`
Culture & Leadership
Danish- Japanese Context
© Glory Godspower Diejomaoh, Hudda J. Arief, Tadas Perednis &
Tilak Raj Bhatta
Supervisor: Margit Neisig
Roskilde
University,
Masters
in
Economics
&
Business
Administration, Semester Project 2014
Date of Submission: 26/05/2014
1
Acknowledgement
First and foremost, we would like to thank our supervisor Margit Neisig for her insightful
comments, guidance and support throughout the project work. It would not have been
possible to complete this project the way it is without her help. We appreciate the fact that
she was always available to help us.
Secondly, our special thanks go to Merete Nørby from DTU (Technical University of
Denmark) for giving us opportunity for the interview. We got a lot of useful information
about Japanese culture and organizational leadership issues.
Without great support of DNP Denmark, it would not be possible to make this project
complete and meaningful. Our heartfelt gratitude goes to CEO, Masahiro Hirao, and
Supply Chain Manager, Carsten Marcussen, from DNP Denmark. They were kind enough
to share their ideas, knowledge, experience and information that acted as the inputs to
support the theoretical framework in our project work.
We also want to thank Roskilde University and all the lectures for providing us the basics
of knowledge to complete this project.
Tadas, Tilak, Hudda and Glory
Roskilde University, Masters in Economics & Business Administration
2
Table of content
Contents
ABSTRACT .................................................................................................................................................. 5
1. INTRODUCTION ................................................................................................................................... 6
1.1 PROBLEM AREA...................................................................................................................................... 6
1.2 PROBLEM FORMULATION ...................................................................................................................... 7
1.3 DEFINITION OF CONCEPTS ..................................................................................................................... 7
2. METHODOLOGY ................................................................................................................................ 10
2.1 THE STRUCTURE OF THE PROJECT ..................................................................................................... 10
2.2 PHILOSOPHY OF SCIENCE .................................................................................................................... 11
2.3 CASE STUDY RESEARCH APPROACH .................................................................................................... 13
2.4 DATA COLLECTION .............................................................................................................................. 15
2.5 QUALITATIVE DATA .............................................................................................................................. 16
2.6 INTERVIEW GUIDE ............................................................................................................................... 17
2.7 RELIABILITY AND VALIDITY ............................................................................................................... 19
2.8 DELIMITATIONS ................................................................................................................................... 20
3. THEORETICAL FRAMEWORK ....................................................................................................... 21
3.1 GLOBE CULTURAL DIMENSIONS AND CULTURAL CLUSTERS ........................................................... 21
PARTIAL CONCLUSION FOR GLOBE THEORY: ............................................................................................. 26
3.2 ORGANIZATIONAL KNOWLEDGE MANAGEMENT ............................................................................... 27
PARTIAL CONCLUSION FOR ORGANIZATIONAL STRUCTURE AND KNOWLEDGE MANAGEMENT: ............. 31
3.3 DECISION-MAKING PROCESS IN JAPANESE AND DANISH ORGANIZATIONS ....................................... 32
PARTIAL CONCLUSION: ............................................................................................................................... 38
3.4 ORGANIZATIONAL COMMUNICATION IN JAPAN AND DENMARK ....................................................... 39
PARTIAL CONCLUSION FOR COMMUNICATION AND NEGOTIATION SECTION: .......................................... 47
4. CASE STUDY ........................................................................................................................................ 48
4.1 BACKGROUND OF DNP SCREENS ....................................................................................................... 48
5. ANALYSIS/DISCUSSION................................................................................................................... 49
5.1 ANALYSIS OF THE GLOBE THEORY ..................................................................................................... 49
5.2 ANALYSIS OF ORGANIZATIONAL KNOWLEDGE MANAGEMENT .......................................................... 51
5.3 ANALYSIS OF DECISION-MAKING PROCESS ......................................................................................... 54
5.4 ANALYSIS OF INTERCULTURAL COMMUNICATION .............................................................................. 58
5.5 ANALYSIS OF DANISH AND JAPANESE NEGOTIATION STYLES ............................................................ 60
6. CONCLUSION/RECOMMENDATIONS .......................................................................................... 62
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7. BIBLIOGRAPHY .............................................................................................................................. 65
KATZ LOTHAR (2006): NEGOTIATING INTERNATIONAL BUSINESS: THE
NEGOTIATOR'S REFERENCE GUIDE TO 50 COUNTRIES AROUND THE WORLD.
BOOKSURGE PUBLISHING ............................................................................................................ 67
8. LIST OF APPENDICES ...................................................................................................................... 70
4
ABSTRACT
This report aims to investigate how do national cultures affect organizational leadership
in Danish-Japanese context. Our goal is not only to show the differences in both cultures
regarding various subjects such as; decision making, organizational structure, crosscultural negotiation, communication, knowledge management, etc., but also to dig deeper
in the subject matter and find out why such differences occur.
We have used the case of Japanese Optical Screen Company called DNP’ which is
located in Denmark. However, the primary purpose of this report is not to provide the
detailed analysis of the case company, but to support the theoretical framework and
research outcomes. We have interviewed both Danish manager and Japanese CEO from
DNP to get their views and practical experiences on cultural issues and its affect on
Leadership. We have also interviewed Merete Nørby from DTU (Technical University of
Denmark), who is working as Chief Consultant in Production and Service Management
Department, to provide backup for our research findings and as a source of inspiration.
She is the expert in Japanese culture and has been to Japan several times with Danish
business executives.
We have also used theories such as Globe and Nonaka in our report that will provide us a
framework to compare the differences and similarities in Danish and Japanese national
cultures, which will later help us to analyse why there are differences in organizational
and leadership issues.
5
1. INTRODUCTION
1.1 Problem Area
We are living in the age of globalization where companies are becoming more and more
international. Companies across the world must adapt in globalized world that creates
plenty of opportunities in the form of foreign markets meanwhile increasing the new
challenges of foreign competition and threats. (House & Javidan, 2004 as cited in
Northouse, 2010).
The fact of globalization has made it important for business leaders and managers to
understand the cultural sensitivity. Cultural sensitivity is about being able to know the
presence of different cultures and ability to understand the viewpoint of other’s culture by
putting oneself in another’s shoes (Deresky, 2011).
Some researchers of leadership are arguing that culture and leadership are closely linked.
For example Bass, (1985) claims there is the relationship between culture and leadership
by examining the impact of different leadership styles on culture. Brown, (1992) argues
that good leaders should develop the skills that allow them to change the aspects of their
culture with the purpose to improve their organizational performance. Schein, (2004)
writes about organizational culture and leadership that are intertwined.
Culture is a broad term and could give different meanings, but in our report we are
focusing on national or societal culture that consists of common beliefs, values and
understandings, which are passed from one generation to another. One is not born with a
given culture but culture is adapted by socialization process gradually (Deresky, 2011).
Assuming the historical and cultural differences between Denmark and Japan could
create breeding ground for clashes in organizational and leadership issues such as
decision making, communication approaches, negotiation styles, knowledge management
and organizational structure, we would like to investigate how and why there are such
6
differences. Using the case study of Japanese company DNP Denmark would help us to
get some practical insights on the cultural issues affecting organizational leadership.
1.2 Problem Formulation
How do national cultures affect organizational leadership in Danish-Japanese
Context?
Working Question:
Which organizational leadership issues are affected by cross-cultural business
environment?
1.3 Definition of concepts
Under this section, we have explained some of the important concepts used in our report.
It will allow the reader to get the basic idea about the terms such as; culture,
national/societal culture, leadership and organizational leadership.
Culture
Broadly speaking culture can be defined as a tradition inherited from a group of people or
society. It a long-term process, which is discovered, developed or invented through the
interaction among the members or with the environment and is transferred to the newer
generations through immersion and teaching. (www.businessdictionary.com). According
to classical anthropological concept of culture, it is a system of assumptions, values and
norms which can be described objectively and which is adopted collectively by members
of a group, an organization or nation. It means that basic values and core concept of any
culture can be discovered by surveying and systematizing the behavior and stated
attitudes of individual members (Gertsen, Søderberg and Torp, 1998).
National/Societal Culture
7
Culture is a broad term that could give different meanings, but in our report, by culture
we mean national or societal culture. Every nation or society has unique culture, so it is
important for business managers to understand this level of culture in order to be
effective in global business management. It is important to understand and contextualize
cultural differences and similarities for any organization’s globalization strategy.
However, cultural norms across national boundaries should not be overly simplified or
undifferentiated (www.culturalorientations.com). Culture is adopted gradually through
socialization process. Cultures develop or change as societies adapt to transitions in the
external and internal environments and relationships. Therefore, business leader or
manager working in foreign subsidiary should expect to find large or small differences in
the behavior of individuals and groups within the organization. (Deresky, 2011).
However, it cannot be generalized that all the members of a group or a nation have a
single viewpoint on the issues although members of a nation have some common
experiences and values (Gertsen, Søderberg & Torp, 1998). So, it is really important for
the business leaders and managers to understand to what extent the meaning can be
generalized and specified.
Leadership
“Leadership is a process whereby an individual influences a group of individuals to
achieve a common goal” (Northouse, 2013:5). Furthermore, Northouse (2013) claims
that leadership is a very broad term that can be compared to the words like democracy,
love and peace. By this he means that people can define the term „Leadership“ in several
ways. He has identified the following components as the central phenomenon of
Leadership.
a) Leadership as a process
b) Leadership involves influence
c) Leadership occurs in groups
d) Leadership includes attention to goals
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Leadership is also defined by several other people in their own way. Kevin Kruse (2013)
says, “Leadership is a process of social influence, which maximizes the efforts of others,
towards the achievement of a goal”.
When we just use the term “Leadership”, it could mean leadership in several senses like
political leadership, gang leadership, educational leadership, religious leadership,
organizational leadership, etc. But in our project we are focussing on organizational
leadership.
Organizational Leadership
By organizational leadership, we mean leadership that is adopted in the business
organizations either in top, middle or bottom level management. It means by
organizational leader, we don’t mean just CEOs but also managers from other levels of
management. In the article written by Patrick Roland (Edited by A. Joseph, 2014), it is
written that people consider leadership as an art and management as a science, and
organizational leadership is the blend of art and science that gives direction to the
company. He further states that organizational leadership is the ability of management to
understand the goals of the company and its employees in order to reach company goals.
In our project, we have tried to investigate why there are differences regarding different
organizational and leadership issues on the cultural base.
9
2. Methodology
In the methodology chapter, the methodological choices of the project work will be
presented.
2.1 The structure of the project
10
Figure:1 The structure of the project
This project is structured as follows. The topic of the project started from the introduction
chapter where we discussed the problem area and narrowed down to problem formulation
and working question. In the methodology section we will present the qualitative research
technique and we will discuss the reasons of using qualitative technique in this project to
collect empirical data. Then the theoretical framework will be presented. The theoretical
framework consists of GLOBE theory (Global Leadership and Organizational Behaviour
Effectiveness),
Nonaka’s
theory
of
Organizational
Knowledge
Creation,
and
organizational structure. Furthermore the decision-making process in Denmark and Japan
will be presented followed by intercultural communication and negotiation process in
both countries. We decided to use a case study on DNP Denmark that would help us in
answering our problem formulation. The company will be introduced later in the project.
The methodology chapter is influenced by the case; therefore we have marked the
connection between them by an arrow. Afterwards we continued the research paper using
methods, theories, and the case by combining empirical data and the theories in the
analysis and discussion chapter. The project is finalized by conclusion chapter where the
main findings will be summarized and presented.
2.2 Philosophy of science
The aim of this section is to get a concise overview of our epistemology and ontological
stance, which function as our scientific theoretical framework within the project.
Epistemology
As reported by Bryan (2004), epistemology means, “what is (or should be) regarded as
acceptable knowledge in a discipline”, with other words different forms of knowledge.
11
The epistemology stance of our project is based on critical realism, as we seek to know
the reality behind the Danish and Japanese culture and contradictions in the organization
due to it.
Critical realism seeks to analyse any deeper lying mechanisms that are made to create an
empirical phenomenon. According to Bhaskar, the founder of critical realism, the concept
“reality” consists of three domains namely; the empirical, the actual and the real, which is
the main domain in critical realism, (Alvesson and Gergen, 2009 p. 40). The empirical
domain involves things that can be observed by humans, things that occurs and exists in
line with human instantaneous experience. The actual domain concerns things that
occurs, but is recorded by the researcher or any other observer. And last, the real domain
comprises any productive mechanisms of “different events and other surface
phenomena.” Basically, critical realism seeks to examine and identify relationships and
non-relationships to differentiate between human experiences, the actual events and the
mechanisms behind which produce the events in the world (Alvesson and Gergen, 2009
p. 40).
Consequently, based on a critical realism epistemology, we plan to study the context as
well as find out the underlying mechanisms in order to gain knowledge about the cultural
differences between Denmark and Japan and how it affects leadership. In our project, we
implement the decision-making process as well as the organizational structures, which
will provide us with the mechanisms behind the cultural framework and reality. We
investigate the structural issues in order to understand the cultural issues, this way they
are interrelated. We will use these theories, not only to explain that there exist cultural
differences between Denmark and Japan, but also to analyse why and how they are
different and how it functions.
Ontology
The critical realism theory can be applied to social science as well as natural science.
Nevertheless, the applications of this theory in social science are different from the
natural. Culture and society are created by human activities; hence society is moderately
altering because of the dynamic nature of human actions. Different from natural laws,
rules of culture and society are not universal, however only suitable in a particular
location and time. Moreover, social structures are open and cannot be synthetically
controlled in a laboratory type setting. Consequently, the theory of critical realism does
not consist of any anticipating power, and the theory is utilized for its explanatory
12
advantages only. Critical theory involves a deep comprehension of all social situations,
passing the observable and exploring the mechanisms behind any circumstance
(Hedlund-De Witt, 2012).
In our project we use critical realism, as the culture and society keeps changing due to the
human activities, which in this case means that when Japanese and Danish leaders have to
work together, there is a tendency that they take in different methods and business styles,
like it has been done in the case of DNP Denmark, and this creates a dynamic culture and
society.
2.3 Case study research approach
Determination of Case Study
A case study consists of “an empirical inquiry that investigates a contemporary
phenomenon within its real-life context, especially when the boundaries between the
phenomenon and the context are not clearly evident… It allows the investigation to retain
the holistic and meaningful characteristics of real-life events—such as individual life
cycles, organizational and managerial processes, neighborhood change, international
relations, and the maturation of industries” (Yin, 1994:3). In our project, we are making
a case study research about how national culture affects organizational leadership in a
Danish-Japanese context using DNP Screens as our case company, as it is a Japanese
corporation with an office in Denmark.
Based on Yin’s definition of case study, we believe that the case study method meets the
solution for our problem area. Usually the case study is used in “the conduct of
dissertations and theses in social sciences ----- the academic disciplines as well as
professional fields such as business administration, management science” (Yin, 1994:1).
As master students of Business Administration writing this project, we equally find that a
case study is appropriate for the academic requirements within our field of study. To be
more specific, a case study design should be thought of when: a) the focus of the study is
to answer “how” and “why” questions; b) you cannot manipulate the behavior of those
involved in the study; c) you want to cover contextual conditions because you believe
they are relevant to the phenomenon under study; or d) the boundaries are not clear
between the phenomenon and context. (Yin, 2003)
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We will use this approach accordingly by Yin, (2003): a) our problem formulation is as
following “How do National cultures affect organizational leadership in Danish-Japanese
context?” which we will focus throughout the project, b) the behavior in this study stems
from the organization, which we must not manipulate at all as researchers, c) as
companies worldwide are becoming more and more influenced by the globalization; thus
becoming international, we intent to investigate cultural clashes between Denmark and
Japan and the underlying mechanisms behind the cultural differences. And we are aware
the phenomenon under this study may alter in this context. D) The underlying
mechanisms behind the phenomenon “national cultures in organizational leadership” and
the context “Danish-Japanese”.
Proposition
Proposition can be relevant for the case study because it “increase the likelihood that the
researcher will be able to place limits on the scope of the study and increase the
feasibility
of
completing
the
project.”
This
might
stem
from
“literature,
personal/professional experience, theories, and/or generalizations based on empirical
data” (Baxter, 2008).
This stems from different theories: 1) Globe cultural dimensions and cultural clusters. 2)
Nonaka's theory of organizational knowledge creation, wherein the organizational
structures are explained. 3) Decision-making theory of Danish and Japanese
organizations. 4) Organizational communication in Japan and Denmark. 5) Negotiation
processes in Japan and Denmark. 6) Interview with DNP's Denmark CEO (Chief
Executive Officer). 7) Interview with DNP's Denmark supply chain manager. 8)
Interview with expert Merete Nørby from DTU (Technical University of Denmark).
Determining the case/ Unit of analysis
The case has been presented by Miles and Huberman (1994:25) as, “a phenomenon of
some sort occurring in a bounded context.” The case is, “in effect, your unit of analysis”
(Miles and Huberman, 1994:25). As we have clarified above, we would like to investigate
the phenomenon among Japanese organization located in Denmark – thus the Danish-
14
Japanese context. DNP Screens is one of these companies; however there are also others
such as Mitsubitshi, Mazda, Toyota etc. They all face the issue of leaders and employees
having to work together despite their cultural differences. As we were able to conduct
empirical data from DNP Screens we would like to determine the company as the case or
the unit of analysis.
Binding the case
Both Yin (2003) and Stake (1995) have suggested binding a case can avoid the
complexity and remain a reasonable scope. There are different suggestions on how: by
time and place (Creswell, 2003); by time and activity (Stake); by definition and context
(Miles & Huberman, 1994).
In this project, we are dealing with the phenomenon of the relation between national
culture and organizational leadership; these two issues both comprise many concepts and
can vary in distinctive contexts. Hence, we choose to bind the case by the definition of
concepts and context as a basic setting. While the Globe theory defines 62 national
cultures that are divided into various clusters, we have only chosen to focus on 2 national
clusters and different cultural dimensions under the time limitation. The context is
Danish-Japanese organizations with DNP Denmark as our case study, the available
information we found have been collected from our empirical data from the interviews
with their Japanese CEO, their Danish supply chain manager, the company's website.
Other empirical data, to support our problem formulation, is the interview with a chief
consultant and research coordinator from DTU. In addition, we have also utilized Stake’s
(1995) suggestion on binding the case by time and activity. After we clarify the definition
of organizational leadership and the context national cultures; Danish-Japanese, we will
moreover reduce the time period we have been given and the activities area of the study.
Otherwise, the inquiry will be immense to conduct.
2.4 Data Collection
In order to answer our problem formulation both primary and secondary data was
gathered throughout the project. Sources of secondary data include journal articles,
books; online data sources such as annual reports and webpages of companies,
governments, semi-government organizations and catalogues (Ghauri, Grønhaug 2005). It
is important to realize that the secondary data provides the information that may have
15
been gathered for a different purpose. Using secondary data in a project has its own
advantages and disadvantages. The most significant advantage of using secondary data is
saving money and time. Another advantage worth mentioning it is relatively inexpensive
and easy to access. Finally, the data collected by governments and international
organizations is of high quality and reliable because it was gathered by various experts
using different methods (Ghauri, Grønhaug 2005). On the other hand the researcher does
not know exactly how the data collection process was done and how well it was done. As
a result it is the researcher’s responsibility that the data is accurate.
When secondary data is unable to help answer problem formulation, or is not available
then we must gather the data that is relevant to our particular study (Ghauri, Grønhaug
2005). Primary data includes observations, experiments, surveys (questionnaires) and
interviews. In our project we have chosen the qualitative research method that should
help us in answering our problem information. Examples of qualitative research method
are the interviews, field observations, historical source studies (Harboe, 2011). The
interview technique will be used to collect empirical data. Qualitative research is very
common in social and behavioural sciences.
2.5 Qualitative data
The qualitative research method was chosen in a number of reasons. Firstly, the interview
technique is a rich source of information and they are often considered as the best data
collection methods (Olsen, Pedersen, 2008; Ghauri, Grønhaug 2005). Secondly, because
of the personal contact with the interviewee and the interviewer who ensures that all
questions are answered from the interview guide. Interview guide will be presented later
in the Interview Design section. Because of the personal contact with the interviewee our
group can gain more accurate and clearer picture of the interviewee’s behaviour or
position. Thirdly, we wanted to cover a single issue in a short space of time. Fourthly, the
data consists of words and their meaning (Olsen, Pedersen, 2008).
In order to be critical towards the qualitative research method we think that it is important
to mention the weaknesses of the method that we have chosen. Mostly interviews take a
long time – longer than filling a questionnaire or a survey and they are relatively difficult
to analyse and interpret (Ghauri, Grønhaug 2005). Our own prejudice and background
can influence the interpretation of the interview that leads to problems of objectivity.
16
Interviews typically include a few respondents and the interviewer plays an important
role during the interview. In the following section we will introduce the interview process
and the interview design in more detail.
For analysing qualitative data we have chosen hermeneutic methodological approach.
Hermeneutic data analysis focuses around the development of what could be described as
an organizing system (Patterson, Williams 2002 as cited in Tesch 1990). “The purpose of
an organizing system is to identify predominant themes through which narrative accounts
(interviews) can be meaningfully organized, interpreted, and presented” (Patterson,
Williams 2002:45). The first step in developing organising system is to ensure that the
interviews would be tape-recorded that we conducted. Transcription of these interviews is
necessary for the detailed “dialog” too. It serves as the basis for analysis. Then continuing
an organizing system, an indexing (numbering) framework has to be developed in order
to reference the location of specific units of text. We created numbering system for the
interview questions.
2.6 Interview guide
There are a few types of interviews such as: structured interviews, unstructured
interviews, semi-structured interviews and other (Ghauri, Grønhaug 2005). Unstructured
and semi-structured interviews differ significantly from structured interviews because the
latter is very formal and they demand greater skills from the interviewer, meanwhile in
unstructured and semi-structured interviews the information is revealed about personal
and attitudinal material (Ghauri, Grønhaug 2005). We had conducted semi-structured
interviews with open-ended questions. The characteristic of using interviews with openended questions is that the responses depend on the interviewee, who may formulate
her/his answers personally.
The first interview was conducted with Merete Nørby on the 6th of May 2013. She is
working as a chief consultant and research coordinator at DTU (Danmarks Tekniske
Universitet). Merete’s area of expertise is within production management dealing with
areas such as technology and human relations and transfer of knowledge between
university and academic world and the more practical world. She also has a speciality
about Japan that has been her interest for more than twenty years (http://www.dtu.dk/).
“A good qualitative interview basically relies on a good question guide” (Harboe,
2011:75). The interview guide, or in other words the question guide, is a piece of paper
17
listing questions that are prepared in advance. We prepared the interview guide a couple
of days in advance and we sent it to Merete. The first 5 questions in our question guide
were introductory questions. The rest of questions we asked the interviewee included
questions from decision-making process in Danish and Japanese businesses, leadership
styles, labour market, communication system, cultural dimension differences in both
countries, knowledge management and lean management. Furthermore, at the end of the
interview we asked her a few general questions (appendix A).
The second person we interviewed is Masahiro Hirao. He is the CEO of DNP Denmark
that is located in Skruegangen 2, Karlslunde. He is 56 years old and has been working in
DNP Denmark for 9 years. Before becoming as CEO of DNP Denmark, he also worked
in DNP Japan in various positions. He started his career in DNP and he is still working in
the same company. We conducted semi-structured interviews with open-ended questions
for all interviewees. The first 9 questions for the Masahiro Hirao were introductory
questions followed by questions from decision-making process and leadership,
negotiation process in Japan, communication system and style, Japanese culture etc.
The third interview was conducted with Carsten Marcussen. He is working as a supply
chain manager in DNP Denmark. He is 59 years old and has been working in DNP
Denmark for 14 years. He has a master’s degree in Industrial Engineering and
Management from United States. Carsten has a total of 14 years of experience as DNP
Denmark employee and he has been in Japan for a number of times. The question guide
for Carsten consisted from introductory questions too (8 questions), decision-making
process and leadership, negotiation process, communication system and style, Danish and
Japanese culture etc. Basically, the same question guide was used to collect empirical
data for both men.The table below shows a summary of collected empirical data in our
18
project.
Table 1: A summary of collected empirical data in the project
2.7 Reliability and Validity
Validity and reliability are two factors that any researcher should be concerned while
judging the quality of the project, designing a study and analysing results (Golafshani,
2003 as stated in Patton, 2001; Harboe, 2011). Validity indicates if all phases of the
project are connected with the problem. There should be a clear connection in a project
between the problem statement, the method selection, the data collected, the analysis and
conclusion. According to Olsen, Pedersen 2008:195 “Validity is the most important
quality category, because it has to do with how to conceptualise the project clearly
enough”. Reliability concerns if the collected data are reliable or not.
Reliability
The reliability of collected data can be tested by analysing and repeating selected
measurements to see if the same outcome can be achieved (Harboe, 2011). In order to
increase a high degree of reliability the data for this project was collected as much as
possible through books and academic articles which can be considered as a reliable
source of information. The higher degree of reliability can be ensured by enclosing the
transcription of interviews so that everyone could “go over your analyses with a finetoothed comb” (Harboe, 2011:192).
Validity
19
The debate about validity and the truth becomes more complex in such types of research
where variables like the impact of the researcher, the situation and other variables are
context dependent and very evasive (Kuzmanic, 2009). Semi-structured and narrative
interviews are particularly interesting in this sense. Such qualitative interviews can be
considered as interactions between a few or more, usually previously unacquainted
persons, who both construct the meaning through a long series of communicative acts.
Interviewee and the interviewer have their own perspective and social knowledge and
they have to share some sort of common ground “which allows them to communicate the
meaning somehow through their ‘in-betweenness’.” (Kuzmanic, 2009:44). During the
interview the interviewer tries to understand the meaning of phenomenon from the
interviewee’s point of view. Validity and meaning is not pre-given but constructed during
the interview process. Our group expects that the responses from the interviewees were
honest and extensive.
2.8 Delimitations
Our research is focused on finding how does national culture affects organizational
leadership in Danish-Japanese context in a broader sense. However, there are also subcultures within a nation that affects organizational leadership, which has not been
discussed in our report. Apart from sub-cultures within a nation, there are organizational
cultures that also affect organizational leadership, which is also excluded in our report.
Using a Japanese company located in Denmark with majority of Danish employees as a
case, has given us a Danish perspective on cultural and organizational leadership issues.
Although we also interviewed Japanese CEO from DNP, it would have been nicer if we
had been able to interview the Danish company located in Japan with majority of
Japanese employees to get the deeper understanding of Japanese perspective on crosscultural organizational leadership issues.
Time limitation is the major hurdle while writing any reports that has affected us too. We
would have done in-depth analysis of case company to find out their real challenges
while working in cross-cultural environment if we had more time. Another possible
limitation could be the hesitation of interviewee to tell the truth or be critical about
other’s culture although it was assured that interview would be confidential. However,
we understand that challenges are the part of our life and we have tried to bring the best
out of the situation.
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3. Theoretical framework
3.1 GLOBE Cultural Dimensions and Cultural Clusters
Cultural dimensions are the outcome of unique sets of common values among people
from different groups. The major differences between cultures occur due to fundamental
value systems that make people behave differently in similar situations (Deresky, 2011).
However, it cannot be generalized that all the members of a group or a nation have a
single viewpoint although members of a nation have some common experiences and
values (Gertsen, Søderberg & Torp, 1998). Therefore, it is important for business leaders
to understand that there are sub-cultures within a nation, which makes people to behave
and act differently even within same country. In our project, we are using GLOBE theory
to analyze the differences and similarities between Danish and Japanese national cultures
and find out how that affects organizational leadership.
GLOBE is conducted by 170 researchers in 62 countries where the researchers collected
data about cultural values, practices and leadership attributes from 18000 managers. This
research took over seven years where the research team identified 9 cultural dimensions
that characterize one society from another and have important managerial implications
such as: Assertiveness, Future orientation, Gender Egalitarianism, Humane Orientation,
In-Group Collectivism, Institutional Collectivism, Performance Orientation, Power
Distance and Uncertainty Avoidance. (Deresky, 2011)
The data collected from 62 countries was divided into different cultural groups or clusters
to make it easier to find out similarities and differences between these clusters. Dividing
into clusters could help to make some sensible generalizations about culture and
leadership. The countries were divided into 10 clusters: Anglo, Latin Europe, Nordic
Europe, Germanic Europe, Eastern Europe, Latin America, Middle East, Sub-Saharan
Africa, Southern Asia and Confucian Asia (Northouse, 2007).
The 10 clusters can be seen in the figure 2, where countries are divided into different
clusters. Here we will just discuss on Nordic Europe Cluster that consists of Denmark,
Finland and Sweden with focus on Denmark and Confucian Asia Cluster which consists
of Singapore, Hong Kong, Taiwan, China, South Korea and Japan with focus on Japan.
We will discuss on these two clusters based on some of the cultural dimensions, which
are mentioned earlier.
21
Figure 2: Cultural Clusters from GLOBE project
(http://christianotrindadeangelis.com/)
Before discussing on Confucian Asian and Nordic Europe clusters in relation to Cultural
dimensions, we will discuss in short about both clusters.
1. Confucian Asian Cluster: Singapore, Hong Kong, Taiwan, China, South Korea
and Japan fall under this cluster. This cluster scored high on In-Group
Collectivism, Institutional Collectivism, Uncertainty Avoidance, Performance
Orientation and fairly high on Power Distance whereas it scored medium to low
on Assertiveness, Future Orientation, Gender Egalitarianism and Humane
Orientation. The major characteristics of this cluster include result driven, and
encourage group working together over individual goals.
22
Charismatic/Value-Based and Team Oriented Leadership dimensions were
strongly supported in this cluster. Similarly, Humane Oriented and Participative
Leadership dimensions were also positively acknowledged. (Chhokar, Brodbeck,
House, 2013).
2. Nordic Europe Cluster: The Nordic Europe Cluster comprises of Denmark,
Finland and Sweden where Future Orientation, Gender Egalitarianism,
Institutional Collectivism and Uncertainty Avoidance scores high in terms of
cultural dimensions. Humane Orientation and Performance Orientations scores
medium whereas this cluster scores low on Assertiveness, In-Group Collectivism
and Power distance. The main characteristics of this cluster are people give high
priority to long-term success, power is shared equally among all levels of society
and women are treated equally.
Talking about Leadership dimensions, this cluster also supports strongly on
Charismatic/Value-Based and high Team-Oriented Leadership with substantial
elements of Participative Leadership (Chhokar, Brodbeck, House, 2013).
23
Table 2: Cultural Clusters Classified on Cultural Dimensions
(Source: Adopted from Northouse (2007), Deresky (2011))
Now we will discuss on some important cultural dimensions that affect Japan (Confucian
Asia Cluster) and Denmark (Nordic Europe Cluster) based on above table.
24
1. Assertiveness Orientation: This dimension refers to toughness, conflicts,
competitiveness versus humbleness and affectionate feeling present in the people
from a society. (Deresky: 2011). “Assertiveness is concerned with how much a
culture or society encourages people to be forceful, aggressive, and tough, as
opposed to timid, submissive, and tender in social relationships”. (Northouse,
2013:389). Talking about assertiveness, both Denmark and Japan falls under less
assertive nations which means they prefer warm and co-operative relations and
harmony. The GLOBE researchers came to the conclusion that these countries
value harmony with the environment, expect subordinates to be loyal and build
trust on the basis of predictability (Deresky, 2011).
3. Future Orientation: This cultural dimension refers to the extent to which people
reward future-oriented behaviours such as planning, saving for the future and
delaying gratification. This dimension focuses that people in a culture want to
control their future instead of enjoying the present (Northouse, 2007). Both Japan
and Denmark, high on this dimension have propensity to save now for the future,
value long-term career planning, training and development. According to research
conducted by Ofer (2008), due to high future orientation Japanese organizations
are investing more in project management training because most project managers
in Japan have high technical knowledge but less knowledge in project
management. Ofer also concluded that Japanese project managers make decisions
keeping in mind its long-term effects (Sokoll, 2011).
4. Gender Egalitarianism: This cultural dimension measures the degree to which
men and women are treated equally in home, organizations and society: “Gender
egalitarianism is concerned with how much societies de-emphasize member’s
biological sex in determining the roles that members play in their homes,
organizations and communities” (Northouse, 2007:307). Denmark scores high on
this dimension, which means that there is equal opportunity for both men and
women in the society. However, talking about the percentage of women working
in top management positions in Denmark is just 15%. Japan scores low on this
dimension where only 5% women work on top management positions (Thorton,
2012)
25
5. In-Group Collectivism: “This dimension refers to the degree to which people
express pride, loyalty, and cohesiveness in their organization or families. In-group
collectivism is concerned with the extent to which people are devoted to their
organizations or families” (Northouse, 2013:388). Japan scores high on this
dimension while Denmark scores low, which means that in Japan duties and
obligations are important factors in society, people emphasize on belongingness
with groups and takes responsibility of fellow members in group (Grove, 2005).
6. Institutional Collectivism: “This dimension describes the degree to which an
organization or society encourages institutional or societal collective action.
Institutional collectivism is concerned with whether culture identify with broader
societal interests rather than individual goals and accomplishments”. (Northouse,
2013:388). Denmark and Japan both score high on this dimension which means
members of society assume that they are highly interdependent with the
organization and group loyalty is encouraged. However according to expert on
Japanese culture, Merete Nørby, Japan is based on more institutional collectivism
than Denmark as for Japanese their job/organization plays very important role in
their life and they work for collective interests.
Partial conclusion for Globe theory:
From the above discussions, it is clear that in some cultural dimensions Denmark and
Japan both fall in same place while in other cultural dimensions they are opposite to each
other. Both Japan and Denmark are considered to be less assertive nations and both
countries are high future oriented. Similarly, both Denmark and Japan are considered
high Institutional Collectivism based countries. On the other hand, Denmark scores high
on Gender Egalitarianism which means there is relatively higher equality between men
and women in relation to home, organizations and overall society than in Japan. Talking
about In-Group Collectivism, Japan scores higher than Denmark, which means Japanese
people give importance to the group and their success.
26
3.2 Organizational Knowledge Management
In this section, we included organizational knowledge management in our research
project in order to understand how knowledge is shaped by culture and leader’s
managerial activities in an organization. Leaders in an organization consist of different
internal mechanism that characterizes leadership such as the managerial skills, decisionmaking skills, communication skills and so on. Furthermore, knowledge management
plays a vital role in order to find how leader’s skills can be effectively applied to manage
knowledge for decision-making, task and problem solving by individual and group in the
organizations. We consider organizational knowledge management as an important theory
for our project. Therefore, leadership involved favourable environment conducive for
knowledge sharing. We believe that leadership and knowledge management are interrelated with each other to have an effective organizational leadership. As noted by Helen
Deresky (2011), “the most effective leadership practices in the 21st century will be ones
through which strategic leaders find way for knowledge to breed still more knowledge”.
In summary, the reason why knowledge creation and management is important to this
research is to serve as the basis of our theoretical discussion and to analyse the cultural
differences in Japan and Denmark. Furthermore, this will enable us to have deep
understanding whether cultural issues affect organizational leadership. However, this
theory emphasize on how knowledge is created through tacit or explicit. Therefore, it is
crucial to discuss about organization structure of both countries in other to understand
how knowledge management works. Moreover, we will look further into the
organizational structures in both countries to see how it works in an organization.
Knowledge management is defined as “the explicit control and management of
knowledge within an organization aimed at achieving the company’s objectives”
(Spijkervet, 1997:). Similarly, knowledge management can further be defined “as the
process of creating, capturing and using knowledge to enhance organizational
performance” (Bassi, 1999:).
As Quinn (1992) noted, knowledge shows the technical “know how” of an individual
which cannot be seen. The goal and the process of knowledge management should be the
basis to allocate knowledge for the advantage of the company (Bollinger, Smith 2001).
The primary concept of knowledge creation can be divided into two categories such as
tacit and explicit.
27
Explicit Knowledge
Explicit knowledge involves company practice, formula, and ethical practice and rules
that are within the conformity of the organization that can be exchanged from one person
to another. As noted by Polanyi (1967), he referred explicit knowledge as spoken words
or written form. While tacit knowledge can be described as knowledge that individual
person holds and which is difficult to explain.
Tacit Knowledge
Tacit knowledge is the knowledge that is developed in human mind through experience.
Tacit knowledge is not very easy to communicate, but it takes many years to obtain
(Sarabia, 2007). People’s knowledge is relevant for organizational survival. Therefore,
tacit knowledge comes as a result of experience. Tacit knowledge is associated with
beliefs, values and experiences of a person, and is not easily transferred. The SECI
(Socialization, Externalization, Combination, Internalization) model below (Figure 3)
illustrates how knowledge works.
The SECI model was applied by Nonaka and Takeuchi as investigative structure on
knowledge processes in organization. Tacit and explicit knowledge interact in four phases
in SECI model. SECI model transforms the existing knowledge into new knowledge
(Nonaka, 1994; Nonaka et al. 2006).
Nonaka and Takeuchi’s theory had shown importance of knowledge creation and the
shaping of the leadership. The hypothesis of this theory holds that tacit knowledge
possessed by one person can be expanded and changed into explicit knowledge that can
then be transferred to the organization and society through social interaction (Marley,
2012). The figure below illustrates the above discussion.
28
Figure 3: The SECI model by Nonaka and Takeuchi
From the figure above, Socialization (tacit to tacit knowledge) happens when experience
is shared from one individual to another individual. For example, knowledge can be
transferred through apprenticeship and learning on the job and so on (Marley, 2012).
Externalization (tacit to explicit knowledge) happens when knowledge is transferred
from tacit to explicit through discussion, reflection and is codified into understandable
format, such as words or images in order to be applicable to everyone in the organization
(Marley, 2012).
Combination (explicit to explicit knowledge) knowledge is acquired through formal
education, seminars or meetings, conferences and so on. Explicit knowledge can be
transferred to the whole organization through practices, rules and formulas. The example
that fits in this description is an individual that is learning the rules and practices that are
within the organization without person-to-person interaction.
Internalization (explicit to tacit knowledge) means acquiring new tacit knowledge that is
applicable through learning by doing (Nonaka, Takeuchi 1995).
29
3.2.1 Organizational structure
In order to access organizational knowledge creation, we looked at the differences
between organizational structure in Japan and Denmark
Japanese Organizational structure
Japanese manufacturing company’s task is performed by the middle managers that
compose of a team approach (Meng, Fei 2003). As noted by Abegglen, Stalk (1985), they
emphasized that Japanese middle managers have more power in performing task in an
organizational setting. Moreover, they implemented various strategic plans through
coordinating human activities that might arise between top management and bottom
management, for example a supervisor (Yui, 1999). Similarly, the middle manager
facilitates the informal and formal teamwork activities so that there is mutual
understanding in the group.
Japanese organizational approach also involves bottom up approach while decisionmaking is from top down approach. The Japanese organizational structure emphasizes
employees as a part of family. Lifetime employment is guaranteed to the employee in a
bigger company. This means that the job will be available until retirement age. Seniority
and length of service for white and blue-collar workers determine the increase in
payment, salary and promotion. The lifetime employment and seniority approach
correspond well with the fact, that Japanese trade unions mainly are company unions and
make agreements with the company rather than industry labour union. The above reasons
prevent the employee from moving from one company to another or enhance employee
permanence in the organization.
In addition to the above, as noted by Aoki (1994:10), “this practice keeps knowledge
carriers and knowledge itself (especially those parts of personal knowledge) within
companies and the latter further maintains cultural heritage, organizational memory &
center of authority, hierarchy and loyalty needed for discovering hidden resources within
each team”. In Japanese context, organization learning, knowledge enhancement and
30
sharing is based on collective responsibility (Meng, Fei 2003). The Japanese
organizational hierarchy is tall which means there are many levels of hierarchy.
Danish Organizational structures
The Danish management style comprises of bottom up approach, non-formal approach.
The manager can use his own wisdom and can also get support from sub-ordinates to
make organizational decision. The organizational structure in Denmark is based on
consultation and it disregards formularization and red- tape that are within the
organization (Kuada, 2008).
The Danish managers in an organization view their sub-ordinates as equals when
resolving issues that affect the employees and the company objectives (Kuada, 2008).
Similarly, direct order to the employee from Danish manager is infrequent or uncommon.
Manager can talk with everybody in the organization as equals (Nielsen et al., 2004). The
area of job security is fairly low in Denmark. The market situation determines the process
of recruitment and layoff of the employees (Kuada, 2008). In Denmark there is possibility
of unemployment benefits for 2 years for people who are unemployed. This created a
flexicurity model.
The organizational structure of Denmark is flat, whereas in Japan is tall. Flat
organizational structure can be understood as organizations with a few layers of
managers, executives and supervisors. Flat organizational structure is highly preferred by
Danish employees and the managers Fivesdal & Schramm (1993). For example,
organizational structure in DNP Denmark is flat with few layers (see appendix D).
While tall organizational structure consists of many layers connecting top and bottom
management in the organization that enhances specialization and skills. This allows each
layer to perform specific task rather than doing more tasks.
Partial conclusion for organizational structure and knowledge
management:
From this theoretical chapter, we have seen different ways of knowledge creation and
sharing in the organization. The SECI model by Nonaka and Takeuchi gave us the
31
understanding how tacit and explicit works. Therefore, we see an interlink between
culture and knowledge. We have seen how tacit rules are apply in Japan. From the
organizational structure we can see the differences in hierarchy in both countries and
from knowledge management we were able to find out how knowledge is transferred in
both countries.
3.3 Decision-making process in Japanese and Danish organizations
The influence of culture on decision-making
It is essential for international managers to realize the impact of culture on decisionmaking styles and processes. Culture influences decision making equally through a wider
context of the individual nation's institutional culture, which generates shared patterns of
decision making, and through culturally based value systems which influences the
particular individual decision maker's comprehension or discernment of a situation.
(Deresky, 2011, pp. 182-183).
Decision-making process in Danish organizations
The organizational culture in Scandinavia attaches great importance to the decisionmaking process. The individuals engaging in the decision making process have a
substantial probability to impact the final outcome. Informal and equitable (unbiased)
organizational environments form a nonchalant atmosphere. Other typical features of the
Scandinavian management style are that emotions should not create an impact on the
decision-making, respecting each other’s feelings and refrain from conflicts (Clausen, L.
2006, pp. 56-57). Clausen equally states that one of the distinct characteristics of the
Danish management style separating from the Scandinavian is their adjustment towards
negotiation that is a feature that is correspondingly shared in the Japanese management.
Scandinavians do not take their leisure time for granted and they make an evident
distinction between their private and professional life. This contradicts the Japanese'
perception of free time. They are persistent to work even though they officially have
32
holiday (Clausen, L. 2006, pp. 56-57). Nevertheless, another resemblance is that Japanese
equally separate their private life from their professional life and they only invite coworkers to their homes on rare occasions. (Clausen, L. 2006, pp. 56-57). Danes are
unpretentious and their mentality acknowledges hierarchy in the organization as a way to
achieve the goal, not as an aim itself. In this way the Danes resemble the Japanese a bit
more. The dissimilarity in the hierarchical organizational framework in Japan is that
individuality is completely unacceptable. Furthermore, the ranking of the employees in
the Japanese hierarchical system is regulated by Confucian values, gender and age
(Clausen, L. 2006 p. 56-57). Clausen, 2006, quotes Peltokorpi (2006), who ascertained
that the Japanese are respectful in regards to their communication with Scandinavians. A
typical Japanese characteristic is to agree with foreign businessmen instead of making
them drop their faces.
When hierarchy is viewed from the contrasting aspects of Danish and Japanese
orientations the remaining unaltered similarities between them are humbleness and
consensus (Clausen, L. 2006, p. 56-57). Cranfield School of Management's researchers
examined variations in management style. The researchers created a model named
“Incubator” that notes a stereotypical classification of leadership style in the Nordic
culture (view the table below). Their style is portrayed as leadership by consensus,
indicating that teamwork and open communication are appreciated within the
corporation. In Nordic countries, employees prioritize productivity as well as
organizational immobility and stimulate participation in order to obtain productivity
(Holt, D.H. 1998, p. 742).
Table 3: Model of Leadership Behaviours in Nordic cultures: Leadership by
Consensus
(Source: Adapted from Holt, D.H. (1998))
33
Decision-making process in Japanese organizations
Concerning the Japanese style, the Japanese management's achievement and its
distinctness from other leadership styles led to the evident advantages that they obtained
in quality production.
There are various common features of the Japanese corporations that can be exemplified.
Firstly, once employees have been recruited, they scarcely ever quit their job although
this is optional. Secondly, due to the fact that Japan has a comparable population, united
by a single language and social values, it makes it much less complicated to preserve a
closed social system of relations amidst enterprises, teams and political interests. Thirdly,
the Japanese decision-making method, equally known as “bottom-up”, is rested on
presence and contribution from all employees. This management method that is called
ringi-sei or ringi, meaning “reverential inquiry” is quoted from the writing of Mitsuru
Misawa's (1987) by Holt (1998).
Ringi is a multistep process in order to create consensus and regularly includes a
complicated set of negotiations where differing point of views are put into attention and
made room for. Beneath this system, suggestions/ideas are dispersed amidst the interested
parties at the sectional, divisional and corporate levels. Subsequent to the dispersion of an
idea, a profound discussion of the features of the plan, in an effort to raise collective
consciousness and reach a consensus based on a proper approach, is normally made.
(International Business Publications, 2003, p.257). This is explained furthermore in
details in the following quote:
“It is this culture of collectivism and shared responsibility that underlies the Japanese
ringi system of decision-making. In the ringi system, the process works from bottom up.
Americans are used to a centralized system, where upper-level managers make major
decisions in a top-down approach typical of individualistic societies. The Japanese
process, however, is dispersed throughout the organization, relying on group consensus.
The ringi process is one of gaining approval on a proposal by circulating documents to
34
those concerned throughout the company. It usually comprises four steps: proposal,
circulation, approval, and record.” (Deresky, 2011, p.185).
Generally, the one who commence the written suggestion, which is named a ringi-sho,
has previously been working for a while in order to achieve informal consensus and
support for the proposition within the division and then from the head of the department
(Deresky, 2011, p. 185). According to Deresky, (2011, p. 185), the next step is to obtain a
general consensus in the corporation from the ones who would participate in
implementation.
“To this end, department meetings are held, and if necessary expert opinion is sought. If
more information is needed, the proposal goes back to the originator, who finds and adds
the required data. In this way, much time and effort – and the input of many people – go
into the proposal before it becomes formal.” (Deresky, 2011, p.185).
Up until now, the procedure has been informal to be able to obtain consensus; this
process is named “nemawashi”. Consequently, begins the more formal sanction conduct,
which is known as the ringi process. The ringo-sho is refrained through subsequent layers
of management for endorsement; the endorsement is made official by seals (emblem) of
approval. Finally, most seals are collected, this way it assures mutual agreement and
accountability and gives the proposition a bigger chance of final permission by the
president. The entire procedure is portrayed in a figure that can be viewed in appendix E.
“The ringi system is cumbersome and very time-consuming prior to the implementation
stage, although implementation is facilitated because of the widespread awareness, of
and support for the proposal already gained throughout the organization. However, its
slow progress is problematic when decisions are time-sensitive. This process is the
opposite of the American's top-down decisions, which are made quite rapidly and without
consultation, but which then take time to implement because unforeseen practical or
support problems often arise. (Deresky, 2011, p.186).
Granting that the ringi approach might insinuate that it is extremely time-consuming, it
35
contains the advantages of preventing conflict after the consensus has been made. As all
people involved with a given suggestion lists his or her consent before the plan's
legitimate acceptance, any decisions made in regards to the ringi system are a lot easier to
incorporate than the ones carried out alone by a president or by other managers of high
status in the enterprise on his or their own. (Deresky, 2011, p.185).
However, this process can be rather disappointing for the foreign businesspeople pending
an answer, on account of the apparent incompetence of the Japanese negotiator to make a
solid commitment. Regarding this situation, it is necessary to become aware of prior to
ones Japanese equivalent is able to give a clear response, firstly, he or she has to consult
with other members of the corporation considering an incomplete disclosure of the
expected result of negotiations possibly have serious consequences in the internal
consensus has still not been reached. With few words, one should not await a concrete
reply before the decision-making process is entirely completed. (Deresky, 2011, p.185).
Another interesting comparison is often made regarding the planning horizon (aimed at
short- or long term goals) in decision-making between the American and Japanese
systems. The Japanese spend considerable time in the early stages of the process defining
the issue, considering what the issue is all about, and determination whether there is an
actual need for a decision. They are more likely than Americans to consider an issue in
relation to the overall goals and strategy of the company. In this manner, they prudently,
look at the “big picture” and consider alternative solutions, instead of rushing into quick
decisions for immediate solutions, as Americans tend to do”. (Deresky, 2011, p.186).
Nevertheless, an environment that is promptly altering, immediate decisions are generally
needed, to reciprocate their competitor's actions, a political disturbance or revolution etc.
In such a situation, the ringi system occasionally is not the most optimal approach, due to
its slow reaction rate. The system is actually constructed to manage cohesion and to
bypass uncertainties, which are regarded a threat to group cohesiveness. (Deresky, 2011,
p.186).
The Japanese decision-making process comprises and authorizes employees without
36
encouraging conflicts. When a group reaches their common goals together they each
receive rewards for their common performance. Japanese corporations hardly ever
present awards to individuals separate from a group, and an individual's promotion rights
should strengthen group harmony. (Holt, D.H. 1998). Managers equally have to utilize
their intellectual competences as well as experience in order to encourage the groups to
work at achieving their potential. The Japanese leadership system is founded on
participative approaches and team obligations.
If the foreign businesspeople are not able to continue their stay in Japan for a prolonged
period they should thus arrange for local representation since this procedure is played out.
Western managers working in Japan have to recognize the employee's anticipations for
leadership and the group procedures. (Holt, D.H., 1998).
The Japanese management system functioned accordingly in a promptly expanded
economy, however it had to accustom and thereby be modified in order to survive amid
durations of slow growth. These alterations require the preserving of international
management approaches and competences. (Holt, D.H., 1998).
The managers today working under the circumstances of an international environment
must deal with assorted dynamically altering factors, such as; political, economic, legal,
technological and ecological. The cross-cultural atmosphere of the international manager
needs exceptional leadership abilities in order to identify and value the foreign culture.
Taking into consideration the challenges of managing in foreign cultures, international
management can be characterized as the process of promoting strategies, composing and
operating systems, and cooperating with people worldwide to assure continuous
competitive benefit (Deresky, H., 2006, p. 4). In pursuance of a sustainable competitive
benefit abroad, there is a tendency that communication becomes a critical ability towards
success.
To illustrate a fundamental image of the differences and the similarities of leadership
styles in both Denmark as well as in Japan, the table below highlights the comparison of
both cultures.
37
Table 4: Differences and Similarities between Danish and Japanese leadership styles
(Source: Adopted from Asparuhova (2011).
Partial conclusion:
From theory of the decision-making process between Danish and Japanese organizational
cultures, it can thus be emphasized that there exists a few similarities, such as the
consensus approach, the humbleness when they have to negotiate with foreigners or with
their suppliers. The main difference between the Danish and the Japanese decisionmaking process is the Japanese leader's slow respond to his foreign counterparts, as he
needs to consult with the other members of the company, which can make it difficult to
do business with corporate Japanese leaders. The mechanisms behind the differences in
the decision-making process between these Danish and Japanese leaders, stems from the
cultures and the hierarchical organizational framework; where in Japan individuality is
completely unacceptable and therefore when the Japanese leaders have to make
decisions, as well as with foreigners, they have to include everyone within the company,
whereas Danish leaders often make decisions without incorporating everyone in their
company. Thus, the decision-making process is very much related to the negotiation
styles, the communication process, the cultures and the organizational structures.
38
3.4 Organizational Communication in Japan and Denmark
Plenty of leader’s activities are included into leadership process such as the decisionmaking skills, organizing, planning, communication skills, problem solving skills,
negotiating skills, controlling and other (Vries, Bakker-Pieper, Oostenveld, 2009). In this
section the levels of leadership communication and intercultural communication will be
presented, its’ significance for leadership will be discussed, followed by a brief
introduction of Japanese and Danish organizational communication and negotiation
characteristics.
“Leadership is a process whereby an individual influences a group of individuals to
achieve a common goal” (Northouse, 2010:3). From the definition above we can see that
leadership involves influence. And everything a leader does to influence followers
involves communicating. Several authors believe that communication skills are the most
important tool of effective leadership (Voica, Vasile 2013; Moon 2012). According to
Miller (2012), researchers of leadership came to the conclusion that leaders spend from
around 75% to 90% of their time on communication activities. With the ability of
language and interpersonal communication a leader can help followers to understand how
and why the activities they are engaging in are meaningful (Neufeld, Wan, Fang 2008).
Leader’s values as well as members of the team are a large influence on their relationship.
Culture plays a major factor in the development of the individual as a person because the
cultural background strongly influences leadership styles and behaviours.
3.4.1 Three levels of leadership communication
Miller (2012), mapped out the critical communication skills leaders need to develop at
the various levels in the organisational hierarchy. He distinguished a few levels of
communication skills for leaders:
 Core communication skills,
 Team communication skills,
 Strategic and external communication skills.
In order to be an effective leader the communication skills should be acquired and
developed from core to strategic and external communication skills.
39
The core communication skills are sometimes called as people skills or interpersonal
skills. There are a few special key skills within the interpersonal skills framework. Oral
or written communication builds a picture and creates an impression about the leader
(Miller, 2012). The leader’s communication skills will be most recognizable when
speaking one-on-one, with groups, informal style of communication, or during the formal
presentations. Effective leaders use techniques like eye contact and posture. Another
group of skills comes out of non-verbal communication such as body language, facial
expressions, the way a person dresses, the distance between the follower and the leader
when they are talking to each other. Active listening should also be mentioned as an
important skill for leaders to know. Basically, listening to others requires more physical
and intellectual efforts. Some leaders find it difficult to focus their attention what is being
transmitted, either verbally or non-verbally (Miller, 2012). Giving and receiving feedback
on performance (positive and negative) is an integral part of effective leadership. Miller
(2012), claims that feedback can be focussed on one team member’s work performance to
feedback on a team member’s interpersonal behaviour. In the next paragraph we will
present the team communication skills.
Team communication skills are different for those to leading individuals. Leaders should
develop “Managing by walking around” skill with a purpose to be more available for
communication with team members. “It enables the leader to find out what’s happening
in the work team and gives team members the opportunity to make informal
contributions” (Miller, 2012:5). Research shows that large companies spend about 15%
of the salary cost on employee meetings. A positive effect on leadership effectiveness and
productivity of work teams could be achieved by an improvement in meeting skills.
Strategic and external communication skills become more complex when leaders need to
communicate with internal and external stakeholders. These skills become even more
critical as leaders rise at the top positions in the organization (Miller, 2012).
3.4.2 Intercultural communication
40
“All communication is undertaken in a cultural context” (Miller, 2012:8). The different
cultural backgrounds of people can be a very serious barrier for a leader to be an effective
communicator. Multicultural team members bring with themselves values, attitudes,
beliefs, thoughts, and customs into corporate company’s culture. For the effectiveness of
the team and its existence it is very important to understand other team member’s
intentions, expectations and messages, as well as clearly expressing their own (Moon,
2012).
In situations such as working together on a multicultural team brings people to each other
that have totally different cultural preferences and practices, requiring them to
communicate across cultural boundaries. Cultural preferences make an impact of how
people view leaders and ascribe their action in decision-making process and
communication (Moon, 2012). A team could become more effective in their work and
more satisfied in their relationships if they recognize these preferences together to work
through their differences.
Effective leadership adjusts to the requirements of the team and the problems they might
face. It is crucial that leaders first recognize their cultural style of leadership, identify its
strengths and weaknesses, work towards obtaining skills in understanding the cultural
background of team members and include communication model in their leadership style.
These actions would allow them to respond in the context of a multicultural environment
(Moon, 2012).
The effective leader will take into account to the cultural traditions of each team member
in the environment of a multicultural team. In the beginning of group formation process
there are differences that are obvious to all members like greetings, eating practices, the
formation of relationships and language (Moon, 2012). Differences about how people
understand and assess common things such as crisis situations, time, and job performance
can create serious clashes of cultures. Reduced the level of trust in the group and
damaged relationships among members of a group are the consequences of cultural
clashes. When cultural views differentiate over deeper values such as decision making
styles, leadership, religion, or community responsibility, the division in relationships can
become enormously deep and very hard to solve.
One more challenge in a multicultural group is problem resolution that is related to
communication as well. “Dialogue is one way to begin to find a balance between cultures
41
but must be understood to include the intentional joint development of a new paradigm
which will guide the relationship into the future” (Moon, 2012:5). Giving and receiving
feedback during the conversations or arranging small group discussions are the ways to
make sure that all members in the group understand what one person is talking about. The
mutual trust can be achieved with a little patience while waiting for other members with
different cultural backgrounds to express themselves in a language that is not their mother
tongue, or by not making the decision until everyone has been heard. Flexibility of
various methods in resolving cultural clashes in organizations is important too.
3.4.3 Communication in Japanese organizations
Before discussing organizational communication in Japanese organizations it is crucial to
review the Japanese national culture. The Japanese culture and the foundation of labour
relationships lie on the principle of wa, which means ‘peace and harmony’ (Deresky,
2011, Kuncoro, 2006). This principle, probably originated in the Shinto religion, which
concentrates on physical and spiritual harmony. As we have already mentioned in section
3.1 of this project (GLOBE study), Japan is ranked high on uncertainty avoidance, ingroup collectivism and fairly high on power distance. Simultaneously, the importance is
attached to the guidance of subordinates, empathy and loyalty (Deresky, 2011). In
Japanese culture human resources development is a very important concern. Moreover,
the Japanese organizations see their staff as their asset in this national culture (Taleghani,
Salmani, Taatian 2010). Individuals have a special value in Japan according to Confucius
instructions; they emphasize the importance on human training and Japanese believe in
endless energy of human being. The cultural roots are evident in long-term employment,
homogenous managerial value system with strong middle management, teamwork, and
the collective decision making (Deresky, 2011).
Researchers often characterize Japanese companies describing them as special types of
community that includes characteristics of families, small towns, and a welfare state in
giving employees a sense of security, belonging and identity. These characteristics of the
company mean that Japanese labour relations are based on stability and long-term trust.
(Stone, 2009). In Japan, companies know that giving their employees freedom to interact
informally they will benefit eventually from collaboration and the new ideas. The
follower relation with value-based model of leader is based on friendship and kindness
(Taleghani, Salmani, Taatian 2010). Conflicts and open expression are avoided as well as
42
the shame of not fulfilling one’s duty. The work culture is expressed in terms of collective
responsibility, a high degree of employee productivity and a devotion to work (Deresky,
2011).
Japanese leaders have less power of control because they hope to have warm
relationships with their followers compared with leaders from other countries. In
Japanese moral framework the subordinate’s loyalty to seniority is a virtue. The highest
efficiency of a leader is interrelated with his ability to realize the followers and their
intentions (Taleghani, Salmani, Taatian 2010).
The Japanese communication style is called ningensei (“human beingness”) and it refers
to the preference for humanity, an underlying distrust of words, reciprocity, analytic
logic, and receiver orientation. The Japanese believe that true intentions are not exposed
in words or contracts, but actually masked by them (Deresky, 2011).
Teamwork and work groups are the building blocks of Japanese business. The individuals
have traditionally formed identity from group attachments including an organization, a
family or a school (JETRO, 1999). An individual may be thought to be “immature” if he
insists on maintaining a different opinion or disagrees too strongly that leads to the
disruption of harmony in a group consensus. Conversely, a person is considered with
character and maturity if he avoids public disagreements at all costs. Foreigners
sometimes interpret this trend to conform as a lack of imagination or weakness, but in
Japan, an individual who disagrees and speaks out regardless of what the rest of the group
thinks loses credibility and makes him or her look ridiculous.
Negative emotions are not openly expressed in Japan. Japanese do not stifle individual
opinions; they use polite way to resolve differences – an indirect mode of
communication, a private way that does not involve confrontation, or public debate
(JETRO, 1999). They are frequently characterized as being indirect when saying “no”.
Japanese people will say other words that have similar meaning to “no” because they
focus on other people’s feelings (Kuncoro, 2006 as cited in Hall & Hall, 1987). In order
to avoid saying “no” they pretend misunderstandings, silence or repetitions. Similarly is
when Japanese say “yes”. Such approval may have plenty of definitions. The “yes”
answers from Japanese might mean, “Yes, I hear what you are saying”, but might not
necessarily mean, “Yes, I agree with you” (Kuncoro, 2006).
43
According to (Kuncoro, 2006 as cited in Nishiyama, 2000) the sixth sense or intuition of
Japanese results in interpersonal communication. They understand and assess the
situation from contextual information, rather than asking directly. Japanese prefer face-toface communication, because such communication enables them to perceive real
meanings from nonverbal elements like facial expressions, gestures, and body language
of the other speakers. During communication processes Japanese value a feeling of trust,
developed commitment, and shared responsibility more than a legal document (Kuncoro,
2006 as cited in Hall & Hall 1987).
Nevertheless, nonverbal communication is important in Japan as well. Nonverbal
communication is valued more in Japanese culture compared to Western cultures
(Kuncoro, 2006). Japanese sometimes choose implicit, nonverbal communication, over
explicit, verbal communication. Feelings either can be expressed by a few words, or
through subtle nonverbal cues (JETRO, 1999). There is a Japanese expression, “Hear one,
and understand ten” (JETRO, 1999). In relation to indirect communication style while
interacting with foreigners, the Japanese use a wide range of kinesics behaviours, such as
gestures or bow. “The term kinesic behavior refers to communication through body
movements – posture, gestures, facial expressions, and eye contact” (Deresky, 2011:144).
Direct eye contact can be considered in communication interaction as rudeness,
aggression and a sign of disrespect (Kuncoro, 2006 as cited in Nishiyama, 2000). Bow is
an integral part of daily social interaction among Japanese. They use it for apologising,
meeting, asking, acknowledging or departing. Silence has a great meaning in Japanese
communication process too. It is a way of structuring worded communication. Silence
might mean uncomfortable tension, to indicate disagreement, or non-acceptance.
Furthermore, Japanese conversation consists of many short breaks or pauses. An
interpretation of these pauses might be showing a respect or assessing the other person
(Kuncoro, 2006 as cited in McDaniel, 2003).
3.4.4 Negotiation process in Japanese organizations
Cultural variables and the method in which culture is communicated lie in decisionmaking process and the process of negotiation (Deresky, 2011). Since the decisionmaking process was already introduced of both countries in the previous section of the
project, in this section the negotiation in Japanese organizations will be presented. One of
44
most important managers’ skills in international business is to know how to negotiate
productively. It stands for both, Danish and Japanese employees.
The Japanese can be considered as skilful negotiators (Deresky, 2011). For example,
compared with Americans, Japanese spend much more time and efforts in studying USA
culture and business practices than their colleagues from the Western spend studying
Japanese practices. Japanese think of negotiating process as a relationship. They are
quiet, calm, and patient negotiators. Instead of quickly reaching an agreement, Japanese
are accustomed to long, detailed negotiating sessions (Deresky, 2011).
Once the contract has been drawn up between a few Japanese companies, it is viewed as a
summary of negotiation process that has been administered by the two parties without
legal assistance. To request detailed conditions in the contract would reveal a lack of trust
and might affect the relationship. Another interesting characteristic of Japanese
negotiation process is that, even after signing, the contract is considered negotiable
(JETRO, 1999).
3.4.5 Communication in Danish organizations
Danish industry is highly export-oriented. Basically, Danes are proficient in other
languages – frequently speaking two or three to a high level of proficiency. Knowing
languages made Danes good communicators on the international stage. Using Danish
communication styles in a foreign language in business interaction can be somewhat
problematic to cultures that use a more diplomatic style to communicating in business
(Christiansen, 2013). Being open can be considered as a sign of respect to the person you
are dealing with. Danes prefer the direct mode of communication too. However, the
countries, which place diplomacy at the centre of business interactions, may understand
these Danish features of communication as rudeness. On the other hand, this directness is
helpful to avoid misunderstandings. Danes express their feelings freely, so in business
context it may look as highly undiplomatically (Jardot, Thiedig, 2007).
Danes can also be followers of indirect communication when they attempt to avoid any
conflict or confrontation in the public situation (Christiansen, 2013). Although Danes are
strong individualists, they can become concerned more about the group interests than
their own. But when the matter is under debate, the direct communication is used.
45
Denmark is considered to be “Low context culture”, which means that focus is placed
more on verbal communication, or what has been said, than relying on the context of the
situation or, in other words, nonverbal communication (http://acad.depauw.edu/). In a
Low Context culture it is not a necessity for two people to form a relationship in order to
understand what the other is saying.
Communication with the Danes can be characterized by informal style and marked by
humour and goodwill. Danish business people can appear formal at first, but it is very
likely that they will show the informal side of themselves. Mostly, Danes are not shy to
speak about their private life with their colleagues (http://businessculture.org/). However,
in business meetings they are going to the point right away and are generally efficient and
conservative in their approach. According to Christiansen (2013), Danes use humour in
most business stuations and consider it as a key weapon in the search for „hygge“ which
translation could be „A kind of cosiness in which everobody feels at ease in each other‘s
company“ (Christiansen, 2013:3). Feelings of „hygge“ are poorly explained by Danes
and in such atmosphere non-Danes find difficult to comprehend.
Handshakes are accepted as a greeting form in Denmark and Danes shake hands before
the meeting and after the meeting. Eye contact should be maintained while shaking hands
(http://businessculture.org/). Body language tends to be quite restricted in Denmark and
this can make it difficult by interpreting responses and feedback (Christiansen, 2013).
Meetings play an important role in Danish business culture. They usually are short and
well structured, because Danes like to keep it simple; the less paperwork, the better.
Nonetheless, Danes prefer that fundamental decisions and agreements would be recorded
in a written summary (http://businessculture.org/).
What concerns personal space, the average distance from Dane‘s should be an arm‘s
length or further. Danes are keeping their personal space and respect the personal space of
others (http://acad.depauw.edu/).
3.4.6 Negotiation process in Danish organizations
In Danish culture, negotiating is closely related to a problem-solving process. The buyer
and the seller in the negotiating process focus on near-term and long-term benefits (Katz,
2006). The primary negotiation style could be defined as cooperative among Danes. They
46
believe in the principle of „win-win“ in negotiation process. Danes also believe in
information sharing as a way to build trust. But that does not mean that they will reveal
all the information that one side would like to know during negotiation. Otherwise the
negotiation can become extremely difficult if one negotiation‘s counterpart appears to be
hiding information from the other (Katz, 2006). Emotions and subjective feelings do not
play an important role in negotiations with Danes and might lead to a negative effect on
reaching an agreement (http://www.minorccbs.com). Aggressive tactics should also be
avoided when negotiating with Danes.
The negotiation develops in a fast pace in Denmark. Danish business people expect to
conclude negotiations quickly if possible (Katz, 2006). Danes prefer to negotiate in an
honest and ordinary style. It has to be mentioned that they might use a few deceptive
techniques during negotiation process. The negotiation‘s counterpart can expect from
Dane’s pretended disinterest by the whole deal or they may use some pressure techniques
such as making final offers or showing intransigence (Katz, 2006). It might happen that
Danish negotiators will make a final offer quite early in the negotiation process (Katz,
2006). This could be the sign that they want to speed up negotiation. In the beginning of
negotiation with Danes to offer an extreme offer could be understood as an unfriendly
act. On the contrary, to start the process of negotiation introducing written terms and
conditions may be powerful tactics that could help shorten the whole process, which
Danes frequently find attractive (Katz, 2006).
Partial conclusion for communication and negotiation section:
In this section, communication and negotiation processes, their characteristics in Japan
and Denmark were presented. We were discussing that intercultural communication skills
are very important tool for leader to know and develop in the multicultural team because,
in a certain way, communication is a basis for leadership. We found out plenty of
differences between Danish and Japanese communication and negotiation styles. The
nonverbal form of communication plays an important role in Japan. Conversely, the focus
is placed more on verbal communication in Denmark. There are differences in the
negotiation process among these cultures too. Japanese are accustomed to long, detailed
negotiating sessions. Danes on the other hand expect to conclude negotiations quickly if
possible. In the analysis chapter we will elaborate more on these issues.
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4. Case Study
4.1 Background of DNP Screens
Dai Nippon Printing company (DNP) was established in 1876 in Japan and is a Japanese
printing company that diversified its operation into three sections such as information
communications, lifestyle and industrial supplies and electronics (www.dnpphoto.eu).
The company has grown to become one of the world’s leading printing companies. DNP
have branches at different parts of the continent ranging from Europe, Middle East, Asia
and Oceania, America and Africa. Previously, DNP Denmark company was started by
two Danish brothers who invented front and rear view projection and they were not able
manage it successful towards commercialize stage. DNP Japan acquires the company in
the year 1989 and DNP Denmark manufacturing branch at Karslunde was founded as the
international large screen production centre of DNP Company. DNP Denmark is the
world’s leading suppliers of optical projection screens for high quality display solution.
Furthermore, DNP product consists of optical screens for front projection technology and
rear projection application which is meant for home cinema, home theatre, meeting room
or conference rooms, signage and advertising and so on. Also, they have 65% of market
shares in the industry (www.dnp-screens.com)
DNP has 35 production plants, 21 product divisions, and forty thousand employees
worldwide and have annual turnover exceeding USD 13 billion (DNP 2014). Therefore,
in DNP Denmark, a Japanese citizen is the Chief executive officer (CEO) and a Danish
citizen is the Chief operating officer (COO). The number of total employees in DNP
Denmark is 80 out of which 3 are from Japan and the rest are from Denmark. In the past,
they used to manufacture Television screens to some companies like Sony, Samsung, and
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Phillips and so on. Currently, this is no longer possible to due to invention of flat screen
Television.
5. Analysis/Discussion
In the analysis chapter we will connect, analyse and compare the theoretical framework
with gathered empirical data that will lead us to discussion and conclusion chapters. This
chapter consists of 5 parts: Analysis of the Globe theory, Analysis of organizational
knowledge management, Analysis of decision-making process, Analysis of intercultural
communication, and analysis of Danish and Japanese negotiation styles. The most
important key points from the interviews will be extracted and combined with theoretical
framework that is relevant in answering problem formulation.
5.1 Analysis of the Globe Theory
From the globe theory section in the report, it is clear that there are some similarities and
differences between Danish and Japanese national cultures. Under analysis of Globe
theory section, we will try to compare the outcomes from interview with the theory and
try to find the answer of why there are such differences based on interviews.
When we compare the globe theory with the interviews, we can see in most cases it has
been justified. For example in the globe theory, both Denmark and Japan falls under less
assertive countries, which means both countries, prefer warm relations with people and
harmony in the work environments. In the interview with the CEO of DNP, he mentioned
that Japanese have family like environment in the company where they take care of each
other and respect each other. Similarly, Danish Supply Chain manager also talked about
how important it is for him to have good relations with people. He said he is more
relationship-oriented person and wants to build relations with his employees. He believes
that this is the best way to get best results.
49
Talking about In-group collectivism according to Globe theory, Denmark scores low and
Japan scores high that means Danish are more individualistic than Japanese. This
argument is supported by the Interviews, as Danish supply chain manager Carsten said
Danish people give more importance to themselves than the group. He said, „This is my
personal opinion, but if you look at them, the Japanese, they are generally Buddhist and
one of the characteristics of Buddhists is that…Group is everything…. Individual is
nothing. If you look at Denmark it’s completely the other way around, individual is
everything…. group is nothing…. that’s how our background basically is“. (Extracted
from interview with Carsten Marcussen, 19/05/14, appendix: C, p.108, q.46) And the
Japanese CEO also mentioned that group means a lot to Japanese people and they are like
family in an organization and they are very loyal to the group. One of the reasons why
Japan scores high on In-group collectivism might be due to the Buddhist religion they
follow, which give importance to the group as mentioned by Carsten.
Globe theory also explains about Gender Egalitarianism, meaning that comparatively
there is more equality between men and women in Denmark than in Japan in work places,
in family and in overall society. However, still the percentage of women working in top
positions in Denmark is not very impressive which is 15%. Merete said that in Denmark
there are women in lower level management but when it is about top management, then
the numbers falls down. The percentage of women working in Japan is just 5%, which is
one of the lowest in the world. Merete explained why there are such gender inequalities
in Japan. She said: „it has been the tradition that women got into the companies at the
same time as the men. But as soon as she got married or at least got her first child she
stopped working. And since your seniority in the company adds on every year...the women
she kind of misses 7 years, because she stays home with her child. If she goes back she
will be a part-timer. She will be working less and she will not be employed on a
permanent basis. She misses her opportunity for the leader and if you add that it is
unnatural for a woman to be the leader of a man, it kind of fits very good together”.
(Extracted from interview with Merete Nørby, 06/05/14, appendix:A, p.82, q.20).
However, she also mentioned that things are changing now and it will take some time to
see big change, as it is a cultural thing that doesn’t change overnight.
On the other hand, when we see about Institutional Collectivism in Globe theory and
compare it with expert interview and interview with CEO and manager from DNP, it is
somehow contradictory. In the Globe theory, both Denmark and Japan score high on
50
institutional collectivism that means people are highly interdependent with organization
and they encourage group loyalty. However according to expert on Japanese culture,
Merete Nørby, Japan is based on more institutional collectivism than Denmark as for
Japanese their job/organization plays very important role in their life and they work for
collective interests. Carsten, supply chain manager and CEO Masahiro also had similar
opinons that Japanese have high loyality to their organization and the organization plays
vital role in their life. Both CEO and the manager from DNP agreed that Danish give
more importance to the personal life than the organization. However, Carsten also
mentioned that there are some disadvantages of having too much loyalty to the
organization. He said: „Actually, if you ask me, too high loyalty is a problem, because if
people are very loyal they never leave. And if they never leave, you never get any new
blood into your company. And I think that could be a problem“ (Extracted from interview
with Carsten Marcussen, 19/05/14, appendix:C, p.107, q.44). Too high loyalty could also
mean that Japanese get tacit knowledge by working in the same company for long time.
They get the knowledge in several departments of the organization and transfer it from
one department to another. In the next section, analysis about Knowledge Management
will put more lights on the knowledge management issues.
5.2 Analysis of organizational knowledge management
Japanese organization method of knowledge creation and management are from informal
setting, tacit rule and collective responsibility or teamwork. This is the reason why
employees learning and knowledge transfer is important to the organization, the
collectiveness of the Japanese employees allows socialization in term of tacit to tacit from
the SECI model in the theory section. Experience shares from individual to individual
and transform to tacit.
According to Merete from DTU 06/05/2014 “…”Employees in Japan companies enter
the company not to perform a certain task, but to agree on the values and the overall
purpose and goal of the organization not for a short period but for long period.
Therefore, the values and accepting the tacit rules is so important, and this would not be
achieved without the tacit knowledge and the acceptance of the cultural value of the
companies”(Extracted from interview with Merete, Appendix: A, p.85, q.22)
51
We believed Japanese organization over reliant on tacit knowledge, this enable employee
to stay in the company for long years or till retirement.
We also consider the emergent of globalizations and the way of doing business is
continually changing. Japanese is now shifting away from their traditional way of doing
business and embracing the western approaches that is based on explicit knowledge. This
view is also supported by DNP’s. Japanese CEO, his comments show that organizations
are now embracing the foreign style. Similarly, Merete further viewed on tacit knowledge
showing that tacit knowledge is important in Japanese companies and that it is highly
based on lifetime employment and higher loyalty. This means that Japanese employees
enter the organization to create value for the organization.
However, looking insight of Danish context, we can see that DNP apply explicit to create
knowledge. According to the SECI model in our theory, explicit knowledge is acquired
from formal learning such conference, seminar and higher education etc. Knowledge
management and knowledge transfers’ come from both internally and externally. By
internally we mean employees training and knowledge sharing inside the organization,
whereas with externally We also means that DNP is collaborating with other companies
as a group to embark on projects.
“The future pilots”. Ok, we joined that project and that was sponsored by socialfonden
“EU future pilots”, in a joined project with a total of four different companies”(Extracted
from interview with Carsten, appendix: C, p.105. q.36)
This is the process of knowledge sharing or joining resources in DNP and with other
companies
Organizational Structure
A high hierarchy is associated with Japanese culture; from the figure in the analysis
section it illustrates the high organizational structure in Japan.
According to Masahiro’s declaration, his view shows that “… traditional structure is
higher and organization structure is more hierarchical…” (Extracted from interview with
Masahiro, Appendix: B, p.94, q.36)
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Similarly, to further support the high hierarchy traditional style, Masahiro also validated
this point of view on Japanese structure in the following statement “Japanese culture
require certain degree of employee to be loyal the company and to the top and new
worker and newly graduates from the university are require to solemnly swore in the
presence of leader of the organization” (Extracted from interview with Masahiro,
Appendix: B, p.94, q.36).
From the above, we deduced or believed the reason for the high hierarchical structure in
Japan, is based on the culture that mandates people to respect of seniority, elders and the
higher authority.
Furthermore, understanding Japanese hierarchical structures can be proven when
considering the contextual views of Japanese and Danish leadership styles, which are
discussed in the decision-making chapter. We therefore believe that age and gender plays
a significance role in the tall Japanese hierarchal structure. In the interview with Merete,
she also explained, on how age is a relevant factor in the Japanese culture.
From her statement, we can thus interpret that there are actually a possibility for younger
people becoming superiors in the organization in Japan now, rather than before year
2000. From the interview we are able to get in-depth understanding of the importance of
the age system in Japanese organizations, which stems from their cultural values.
When we examine the Japanese’s organizational structure, we can see that there are not
employment benefits, pension system and labour union; these are based on the agreement
of the company.
However, there is dissimilarity in the organization structure between Japan and Denmark.
Culture in Denmark focuses on flat organization structure, which involves few layers for
the top and the bottom. The DNP Denmark organization structure is flat and is shown in
the figure (see appendix: D). Our understanding of Danish organization structures shows
that they’re no lifetime employments, but there is possibility of flex security for
unemployed individuals for two years. This view is also confirmed in our theoretical
section.
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5.3 Analysis of decision-making process
5.3.1 The Japanese decision-making process
Within the section of the decision-making process, we found some of the underlying
mechanisms behind the cultural differences for organizational leadership between
Denmark and Japan. As it has been clarified in the theoretical framework, that decisionmaking within Japanese organizations relies on group consensus. This is one of the
common features of decision-making in Japanese companies. The Japanese decisionmaking approach, which is referred to as “bottom-up”, and ringi or ringi-sei in Japanese,
is utilized to obtain approval throughout the company by circulating documents to the
ones committed to participate in the process of implementing the proposal.
This can equally be confirmed by our empirical data, e.g. the interview with chief
consultant and research coordinator, Merete Nørby:
“Japan..one of the cultural values in Japan is harmony and consensus. And this value
influence daily life in the company and decision-making process a lot, so you can say that
the leader, according to his value, want to make a decision which everybody has already
agreed upon. Why? If everybody has agreed upon it's much easier to implement,
right?....So the old decision-making process in Japan, is called ringi-shore. Ringi means
kind of like circling around. The basis is, when what you want to have decided upon,
when that is clear, pass it on so everybody can hear about it.” (Extracted from interview
with Merete Nørby, 06/05/14, appendix: A, p. 70, q. 6)
Generally, the one who commence the written suggestion, which is named a ringi-sho,
has previously been working for a while in order to achieve informal consensus and
support for the proposition within the division and then from the head of the department.
According to Deresky (2011), the next step is to obtain a general consensus in the
corporation from the ones who would participate in implementation.
Up until now, the procedure has been informal to be able to obtain consensus; this
process is named “nemawashi”. Consequently, begins the more formal sanction conduct,
which is known as the ringi process. The ringo-sho is refrained through subsequent layers
of management for endorsement, the endorsement made official by seals. Finally, most
seals (emblem) are collected, this way it assures mutual agreement and accountability and
gives the proposition a bigger chance of final permission by the president.
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Another underlying factor that we found in the theoretical framework as well as in our
empirical data is that the process of the ringi system can be highly frustrating for the
foreign businesspeople awaiting an answer, on account of the apparent incompetence of
the Japanese negotiator to make a solid commitment.
We also found that in a situation like this, it is necessary to become aware of prior to ones
Japanese equivalent is able to give a clear response, firstly, he or she has to consult with
other members of the corporation considering an incomplete disclosure of the expected
result of negotiations possibly have serious consequences in the internal consensus has
still not been reached. With few words, one should not await a concrete reply before the
decision-making process is entirely completed. The Japanese decision-making process
comprises and authorizes employees without encouraging conflicts. This can be
confirmed from our interview with DNP Screens supply chain manager, Carsten
Marcussen:
“Yeah for instance, in Japanese culture or in business, it's quite common that I come and
ask my superior of something. He will not say; “no, you cannot do that.” And he will not
say: “yes.” or “yes, you can do that.” He will phrase it in a different way and he will
come up with an explanation, that when you leave the room you know I cannot do that.
But he never said no. …” Extracted from interview with Carsten Marcussen, 19/05/14,
appendix: C, p. 89, q. 22)
This differs to a high degree from the Danish way of making decisions in companies;
they will be more straightforward without worrying to the same extent as Japanese that a
“no” would cause conflicts with the other employees of the company or with their foreign
counterparts. Thus, it can be rather frustrating for Danish leaders to collaborate with
Japanese corporate leaders. The fact that the Japanese are conflict avoidance can also be
supported by our interview with expert Merete Nørby, who stated the following:
“If you go 20 years back, there were a lot of difficulties in negotiations and many
business men from all over the world would say that the Japanese are so difficult to
negotiate with..to settle an agreement and part of it was because they had not done their
homework. Because if you walk in and say here we are... now we make a decision, we
have two hours and my plane goes...you'll have no decision. ...” Extracted from interview
with Merete Nørby, 06/05/14, appendix: A, p. 72, q. 10)
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Thus, Merete confirms that Japanese are challenging to cooperate and negotiate with.
They do not have a quick and direct answer, however they need a lot of time to ensure
that they are making the right decision and they do that by including all groups of the
company. However, it can be interpreted that the top Danish managers make a quick
decision when it comes to the big decisions; thus the difficulties of negotiating with
corporate Japanese leaders.
5.3.2 Danish decision-making process
In the theoretical framework section regarding decision-making process within Danish
organizations we found that the decision-making process is eminently valued. The typical
characteristics that lie in Danish organization culture are that the individuals participating
in the decision-making process have a great influence on the final outcome, the
nonchalant atmosphere that stems from the organizational environments that are informal
and the equality. The Danish organizational culture therefore differs to a high degree from
the Japanese culture, that is more formal and respectful, however the equality in Japan is
ranked much lower in comparison to the Danish culture, where there exists a much more
substantial amount of equality. However according to expert Merete Nørby, Denmark
does not either have a lot of female leaders when it comes to the high leadership
positions:
“There is no way that there could be more women leaders in Japan based on that system.
But you can say that Denmark is not a very good country in that sense either. Because we
may have many Danish leaders at very low levels, but as soon as you get to higher
positions, the female quotas falls significantly. That goes for professors, that goes for
production managers and that goes for directors.” Extracted from interview with Merete
Nørby, 06/05/14, appendix: A, p. 80-81, q. 20)
It was equally found that Danish managers are utilizing the consensus method, which
means that it is not only a decision-making approach that has been implemented in the
Confucian culture, but that it has been spread to the Western world as well. The use of
consensus is found as one of the similarities between the Danish and the Japanese
organization culture along with humbleness. Danish supply chain manager Carsten also
stated that they use the consensus approach at DNP:
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“A lot. Why? Because...again it depends on what it is, but in most cases yes
consensus..because our experience is that consensus also means that you get...I mean
people are committed to the decision if they approve of it...so you could say that's how we
do it, to make sure that we have the commitment afterwards. And Japanese management
is actually also consensus management to a high degree.” Extracted from interview with
Carsten Marcussen, 19/05/14, appendix: C p. 95, q. 11)
DNP Screen’s Japanese CEO, Hirao Masahiro, can equally confirm this statement.
“Yes, in most cases, am not involved in group consensus. This is done by COO as he
speaks Danish. He gathers managers for group discussion.” Extracted from interview
with Hirao Masahiro, 19/05/14, appendix: B, p. 88, q. 11)
Nevertheless, although Danish companies have implemented consensus in the decisionmaking process, the CEO and COO make most of the decisions. This may be interpreted
as that Japanese organizations are affected by consensus to a much higher degree than in
the Danish organizations, even if a Japanese corporation has an office in Denmark with a
Japanese CEO, he has to accustom to the Danish management system. DNP's CEO also
explained how he and the Chief Operating Officer make most of the decisions:
“I and Niels. He is a COO and most of the things are decided by both of us. We have
meetings with other managers but for most of the issues we decide.” Extracted from
interview with Hirao Masahiro, 19/05/14, appendix: B, p. 88, q. 10 )
From the decision-making process between Danish and Japanese organizational cultures
it can thus be emphasized that there are actually a few similarities, such as the consensus
approach, the humbleness when they have to negotiate with foreigners or with their
suppliers. The main difference between the Danish and the Japanese decision-making
process is the Japanese leader's slow respond to his foreign counterparts, as he needs to
consult with the other members of the company, which can make it difficult to do
business with corporate Japanese leaders. However, in the interview with DNP's Japanese
CEO, he actually said the same in respect to Danish managers:
“I have to say that Danish way is slow not only in decision-making process but also in the
developing ideas, new concepts and so on. Time is critical when making decision. I think
Japanese are faster than Danish. There is not much control here so people do not fulfil
their promises on time. Japanese culture does not like excuses, they honour their promise
57
for example, when meeting is set at 10 am, Japanese man will come before 10 minutes to
time while Danish man will be late behind the schedule time. So, maybe Japanese people
are more disciplined in such issues. But this also depends on individual personality of the
Danish man. However, being too much disciplined is also demerit as people forget their
goals.” Extracted from interview with Hirao Masahiro, 19/05/14, appendix: B, p. 90, q.
22)
From this statement it can therefore be interpreted that Danish managers are equally
challenging to work with and do negotiations with from a Japanese point of view.
Because according to Hirao, Danish managers and or employees are not serious regarding
punctuality, they are less organized and they do not have much control over their
employees. He also stated that Japanese are better disciplined than the Danish.
5.4 Analysis of intercultural communication
In 3.4 section (Organizational Communication in Japan and Denmark) of this project we
found out that there exist plenty of differences between these two countries in the level of
business communication. When we interviewed Merete Nørby, she was talking about
formal and informal communication styles in Japanese organizations: “In the language,
you can actually hear whether one is a superior or the let me turn it around...the
Confucius philosopher influencing Japan from China...he had some basic rules, we
should make a more harmonious society. One of them was to always know your place.
Because if you know your place you would not have to conflict about who is right or who
has the last word”. Extracted from interview with Merete Nørby, Appendix: A, page: 78,
q.17). She also mentioned that there are men’s and women’s language in Japan. Not
knowing these features might cause serious conflicts in business communication.”You
can always here the tone of the language. So in that way this is not only Japanese, but it's
very distinct in Japan” Extracted from interview with Merete Nørby, Appendix: A, page:
79, q.17). Also the status of a person is very important in Japan: “So if you are recording
a Japanese conversation not knowing the voices, you will be able to hear who was the
superior. So its so deep grounded...and normal translation...I mean this is something
which is so deep in the culture and in the language that you cannot just change it”
(Extracted from interview with Merete Nørby, Appendix: A, page: 78, q.17). Carsten
Marcussen, the Danish employee at DNP Denmark, also emphasized the importance of
status and hierarchy in Japan: “But that's not how it is in Japan, so you have to know
58
their hierarchy and their status“(Extracted from interview with Carsten Marcussen
Appendix: C, page: 99, q.22). In the theoretical framework we discovered that nonverbal
communication is valued more in Japanese culture than in Western cultures. This
formulation is supported in our project with an answer from the interview with Merete.
She said that to identify each other’s status in the group, Japanese do not exchange words.
When we asked a question about possible problems that you experienced in intercultural
communication both respondents mentioned language barrier. Carsten replied: “Well, I
think there's one problem, which is of course the language. The language difference.“
„...in this case English is not my first language...English is not your first language and
we communicate in English so..there will be a lot of language uncertainties..but not only
that, even if we you were perfect in English and I was perfect in English we speak from
different backgrounds and you say something...” (Extracted from interview with Carsten
Marcussen, Appendix: C, page: 98, q.21). Masahiro said: „Oh sure, language is always
barrier wherever you go in the world“ (Extracted from interview with Masahiro Hirao,
Appendix: B, page: 89, q.24). In Masahiro Hirao point of view language is always a
barrier.
In the theoretical chapter we covered that Japanese prefer face-to-face communication
because it enables them to perceive real meanings from nonverbal elements. Masahiro
confirms this statement where he responded in a very similar way when we asked him
about the direct or indirect ways of communication. Carsten also prefer to communicate
with his colleagues in direct ways of communication. Both respondents are team
members. Masahiro prefers to work in a small group of 2-3 persons (Appendix B).
Carsten prefers to work in a team most of the time as well (Appendix C). On the other
hand, sometimes he likes to work alone because that is required his speciality; to make
engineering calculations. Teamwork was presented in the theoretical framework as one of
the building blocks of Japanese business.
Masahiro Hirao mentioned time or speed as possible cultural clashes/conflicts while
working with Danish colleagues: “I would say the main issue is time or speed. I want my
sub-ordinates to respect the deadline. Danish are always asking for excuses. But, it also
depends on case“ (Extracted from interview with Masahiro Hirao, Appendix: B, page:
90, q.30). Meeting deadlines, punctuality and time keeping is very important in business
for Masahiro Hirao. He highlighted it in a few different questions. Carsten, on the other
59
hand, did not specify any significant cultural conflicts while working with Japanese. In
relation to cultural clashes he referred to Japanese decision-making process: “Sometimes
we think that their decision making is very complicated and very slow” (Extracted from
interview with Carsten Marcussen, Appendix: C, page: 131, q.31).
According to Carsten, in the business communication Danes are more open than
Japanese: “And that's really a difficult thing to...because, for instance in Denmark, it's
more like everybody communicates about everything“ (Extracted from interview with
Carsten Marcussen, Appendix: C, page: 99, q.22). It is quite common for an employee to
talk about his/her personal issues in Denmark (Appendix C). Conversely: “No personal
issues in Japan. You keep it to yourself. You don't talk personal matters with your
manager in Japan (Extracted from interview with Carsten Marcussen, Appendix: C,
page: 100, q.28). Similar characteristics of communication in relation to Japanese
employee match the interview responses from Carsten and theoretical framework in this
project.
5.5 Analysis of Danish and Japanese Negotiation styles
Negotiation is the integral part of business communication. The analysis of Danish and
Japanese communication approaches in relation to the case has been already done in
earlier section. In this section, we will discuss the differences and similarities in Danish
and Japanese negotiations styles in relation to case and try to dig deeper on the issue.
As mentioned in the theory section about negotiation process in Japanese organizations,
they are considered skilful negotiators that mean they spent more time on planning and
understanding the situation. This statement is supported by the interview with Merete
from DTU where she said, „Japanese would spend 80 % of the time planning, and
specifying and making sure that this would work“ (Extracted from interview with Merete
Nørby, appendix:A, p. 83, q.21). On the other side, Danish business managers expect to
conclude the negotiations faster. This might bring conflicts when Danish and Japanese
managers sit together for negotiation because Japanese managers would never say ‘no’.
So, Danish manager might think that Japanese manager have agreed on the subject of
negotiation but the case might be different. Carsten, supply chain manager from DNP said
that Japanese would never say ‘no’ or ‘yes’ but they would phrase it in different way and
come up with explanation. Merete said that it is better to understand the cultural
differences in order to be able to address the issue properly in negotiation process.
60
Although it is said that emotional and subjective feelings do not play an important role in
Danish negotiation style, but for supply chain manager Carsten it is very much important.
He said it is more important than anything else. So, we can say that it depends on the
personality of an individual on how emotional and subjective one is. On the other side,
although Japanese think negotiation process as a relationship, for CEO Masahiro
emotionally sensitivity is not important. He said, „In business situation, it does not need
emotional things, you always look into the business focusing on the target and trying to
evaluate the merit and demerit in order to consider which one is profitable“. (Extracted
from interview with CEO Masahiro, appendix B, p.91, q.16) But he agreed that it might
differ depending on personality and perceptions.
When we asked if Danish managers are straightforward or polite in negotiation process,
Carsten said it depends on the personality but one can be both straightforward and polite.
He said one could be polite but still be direct. When asked about himself, he said he is
direct but not tough. The same question was asked to Japanese CEO Masahiro, he said, „I
prefer gentle man approach when dealing in business, we have to consider and respect
the person’s behaviour and his way of thinking. That is how it will leads to consensus“.
(Extracted from interview with CEO Masahiro, appendix B, p.91, q.17). However, he
said that he is not involved in negotiation process in DNP Denmark as it is carried out by
COO (Chief Operating Officer) who is Danish.
Talking about written documents or contracts during negotiation process, Japanese view
contracts or documents, as a summary of negotiation process and it is negotiable even
after contract is signed. Requesting detailed conditions in the contract could be taken as a
lack of trust. Masahiro said written document is just like protection. He said, „I would
like to know about it in brief but I don’t go in details. I don’t understand Danish, so, I
don’t need people to translate everything for me“ (Extracted from interview with CEO
Masahiro, appendix B, p.18, q. 91). He said that COO explains him the main issues and
he agrees with him in most cases. Masahiro said that he do not like to argue. When asked
about how important it is to see the written documents or contracts during negotiation
process, Carsten said it is very important for him. He said arguing during negotiation
process depends on how co-operative the person is. He would make a lot of arguments if
the person were not easy.
61
6. Conclusion/Recommendations
The main aim of this research was to investigate ‘how do national cultures affect
organizational leadership issues in Danish-Japanese context.’ We used the theoretical
framework to discuss and analyze the differences in organizational leadership issues in
both cultures and used the case company to find the mechanisms behind such differences.
Furthermore, we used expert opinion to support and backup the research findings. The
organizational leadership issues that were discussed and analyzed in this project were
decision-making process, organizational structure and knowledge management,
communication approaches and negotiation styles. We found that these organizational
leadership issues are affected due to cross-cultural environment which means that there
arises conflict when leaders / managers from both countries work together.
From the globe theory analysis we found that there were some similarities and differences
between Denmark and Japan regarding cultural dimensions. One of the interesting things
that we discovered was that Danish are more individualists while Japanese are influenced
by collectivistic culture where they tend to view themselves as a part of group. This leads
to slow decision-making process in Japan, as they have to have collective agreement and
understanding of the subject. We also found that there is comparatively high Institutional
Collectivism in Japan than in Denmark that means they are loyal to the company and
want to remain in the same company until retirement that could have negative impact on
innovation and creativity of leader.
Another important issue on this project was how the differences in the organizational
structure in both countries affect knowledge creation. Japanese managers use tacit
knowledge to create value for the organization. Whereas Danish managers use explicit
knowledge where knowledge is shared both internally and externally, meaning through
trainings and internal knowledge sharing as well as externally through collaborating with
other organizations.
Talking about negotiation process, we found that Japanese are slow and somehow
difficult to negotiate because they cannot make quick decisions. Danish managers expect
to have clear and quick answer during negotiation process that might bring conflict in the
negotiation process. We also found that emotional feelings and subjectivity during
negotiation process depends on the personality of the negotiator. From the analysis, we
62
found that it is very important for Danish manager to see the written documents and
contracts in detail during negotiation process. On the other side, for the Japanese CEO, it
is not necessary to have the detailed information about written documents, as in Japan it
is negotiable even after signing it. This might lead to conflict when managers from both
countries sign the contract, and if Japanese manager expects it to change even after
signing it.
We were arguing that communication skills are very important tool of effective
leadership. Based on our empirical data, the language barrier in inter-cultural
communication could be one of the reasons for cultural clashes. We also found out plenty
of differences between Japanese and Danish communication styles such as: men’s and
women’s language in Japan, nonverbal communication is much more significant in Japan
than in Denmark. An individual has a special value in Japanese culture according to
Confucius instructions. Moreover, the distinctive feature of Japanese communication
process is that they are frequently characterized as being indirect when saying “no” or
“yes”. Because these words can have plenty of definitions in Japanese culture, a leader
from another country might find it difficult to communicate with Japanese if he is not
introduced with Japanese culture. Both respondents (Danish manager and Japanese CEO)
emphasized face-to-face communication style in business environment. Japanese could
be characterized as formal, business-oriented people who prefer to communicate mainly
about business in their organizations, while Danes, on the other hand, are more open in
business communication who likes to communicate about everything, including personal
issues. We can conclude based on empirical data that conflicts in intercultural
communication can appear because of decision-making process in different cultures. This
led us to the conclusions in relation to decision-making process in Japan and Denmark.
We found out that Japanese decision-making process relies on group consensus as it can
be clarified in theoretical framework. The main difference between the Danish and the
Japanese decision-making process is the Japanese leader's slow respond to his foreign
counterparts, as he needs to consult with the other members of the company, which can
make it difficult to do business with corporate Japanese leaders. On the other hand, based
on empirical data and the theories, Danish and Japanese are conflicts avoiding people that
could help minimize the misunderstandings in decision-making process. According to
CEO of DNP Denmark, Japanese are better disciplined than the Danish.
63
However, it is important to know that generalizations can be drawn from any national
culture but it cannot be characterized specifically. Organizational leaders and managers
can use the generalizations as a guideline during cross-cultural communication. But it
cannot be used as recipes because generalizations could be affected by several factors
such as personal interests, moods, contexts, etc. We think it is important for business
leaders and managers to have some understanding of other’s culture. Introducing crosscultural management training programs in the global companies could be a solution to
minimize the cultural conflicts raised by cross-cultural working environment. Cultural
integration programs could also be another solution but organizational leaders should not
expect other’s to integrate fully with their own culture.
64
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8. List of Appendices
Appendix A
-
Transcription of the interview (Merete Nørby)
Appendix B
-
Transcription of the interview (Masahiro Hirao)
Appendix C
-
Transcription of the interview (Carsten Marcussen)
Appendix D
-
DNP Denmark organizational structure
Appendix E
-
Decision-making procedure in Japanese companies
70
Appendix A - Transcription of the interview (Merete Nørby)
Interview with Merete Nørby from DTU conducted on 06/05/2014:
1. Interviewer: Is your name Merete Nørby?
71
Merete: Yeah it is, I can confirm.
2. Interviewer: How old are you?
Merete: I am 54.
3. Interviewer: What is your position and your area of expertise?
Merete: I am working as a chief consultant and research coordinator here at DTU and my
areas of expertise is within production management, dealing with areas such as
technology and human relations and the transfer of knowledge between university academic world - and the more practical world. Then I have a speciality about Japan
which has been of my interest for more than 20 years. So I am not using it every day in
my work now, but it is a certain speciality which I have used a lot of years on way back
and so that area, it is a speciality which is a little hidden. Because I don't use it everyday.
4. Interviewer: Have you worked in Japan before and for how long?
Merete: I lived in Japan for ½ year, way back 1986-1988. And I think I have been
visiting Japan 20 times. So for a long time I came to Japan once a year or once every
other year, but the big experience was ½ year, when I lived in Japan as a research student
and had my daily work going to university and living in a dorm speaking Japanese
everyday, being part of the culture for good and for bad. So this is you can say the base
and then all the visits of 3-4 weeks every once in a while that is building upon this basis.
And the many little trips, most of them have been guiding study missions for Danish
companies wanting to go to Japan to learn. So they would have a purpose of learning just
in time, of lean or quality management or whatever. So I would go as a combined
specialist and guide. So in a way I was the one who knew, I contacted the companies to
set up visits and I would have a professional translator to do the long speeches, but when
we came to discussions I would be the translator to ensure that the content was real.
5. Interviewer: Can you tell us about your experience working in Japan? And (if
there are any cultural clashes?)
Merete: My job was a research student. So in that way it was not a job in a company, but
at a university where I was more like a student. So when you say tell about my job, I
expect that you refer to being in a company?
72
Interviewer: Yeah.
Merete: Yeah, so I have not been working in a company in Japan. So I cannot tell you
about that. But I've been visiting hundreds of companies… So I have some experience or
impressions from being in a company. That I can give examples of.
Interviewer: If you want to do that you are welcome to do that.
Merete: You have a lot of questions about leadership later. In a way I prefer that you ask
some of your other questions and then I could kind of paint a picture of what are some
characteristics of a company, because telling it now it would be scattered like this and
then you come to all of your questions afterwards. So I think it would be better for you to
actually sum it up.
Interviewer: Okay, we will do that.
6. Interviewer: So now we are going to ask some questions about decision-making
process. How would you characterize the decision-making processes in Japanese
businesses and in Danish businesses?
Merete: Japan… one of the cultural values in Japan is harmony and consensus. And this
value influence daily life in the company and decision-making process a lot, so you can
say that the leader, according to his value, want to make a decision which everybody has
already agreed upon. Why? If everybody has agreed upon it's much easier to implement,
right? So if you all agree...it's very easy to make an order if I know that you smile and
will do it, but if I come as a surprise in the door and say you just do that, then some of
you may not know what I mean, some of you are just against, some of you are so
surprised and there will be a lot of reactions. So the old decision-making process in
Japan, is called ringi-shore. Ringi means kind of like circling around. The basis is, when
what you want to have decided upon, when that is clear, pass it on so everybody can hear
about it. So if you imagine that I were to take a decision, I would write a little bit about it
and then I would have you to look at it and discuss it and find out how you like it...maybe
you do not like it…but at least you know about it and you understand and you like it very
much so you trying to convention and more or less see that it might be okay. Then I pass
it on to another group, so I have every little group in the company kind of like know
about what is going on and in the old days they would actually, when you did not write
your name, you would do like this with your thumb to say: I agree. And then on this
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paper, you would have everybody put your little thumb to sign: I agree all around the
company. And then this paper came up to me, high-director up, and I'd say oh all of these
people know and then I'd say we do this, this is my decision. Maybe I do not say it's my
decision, but I'd say the decision for our company is. And then, you are against it all the
time. You've had so long time to get used to the thought and you know that everybody
else agree on it. Everybody worked together on it. This is the basic; I'm not saying that all
decisions are made this way. But as far as possible, the Japanese will spend a long time to
persuade people about what is going on before the final decision is taken. If you look at
an American approach to decision-making, then the boss is the king that will know
everything. And he'll make the order and you do it, right? And then maybe you can ask
questions and all of that stuff afterwards. So all the decisions are not made that way in the
States and all decisions are not made with Ringi-shore in Japan, but the basic tendency is
that way around. Does it make sense?
Interviewers: Yes.
7. Interviewer: Can managers make decisions without superior consent?
Merete: Japan is a very hierarchical society, that is seen in everyday life and that is
replicated into the companies. So superiors mean a lot more in Japan than they do in
Denmark. Most Asian countries have a more hierarchical structure. And I would say,
Scandinavia is the exception of not having it. So if you go into Hofstede for instance and
read about culture...have you done that.
Interviewers: Yes, we have done that.
Merete: You will see all of these figures about where the companies are on the axes of
obedience to superior and so on. And you will see that Denmark and Japan is like this,
according to being obedient to someone superior. So in that way, generally Japan would
make sure that his superior like it more often than we would do in Denmark. But in the
marketing department they may not have to ask the director, but within the marketing
department I'm sure there's someone who has to say okay for whatever. So compared to
what is the general tendency in Scandinavian companies, where private or individual
initiative is valued much higher, there is a very big difference.
8. Interviewer: Do Japanese managers in a particular department have influence in
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the decision-making process of other departments? If yes, how?
Merete: To be honest I cannot say that in general. But the Japanese company is very
planned. It is the usual thing that you will have a big master plan with some goals at the
top and those are broken down so that this department you would make cost savings for 4
%. And for this department 8 % and this one will get a hundred more costumers and then
within the marketing department perhaps you will generate so and so and so. And the
goal for the marketing department is linked up to the board of directors and then the goal
for the production maybe linked up. So in that way it all fits together in a big master plan.
And within the marketing department, I'm sure that they do not have to discuss
everything with the departments. But they're not acting so one-handed as you may see in
the other places. It's a very controlled, it's a very linked...the risk avoidance is very high,
so if you go into all of these factors I can certainly see that Hofstede or Yang or whoever
studied Japan, that it's not something that has just changed in 20 years. It has changed a
bit, but the basics are still to be seen.
9. Interviewer: When Japanese leaders say yes in the decision-making process with
Danish leaders, does it literally mean yes?
Merete: Japanese are conflict avoidance that means they would never want to make a
conflict... and not make it open. You cannot say no in Japanese, I can spell it for you but
you would never hear it. So when you say yes, you say hi…so like hi that's very
easy...hi...the word no is ie, but you would never hear it. So what is the custom in Japan is
that when you talk to me, and you may finish your sentence you see and I say hi, hi, hi,
and that means I hear you, I hear you, I understand...you may take it as you agree…that's
very different. There's a difference in hearing, understanding and agreeing and you would
not hear a Japanese...it's within the language...saying I totally disagree on that. Of course
you can have a debate, but in general you would be in a public meeting, you would be
listening and taking in. Then outside in the hall, the officials or the secretaries or so...they
would discuss back and forth and maybe make another proposal so that when we meet
again to discuss, the proposal is a little changed so it's a little easier for you...not only to
say hi I understand, but hi I understand and I kind of follow you. You understand?
Interviewers: Yeah.
Merete: So within the language you don't use the word no...you can of course negate
saying that...if you say I drive, I do not drive...you put that sen..the ending sen meaning
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not...like you can be running or not running...so you can say that I'm against it. It would
not be the way to negotiate. You would never have a picture of a boxing fight...it would
be a more sophisticated back and forth...more like a chess if you should picture it. I used
to say that when I was in Japan, if I was asking someone 'would you go to the movie?'
They would say yeah mmh, this little sound is “Yes, but unfortunately I'm going with
someone else or unfortunately I've to see my old mother or whatever. It would not be 'no,
I can't'. It would be yes but...and that little but, it means no and if you don't hear that
which is very difficult just when you've learned Japanese... you're so happy that you
understand most of it and then the most important little bitty word...it's like that.
10. Interviewer: So does it bring big problems when they negotiate with foreign
companies?
Merete: If you go 20 years back, there were a lot of difficulties in negotiations and many
business men from all over the world would say that the Japanese are so difficult to
negotiate with...to settle an agreement and part of it was because they had not done their
homework. Because if you walk in and say here we are... now we make a decision, we
have two hours and my plane goes...you'll have no decision. So at first you'll have to be
seen, get to know each other, go eating drinking and then you can fly home. The second
time you come ahh now I know you, I know you have two little sons at home and then we
look at the business thing. And then maybe we will move. So you can imagine, and I use
the American business men as you can say the most opposite person...because you can
imagine this big American guy “yes we do it” and then the Japanese “yeah you sit here”
and they don't meet. I mean actually Danish are more humble in the attitude than
Americans are. Americans may be more straight, but if you talk very generalized...the
Danish...Denmark is a small country and the fact that we have always had to speak
another language than our own and the fact that we are so few, in many ways influence
your area of influence...so can stand up for what you think and you can be straight....but
the chance that you will beat the joint army of I don't know...whether it’s in business or
war is very little because we are still so small...So in that way the Japanese would
probably prefer speaking to Danish than to American. And this is not to judge the
Americans, this is not to judge the Americans...this is just to show the oppositions in how
you meet each other. You get confused, but its homework you can study it and now there
are lots of books about it..25 years ago there wasn't, but now this is homework. I mean if
I go to Nepal, then I would probably have to study some cultural differences in how I
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would address in their way. So this is not just Japan, now we're just talking about Japan.
11. Interviewer: In your opinion are Japanese more task oriented or relationship
oriented?
Merete: When I do not answer it is because it is very double. Because I would say that
the employment is relationship oriented in the way that you employ the whole person.
Generally, from way back you would employ a new graduate from the very basic...saying
ok she or he has good grades in school...has a good blank piece of paper. Whatever he has
learned, I don't really care…Now we're gonna teach him. So in that way you would build
up the person, sending him half a year in the quality department, half a year in the line of
the production, half a year to the office and so on to educate the different person in all the
different areas, learning about the company culture being a Nissan man fx. So knowing
about everything to make sure that this person will act according to the culture, according
to the rules of relationships. So in that way I would say that it is very relationship
oriented. Once you are in...once you are accepted...then there are very strict rules as to
what you have to do...so there's a clear specification of everything...that is about the
product, that is about working routine...so that is very task oriented, you said relationship
or task? Yeah, so in that way...once you have formed your group, it's very task oriented in
that it is specified and you have to live up to certain specifications. So in my view you
cannot say one or the other. I would see them as interlinked. And depending on where
what is your angle when you ask, because if you come into a department and look how
they're producing this...how come that you can make zero defect...that is because its
specified very much...so the task is so much the sender...but the reason you can make the
task so clear and have everybody understand it is in my understanding that you have built
a relationship around it...so no task without relationship orientations. But I have to say
about all of this that there are many different opinions, so when you kind of have an
expert opinion on this, you would have other experts saying different things. But this is
my angle on it.
12. Interviewer: Are there any leadership barriers due to different leadership styles?
(for eg. when Danish leaders work in Japanese company)?
Merete: Most Danish leaders having growing up in Denmark would expect a lot of free
participation, free interaction of the employees coming with ideas or saying “oh this
doesn't work” speaking against him...without formal structures. So a Danish leader would
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expect that it is the obligation of the employees to speak up for themselves. A Japanese
leader in same situation would make a structure, making sure that every morning between
8 and 8.20 you can state if you have questions or if you have new ideas and you can write
them in this form and put them on the board like this...so if you ask where is there more
participation...it's not possible to say. Because...but the problem is that the Danish leader
would probably expect that the Japanese speak up, because that's what he would expect
of you in Denmark whereas the Japanese would not expect anyone to speak up. He would
structure the form to make sure that it is easy for his employees to speak up.
13. Interviewer: What is the reason for the major differences regarding working
hours in Japanese and Danish companies?
Merete: This is not an easy question. But if you want a historical perspective on it, there
are three old virtues of Japanese labor market...I'm sure you have read or Margit have
given you literature to read...otherwise you can find the proof for it as now I’m just
speaking and later you can go to the details somewhere else...The fact that the traditional
employment structure is that you are employed in a company for life time and you invest
your whole soul in that company and the company helped you to have cheap loans for a
house and that the school your children goes to is linked up to it...so this whole bondage
of the person to the company and a bonus system saying that if a company make more, I
make more. You would motivate the lifelong employed people to work as much as they
could...cause every time they work more they would not only the extra hour for working
but also the bonus for the company to prosper. And being proud in one of these
companies working so hard. So I'm positive that this historical background of being
linked to the company with life-time employment and benefits is a very good reason is a
very good reason to work so hard and so long. This is one angle. There's also an angle
saying that, working is a virtue in the way...I mean I'm doing something meaningful, so
I'll as hard as I can to for a higher goal. So it is my purpose in life to help Sekisui houses
to prosper. And if I vowed myself, not to the United States of America, but to the house of
Sekisui houses I will work 'till I die to make them prosper. And thereby being all of
myself. So this is some historical reasons and benefit related reasons which fit very well.
Then part of the story of having long working hours and people signing and dying for
working too hard is in a period where the Japanese industry was growing very much like
in the 70's and there were simply not enough labour. If you cannot hire someone else then
you must work more. So these are very practical and logical reasons ….you can say that
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it is helped by a division of labour saying that the women...the wives...the mothers...take
care of everything at home. So there were actually no reasons for the man to come home.
I mean the women took care of the kids, the food and the cleaning...the investments, she
decided everything...he just had to leave the money then she guided everything. So in that
way no reason to go home, you just work. You can look from different angles saying ohh
this is a male society, he's the only one allowed to work or you can look at it from the
women's view...he's so silly, he doesn't do anything but work. I mean I have all the
freedom to decide everything and he just works...so it can be looked at very different
angles. So since a big part of the women didn't work, the men had to work so much
longer compared to societies where you would divide the work between both the sexes.
14. Interviewer: You mentioned the bonus system in Japan can you tell us a little
more about it?
Merete: Yeah sure. It has been a tradition, way back since the formation of...you can say
these companies...we today call the traditional Japanese companies and that is from the
beginning of the....the profit of the company would be generally divided in you can say
three and like 1/3 would of course be reinvested in the company to grow even further. 1/3
would be paid out to the employees who had worked so hard for it and 1/3 would go to
the subcontractors...to the companies who had helped to make that profit. And there was a
strong urge...that the employees who got the bonus should not spend it...the company also
had a bank...you got the bonus, but if you were a wise worker you invested in our bank.
So in that way the company had the money as cheap capital for the growth. So in that
way, a lot of variation. And I'm being very general when I say 1/3, 1/3, 1/3...but the fact
that you build up a system to bind the employees, so that they will stay and they'll feel
happy and since there are no public pension and you may stop working early...it’s
important for the Japanese to save up money when they get old and to save up money to
pay for their children's education. So in that way the company would make the whole
economy, so that the money was circulating within this company.
15. Interviewer: How do the Japanese leaders and the Danish leaders motivate their
employees to achieve the companies’ goals?
Merete: It is important ones more to say that I'm speaking very generalized. And there
are a lot of variations. There's a difference if you talk about Japan 20 years ago and about
Japan today. I answer now, trying to make some kind of broad answer. But there are a lot
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of variations. Just for your record when you write it this is not the truth this is illustrations
of a tendency. But that being said, being oriented towards higher goals is very natural in
the Japanese culture so the fact that you strive for something very difficult and that you
do it together...this is very natural. So for a leader in Japan to show this goal and we'll go
that way together...and it may take us three years to get there...but every month we'll
count our little step...we will sign and say okay this month we'll get a little better and a
little better...so we actually have a plan for the next 9 years. We have these 3 years, we
have to do this. And the next 3 years we have to do that and the coming 3 years we have
to do that. And now we take the first three years...within that we have little goals and
steps. So the Japanese leader would have a large perspectives and it would not be...there
will be no unease for the person to know that he was working for something far away.
This is like the general Japanese...and is a lot of measuring...so you can see if you're right
or wrong. And the fact that you're being measured and that you are happy and my boss
likes me...that is a good motivation. If you take a tendency in the Danish society as in
companies...it has not been the rule to look far ahead and at least not to share it with the
general employees. Things have changed over the last 3-6-8 years or so. I'm not saying
that no companies are doing it today, but still there are quite a few companies....you don't
have 20 years of history in sharing your higher goals with your employees...it's coming
but this is not the history. If you don't share the overall goal and it is a more trade
off...you hire me, I work 8 hours or I do this task. If you want more then you pay more.
Then we negotiate again. So you could say that the Danish labour market is more of a
negotiation relationship on the individual basis, on the group basis or on the company
basis...it doesn't really matter, but we make a deal. If we don't agree on the terms we split.
Which is quite different. And then the motivation...this is a very big issue and its
changing now...I would say over the last 3-4 years or so there's maybe a tendency...that
some companies succeed in making a culture, having similarities through some of the
Japanese rules and say that we go for this together and like Arla for instance its a...they
try to make a vision and show where they are going and how the individual people are a
part of it and so...but many companies are not doing a lot of work of illustrating what the
company is going for...therefore the motivation is down to the individual leader next to
you. In that way you may not have as many factors you can influence because...the hours
are regulated...the pay is regulated, the processes are described...then you can say good
work...and this still works in Denmark, it works everywhere. If you smile and recognize.
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16. Interviewer: What are the methods of employee recruitment, reward system and
layoff in Japanese and Danish organizations?
Merete: In Japan you have large corporations and you have small companies. There's a
difference. If you talk about large corporations, especially the large corporations will go
for recruiting through the schools. So you take in new employees when they graduate in
April or in march… So the new school year starts in April. So when they graduate you
take in and if its possible for you, you link up with a school and saying “if you are very
good high-standing company, you can get grads from the high-standing universities or
high-standing schools or whatever. So depending on your ranking as a company, you can
link with the schools with a high ranking. So most recruits will come directly from school
and based on where they are. Therefore traditionally you have the same age when you
enter a company. So linked to the Japanese cultural base, you look up to someone who
are older than you. So superiors are generally older. So if I walk into a room I could see
who's the superior here. 15 years ago you would not see a young boss...that has changed.
So now some of the young ones are bypassing some of the older. But up until 15 years
ago you could judge by the age how far you have gone. I visited Toyota a lot of times and
like every other year or so...I saw when the tendency changed because some of the young
people who are very good skilled English they bypassed the older ones. Because they had
the possibility to speak to the visitors. And one year there was a woman bypassing men,
which was no no no 15 years ago. It changes...so therefore I would advise you very
strongly when you write that you say that there is a picture which has been...the majority
picture or the generalized picture...up until about a 2000. And then from a 2000 things are
changing... and how fast they're changing depending on whether its a big company or a
small company, what kind of sector you are in, whether you are in the city or in the rule
areas. So you would find someone who would argue against what I say…because if you
go into some creative computer game sector in Tokyo...you will find some different
relationship and new employees coming in...if you go to a rule slaughter house...you'll
find a lot more like those structures. Please do make sure when you write it that you
distinguish what has been the tendency and what may be changing. And in that way you
can if you refer to statements you can say “well this statement is a good argument for the
old system and this right here is a good illustrating of what it is changing to. So I would
strongly argue that you show that not one picture...but where it is moving towards and
then you can use the statements kind of like where they fit in.
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17. Interviewer: Are there any rules (formal, informal) when Japanese communicate
with each other in the organizations?
Merete: In the language, you can actually hear whether one is a superior or the let me
turn it around...the Confucius philosopher influencing Japan from China...he had some
basic rules, we should make a more harmonious society. One of them were to always
know your place. Because if you know your place you would not have to conflict about
who is right or who has the last word. One is that is older is over younger. One is that
man is over female. And if you have these basic, you would always know who would win
the argumentation in the last one. If I handed you my business card...what you would do
was read this and see that I was the section manager or you were a division manager...and
if division manager is higher than section manager you would let me bow a little deeper
than you. So the Japanese do not exchange words before they know each other’s status.
And when they bow, you can see who bows the deepest or who stopped bowing. The one
who stops is the superior. The subordinate would have to bow one more time. And then
when you speak, the verb ending will show how polite you are towards the one you speak
to. So if you are skilled in the language, they will be able to hear that you as a student are
more humble to me as a teacher and I would speak down to you as a student. Not because
I don't accept you, but because by status you have...you have a lower status in this link.
You can actually hear it. So if you are recording a Japanese conversation not knowing the
voices, you will be able to hear who was the superior. So its so deep grounded...and
normal translation...I mean this is something which is so deep in the culture and in the
language that you cannot just change it. I mean you can make participatory ideaquation or
whatever, but it takes an extra effort to lay off what you have learned from childhood
about how you speak. There are women's language and men's language. I of course have
tried to learn the neutral ending...so I do not speak women's language except if I'm with
chicks. If I have girl talks I can speak women's language, but if I go on business trips I
would never speak women's language. Because that would be very difficult for me to
have authority and then speak with this...it's not just the ending but it's also your attitude:
(very female voice) “ohh I come here to help you...yeah yeah yeah I'm so glad here”...If I
would speak more...I would say: (neutral voice) “I'm glad I'm here, thank you for
welcoming me...You can always here the tone of the language. So in that way this is not
only Japanese, but it's very distinct in Japan. You would have part of it in Danish and
probably in your countries as well. In Japan it is very distinct. So a good example was
when I was 30 or so, coming to Japan with a group of Danish managers who should visit
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a company and all of the men...I had like 15 men from Danish companies...presidents,
production managers...whatever...they were all men...they were men, they were all older
than me...and they had positions...I was in a way a consultant...in a way was in a higher
position. So when we visited a company where I had been setting up the meeting and
arranging the meeting, it was very important for me to get out of the bus first...I went out
of the bus and I went to the oldest man...the Japanese men were coming to welcome. So I
went to the oldest man and said “Good morning, I'm Merete Nørby. I'm the leader of this
delegation.” And I looked you in the eye and I bowed. But I spoke with a high voice and I
said very clearly “I'm the leader of this delegation”. When I said that none of the Japanese
men doubted that I meant that I was the leader. I had said it. “Ohh welcome, this is
someone from not Japan. They have a quality.”...”Oh this is a lady; she's the leader of the
delegation”. So they accepted it fully and I got the position of the leader as a woman, so
there was no problem. If I had not gone out of the bus as the first person, what would
have happened? They would have looked around and found the oldest of the guys, they
would have gone to him and said: “welcome to Matsushda we're so happy you are here.”
And then I would have come “Sorry, I'm the guide. I'm the one who wrote you.” And that
would have been impossible. So this kind of attitude...this tells you how preparation is
important. It is in Denmark too, not only in Japan. Even in a country like ours, the
perception...if you are not spoken then you would take for granted something.
18. Interviewer: Are the general Japanese employees allowed to interact with the
chairman?
Merete: No I wouldn't think so. No. But they wouldn't in Denmark either. The chairman,
the board they are separate from the company, they only come at special occasions. But
the chairman and the board are head of the directors. Communicating in the company are
the directors. So in Japan, maybe even more than in Denmark the chairman may make a
speech to say what is good for the company and we thank all your employees to help us
achieve our goal. But I don't think that anyone would go and speak to him.
19. Interviewer: What about the directors?
Merete: There's a long way to the directors…so you would not get the idea and just pass
by the directors office and say “I don't like this or I have this idea”, since the hierarchy is
stronger...it would be more seldom that it would happen in Japan than in our culture.
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20. Interviewer: Why do you think there are more male leaders in Japan than in
Denmark?
Merete: Well, first of all since men are higher than women according to the Confucian
system. So that kind of defines it. And then it has been the tradition that women got into
the companies at the same time as the men. But as soon as she got married or at least got
her first child she stopped working. And since your seniority in the company adds on
every year...the women she kind of misses 7 years, because she stays home with her
child. If she goes back she will be a part-timer. She will be working less and she will not
be employed on a permanent basis. She misses her opportunity for the leader and if you
add that it is unnatural for a woman to be the leader of a man, it kind of fits very good
together. This is the old system, it is of course changing. There are more men, because
history doesn't change over the night. So if you take 2000 as some kind of turning point
or whatever, there are a lot of people who have been employed before that. And they kind
of got into the system earlier. There is no way that there could be more women leaders in
Japan based on that system. But you can say that Denmark is not a very good country in
that sense either. Because we may have many Danish leaders at very low levels, but as
soon as you get to higher positions, the female quotas fall significantly. That goes for
professors that goes for production managers and that goes for directors.
21. Interviewer: Japan is one of the most uncertainty avoidance countries in the
world, which means that Japanese people try to control the future and they
therefore prepare for any possible risks before starting a project. Do you know how
corporate Japanese leaders prepare for uncertain situations?
Merete: Yeah, I actually went to Japan a year ago with a risk management group to
picture some of this. In the Japanese way of management, planning has a lot greater
influence than in the western industrial world. If you are to make some change in a
production setup, the Japanese would spend 80 % of the time planning, specifying and
making sure that this would work. And they would spend 20 % in actually starting it off.
If you should guess if the Danish people should spend exactly the same time, how would
you guess that the percentage was?
Interviewers: 50 % maybe?
Merete: Yeah maybe. I usually say the opposite. I usually say that the Danish managers
would spend 20 % in planning and 80 % trying to make it work. And this is not the truth.
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But it's a very good picture that the tendency in Japan is to use a lot of time in preparing,
and securing and risk mitigating, before you go to the actual thing and implement. And
the tendency in our country is that,
“come on guys, let's try”. If it doesn't work we fix it. We call someone.” The reality may
be 50/50, but as a picture we have a very different attitude. When it comes to risk
avoidance, it fits very good into that, if you try to picture what could happen it could go
wrong, and if it does go wrong what would we then do. So this goes for everything you
can think of. So the risks which are within reachable thinking. The Japanese would
generally make a risk mitigation plan. They would list the risks and see if they could
mitigate it. Yet then, the other story is that, there are some risks, which you should
actually call uncertainties, things which could happen; like an earthquake, like a tsunami.
Which are so big that you can really do nothing about it. So this is a big discussion
among scholars as well, so there's not one answer. But most scholars say that because it is
so big, and it only happens so seldom, instead of using a lot of time in preparing, you let
it happen and you build up. So, I'm not saying that you should not think about it but
sometimes it is so big, that you must call it fate.
22. Interviewer: What is your view on Nonaka's theory on explicit and tacit
knowledge management?
Merete: Since the basic values of working related to why you enter the company, not
only to perform a certain task, but because you agree on the values and the overall
purpose and goal and traditionally entered, not only for a short period, but for a long
period, you could argue that you thereby enter a community with values and sort of
accepting the tacit rules, so that performing the task and receiving the direct orders is
only extra. In that way, without the tacit knowledge and the acceptance of the cultural
values, and the that you would...maybe not die for the company, but at least work hard for
it and not be disloyal...and not leave the company if you get a better job offer somewhere
else, that could be an argument that the tacit knowledge is important in the Japanese
companies than in most western companies. I don't think you can prove it, but you can
argue it. And you can link it up to the values that way.
23. Interviewer: How does tacit and explicit knowledge affect leader’s creativity and
innovation?
Merete: Yeah, I think that there are two tendencies. One is that you have so much basic
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knowledge, that you perhaps better could see where some little improvement were
missing, so in a way having been in a company for a long time, the values...knowing all
of the functions and knowing who else would know, you may be able to refine a certain
product or a certain process to a certain stage. But this is all the very...you could argue
that it would be harder to come up with completely new inventions. You miss someone
with a different perspective, because everybody is so much alike. And one argument
supporting...I cannot say yes or no...but one argument could be that in Japan, consensus is
being liked very much. So if you go to the little temples and get a prediction of your life
and you may have 5 different expectations...no one wants the very bad of course and no
one want the very best. Because the nail sticking out should be hammered in. So the ones
who are most different, whether you are bad or good, are not really like according to way
back culture in Japan. So it is all the middle ones, the average ones which are liked. Japan
actually has very few Nobel Prize winners. And the last one had been doing his research
in America for a long time, even though he was of Japanese origin. And you could argue
that, since you put so much effort, in the consensus and the fact not sticking out too
much, you would never get real crazy new ideas in a Japanese setting. You could be very
very good; maybe the best in class in everything until something changes completely. So
this is one argument that they cannot do it. Sony, one company, showed that they made
a...when they came with complete new disk players...I mean that was revolution in the
music recording business. So you cannot say it cannot happen, if you study
innovation...and this is not my line of business...you can argue that it is not the craziest
idea. But more like the followers.
24. Interviewer: How would you describe the use of 'Lean' in Japanese
organizations?
Merete: It is a dilemma and there's not one answer to it. The lean system indeed won in
the west. But right now there is a tendency among the most advanced companies, saying
that lean can be a burden...that you are not open enough for changes because you stick so
much to the standards, and that the improvements are within this system. There's a big
improvement, turning it all around. It doesn't fit them building on little improvements and
standardizations. So in a larger perspective, you can say that the whole Japanese society
is built on standardization and small improvements. This is very stable and good, but
completely new ideas don’t prosper. Over the years the Japanese society have tried to
import from outside, I mean they learned about it from the States...Japanese were just
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much better to implement it. Japanese universities have large research programs where
they taking young...when I was in Japan the Japanese state paid for me to stay there. They
take in researchers from all over the world, because you can say that this is a way of
buying foreign researchers into their community to get new ideas actually. So they know
that they should get more from outside, whether it is enough...I don't know. And perhaps
the culture is changing. It's very difficult for me to see whether the new generation is
more creative and more open-minded than the old. What I know of the Japanese
universities, is that its a huge turn around, if they should promote creativity from another
angle I think.
25. Interviewer: What can Danish Leaders learn from Japanese lean management?
Merete: This is a very broad question. But if you have to summarize, I would say that the
goal orientation, the fact that you state a vision and goals to give meaning to why people
are there, I think it's a very important thing. The fact that you must structure and
systemize everything...that you must have this basic structure and continuously systemize
and improve...this is a second thing. So you can say goal oriented, systematic
improvements and perhaps the understanding of teaching, is the third. So the fact that
people only learn if they are taught…so you can learn something by accident or by
experience. Now I've been working here 30 years, I know what to do. This is one way.
Another thing is that all managers are teachers and that you actively teach not only the
process, the way of doing, the way of thinking, the way of reacting if things go wrong. So
this emphasis on teaching-learning could be the third.
26. Interviewer: What are the most important values and ethics you demonstrate as
a leader? Give us an example of these in practice.
Merete: This is a tough question. But the ability to set the direction and communicate the
direction. This is the first one. And the second one is to motivate and recognize the
employees. And the third one is to make decisions – you can say, prioritize and make
decisions. I think those should be the three. So if you can set the direction and motivate
include react to the employees and you can prioritize and make decisions. Those are the
three things if I could only make three.
27. Interviewer: What are the advantages and disadvantages of having a seniority
system in Japan?
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Merete: Well, It is definitely a stability factor. Because, this is a way of keeping your
resources. So if you invest and you get a lot of knowledge, you keep it in the company.
So this is clearly the advantage. And the disadvantage we have been talking about that
you do not get enough input from outside. But the stability factor, you keep the resources
and you don't have to shift directions every time a new leader enters. So this stability and
building unknown things, not having to retrain all the time. And the disadvantage is that
in a changing world, you need new impulses as well. So for that reason the disadvantages
grow over time. Because the world is changing so fast the business environment is
changing.
Interviewer: I guess an advantage could also be years of knowledge.
Merete: Yeah, definitely. This links to that the resources you have you maintain them.
You don't give this investment to someone else.
28. Interviewer: And I have a question about reward system. Is it totally based on
performance of the employee or is it also based on what kind of relation you have
with your manager?
Merete: There's typical an appraisal factor having to do with attitude. So it's not only fact
based in that way...you could call it...in a more critical world you would call it...I mean if
you flatter the leader or speak after whatever he says and so...but the large percentage is
something which can be counted, and the attitude factor is always difficult, and I would
not be able to say what kind of indicators...knowing the Japanese they would not have a
factor being only something you feel. They would have indicators saying if he says “good
morning” everyday, and if he smiles at me and if he so and so and so, then I would say he
has a positive attitude. I don't know it. I cannot prove it's like that, but if you look at how
the Japanese usually systemize things, then just a feeling would not be a typical base of
an action.
29. Interviewer: How do they manage the unproductive employees...can they just
fire them or how do they manage them?
Merete: You can sidetrack...and I think that's not only in Japanese firms, but some
departments may be more important than others...so if you are moved from the front
office costumer interaction office to the back office preparing the notes for the front
office people...this could be a degradation that you are not as important as if you are
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meeting the costumer. So this could be like a sidetrack, because one department...even
though you've been in the company for 7 years...being in this department has more status
than being in the other department. And then I think that it's important to say that this
lifetime employment is not so strict today as it used to be...and I’m sure if someone is not
performing he would be laid off. So it is not a guarantee, it was more an agreement than it
was a guarantee. I mean the employees have always had the right to or the possibility to
lay off. But in the older days you would probably not get to that extreme because you
would in a negotiation kind of adjust, because this person who was laid off when he was
45, would never get a job in any other company and he knew that and the company knew
that and the village knew that...so you would back for your position or you would
promise to work not only on Saturday but also on Sunday...so somehow you would agree
on some kind of compromise so you did not get to that extreme of having a layoff...in the
old days...whereas today, I'm quite sure that this general agreement is looser. It's not so
bound in social structures as it used to be. So we're moving more towards a system more
like ours. You can end a contract of course.
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Appendix B - Transcription of the interview (Masahiro Hirao)
Interview with Masahiro Hirao from DNP Denmark conducted on 19/05/2014:
1. Interviewer: What is your name?
Masahiro: My name is Masahiro Hirao. Masahiro is the first name and Hirao is the last
name.
2. Interviewer: How old are you?
Masahiro: I am 56 Years old.
3. Interviewer: How long have you been working at DNP?
Masahiro: You mean the DNP Denmark?
Interviewer: Yes DNP Denmark
Masahiro: I have been working for 9 years in DNP Denmark. I worked for 4.5 years and
then I went back to Japan and worked in Korea for same company. After some years,
again I came back to DNP Denmark and it’s also been 4.5 years now. I have been
working in DNP all my life.
4. Interviewer: What is your position in the company and your area of expertise?
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Masahiro: I Am Chief executive officer and I am responsible for all kind of things in
DNP.
5. Interviewer: How long have you been in Denmark?
Masahiro: As I told you before it is total 9 years now.
6. Interviewer: Do you speak Danish?
Masahiro: Little bit. Listening is Ok but speaking is difficult. I try to speak in Danish but
nobody understands what I speak. But I can recognize the words from newspapers,
articles and when I listen.
7. Interviewer: How many employees are working in DNP Denmark?
Masahiro: There are 80 people working in DNP.
8. Interviewer: How many employees are from Japan and Denmark?
Masahiro: We have 3 people from Japan and rest of them is Danish.
9. Interviewer: What is your overall impression about Danish people?
Masahiro: It is an interesting county. I feel very much happy to live in Denmark. All this
things is very much interesting. In Nordic countries, life standard of people is high, work
conditions are also better and there is more freedom. That’s why people call it happiest
country in the world. So, that’s my impression about Denmark.
10. Interviewer: Who is involved in the decision making process at DNP Denmark?
Masahiro: I and Niels. He is a COO and most of the things are decided by both of us. We
have meetings with other managers but for most of the issues we decide.
11. Interviewer: Do you consider group consensuses before making decision?
Masahiro: Yes, in most cases, am not involved in group consensus. This is done by COO
as he speaks Danish. He gathers managers for group discussion.
12. Interviewer: Can the manager make decisions without superior consent in DNP?
Masahiro: I think most of the times decision is made by each manager and the big
decisions are done by me and the COO. But most of the decisions for the departments are
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done by the managers themselves. I am mostly involved if there is big issues like budget
or something.
13. Interviewer: Are you more task or relationship oriented?
Masahiro: Okay of course yea, to some essence yes. The employees are doing very
good job, while on the other hand product for our business is more than 20 years and we
have been doing the same kind of things. Now is the time to change the way of the
business and the way of our thinking. The way of doing business is changing and we need
employees that have aggressive minds whereas some employees do not want to adapt to
new situation.
14. Interviewer: Do you prefer to make quick decisions or do you prefer to take long
time?
Masahiro: This depends on the case. Business and situation is changing rapidly. It
depend whether if quick decision is needed we have to make decision in short time.
However, in case of personal issues, I have more discussion on what we going to do.
Business is like competition so we have to take certain decision at the right time.
15. Interviewer: How do you motivate your subordinates?
Masahiro: People change their minds time to time, so sometimes they are motivated by
certain things while the other time they get motivated by something else. As a manager,
we have to discuss continuously to the subordinate to find what motivates them and what
make them aggressive to work. Also, if I want certain result, I have to talk to each
individual personally and find out what motivates him or her. Talking is very important to
know the preference of employees.
16. Interviewer: Is emotional sensitivity valued in Japanese negotiation style?
Masahiro: In business situation, it does not need emotional things, you always look into
the business focusing on the target and trying to evaluate the merit and demerit in order to
consider which one is profitable. Of course personality or perception differs.
17. Interviewer: In negotiations process are Japanese manager ‘straightforward or
polite?
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Masahiro: Actually, in Danish cases I do not involve in negotiation. All negotiation in
Denmark case is done by Niels, the COO. However, talking about me I prefer gentle man
approach when dealing in business, we have to consider and respect the person’s behavior
and his way of thinking. That is how it will leads to consensus.
18. Interviewer: During negotiation process is it important that written document
must be accurate and valid?
Masahiro: A written document is like protection. I would like to know about it in brief
but I don’t go in details. I don’t understand Danish, so, I don’t need people to translate
everything for me.
19. Interviewer: Do you argue a lot during negotiation processes?
Masahiro: No, no, no…. I do not argue. In most of the cases, COO is involved in
negotiation process and he explains me the main issues and I agree with him most of the
times.
20. Interviewer: So, you have full trust on COO?
Masahiro: Yea…yea I trust him fully. That’s the only way in the business.
21. Interviewer: As a manager, what are the problems you experience during inter
cultural communication (when communicating with the Danish counterparts)?
Masahiro: The biggest difference is Danish and Japanese business style. The speed is
very much different.
22. Interviewer: You mean in Decision making process?
Masahiro: I have to say that Danish way is slow not only in decision-making process but
also in the developing ideas, new concepts and so on. Time is critical when making
decision. I think Japanese are faster than Danish. There is not much control here so
people do not fulfill their promises on time. Japanese culture does not like excuses, they
honor their promise for example, when meeting is set at 10 am, Japanese man will come
before 10 minutes to time while Danish man will be late behind the schedule time. So,
maybe Japanese people are more disciplined in such issues. But this also depends on
individual personality of the Danish man. However, being too much disciplined is also
demerit as people forget their goals.
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23. Interviewer: So, deadline is very important for Japanese people?
Masahiro: Yes, it is very important and we are very punctual.
24. Interviewer: As CEO, do you experience language barrier in inter cultural
communication?
Masahiro: Oh sure, language is always barrier wherever you go in the world. Even in
Japan, when you go to South and North parts, they have certain dialects so it is not easy
to communicate and understand each other properly. That is always barrier in my
understanding.
25. Interviewer: Do you prefer to communicate to subordinates through direct or
indirect ways?
Masahiro: Yes, I prefer direct way and like face-to-face discussion. In this way I can
understand the real situation and thinking of the people.
26. Interviewer: Are you more directive or supportive to your subordinates?
Masahiro: Most of the times I support what COO say but sometimes when there is
complicated issues like making business strategy, developing new concepts then I might
need to give some directions as well.
27. Interviewer: Do you prefer to work in a team or alone?
Masahiro: It depends. I prefer to work in small groups maybe 2-3 persons is Ok. But if
there are more than 3 people it is difficult to make consensus. So, it depends on the
issues, sometimes I might want to work alone but sometimes when I need others inputs, I
like to work in small groups, not more than 3 people.
28. Interviewer: Do you have inter- cultural trainings program for your employees
in DNP?
Masahiro: Most of the people in the company are Danish. So we have to follow Danish
culture. But we do not have any special programs or trainings. We try to learn it by
ourselves.
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29. Interviewer: Do you prefer to work in multi-cultural environment or mostly
with Japanese?
Masahiro: I have been living outside of Japan for more than 18 years. I spent 9 years in
Korea and 9 years in Denmark. Most of my career is outside Japan. So, I prefer to work
in multi-cultural environment.
30. Interviewer: Have you experienced any cultural clashes/conflicts while working
with Danish?
Masahiro: I would say the main issue is Time or speed. I want my sub-ordinates to
respect the deadline. Danish are always asking for excuses. But, it also depends on case.
That’s why I have to compromise most of the time and try to find a way to solve the
issues.
31. Interviewer: Can you tell us about your company’s organizational
structures/Hierarchy in Japan?
Masahiro: In Denmark organizational structure is flat while the Japanese structure is
higher. Japanese organization structure is more hierarchical.
32. Interviewer: So, which structure do you prefer?
Masahiro: I prefer flat system but even in flat there are managers who have to make
decisions. But it is for sure that Japan prefers hierarchy.
33. Interviewer: Does Japanese management style starts from bottom approach,
middle approach and top approach? If yes how does it work?
Masahiro: Typically Japanese traditional style is bottom up and at the top decision is
taken while in newly established companies owner makes decision.
34. Interviewer: Are you involved in hiring of the employees in DNP?
Masahiro: No, I am not involved in that but I get information about it.
35. Interviewer: About Japan, how is the hiring system?
Masahiro: Even in Japan Human Resource Department is involved in hiring. Top
management is not involved. They are just focusing on the figures or the results.
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36. Interviewer: How loyal are Japanese employees to the company?
Masahiro: Japanese culture requires certain degree of employee loyalty to the group and
to the company. Japan is the strange country in the world, which requires employee
loyalty to the company. But here and maybe elsewhere also there is no such kind of thing.
Since we live as family in the workplace, we have to have loyalty to the top. So in Japan,
we have company entrant ceremony on 1st of April and that is the day when fresher or
newly graduates from university and new workers solemnly swore to work harder for the
company. I have not heard about such ceremonies elsewhere.
37. Interviewer: Are the employees required to have knowledge about all areas in
the company?
Masahiro: Yes…after the graduation when they enter the company, companies have
program to educate the people from the scratch. I was also hired by DNP as the fresh
graduate. But now things are changing, so companies are also hiring experienced people.
There is also high degree of competition due to globalization so even the Japanese
companies cannot keep their traditional approach. But again, most of the companies still
like to hire fresh graduates.
Interviewer: Ok, Thank you very for your time. We really appreciate that you gave
us opportunity to have conversation with you.
Masahiro: You are welcome. I wish you good luck for your project.
Interviewer: Thank you. Have a nice day.
Masahiro: Thanks and same to you.
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Appendix C - Transcription of the interview (Carsten Marcussen)
Interview with Carsten Marcussen from DNP Denmark conducted on 19/05/2014:
1. Interviewer: What is your name?
Carsten: My name is Carsten Marcussen.
2. Interviewer: How old are you?
Carsten: I'm pretty old, 59.
3. Interviewer: What is your position in the company and your area of expertise?
Carsten: Well, my position is supply chain manager. My education is within production
and management. I have a bachelor degree from Denmark, Odense in production
engineering and then I have a master’s from US, industrial engineering and management.
4. Interviewer: Have you been working in the US?
Carsten: Yeah, but only for about a year and a half.
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5. Interviewer: How long have you been working at DNP?
Carsten: A total of 14 years. I've actually been here twice. First I was here for 3 years,
then I left for 3 years, and then I came back and now for the second time I've been here
for 11 years. So totally 14.
6. Interviewer: Have you been to Japan? If yes what was your purpose of visit?
Carsten: I've been to Japan a number of times. First time in Japan was 16 weeks of
training, insight into Japanese management and production control system and stuff like
that. At that time I was employed by a shipyard. And at some point of time this industry,
the ship building industry was heavily pushed by the Japanese Industry. So we send some
people to Japan to learn how they did, I was one of them. 16 weeks. And since then I've
been there a number of times, maybe 5-6-7 times as an employee of DNP. Because, you
know we are owned by a Japanese corporation. So that was more like business trips of
various kinds.
7. Interviewer: How often do you get the chance to meet Japanese people?
Carsten: Everyday. We have Japanese people working here. Three.
8. Interviewer: What is your overall impression about Japanese people?
Carsten: That's a very broad question. In what sense do you mean?
Interviewer: Well maybe in the business sense.
Carsten: Well, they are, as far as development and profitability and stuff like that, they
are more patient than you would see for instance, the other extremes are the Americans.
So the Japanese have a sort of philosophy that says if things seems to move in the right
direction, they do not necessarily have to move very fast to be able to see continuous
improvement. Kai-sen, you know about Kai-Sen, right?
Interviewers: Yes.
Carsten: And the idea in Kai-sen is really continuous small improvements, and that's also
how they think in business. So they want to make sure that we perform better tomorrow
than we did today, but not necessarily easy gains like the Americans. And no hasty
decisions like the Americans. So in that sense they are very much different. And you
would say that Europe is somewhere in between.
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9. Interviewer: Who is involved in the decision making process in DNP Denmark?
Carsten: I'm tempted to say everybody, but it depends on the decision size of the
decision. And also the type of the decision. But generally in DNP Denmark, the danish
management is making the decisions. The only exceptions are if the investments are very
big or if strategies are somehow controversial, you could say, then we need a approval
from Japan. But most of our decisions are made internally.
10. Interviewer: What about decision-making in your department?
Carsten: It depends on the size of the decision. Now in Denmark we tend to delegate the
decisions. But again, it's linked to..you could say consequence-matrix-type of thing.
Because, you know we have a financial statement every year, it has to be approved by
independent auditors. So, they will also have some ideas questions on how much you let
go on your decision and thereby how much do you let go on your economy. Basically,
everybody in this company makes decisions, but there is a limit to the consequences of
that decision. Like anybody can decide to buy something, but up to a certain amount of
money. So the higher in the hierarchy you are, the more money you can sort of take
charge of. So in my part of the organization everybody has a decision, it's sort of like
leveral decisions. So I don't need to sit and make decisions about everything all day long.
I have a lot of people who also make decisions. So what would you call that distributed
decision-making.
11. Do you consider group consensuses before making decision?
Carsten: A lot. Why? Because...again it depends on what it is, but in most cases yes
consensus..because our experience is that consensus also means that you get… I mean
people are committed to the decision if they approve of it...so you could say that's how
we do it, to make sure that we have the commitment afterwards. And japanese
management is actually also consensus management to a high degree.
12. Interviewer: Do you prefer to make quick decisions or do you prefer to take
some time?
Carsten: I'm an engineer, I like to...Basically, I like to calculate and consider and make
sure and..So in most cases I would prefer to make sometimes to make decisions. In reality
a lot of decisions has to be made without a lot of consideration. So my personal
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preference would be.. I guess most people's personal preference would be to have the
time to analyze, to calculate..but we don't have the time so quite often we make quick
decisions..we have to make quick decisions. And I would say, the development the last 10
years, we need quicker and quicker decisions. Because the market moves quicker and
quicker. Preference: more longer decisions, reality: quicker decisions.
13. Interviewer: Are you more task or relationship oriented?
Carsten: That’s the hard question. Yeah, but I don't think it's a black and white
answer..because I would say that in my own part of the organization, I would be
relationship oriented. Between different functions in the organization, I think it's more
task oriented. But on a daily basis in my own part of the organization, definitely relation.
14. Interviewer: How do you motivate your sub-ordinates?
Carsten: There are many kinds of motivation.
15. Interviewer: But which methods do you use?
Carsten: Yeah I understand. I think, generally I motivate them..I believe most people are
motivated by challenges. Challenges that are within their capability..I mean it should not
be a challenge that they cannot handle, but a challenge within their capabilities. So, I
believe that a good way of motivating is to give the people...the employees challenges to
the extent that they want the challenges, that they feel good about them..within their
comfort zone so to speak. But of course, there are also other motivation factors like...first
I have to say that it's very different what people are motivated by. So some people will be
motivated by a challenge, some people would be motivated by good working
environment..so like..they really don't want to...maybe they are very much interested in
their work, but they are very motivated by getting the tools they asked for..okay so I give
you the tools they ask for to some extent. Others again, are motivated by a little flag on
the table when it's their birthday. So basically, I would think there are a lot of different of
motivating. My point is that motivation is individual, what motivates you is not
necessarily the same thing what motivates you. So we do our best at least, to motivate
individually according to what do you want, what motives you. And it's really a lot of
different things. So it's a hard work to motivate.
16. Interviewer: Is emotional sensitivity valued in Danish negotiations style?
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Carsten: Yes, I think very much. But also personal relations in general are very
important in negotiations. So yes, emotional sensitivity very important. More important
than anything else, I think.
17. Interviewer: In negotiations process are Danish manager’s straightforward or
polite?
Carsten: Well, now you ask very general questions. Because there are very big
differences between Danish managers. Some are very straightforward, some are very
polite.
Interviewer: Maybe we could ask about you.
Carsten: Yeah, but I think you can be straightforward and polite. You put it as one or the
other. I would re-phrase the question and it's more like: are you tough or are you an
asshole? Are you more sensitive, but you can still be direct. I would say, I'm direct but I'm
not tough. I think you can be both.
Interviewer: Because I have read that Americans are more straightforward and
Japanese are polite.
Carsten: But I wouldn't call it straightforward. I would call it assholes. Yeah, but it's a
matter of how do you proceed...when you want to achieve something, how do you
proceed? By coercion, by threats, by playing tough is that how you do it? Or do you do it
the nice way..like please, come on. But I think you can be straightforward on both of
them, but are you tough or are you soft? I believe very much in good relations to
whatever, that's what makes the results...so I don't want to be tough, but I want to be
direct. You understand what I'm saying?
Interviewers: Yeah.
Carsten: Because some of the guys, I think..really...I don't think you should mix straight
being straightforward with being rude, because some tends to be rude and they think they
can achieve good results by being rude. I don't believe in that. If I get some supplier that
comes here and is rude, I'd never buy anything from him. No matter what the price he
offers. So it's a lot of how do you want to build relations...it's also the same with your
employees..how do you want to build relations with your employees..by coercing them or
by nursing them? I would nurse them.
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18. Interviewer: During negotiation process is it important that written document
must be accurate and valid...when you negotiate with your suppliers?
Carsten: Yes, yes it is.
19. Interviewer: So you see the papers?
Carsten: Yeah, yeah. That's important.
20. Interviewer: Do you argue a lot during negotiations processes?
Carsten: That depends on how easy the guy is to cooperate with. If he's not easy, then
yes I'll make a lot of arguments.
21. Interviewer: As a manager, what are the problem you experience during inter
cultural communication?
Carsten: Well, I think there's one problem, which is of course the language. The
language difference. If you speak English and I speak Danish or quite more often like in
this case English is not my first language...English is not your first language and we
communicate in English so..there will be a lot of language uncertainties..but not only that,
even if we you were perfect in English and I was perfect in English we speak from
different backgrounds and you say something...when you phrase a sentence, you phrase it
different than I phrase it, even if we want to say the same thing, because we're from
different cultures. That's really a difficulty. You can learn it if you work with people for a
long time. Like I learned it. I was in the US for a total of three years, so I was able to
learn when an American say like this, what does he actually mean. It's the same thing you
could say with Japanese. I've been working with them for many years. I understand that
they may say one thing, but mean another thing. So language and also your way of using
your language, you could say..are the difficulties. It's a complete different background.
22. Interviewer: Can you give one example when you communicate with a
Japanese?...if they say something they might mean something else.
Carsten: Yeah for instance, in Japanese culture or in business, it's quite common that I
come and ask my superior of something. He will not say; “no, you cannot do that.” And
he will not say: “yes.” or “yes, you can do that.” He will phrase it in a different way and
he will come up with an explanation, that when you leave the room you know I cannot do
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that. But he never said no. So that has something to do with, I guess in their culture you
don't want your guy to lose faith or whatever it is so..it's not a practice of answering
direct yes or no..”no, you cannot get out of my office”...that's not what they do. So that's
what we would do here..so it can be quite difficult to communicate with you. Also
Japanese...there is a very clear hierarchy..not visible to gaijin's...you know guy's like me
are called gaijin's..you know that?
Interviewer: Yeah. That's the name for foreigners.
Carsten: The hierarchy is not visible to us, but it's very important to them. So when
they..if you have five Japanese, even though we don't know it, there's a no. 1, no. 2, no. 3,
no. 4, no. 5. That's why they exchange business cards, you know? If they don't know each
other they exchange business cards. And just from the business cards, when we meet,
we've already established that I'm no. 1 and you're no. 2. My decisions are more
important than your decisions. So if you communicate with them you have to know their
hierarchy or you ask the question to the wrong guy, you see? And that's really a difficult
thing to...because, for instance in Denmark, it's more like everybody communicates about
everything. But that's not how it is in Japan, so you have to know their hierarchy and their
status.
23. Interviewer: Do you prefer to communicate to subordinates through direct or
indirect ways?
Carsten: Direct.
24. Interviewer: Can you tell us why?
Carsten: Because indirect, I suppose when you say indirect you mean either through a
middle manager or written or something?
Interviewers: Yes.
Carsten: Written is bad. Because written...again, you and I do not interpret a text the
same way. So, if I send out communication..written...of course we do that to some
extent..but when I do, people will not perceive it the same way. So, one will have one
interpretation and another one will have another interpretation. It's not clear
communication. Especially not, in these days where we have a lot of foreigners working
for us. So there you''ll not only have the differences in interpretation of text, but you also
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have the differences in language skills. So I don't believe in written material. And if I
communicated through middle managers, a story will always change when it goes from
one mouth to another. The story that is left in the end is different from the one that came
in the beginning. So I prefer the direct conversation, direct communication. Practically of
course, I cannot always do direct communication. But I tend to communicate directly
with a certain frequency, and about what I think are important matters. So direct
communication.
25. Interviewer: Are you more directive or supportive to your sub-ordinates?
Carsten: Supportive.
26. Interviewer: Okay. Do you prefer to work in team or alone?
Carsten: In a team, most of the time. Sometimes I prefer to work alone. Because I also,
as I told you before, I'm also an engineer. Sometimes, I like to sit by myself and do all
kinds of calculations, engineering calculations. But most of the times I like to work in
teams.
27. Interviewer: Is it normal for an employee to talk about their personal issues in
office in Denmark?
Carsten: Yeah, it is. So being a manager also means being a, to some extent, a
psychologist. It does. But that does not that everybody is talking about their personal
matters, because it's also a personal thing. Some people like to get it out. Talk to
somebody, maybe explain. Because, quite often if you have some personal problems you
may not perform at work..I mean your thought are elsewhere and stuff like that. So they
will come in and explain; “I'm not working a 100 %, because blablabla...” But other
people don't want to share anything. So they just go there by themselves. But it doesn't
have anything to do with management, I would say. It more has to do with each
individual. So you're probably also different. Some of you will talk to a lot of people if
you have personal problems, some of you will work them out on your own. But yes, it
takes up a lot of space and a lot of time...personal issues.
28. Interviewer: So do you know how it is in Japan?
Carsten: No personal issues in Japan. You keep it to yourself. You don't talk personal
matters with your manager in Japan.
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29. Interviewer: So in Japan they mostly talk about business in their company?
Carsten: Yes, yes they do. Just business issues. We can see it also when Japanese come
here. But myself I'm quite outspoken. And I like to know if I work with people..If I work
with people I also want to know something about them. So I'll ask all kinds of things.
And the Japanese when they first come here, so you know they're here for 4 or 5 years at
a time, and then they go home, they're replaced by another Japanese. Here comes a new
Japanese who's never been to Denmark before and we sit there on the terrace, and I'll ask
him all kinds of personal questions. In the beginning he's very surprised, because he's not
used to that. But after a while he will open up. But in the beginning they're very
surprised. “We don't talk about that in Japan.” And I'll tell them: “Well, but we do in
Denmark.”
30. Interviewer: Do you prefer to work in multi-cultural environment or mostly with
Danish? Why?
Carsten: I prefer the multi-cultural. Well, a lot of reasons actually. It's a lot more fun. But
it's also..both if you look at it business wise, but also personally..I think it's more
enriching different perspectives on life and on business and on opportunities etc. So I
think it's very much exciting. Business level, but also on the personal level. It's more
exciting to interact. People with different perspectives on everything. That's my personal
opinion. Other managers would say differently.
31. Interviewer: Have you experienced any cultural conflicts while working with
Japanese?
Carsten: A little bit, but not very much actually. No. Sometimes we think that their
decision making is very complicated and very slow.
32. Interviewer: We just found out that they think the same about Danish people.
Carsten: They probably do. But I think it’s mainly because of communication, mish
mash things and it’s not really a big issue for us, nothing I think.
33. Interviewer: Maybe when you were in Japan did you experience something due
to the different culture?
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Carsten: Hmm. None. I don’t think so. I think the main difference is that it seems to us
like the Japanese are in a lot of ways are more formal about a lot of things. They are more
strict, formal, serious, business oriented. And we are more loose, more open, less strict
than they are. So I think that’s the main difference actually… that I noticed. And then of
course the language barrier…that I am not very good in English. So it is difficult to
communicate directly with the Japanese.
34. Interviewer: And when you go to Japan as an employee of DNP, do you get some
kind of training about Japanese culture?
Carsten: No, I did when I went through the 16 weeks of training, but it has nothing to do
with DNP. That was before DNP. But I went there and learnt about Japanese culture yeah
for 4 months, but usually other employees from here they don’t get any introduction to
Japanese culture. No.
35. Interviewer: So you get it in your own personal way or do you get it from DNP?
Has DNP sent you for this training?
Carsten: No, no, no. That was in an earlier employment. I was just lucky that I had the
introduction to Japanese culture before I entered the Japanese company. But it did not
have anything to do with my employment here actually.
36. Interviewer: Ok, the next question is about knowledge management. I don’t
know if you heard of it, knowledge in organization.
Carsten: Please, I did not understand what you were saying, sorry.
Interviewer: I said the next question is about knowledge in organization.
Carsten: Knowledge……..?
Interviewer: Yeah, how you share knowledge and tacit and explicit knowledge.
Carsten: What kind of explicit knowledge are you referring to?
Interviewer: The knowledge you get maybe in the organization. You have something
that everybody would be able to share and that they can trust to each other.
Carsten: We just came out of two big projects. You know the EU has…in Denmark its
socialfonden…What is the English word for socialfonden? Whatever. Well anyway. EU
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has some big funds, central funds that can be applied by, well, basically everybody I
guess. You could apply for a project; we can apply for a project. The purpose of that
originally was to, at the time when industry changed the Europe were a lot of unskilled
labour and the employment started moving to China and at some point it moved to
Eastern Europe or whatever and you would have surplus of these people without skills.
So EU made some attempts to raise the qualification level of those people and established
a lot of funds to support it. Today these funds are available to generally increase the
competence, qualifications of Danish, not just Danish, European workers to be more
competitive. So we have joined for first three years one project that was called very
ambitious name…
Carsten went by the board and wrote the names of the projects and explained them.
Carsten: “The Future Pilots”. Ok, we joined that project and that was sponsored by
socialfonden “EU future pilots”, in a joined project with a total of four different
companies. Three years. After that we moved in to another project. It was called “World
Class Employees”. And we were six companies. Now the reason I am mentioning this is
that’s where we were working. These included all kinds of projects that were related to
for instance knowledge sharing or joining resources and stuff like that. So yes, we
worked a lot with it. Internally, but also externally. And these projects were based on
activities that each of them had three years, so it’s three years and one project then moved
up to another project another three years, so we have been in these projects for in total of
six years. They just stopped January 1st this year. And now we just continue what the
work we were into here. And that was a lot along the line of qualifications, competence,
stuff like that.
37. Interviewer: Let me ask you a question. Can you tell us about your company’s
organization structure or hierarchy in Denmark?
Carsten: Can I show you instead I think.
Interviewers: Yes, sure.
Carsten: I did not bring it so I can go and get it. How much time do you have?
Interviewers: We have time. We have plenty of time.
Carsten: You have plenty of time?
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Interviewers: Yeah.
Carsten: I’ll give you a copy. I’ll go and get one.
Interviewers: Ok.
Carsten: Two minutes. Just relax, open the door, get some sunshine if you want to.
Interviewers: Thank you.
Carsten: Sorry, we just got a new SharePoint system I have not yet found out how to.
Here it comes. It’s brand new even. Questions?
38. Interviewer: Ok. Does Danish leadership style start from bottom approach,
middle approach and top approach if yes how does it work?
Carsten: What starts from?
Interviewer: Does Danish management style start from bottom, middle or top
approach. So I was asking maybe in DNP is it bottom approach, middle approach or
top approach leadership style?
Carsten: Right right.
Interviewer: In decision making.
Carsten: I would say in a lot of senses it is bottom up, but… I also believe that major
decisions and the strategic decisions have to be made by top management. So you could
say strategically, more strategically it’s top down, but on a daily basis it’s to a logic stance
bottom up, I would say.
39. Interviewer: Next question. What are the methods of employee recruitment,
reward system and layoff in your company?
Carsten: Recruitment?
Interviewer: Recruitment. What kind of system?
Carsten: Also here it’s different actually. In production we recruit through temporaries.
That’s how we recruit our production workers. But white-collar workers we recruit by
ourselves actually. It depends on…, but generally white-collar workers we recruit through
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our own HR department. If it’s top managers we use consultants. We don’t change top
management every now and then.
40. Interviewer: What about layoff?
Carsten: Layoff?
Interviewers: Yeah. Dismissals, to fire somebody.
Carsten: Yeah, but what do you mean?
41. Interviewer: Can you fire yourself or you have to talk to top management if you
have to fire somebody from your department?
Carsten: I can fire myself, but middle managers cannot fire without approval from the
top.
42. Interviewer: Ok, the last question. How loyal are Danish employees to the
company?
Carsten: How loyal?
Interviewers: Yes.
Carsten: I guess they are as loyal as their wallet allows them to be. No, no, no I wouldn’t
say so.
Interviewers: You said it now.
Carsten: Yeah, no, but I am not completely, that’s not completely true. But I think you
will have in any company some very a loyal core of employees. A very loyal, but you will
also have a number of employees that are not as loyal and they are loyal to their wallets I
think. And I think it’s a lot of difference. DNP is an old company; we have a very unique,
interesting product, people are proud to work with these products. If you have that kind of
company you’ll also have a high loyalty. But if you look in, what should I say, cleaning
business, I would think their loyalty is very little. If somebody compensate, well you’ll
get 20% more if you come to my shop they will come. So I think the loyalty here is high.
If you look in Danish companies in general it would depend on a lot of things. It would
depend on management style; I mean how you treat people. It depends on what kind of
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product are you making. Is this a company of tradition and quality and pride and stuff like
that. A lot of those issues will decided and here the loyalty is high.
43. Interviewer: And the status of the company?
Carsten: In what sense status?
44. Interviewer: I mean are they loyal compared to the status of the company as
well?
Carsten: But what do you mean?
Interviewer: So the status of the company, the ranking of the company, they want to
stay more for a longer if the company has a high status.
Carsten: Yeah they do. We also have… If you would be able to see our data the average
seniority in this company is very high. Actually, if you ask me, a too high loyalty is a
problem, because if people are very loyal they never leave. And if they never leave, you
never get any new blood into your company. And I think that could be a problem. What’s
it called in English? ……. Inbreed …… Isn’t it? You know that word?
Interviewers: Yeah.
Carsten: So I think, yes it has to be a high loyalty, but not too high because at the same
time you want some exchange with the surrounding world. You want new people coming
in, you want new knowledge, you want some dynamics. I mean you don’t get dynamics
from employees that have been here for 40 years.
45. Interviewer: But isn’t that typical Japanese style?
Carsten: Lifetime employment?
Interviewers: Yes.
Carsten: Yes. But only in the large companies you could say and there you have different
issue because in Japan the large company are very diversified. You know what I mean? If
you take a company like Mitsui for instance, they build ships, and they make chemicals,
and they build electronics, and they do all kinds of things. So if you get into corporation
like that, you may move from the chemical division to the ship building division, to the
electronics division. So it’s like changing a job. You may be in the same corporation, but
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you are not in the same seat. And I think that gives you the same dynamics. But here we
cannot offer that. I mean if you come in here as an unskilled worker or an accountant we
cannot offer them to move to different positions. They have to be here for as long as they
are employed.
46. Interviewer: Maybe one final question. Can you tell us about your experience
with Japanese companies, your knowledge about Japanese?
Carsten: Well, I was also in Japan to see how they were working and you know in 80s
and 90s until mid-90s I guess, the Japanese were really out competing everybody. You
know that? They were killing European industry and stuff like that. Very efficient and it
was interesting, when I went there to study why they are so efficient. And that in my
opinion it has something to do with their cultural background, their perspective. This is
my personal opinion, but if you look at them, the Japanese, they are generally Buddhist
and one of the characteristics of Buddhists is that…Group is everything…. Individual is
nothing. If you look at Denmark it’s completely the other way around, individual is
everything…. group is nothing…. that’s how our background basically is. So, it makes
lots of difference also in business. If you think of your contribution as what is best for the
group, not as what is best for me that makes completely different perspective on your
decisions also. I think Japanese at least at that time were much better to think about
group, their department and the company. Another characteristics about Japanese were
that they had exceptionally high quality products compared to US, Europe or any other
parts. They were very good at quality controls, you know they have checklists and they
go through all of them one by one. If you give the checklist to the Danish guy… he will
say…. Well I am smarter than this… I don’t need to check all the points…. he will skip
some of them…. The main important thing at that time was that Japanese followed their
procedures…. And we didn’t and we are still suffering with this because if you think that
you are the smarter than anybody else then it is difficult to follow the procedures or
instructions…Those were some of the observations that I had in Japan.
47. Interviewer: Is there any change now?
Carsten: I don’t know if there is any change. But there is also negative effect of that
because if you don’t believe on yourself and just care about the group…you don’t want to
stand out and put forward new and innovative ideas. You don’t want to promote yourself
and your ideas. So, if you look at it you can see Japanese are not good at innovations.
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They are good at manufacturing and improving but they do not make the inventions. And
that was one of the things that they were very aware of that. That was one of the negative
parts of their culture. I don’t know how is it today but it’s a cultural thing so it takes time
to change. These were the things that I could tell you… I hope you got something out of
what I said.
Interviewer: Yes…we got lots of useful information. We appreciate your time and
consideration. Thank you very much.
Carsten: You are welcome and if you have more questions you can call me or send me
an email.
Interviewers: Thanks a lot. We will call you if we need any help. Have a nice day.
Bye.
Carsten: Have a nice day too…Bye!
Appendix D - DNP Denmark organizational structure
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Appendix E - Decision-making procedure in Japanese companies
Source: Deresky Helen (2011), International Management, Managing Across Borders and
Cultures
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