Intercultural the Economic and Business

Intercultural

The economic and business world nowadays is impacted by what is referred to as globalization, a phenomenon that allows a constant flow of information, capitals, workforce, technology, from one country to another. Globalization, by bringing businesses from different countries in direct contact, raises a problem that has not existed during the previous century: how do we deal with cultural differences between the negotiators or the business partners? What is the correct answer in difficult situations caused by the cultural differences?

In this sense, we propose to define a specific case study that will be investigating these exact problems: the implantation of a U.S. business, in the form of an industrial plant, in Japan. Such an extreme situation, in which the cultural differences between the two countries are so strong, will give us the possibility to best exemplify the facts and find alternative solutions when such problems occur.

The first issue that needs to be discussed is a brief overview of the main factors that make up the national culture in Japan, how these are different from the ones in the U.S. And how this impacts the company. In general, these factors are language, ethnicity, religion or political and social institutions.

The main problem that an American implant will recognize in this set of factors is the language issue, mainly because language is the key element in communication. The problem is not only that communicating in Japanese is a difficult task in itself, but the entire alphabet, grammar or language system is different from what an American or European businessman would be used to.

Without notions of Japanese, for a plant manager it will be extremely difficult to be able to communicate the strategy, the operational, day-to-day issues to the workers in the plant. There are two separate solutions in this case. The first one would be to use a local manager in charge with operational issues, one who will be able to relate to the workers as well. The second solution would imply either studying Japanese before going to Japan or having a U.S. translator, again, preferably somebody who has Japanese descendents.

In my opinion, the best solution would imply having at least basic notion of Japanese. Any attempt to communicate on Japanese will be interpreted by the workers as a sign of respect towards them and would probably increase confidence in the plant manager.

Second of all, ethnicity is a strong factor in Japan. It is common knowledge, for example, that, despite the tolerance characteristic after the Second World War, many Japanese still regard foreigners (or "gaijin" as they are being referred to in Japan) in a negative way. This tendency may be exacerbated in the cases where the foreigners also occupies a managing position and gives orders to the workers in his team.

In my opinion, one shouldn't over speculate the Japanese approach towards the foreigners. Recent history recommends the Japanese people as a hospitable one, but diplomacy is something that the implanted manager should necessarily have when being assigned for the respective position. All conflicting interethnic situations need to be solved with tact.

In terms of religion, there is no actual discussion: while predominantly Shinto, Japan comprises Buddhist and Christian believers among others, but their religious tolerance is recognized. Besides, none of the mentioned religions intervenes in any way with the believer's activity within the company.

As a last note on the Japanese national culture and the main factors that make it up, we need to point out towards the fact that one of the fundamental cultural differences that differentiates the Japanese spirit and culture from the American one is also the geographical location of each country. In Japan, the island spirit is obvious in many of the manifestations, while the continental United States have created expansionist businessmen.

Some of the specific Japanese cultural values will probably strongly impact the evolution of the American plant and the American management in Japan. First of all, the Japanese attitude towards time, with the direct influence on their attitude towards business, is a first issue of concern we should refer to. The Japanese have a relative perception of time, which means that time does not have the same value as it does in Occidental cultures.

In the Japanese culture and civilization, actions are not urgent, because there is no need for them to be. Something that can be performed today can also be performed two days later in the same conditions. The main impact that this has in the business field is the fact that all Japanese projects and investments will tend to be long-termed, which means that they will allow a long period of time (usually around 30 years) before carrying away any profit.

The problem in the plant we are dealing with is that this perception on time has been implemented by managers into the lower levels as well. A Japanese worker will never attempt to produce something in five days if it can be done in a week as well. This does not in any case represent a negative attitude towards work. The Japanese worker is probably one of the most conscientious of all. It simply reflects an ethnic believe on time and its influence on the human being and its actions.

In terms of personal space, again we need to refer the management theoreticians, Hofstede and Trompenaars, who have defined two types of characters: the island spirits and the frontier sprits. Island spiritualities and mentalities turn to be rather introverted, with a lesser ability to connect with the individuals around and with a certain inclination towards being conservative.

These characteristics are excellently reflected in the Japanese individual. It is common knowledge that you will almost never be able to read the Japanese, to know what the individual is thinking at some point or other. While the group mentality is still strong for any Japanese and the group appurtenance is a necessity, one may still deem the Japanese to be introverted.

These considerations are essential because they will reflect the U.S. manager's capacity to deal with the human resources at the plant. He will need to know how to motivate his employees, while at the same time taking the appropriate measures when something goes wrong. On the other hand, the 'punishments' he will apply will have to keep in mind the group appurtenance necessity mentioned and shall not resume into isolating measures or anything that may sensibly hurt or irritate the Japanese worker. It is necessary to underline that, given the fact that the evolution of the manager in a foreign country, especially one as difficult as Japan, local sensibilities need to be seriously taken into consideration and dealt with accordingly.

The main challenge here is resumed into matching the frontier spirit, characteristic for a U.S. individual and inclined towards external manifestations, with the local island spirit, less enthusiastic, more introverted. The relationship between a Japanese and an American is always a relationship where the former is 'more shy', less inclined towards socializing gestures, and the latter is more inclined to attempt a personal bond. In our case, it is perhaps best to avoid excessive social approaches towards the employees or fellow business partners and resume to an attitude where the professional aspect is first and last.

It will probably be extremely difficult for the American manager to be able to understand and profit from the social relations that exist between the Japanese workers at the plant. One single example: it is most likely that one or several of the older workers benefit from the respect of the entire group. This may point out towards the fact that gaining them to the plant's cause will also facilitate the dialogue with the rest of the employees. Nevertheless, the Japanese social context is an extremely complicated one. It is unrealistic to believe that it will be understood in a certain period of time. This is where a Japanese assistant may come in handy.

Nobody is expecting the workers to accept the U.S. management team from the very beginning, but one can speculate on what may make it accept them faster. On of these factors may be the extraordinary sense of duty that the Japanese workers and other individuals have. A Japanese worker will always place the duty he has towards the company, the family, the social group he belongs to above any individual needs. In this sense, it is most likely that, despite the existence of a foreign management team, the duty towards the company and towards the activities that he has to oversee at the plant will be the most important issues.

The American manager will need to carefully evaluate which of the Japanese practices will be able to function correctly in the American plant and the American management system and which will not. One of the examples is the fact that, in most cases, the Japanese are hired for a very long period of time. It is often the case that some of them never leave the company where they have first been hired. Such a system has the obvious advantage that the worker is very loyal to his company and develops a certain practice working in the same place, but, on the other hand, we may question ourselves on the motivating issue: is this still functional?

The example of the Japanese society nowadays may show that it is not. Indeed, we find in Japanese companies that the motivating factors are actually restrictive factors that are used to control production capabilities. Promotion, for example, one of the motivating tools most used in the Western world, is almost non-existing in Japan, as promotion is performed according to age and you will never expect to reach a certain position within the company until a certain age. Additionally, the fact that you work in the same company and have long-term contracts may induce the fact that you will not be interested in delivering highest achievements, as the workplace is in any case ensured.

In this sense, as a solution to these issues, I would suggest a mixed Japanese and American approach. First of all, the long-term contracts need to be implemented, frankly because the workers are used to such contracts and would probably be negatively surprised not to have them.

On the other hand, the Western component also needs to be strongly used. Promotion, in my opinion, is one of the most efficient tools in motivating your staff and can be widely used here, in this context. All the same, any promotion moves should be carefully made, so as not to hurt or unease the older individuals' position within the group.