INDIVIDUALISM vs COLLECTIVISM
Describe cases of Japanese business practices and/or
characteristics regarding collectivism
in comparison with business in individualism society.
GROUP B:
Sze Yui Ng, Ziyun Jenny Wu, Lee Chee How
1
INDIVIDUALISM vs COLLECTIVISM
AS SEEN BY HOFSTEDE
• One of the 5 Dimensions of National Cultures introduced by Geert
Hofstede
• Individualist society: Individuals take care of themselves and their
immediate relatives only.
• Collectivist society: Individuals hold expectation that the larger
group will protect and take care of them.
• Here we contrast Japan ( average collectivist society according to
Hofstede) with more individualist countries such as the United
States and France.
10/05/2012
JAPANESE BUSINESS CULTURE
PROGRAMME
I/ 2 CONCEPTIONS OF THE DIVISION OF LABOUR
II/ THE IMPACT OF CULTURAL DIFFERENCES IN THE RECRUITMENT
PROCESS
III/ THE PROMOTION SYSTEM IN JAPAN vs COLLECTIVIST SOCIETIES
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JAPANESE BUSINESS CULTURE
I/STRUCTURAL DIFFERENCES
Keiretsu
The shared responsibility
‘KEIRETSU’ - A family of firms
Domestic Family
Corporate Family
Sharing weal and woe
Earning profits together; sharing losses
Blood ties, emotional links
Cross-shareholding, financial links
Members play different roles
Division of labor
10/05/2012
JAPANESE BUSINESS CULTURE
COMPANY ORGANISATION IN JAPAN
• Horizontal – KEIRETSU MODEL
Example: the Mitsubishi Group
10/05/2012
Industry
Member Company
Banking
Bank of Tokyo-Mitsubishi
Trust Banking
Mitsubishi Trust &
Banking
Life Insurance
Meiji Mutual Life
Marine & Fire Insurance
Tokio Marine & Fire
Trading Company
Mitsubishi Trading House
Steel
Mitsubishi Steel
Manufacturing
Chemicals
Mitsubishi
Gas
JAPANESE
BUSINESS CULTURE
Chemicals
COMPANY ORGANISATION IN JAPAN
• Vertical
Example: Nissan Motor
Parts
Akebono Brake
Industries (16%)
…
10/05/2012
Assembly
Nissan Diesel Motor
(40%)
…
JAPANESE BUSINESS CULTURE
Distribution
Nissan Prince Tokyo
Auto Sales (73%)
…
SHARED RESPONSIBILITY
Japanese Firm
(e.g. Bank of TokyoMitsubishi)
Western Firm
(e.g. Apple)
Decision-making
Group consensus
Individual initiative
Blame/ Credit
Team
Department
Firm
Team Leader
Department Head
CEO
Job description
Undefined
Clear cut
Philosophy
Win-win
Personal success
10/05/2012
JAPANESE BUSINESS CULTURE
II/IMPACT OF CULTURAL DIFFERENCE
The recruitment process
RECRUITMENT PROCESS AND HR POLICIES
• ALTHOUGH ALL RECRUITERS LOOK AT THE SAME BASIC
INFORMATIONS…
-Age
-Educational background, language skills
-Proof of leadership, hobbies
• … THE RECRUITMENT PROCESS DIVERGES IN JAPAN FROM MOST
COLLECTIVIST SOCIETIES FOR CULTURAL REASONS
10/05/2012
JAPANESE BUSINESS CULTURE
DURKHEIM’s THEORY ON THE
DIVISION OF SOCIAL LABOUR
MECHANICAL SOLIDARITY
Japan
ORGANIC SOLIDARITY
The US, France
Looking for SIMILARITY in candidates
How well will he fit in?
Searching for COMPLEMENTARITY
What is the special skill that the candidate
possesses?
Training the newcomers to adopt
corporate culture, develop transversal
relationships
Getting ready-made staff that has
expertise on a specific domain
Encouraging POLYVALENCE through
LATERAL PROMOTIONS
Encouraging EXPERTISE and strong
DIFFERENTIATION in the division of labour
10/05/2012
JAPANESE BUSINESS CULTURE
HR IMPLICATIONS FOR
COMPANIES
Very vague contract
Graduates apply for a
company, not position
Long
integration
Lateral mobility
• The graduate from applies for a large company with a good
reputation as employer ( Mitsubishi, Toyota…)
Lack of experience not a handicap
• He will spend his first years working in ‘Ka’ (workgroups)
 Little differentiation among juniors
• After 10/15 years promotions less automatic= more individual.
Meanwhile, the company has taken care of every aspect of his
employee’s life = loyalty and commitment
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JAPANESE BUSINESS CULTURE
HR IMPLICATIONS FOR
COMPANIES
Very detailed contract
Strict prerequisites on
application
Integration in
restricted team
Expertise and
differentiation
• The graduate from applies if he meets the prerequisites
• Previous experience is appreciated
• Recruiters focus on PERSONALITY and personal stories
Acceptable originality is encouraged
• The contract signed is very detailed
• After joining, he works closely with his immediate group
But promotions are linked to his own ability to network and
produce high performance.
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JAPANESE BUSINESS CULTURE
TIME TO MOCK THE FRENCH A LITTLE BIT…
POSITION/ TITLE
FINEST DESCRIPTION
OF ALL THE TASKS
POSITION IN THE
HIERARCHY
‘PROFILE’
-educational bg +
experiences
-technical skills
-moral qualities
10/05/2012
JAPANESE BUSINESS CULTURE
III/ PAY & PROMOTION SYSTEMS
Japan vs Collectivist societies
PAY AND PROMOTION SYSTEM
Japan
Individualist Societies
Seniority-based
Performance-based
• One will be promoted according to
his/her age and length of service in the
firm
• One will be promoted according to
his/her own ability and working
performance
• Base pay will be increased with the
• Salary is not related to age and years of
increase in age and years of service (But
service
one’s job and skills will also be considered)
• One starts with an entry-level position
when he/she just enters the firm
• One can enter a firm with different
position, e.g. Director or Section Head
• Rigid hierarchical order is created and
one must respect senior workers
• Young workers can be the head of the
department or even the firm
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JAPANESE BUSINESS CULTURE
POSITION OF THE JOB
Japan
Collectivist Societies
automatic shift within the company
Fixed position
• One will be shifted to various
departments or even other branch offices
every two to five years
• One will work in a specific post without
shifting within the firm
• Aims to increase the sense of belonging • Specialist is needed instead of
to the company along with the deeper
generalist
understanding of the operation of the
firm and to establish contacts with other
workers in other department
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JAPANESE BUSINESS CULTURE
JAPAN: Bank of Tokyo- Mitsubishi
• A graduate works as an employee (Shain 社員), when he/she
just enters the bank.
• He/she will be promoted to Project Head (Shunin 主任
),Section Head (Kacho 課長), Division Manager (Bucho 部長)
or even Director along with the increase of length of service in
the firm
• He/she may even shifts to oversea branches
• Most of the works will be done in groups
• Vertical relationship between senior and junior workers is
important and close
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JAPANESE BUSINESS CULTURE
UNITED STATES: Apple
• A new employee can enter the firm by working as a
salesperson in retail store or as a application software
engineer
• Promotion of the job will depend on working performance
• Development of new products will be done in groups, but
individual assignments are also given.
• Individual strength is stressed
• Vertical and horizontal relationship is not close
• Workers will try their best to separate the work and their own
private life
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JAPANESE BUSINESS CULTURE