Japan Business Practices and Customs

Japan Business Practices and Customs

Communication Style and Preference

When negotiating in Japan, it is best to observe a highly deferential communication style, as opposed to a confrontational style. Debate and an open show of disharmony will make a negotiator seem rude, rather than dominant or skillful. Disagreement should be expressed in an indirect manner as possible. Even if an American may feel that he or she has 'won' a particular argument, because an apparent concession was made in the form of one's Japanese opponent uttering "maybe," this in fact likely means that the proposal is still rejected, according to the tactful, less overt style of cultural communication typical in Japan.

Formal/Informal

Japan ranks high in nations that prize deference to formality in business protocol and dress. Wear formal clothing during all business meetings, and obey a structured format during discussion and negotiations. However, after-hours socializing as a sign of respect may be necessary, as Japanese businessmen frequently enjoy partaking of the local sake bars, after a long, hard day of talks, and may invite their foreign visitors along. However, certain formal protocol should be obeyed here as well. "When toasting the glass is never left unfilled. Drinking is an important part of Japanese culture. It is a way to relieve business stress." (Williams, 2003, "Behavior) Let the host pay as well, as this is expected. Also, if you invite your Japanese negotiators to a Western-style establishment, insist on paying, although the Japanese will make a show of attempting to pay. Discussing business during such pleasurable sessions, provided it is done with respect to authority, is considered acceptable.

Linguistic differences

Although it may seem to be too obvious to state, it is worth repeating to an American businessperson that Japan is a non-English language-speaking nation. Although many Japanese study English in high school, the emphasis is on writing, reading, and grammar, rather than speaking English, thus fluency with English cannot be presupposed, even if one's Japanese hosts have a grasp of basic English phrases. Their ability to speak may not be matched with their ability to comprehend English.

Language barriers and interpretation

English and Japan come from different language families, unlike, for example, German or French and English. Thus,-word approximations or even mimicking the sounds of the other speaker's language can prove difficult. The Japanese may be more apt to be silent than is comfortable in an American context. The Japanese do not feel as if there is a need to 'fill' every pause when a person is speaking. In fact, to attempt to do so may even seem rude.

Nonverbal communication (body language, eye contact, space)

Japan has a population of approximately 125 million people packed tightly into a rather small geographic area." (Williams, 2003, "Introduction)"Personal space is valued. Because the Japanese live in such a densely populated area, they value their personal space." (Williams, 2003, "Appearance") Expect to be densely packed when traveling via Japan's famed bullet trains and subways, but in the boardroom, show great respect for personal space, particularly to persons of greater status than one's self on the Japanese corporate hierarchy. Also, unlike in America, eye contact for an extended period of time, especially upon meeting a new acquaintance, is considered rude, rather than polite. Nor is a perpetual smile considered de rigor as an expression of friendliness. (Williams, 2003, "Appearance")

The Japanese are likely to know that shaking hands rather than bowing is considered appropriate by Americans, but be prepared to bow, nonetheless. One lesser-known fact is that an American should avoid making the 'OK' sign, as in Japan it means money rather than affirmation. Pointing is simply considered rude.

As in all nations with different nonverbal protocols, avoid using large hand signals, extremely animated facial expressions and dramatic movements that could be misinterpreted by one's host. Also, although the Japanese may be prepared for American communication differences, it is worth remembering that the Japanese do not talk with their hands and to do so with great animation could distract the Japanese, rather than prove an asset to communication. (Williams, 2003, "Appearance")

Structure of business correspondence

Negotiations may begin with an exchange of business cards. In Japan, business cards are called meishi, which the Japanese give and receive with both hands. To give such a card to one's host is a token of respect for Japanese culture. The cards should be printed in English on one side and Japanese on the other. Present the card with the English language side up. (Williams, 2003, "Communication)

Cultural norms and religious influences

Japan does not have an official religion. However, one common phrase applied to the nation is 'born Shinto, die Buddhist,' reflecting the comfortable interplay between a multitude of religions in Japan (along with a strong Chinese-inherited Confucian respect for age). This comfortable blending of religious traditions may strike a Westerner as surprising. Also, Japan is not, by and large, a Christian country. Remember that although Christian holidays like Christmas have become more popular, they are not a part of Japanese spirituality on the whole.

Despite the respect and value for old age, in Japan there is also a great fascination for what is new, hence the Japanese proficiency in technology. Japanese persons are intensely proud of their culture, history, and heritage. Japan is an island nation, and thus its population, in comparison to the United States is relatively homogeneous. Japanese persons may not be aware of American diversity, assumptions about race and ethnicity, and Japanese negotiators may hold different views about the value of a pluralistic society than their American counterparts.

Organizational structure of businesses

Teamwork and a respect for hierarchy and position is key in Japan. "The nail that sticks up gets hit with the hammer" is an oft-quoted Japanese folk saying. "Williams, 2003, "Appearance") Even after hours, Japan's collectivist emphasis is manifest in the fact that it is considered impolite to pour a drink for one's self, rather a drinker should always allow his or her companion to pour the drink. (Williams, 2003, "Behavior)

Hierarchy & Leadership style

Japanese companies place a strong emphasis on corporate loyalty, and showing respect for one's superiors and the standard operating procedures of the company. In return, employees are given greater job security, benefits, and other 'perks' that are less and less expected in American employment. "Even when reducing the workforce is inevitable, however, employers have tried to rely on less drastic measures than dismissal, such as the reduction of overtime work or the transfer of employees." (Yamakawa, 1999)

Individual or group orientation

Japan ranks high on its collectivist orientation. Individualism is not simply seen as less important than in America, overt acts of individualism may be viewed as threatening or potentially destabilizing to society and corporate governance in particular.

Role of women

Although Japanese women have made inroads into the corporate structure of Japanese business in recent years, Japan remains, even in comparison to the rest of Asia, a heavily male-dominated society. Masculine values and privileges are given high priority. Women negotiators in Japan may experience problems, and women should make extra efforts to obey Japanese protocol during the negotiating process. Also, formal dress for women should be observed, such as donning muted colors and skirts, rather than pants suits. When "business entertaining is done in restaurants or bars after business hours, in "karaoke or 'hostess bars,'" businesswomen should not attend 'hostess bar' meetings. (Williams, 2003, "Behavior)

Negotiation process

The negotiation process will likely be conducted before a number of members of the Japanese side, and there may be a great deal more consultation between members of the Japanese delegation before a decision or a position is advanced. Direct comments to the most senior Japanese authority, or to every member of the group and do not single out a junior associate for special attention. This will be uncomfortable for the junior member of the team and win no negotiation collateral, however well intended the effort to be inclusive of every person present.

Style and phrases

When being entertained after-hours, useful phrases for an American to remember include "the word for toasting" or kampai, pronounced 'kahm-pie'" (Williams, 2003, "Behavior) When dining with one's hosts, key phrases to remember are itadakimasu at the beginning of meal (an expression of gratitude for the invitation) and gochisou-sama-de*****a at its conclusion, which is an expression of thanks. Other useful phases in everyday life in Japan include sumimasen (excuse me) and kekko desu (I've had enough) when dining or drinking. (Williams, 2003, "Behavior)

Deadlines

Punctuality is an important part of meetings, however for after-hour socializing, it is less so. Unlike Mediterranean or Latin American nations, in Japan, ideas of punctuality and meeting deadlines are taken seriously in commerce, not merely as general guidelines.

Rules of Engagement

Much of what is important and critical to the decision-making process of the Japanese may in fact occur outside of the boardroom, in conference rather than in confrontation. Do not use confrontation as a strategy, rather stress harmony and mutual advantages when attempting to win a strategic point.

Family and Social Structure

Many Japanese families retain a very traditional division of home labor, whereby men work long hours and women stay at home and tend to the rearing and education of children. Couples may spend many hours of the day apart from one another, in contrast to American households. Children may live with their parents, especially young women, until they are married, rather than leaving after they depart for university. Children often have many outside academic and extracurricular commitments that keep them away from the home, although when at home they are more likely than American children to be responsive to the will of their parents.