A Comparison of Business Systems Between Japan and China Essay

A Comparison of Business Systems Between Japan and China - Essay Example Being a collectivist culture means that managers and employees in Japan tend to work cooperatively, with very minimal power distance tolerated. A recent empirical study of the Japanese business environment indicated that participative leadership is the most accepted form of management whereby decision-making generally occurs from the bottom-up rather than utilising strict hierarchies of executive control.4 It is through consultation between different ranking employees and managers that a negotiation-based management style thrives and prospers. It is a more balanced system within the business dynamic whereby the attitudes and opinions of workers are highly respected and considered when making important corporate decisions. China, on the other hand, maintains very high levels of power distance between different ranking members of the organisation. Geert Hofstede recognises that Chinese culture scores very highly on power distance scales, meaning that there is a culturally-driven tolera nce for power disparities that makes most business systems vertical rather than horizontal when it comes to decision-making. This is a stark contrast between the Japanese business environment. Unequal power means that employees in the organisational hierarchy are not consulted for their opinions and problem-solving ability, whereby employees are routinely sanctioned and the general belief is that employees should not maintain aspirations for improving their rank and status within the organisational dynamic.5 These disparate relationships between managers and employees are highly polarized, meaning significant division, and there are generally no defences... This paper illustrated that there are many differences and similarities between Chinese and Japanese business systems and internal corporate ideologies. It cannot be said, concretely, that one business system is superior to another, only that both countries operate and manage their business structures with varying philosophies and approaches to securing the future and performance of their respective organisations. Much contemporary literature on how to successfully manage businesses, today, shows that adaptability and flexibility are necessary to find competitive success. Under this premise, it would seem that China maintains the most probability for ensuring long-term business performance than that of Japan. Even though Japan has many strengths, such as high determination in a corporate context, Chinese business systems will be most likely to endure long-term if these systems continue to utilise their current, existing business ideology. This report makes a conclusion that Japanese workers tend to view the future as being opportunistic whereby high performance and profitability results from a business perspective can be attained through dedication and hard work. Chinese employees and managers, in opposite accord, seek to find personal fulfilment whenever possible as a primary lifestyle and cultural goal in the pursuit of finding social acceptance with like-status peers. Therefore, there is evidence that some dimensions of long-term-focused thinking will be abandoned in Chinese culture based on hedonistic consumerism that is becoming commonplace in the nation.