manager Training Module- Japan
Matt Hachey, Madison Brewer, Christie Charnetski
3/28/2013
Executive Summary
Japan prides its self on a hardworking, honest culture. Many individuals and businesses from around the world find Japan an attractive culture to work with because of their success in the global market place. It is said that they’re organized, dedicated and follow timely work ethics, these are some of the foundations to their success. Two common phrases that Japanese culture reflects are “war is work” and “live to work”.
These facts and figures on Japan will give you an idea on what the culture is like in Japan and how it positively affects their businesses.
Population: 127 million people
GDP: …show more content…
$5,069 billion
GDP per person: $40,000
Unemployment Rate: 5%
Adult Literacy: 99%
High School Diploma: 95% of population of old enough age
Obtaining and maintaining harmony is a key value in the Japanese Society. Harmony also referred to as Wa, in Japanese, is strongly emphasized in the Japanese corporate world. Managers and HR’s main responsibilities include sorting out any disputes or other issues that might get in the way of harmony between people. They strongly believe that the best work and success comes from situations where everyone works together and does not let disputes get in the way of work.
Due to the importance of harmony in the Japanese society, being indirect and opinionated in feedback and conversation is not considered rude, but polite. Being less critical and linear when giving your opinion or feedback avoids unnecessary disruption of harmony. It is best to generally avoid the word ‘no’, and try and use less direct ways of expressing your differences.
Their attitude towards work is different from the United States’, but it works. They work until the job gets done and rarely take time off. Due to this their co-workers become family and respect is of the utmost importance. As a business person traveling to Japan it is of paramount importance to be respectful of superiors in the workplace, as well as anyone else you plan on doing business with. Without respect you have no business in the Japanese corporate environment.
Their perspective on time differs from the United States style but that reflects from what they consider to be important, they are very punctual and strongly believe in making the most of time. It is expected that you meet deadlines, make it to meetings and other events cordially and always be cautious of not wasting time. They may take more time, but adjustments will need to be made to deal with that, Japanese are comfortable with that style and they do their best work following that structure. The pursuit of perfection is important to Japanese workers and realizing that fact and showing consideration for every task will make Japanese workers respect you more. Taking these tasks as well as the ones that follow and implementing them into your business trip to Japan will supply you will all tools to seal the deal. And remember, that Japanese companies look to work with past successful business partners so following these tips are very important.
Country Culture
Dress
The general dress in Japan is formal. Business workers are more or less required to wear a gray, black or navy neutral suit to work. Workers are expected to be clean-shaven with an appropriate hairstyle. Tattoos and piecing are views as unacceptable and must be hidden during the workday. In the summer business workers are allowed to dress down due to the hot weather but still must look presentable and professional. You must not take of your jacket in any situation unless directed to do so. People in the service industry like taxi drivers, store clerks and secretaries are also required to dress formally if they do not wear a required uniform.
Food
Japanese view breakfast as the most important meal of the day. Breakfast in Japan consists of more than just cereal. Rice, fried eggs, green tea, pickles, fish and soups are a common choice for Japanese. Lunch in the business world is considered to be a light meal. Many business workers will eat a bento box, which consists of rice and a meat quickly at their desk. Dinner is more formal and is the time where clients are treated to a meal. Japanese enjoy snacking on nut and other snacks throughout the day and while drinking.
Dining Protocols
Learn how to use chopsticks
When a side or dish is shared, serving utensils will not be provided. Eat people sharing should use their own chopsticks
Always leave a little bit of food on your plate to indicate you have eaten enough.
Rice is to be eaten plain without condiments like soy sauce
Conversation is normally limited during meal time
All courses are served at once
Bring bowl to mouth when eating rice and shovel it in using the chopsticks.
Never stick your chopsticks in the bowl of rice, plate them on top of bowl
When done your meal, place your chopsticks together at an angle across your plate.
At the beginning of the meal you must say, Ita daki masu, which means (I will eat with gratitude) and at the end you must say, Gochiso sama, (it has been a feast).
Business related guest are normally treated to more expensive meals. A Ryotie is where high end Japanese food is served with live traditional music being played. A Setti is a less expensive dining experience, which is like a banquette. This is normally for out of town guests and also may include live entertainment and site seeing or other activities. Karaoke is often performed at dinners and it is considered disrespectful if you turn down your chance to sing. Sushi bars are also used to entertain for less formal events but is considered more of a luxury that in the US. Noodle bars are also very popular for both dining and snacks. Noodle bars consist of hot broth, ramen noodles with a choice of meats, vegetables and or seasonings. MacDonald’s and KFC are both a popular chain for both locals and visitors to visit. One addition to the menu is burger with a fried egg in top.
Greetings
Japanese are generally preserved unaggressive, personal people. When you introduce yourself to someone that does not begin your trust with him or her, they must get to know you much better in a distant way before starting to gain your trust. It is better to get a mutual member to introduce the individuals or group. Japanese many times hire a formal introducer called a Shkainin. These people make their living by introducing different business people and making new connections by constantly networking. Both the Japanese and American Chamber of Commerce’s will help you find an introducer.
Apologies
I Apologize (Sumimasen)
Apology Letter (Shimatsu Sho)
Japanese always strive from harmony with one another. Harmony is referred to as Wa. To remain at Wa you will find Japanese apologizing a lot, even for small incidences. Japanese repeat their words to stress their importance, so you will hear sorry being repeated many times during an apology. Letters are frequently sent whenever tensions build in a situation or relationship; for example, if you get in a disagreement during a meeting, one would normally send a letter expressing their apology for the disagreement. Even if you get in a car crash and the police are called, the individual will send a letter to the police apologizing for the time they wasted him or her.
Responses
Polite restraint- When you are offered something like a tea or beverage, the correct answer to reply with is No thank you. This shows that you are not being needy or greedy. Enro means to hold back. It is normal that they will keep asking you the same question, “are you sure you would not like a drink”. After a few refusals it then becomes ok to say Yes Please. If you are gathered with a group of people from different cultural backgrounds, you will find that the Japanese hold their words back. They are taught in their culture to never dominate a conversation, so don’t think they are being shy or are uninterested. When they do respond to a question or conversation, many times they will say, maybe, perhaps or I think in order not to sound to dominating.
Conversational Feedback- Japanese will nod or say “yes” when replying to someone in agreement. When the individual says ‘I See’, this means that they are actively listening, but not always does it mean that they clearly understand. Silence as a response tends to indicate disagreement or confusion. Because Japanese are always in the search for perfection, they might pause and carefully think about their response. It is rude to push for an immediate response. This goes for personal conversations or emails.
Gestures
Pointing is considered very rude and insulting
Pointing is done with whole hand
To indicate yourself place first finger on nose
Also means come here
Use open palm to indicate a chart or object
Putting index finger on nose means “I’ll do it” or “come here”
Sucking in of air means disagreement or you unsatisfied
Waving vertical hand means “excuse me”
Companies have their own internal gestures that mean different things
Customs
In Japan, the culture is ‘live-to-work’. Dating back to post war time, that was the way of live. They had to make money somehow, either exporting or competing in international markets in order to make a living. This is where the dedication and strong work ethic to their job stems from. Businessmen view the survival and success of their company to be a bigger reward then profit and the money they make. They work hard for their country and not mainly for themselves. Their constant search for perfection is exemplified in their strong work ethics.
“…people are always under the impression that the enemy is strong, and so tend to become cautious, but if you have good soldiers, and if you understand the principles of strategy… there is nothing to worry about.”
They also strongly believe that everyone can be successful if they have strong determination and will in what they do. It is expected that everyone can learn to successful if you give it you all.
Japanese are considered to be very slow in making decisions and getting work done because of their constant search for perfection. Japanese follow the “zero default” rule, which words their search for 100% perfection in everything they do. They are always looking for ways to improve things to always make them better; they are afraid of failure. If they are analyzing A, B, C & D, they are going to go further into research and analyze E, F & G as well. Kids are taught at a young age to pay attention to concern for detail.
The Japanese are known to always meet deadlines, as well as always being on time to meetings or appointments. In contrast, they are always striving for perfection so they tend to be slow and precise when coming to decision-making. Japanese frown upon people who choose to waste time. They are considered polychromic, as they believe that there is always time for perfection. They are always following a well thought out schedule in total detail. If invited to even a casual dinner, it is considered very rude to cancel as Japanese take their schedules very seriously. The biggest mistake you can make with the Japanese is being impatient.
Tips when working with the Japanese-
Work Hard
Indicate loyalty
Brag less
Be less linear
Less Critical
More socializing and networking
Less praise
Be patient
Do not come on strong
Never interrupt
Respect hierarchy
Pay attention to Detail
Never say No
Loyalty
Apologetic
Country Cultural Dimensions When looking at Hofstede’s Cultural Dimensions, it makes for simple comparisons to American styles of work, knowing Japan’s cultural dimensions though is important to gain knowledge about how the Japanese work and live.
In regards to Power Distance, Japan has a moderate rating. Seniority and hierarchy are recognized within Japanese companies but they also consider the opinions of all of their workers, regardless of rank. They consider their co-workers to be almost on the same level of importance as their families. It is important for a manager to have positive relationships with all people working under them. Individuality in Japan is low, many workers look to fit into a group and look for guidance from higher ups within their companies. Companies in Japan are an extension of a worker’s family so bonds within those companies often consist of similar types of people working together. Masculinity is Japan is their highest rating on the Hofstede’s model mainly because males are considered to be the breadwinners in Japanese families. Japanese workers tend to “live to work” versus “work to live” and emotion is always left out of the workplace. Showing emotion in an office setting can be seen as a sign of weakness and thus males try to appear strong willed and confident at all times. Japanese are often described as workaholics and go through extensive training and long hours to get the job done, and a majority of the Japanese workforce is male, especially in an office …show more content…
setting. Uncertainty avoidance also has a high score in terms of Japan’s culture. The Japanese prefer a very structured, regulated workplace and sometimes struggle when unexpected obstacles arise. Once they find an effective way of doing something, they like to stick to that process and try not to stray too far away from what they are accustomed to. Japanese managers are required to follow protocol and guidelines and if an obstacle arises then they should ask for assistance before proceeding. Japanese typically have a long term orientation, meaning they are looking at the big picture far ahead than just the immediate future. Companies will make plans that lay out three years of more of detailed expectations and protocol to be followed. The idea of lifetime employment at one company makes this more possible because workers aren’t expecting to move elsewhere, and managers know that they can take their time will drawn out plans. The Japanese prefer this because it encourages workers to always be working towards a long term goal and not worrying about short term successes. Pride, morals, and respect are preached often in Japanese culture and they show throughout dimensions as well. Being able to recognize these differences compared to American’s style of working can make for effective transitioning to a Japanese company and build relationships too (Hofstede Cultural Dimension of Japan, 2012).
When looking at Japan’s management styles in terms of Tropenaar’s seven cultural dimensions, it is clear to see that Japan’s styles versus American styles differ. Japan’s style focuses heavily on building relationships which would make them more towards a particularistic style versus universal. They tend to make decisions using emotion and taking time to consider how all people will be affected. Relating to the first dimension the Japanese are highly communitarianism, they tend to put the group aspect first and do not particularly favor roles in the workplace. They typically follow structure and don’t stray too far from cultural norms. The Japanese are more of a diffused culture versus being specific. They take into consideration past relationships and like to build on those, using respect is essential in business dealing. They are personable with their co-workers and consider the people they work with to be like family. Japanese manage their emotions effectively making them a more neutral culture system versus being emotional. They tend to leave emotion out of their business decisions and almost never show emotion in the workplace, it can actually be seen as weakness to show emotion in an office setting. Japanese value position making them an ascription culture versus achievement culture. People are expected to show the highest levels of respect to their superiors and position is seen as a level of power and knowledge. Regardless of position though, respect is expected to be shown on all levels. Japanese are a synchronous culture in that they consider time to be important, meetings are expected to be met, and often working on several projects at once too. They do take a longer term look at projects, considering long term goals over short term gains. The Japanese tend to be more of an outer direction culture versus inner direction. They expect to be focus on their actions, and avoid conflict to save face and not build a negative image towards them. They believe in being responsible for your actions and paying a price at a later time if acting poorly, respect again is the most important factor for the Japanese and going away from that is completely frowned upon in Japanese Culture (Mind Tools).
Business & Management Practices
HR Practices
Human resource practices revolve widely around the long term employment practice in Japan. While having a dependable team in a company is great, it also can lead to a static work environment where workers can struggle to find motivation. Promotions are rare in Japan due to the fact that most raises come from being at a company for a long time, not basing promotions on performance which is the way of doing things in the United States. It also has advantages though; these companies can keep their talent in-house and mold employees to specific positions that they can grow into during years of employment. Typically in Japan you work more when you’re young and get paid laid, and the opposite as you age you work less and make more. This seniority/age based system is the standard but even some Japanese companies are moving towards a more western style of promotion from performance. Much of the training a worker will receive in their lifetime will be through their company, they will learn everything they need on the job, unlike in America where college degrees typically are a worker’s training and stepping stones in the work force (HR Central, 2010).
Visa Policies
To travel to Japan you do not need to obtain a visa, simply a passport will gain you entrance. If you plan on staying in Japan for more than 90 days you will need to acquire a work or general visa. Students are considered for general visas, but most other professional jobs will require a working visa if planning on being in the country for more than 90 days as previously noted (MOFA, 2013). Fees for a visa are in the $500 range but can be more expensive depending on the reasoning for travel into Japan. Business trips will require a work visa, and those need to be applied for at a Japanese Embassy (MOFA, 2013).
Vacation Policies
Vacation days in Japan are rare, in fact Japanese workers take the fewest amount of vacation days worldwide (Japan Vacation Days, 2010). This relates back to the mindset that Japanese workers live to work, they are extremely hard working and don’t really see the justification in taking days off while they can be working instead. They often take pride in working consistently through a year and enjoy spending time with their co-workers out of office too. They are permitted fifteen days of paid vacation but typically only take about seven. Sick days are often not tolerated and many times if a worker is sick, they will need to use a vacation day of theirs to stay home. True sick days are only recognized for long term illnesses and usually require hospitalization to be accepted as well as doctor’s notice and approval.
Holidays
Japanese holidays do as expected clash with American holidays. Like America though, New Year’s Day is recognized on the 1st of January but many of Japan’s businesses will stay closed through the 3rd of January (Facts About Japan, 2013). Golden Week in Japan consists of four national holidays of Japan in a seven day span. The four holidays are Showa Day (April 29), Constitution Day (May 3), Greenery Day (May 4), and Children’s Day (May 5). Tourists flood the country during that week and most businesses do shut up, although some stay open if the holidays fall on typical work days (Doing Business in Japan, 2002). Obon occurs in mid-August and is considered one of the busiest holiday seasons in Japan along with Golden Week and New Year’s week. Obon is a Buddhist even commemorating one’s ancestors.
Business Language vs. Interpreters
When conducting business in Japan it is very important to understand their business culture language and hire interpreters.
Understanding the business culture in Japan is a must before traveling abroad. The Japanese find a handshake appropriate upon meeting. The handshake can be limp with little to no eye contact; staring is considered very rude. Along with a handshake a bow shows respect they will appreciate this and consider you respectful. The Japanese also similarly to Americans enjoy their personal space they do not like being touched. Lastly you must always be on time or earlier, punctuality is a must! When conducting business in Japan you must hire an interpreter. There are many benefits to having an interpreter such as allowing yourself to be able to speak your native language and most importantly you avoid costly misunderstandings that can not only hurt your business but your reputation. "Language is one of the common issues most Americans encounter when doing business in Japan. Do not expect to have a business meeting in English. Although English is spoken in many countries, it is not the case in Japan. You will rely heavily on an interpreter" (Ostrowski,
2011).
Useful Phrases
Ohayogozaimasu - Good morning (before 10:00am)
Konnichiwa - Good day (10:00am to 6:00pm)
Kombanwa - Good evening (after 6:00pm)
Hajimemashite - Hello, I am pleased to make your acquaintance (used only the first time you meet someone)
Watashi no namae wa Smith desu - My name is Smith (formal)
Smith desu – I am Smith (informal)
Domo arigato gozaimasu - Thank you
Onegaishimasu - If you please
Sumimasen - Excuse me
Meeting Management
When doing business in Japan, many of a person’s interactions will take place in a business meeting. Meetings are meant to be formal and Japanese meeting etiquette differs from styles from other Asian countries. Respect and preparedness are huge factors when meeting in Japan, natives will expect that you are respectful of their behaviors, and not doing so could result in loss of partnership for your company. A meeting in Japan will begin with the exchange of business cards which is a ritual called meishi kokan (Rocha). When you receive the Japanese workers business card you are expected to read all information carefully, repeat it aloud, and then place it in front of where you are seated in order to reference it if needed during the meeting. Never place the business card in your pocket or wallet since that is considered a huge sign of disrespect. Doing this shows that you value not just the result of the meeting, but you value the people you are interacting with and are looking to build the relationship. When handing out your own business card it is polite to bow slightly and place the Japanese side of your own card (Japanese translation should be on opposite of English side) facing up to the recipient. Along with having your hosts business cards in front of you on the table, it is also acceptable to have a note pad for recording notes which shows interest in learning. The seating arrangement within a Japanese meeting will be determined by the status of the people within. As a guest you will likely be directed where to sit, and it is rude to pick your own seat. Typically the highest ranking member within the meeting will seat at the head of the table, with the most senior members of a team sitting closest and digressing further away from the head member (Doing Business in Japan, 2002). When the meeting is underway it is proper to wait to be called upon when speaking your opinion, do not just speak out. If a superior is speaking, you will be expected to give them your utmost attention and do not interrupt. Superiors speak first and then also speak when they desire, their opinions are expected to be heard entirely and will not take interjections from others. When speaking, speak in a direct, even leveled tone and try to leave emotional tones out of your speaking (Doing Business in Japan, 2002). Gift giving is pretty common in Japanese meetings and you will likely receive a small gift from the host. It is acceptable for you to return the gesture by giving them a gift as well. To impress your hosts most, wrap your gift, particularly in a pastel colored paper (Kwintessential). Gifts do not need to be expensive; a box of chocolates or cake is acceptable as well as flowers. Flowers need to be chosen carefully though; lilies, camellias, lotus blossoms, and any white flowers are associated with funerals. Potted flowers are also typically linked to sickness although Bonsai plants are ok. Gifts should also be giving in odd numbers, but not in groups of nine (Kwintessential). Initially a Japanese company may give you a small amount of business as a trial run to see if you can be trusted and depended on, and after that a more significant business relationship may evolve.
Business Negotiations Japanese business types are well known for their negotiating abilities, and their styles differ from American practices. Japanese companies will do everything within their power to “save face” which is probably the most significant factor for all Japanese business employees. Japanese will never try to embarrass or insult a colleague by tricking them or confusing them while in negotiation, they will treat every negotiation with the highest level of respect (Doing Business in Japan, 2002). Saving face relates to Japanese wanting to always represent their company at the highest level of respect since they believe in building a strong company over being independently successful. While hierarchy matters within Japanese companies, a solid complete company from top to bottom is more important. They consider respect to be paramount and confrontational behaviors will never occur from their end, and they won’t be tolerated from guests either. Compared to American negotiations, Japanese negotiations will have much more silence and those periods are usually viewed as time of consideration and thought. Many questions will be asked as a way to gain information and insight from potential partners (Jackson, 2006). They will ask many questions but it is often hard to get answers from them in return, it is ideal to ask the Japanese questions in the form of a yes or no question. Doing so will allow for a definite answer versus getting minimal details from another question. Try to get a “yes” answer in particular because they have a difficult time saying “no” and will often word their answers with terms like “it will be considered” or “possibly” instead of giving a definitive no. In reality though if one of those terms is given then it is likely their way of politely rejecting. Not having an interpreter can make negotiation even harder, very few Japanese speak English and it would be a good idea to bring a translator with you to a negotiation as to not mix up answers or terms of an agreement (Jackson, 2006). Coming to an agreement will likely only happen after a consensus decision has been made by the entire Japanese group. They will take in considerations and thoughts from all members of their team before deciding to go forth or not. As previously noted silence is not a bad thing and will likely happen at the negotiation table. Some Japanese workers will even close their eyes at the table to envision certain things and focus on what they are dealing with (Kwintessential). A written contract will be required for a business agreement but the agreement may be broad in order to keep flexibility within. That may be frustrating since many American companies like to leave no stone left unturned, taking away any possibility of later changes or alteration. Having a Japanese lawyer present at the negotiation and contract agreement will be seen as a respectful gesture, but having an American lawyer present is essential since the two lawyer types are very different (Kwintessential).
Decision Making & Communication As previously discussed, the Japanese prefer a consensus style of decision making. Personal relationships are honored highly within a Japanese company and consider credibility and respect during decision making (Barton). They try to build long term relationships and will take past workings into consideration when deciding whether to collaborate again. The decision making process of choice is the consensus style which is known as the ringi system (Barton). A proposal may be presented by a middle manager or be brought up by top level executives. The proposal will then be sent out to all levels or departments being affected by the future decision and opinions will be taken in from all levels. After all options are considered and heard out then a final decision will be made. Never will a singular person make a decision for a company, not even a company’s owner. The decisions are based on long term sustainability and growth for the entire company (Barton). As far as communication goes, Japanese companies base many of their decisions of on past relationships and how comfortable they are with the prospective partner. If a company had successful past workings then Japanese workers will feel that they can trust, respect and continue to communicate and work with those groups. Japanese appreciate being reached out to even when not doing business at a specific time, particularly using greeting cards or personalized messages can build a strong bond with a Japanese worker (Kwintessential). When contacted by a Japanese worker or company it is essential to give a fast response. Delaying in response will be seen as a sign of disrespect and loss of interest, therefore giving the impression that business does not need to be done. In meetings or when out to eat with Japanese employees then may ask very direct questions such as “How much money do you make?” To Americans that may seem forward but it is normal for Japanese to do so, so you must be prepared to answer and do not avoid answering as that may be seen as disrespectful and deceptive.
Addressing Co-Workers or Superiors As has been noted multiple times already, Japanese business is all about respect. How one interacts with co-workers or superiors within a company is directly related to the hierarchy levels of respect. Age and status are the primary factors of hierarchy, whether it is in family life or in a business setting. The oldest member of a group is respected the most and looked upon as a leader. While in America a person’s skills usually define hierarchy, Japan is strictly based on age and time within a company. Disobeying the hierarchy is almost unheard of with Japanese companies because respect for elders is preached and taught from a very young age and followed all the way through a person’s career. Workers in Japan are hired into a company for life and are expected to start at the bottom and build their career within the company as years pass (Barton). As discussed in meeting etiquette, workers are expected to yield their opinion to superior’s opinions first. Workers are expected to be called upon by superiors and only expected to talk when given permission. Speaking out of turn is not tolerated and is one of the most disrespectful things that can be done. When greeting superiors you are to bow, the lower one bows, the more respect they are said to have for that person. When preparing to sit during a meeting you should be instructed when to do so by the top level position in the room, and upon the meeting ending you should not stand until the highest position stands. Addressing co-workers or superiors in Japan is always based on respect, if you show respect towards all, then you will likely be respected in return. Hearing our each person completely and also responding thoroughly to all you are working with is key to building strong relationships. Since many Japanese companies have the same employees for many years it is useful to make bonds early and build upon those relationships for future partnerships. The hierarchy should be respected both in office and out of office, never feel as though you may lower your formalness with higher-ups just because you are not in a formal office setting.
Business Etiquette
The Bow
It is important that you perfect and take the bowing procedure very seriously. The head is nodded minimally and lowered while the torso learns forward. Bows are even expected while on the phone. People with high power bow less deeply than a person with lower rank. Men bow with their hand flat on the sides of each thigh and women hold their hands together in front of them. Bow slightly to the right to ensure you do not bump heads with the person in front of you. Sometimes Japanese will shake hands with westerns nut it is considered rude to create eye contact.
Business Card Etiquette
This is considered the first part of formal introductions. In Japan the exchange of business cards is done very frequently and considered rude if not done. The exchange of business cards is done as a step towards creating a personal relationship in business. One must always exchange a business card if one is given to you. In order to give a business card, you must turn it so its facing the other person and present with 2 hands. Upon receiving the business card, you must accept with two hands out of respect.
Card Expectations
Must be of good quality to reflect on owners
Must be stored in a card case in your hand bag or front pant pocket
Card should never be folded or defaced
Name of company comes first, then title, then the person’s name
Travel Advice Doing business in a foreign country can be confusing, but knowing where to go and having some preparedness before landing in a country can surely help. Japan has 98 airports, ranging in size from very small privately owned ones to international hubs, serving all airlines and route plans. The two primary airports are Tokyo International Airport and Narita International Airport (Japan Airports). Osaka and Kansai International are two other larger airports in Japan that bring in many flights to the Tokyo area. Like most international travel, a valid passport is needed for entry into Japan as well as a work visa if staying in Japan for more than 90 days. Taxi service and public transport via subway or other rail service is readily available in Japan. In most cases public transport is more than sufficient since they will allow you to travel through the large cities easiest, without worrying about parking or traffic if using rail service. If you need to rent a car in Japan there are some requirements. First off you need to be 18, the minimum driving age in Japan, as well as having a Japanese driver’s license or an International Driving Permit (IDP) (Car Rental in Japan). If you know you will be driving in Japan you will need to acquire an IDP in your home country because they are not available in Japan. The main rental companies in Japan use Toyota, Nippon, Mazda, and Nissan. They are significantly smaller than a typical vehicle of the US, but use the same gasoline and will feel the same as a US vehicle. Parking within Japan’s major cities is extremely expensive and often difficult to find. They have elevator lots which allow cars to be parked in towers but still charge a large fee for hourly parking (Car Rental in Japan). For that reason most tourists or business travelers tend to use public transport to avoid the troubles that come with having a car in a highly populated city. The currency used in Japan is the Yen, 1 Yen converts to about 1 cent in American money. There is no limit as to how much money may be brought into or out of Japan but if 1,000,000 is moved then a customs declaration needs to be made (Japan National Tourism Organization, 2013). Yen can be exchanged from dollars at foreign exchange banks, among other currency exchangers. At the airports there are exchange booths that typically operate only during business hours, so if arriving at a odd time then it may be difficult to exchange your American money. Within the major cities credit and debit cards will likely be accepted, as well as traveler’s checks. If traveling out of the major cities it is unlikely that anything except physical Yen will be accepted. ATMs are available but American ATMs such as Citibank are sometimes difficult to locate, Japan Post Bank and Seven Bank are more likely options for taking out money. ATMs can be found at post offices, as well as train stations and food markets (Japan National Tourism Organization, 2013). Where to stay in Japan can be a burden as well, mainly because there are so many options for accommodations. There is variety within Japan; some hotels are styled with Japanese functions while some are styled after western inspired hotels like the ones in America (Kwintessential). In some cases travelers may stay in locations that are actually full houses or apartments for their stay, to give them space and the feeling of being at their own home. These will typically have modern furniture that can be adjusted to by many cultures that travel to Japan. The western style hotels in Japan are usually modeled after those of the hotels in America, having a simple set up that is expected of American travelers, and similar to any city hotel of the states. Those are usually run by chains, either being a Japanese chain or one of the many international hotel chains that have set a location in Japan to cater to travelers. Another option, although not usually utilized by business types are hostels or dormitories. They cater to very low budget levels but still allow for a space to sleep and a location to feel safe (Kwintessential). While often times a business traveler may have an extended stay, there are options for weekly or monthly apartment rentals. These rentals are usually very inexpensive since they are trying to keep the visitor under their roof for as long as possible, even if just for an extended business stay. Dining out with business partners is a popular activity for Japanese companies. Refusing or rejecting an offer to go out for food or drinks is considered very rude and can even kill business opportunities with Japanese workers. If a guest of the Japanese company you will likely not have to pay for the meal you go out for. Showing intent to pay is a nice gesture regardless; the Japanese host will likely turn away your money and pay for your part of the meal. These dinner meetings are often held at restaurants and will almost never be held in a private home, going out for a coffee or tea are also possibilities (Doing Business in Japan, 2002). Eating in Japan is expected to be an experience every time you go out, you are not simply eating to eat, you are eating to enjoy. Many Japanese foods have been exposed worldwide like raw fish such as sushi or sashimi. Popular restaurants in Japan will often have your meal cooked right at your table, allowing you to pick out what you’d like to eat and watch it be prepared in front of you. Fish, beef, chicken, and vegetables are the most popular items served, often being combined into a dish with much smaller portion sizes that those of America (Japan National Tourism Organization, 2013). Rice is also a staple of Japanese food that is served with almost every meal. Popular noodles dishes or raw fish meals are typically chosen by American visitors due to the fact that they have probably been exposed to them in the states already. Even with previous exposure, naturally Japanese food will taste differently due to spices, oils, and cooking methods that are different from those used in America. Tea and sake are the most popular drinks for Japanese visitors, often green tea is the drink of choice. When eating you will likely be placed at a tatami mat which are mats placed on the floor, taking off your shoes and sitting on the ground is very common, if not doing that some restaurants will have western style settings with tables and chairs. It is polite to compliment the host on their food before even tasting it, just being appreciative for their invitation is very important. Sharing at the table is acceptable and common, but never pass food using chopsticks as it is seen as a sign of moving bones. Using said chopsticks can be difficult but it expected that you will use them, even if you are a visitor. Some preparation before going to Japan is the only real way to get good at it, and some practice should be applied if you know you will be going to Japan. Some basic rules are to never jab at food with chopsticks and also don’t use chopsticks to point, both practices are considered disrespectful. Practice makes perfect with chopsticks, and being good at the use of them can show experience and knowledge towards Japanese culture. Alcohol is very popular with meals and before or after meals. It is uncommon though to drink directly from a bottle, pouring the alcohol into a cup is more proper in Japanese dining (Doing Business in Japan, 2002). Drinking of any drink, especially alcohol will start after a toast, most likely by the most senior member. The most senior member will also be served first and the serving order will descend in order of position at the table. Also do not drink any beverage until everyone is served, wait until the entire table has a drink, toast, and then begin. While eating in another country may be a challenge to you due to taste differences, play it off as if you are satisfied and are enjoying the meal much as it will show gratification to the host or rest of the party.
Country Information The economy of Japan is amongst the world’s strongest, ranking third largest in terms of nominal GDP. They operate a market economy, similar to the United States and is considered to be the world’s second most developed country (2013 Index of Economic Freedom, 2013). They have a successful, powerful economy but are not as strong as they were about thirty years ago. They took hits in the marketplace when most other world markets had also taken hits but are reviving their economy through trade (Doing Business in Japan, 2002). Much of Japan’s business is based off of the automotive, technology, real estate, and manufacturing. They export mainly with the United States and China, but also export to mainly other countries as well. Japan’s lack of agriculture makes them huge importers of raw materials and some foods, mainly importing oil, and food necessities. Their talents in electronics, technology, and the automotive fields have made them a leader worldwide, especially since the popularity of hybrid and sustainable energy has rose lately (Doing Business in Japan, 2002). In 2011 Japan’s GDP was at $5,870,357 ranking them third behind China and the United States (World Bank, 2013). From 2008-2012 thought Japan’s growth rate has been at -0.7. The recent tsunami and adjustments to political changes within Japan have made for some difficult stagnant times but the outlook is still bright moving forward for Japan (World Bank, 2013). They have low military defense costs, as well as many valuable exportable assets which give them an edge and positive aspects to grow with. Japan has a very high literacy rate at 99% which is a good indicator as to why the unemployment rate of Japan is only 4%, much lower than that of the United States (Facts About Japan, 2013). Salaries are similar in Japan as the pay rates go in the United States. Japan has a somewhat flatter pay scale at management levels, meaning that managers don’t make dramatically more money than an hourly worker might make. Japanese workers make out better in terms of income tax though, each workers tax depends on their pay level but it is generally lower than that of United States’ tax levels. Japanese major cities are much like American cities in the way that city living is very expensive, in fact Tokyo and Osaka were recently named the two most expensive cities in the world to live in (Hicken, 2013). Other than income tax, Japanese residents have to pay enterprise tax for owning a business, property tax, consumption tax, vehicle taxes, as well as taxes on gas, liquor, and tobacco (Taxes in Japan, 2013).
Conclusion
Overall, Japan’s well-structured and hard working business culture is the foundation to the large amount of success that comes from Japanese Business. Workers in Japanese companies pride themselves on strict, hardworking work ethics and the ability to cherish and prioritize their relationships within their corporate life. Creating and retaining ‘Wa’ (harmony) within their company, and the companies network of valued clients and other relationships, is one of the up most important aspects to Japanese business. Japanese also treat their highly valued relationships with others as a main key to success. Three main characteristics in which are highly valued in a successful business person, is the ability to be patient, loyal, and less linear. These characteristics will help open the doors to successful business and networking.
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