1. List the main similarities and differences of Japanese and Korean management styles.
We can notice certain influence of Japanese management styles in part due to their presence during the time that Korea was a colony of Japan. Korean government was heavily involved in the economic activities of the private sector through credit and foreign exchange rationing and the supervision of private investment plans. Export growth was the main national economic goal until the late 80s in Korea. In order to promote these goals the government offered rewards to the successful exporters in form of low-rate long-term loans, export subsidies and sometimes special political favors. This governmental support led to the creation of the Chaebols, similar to the Japanese’s Zaibatsu. Nevertheless there are also some differences in both styles; we are now going to see which these similarities and differences are.
Market share has always been important for Japanese firms. This has led to an emphasis on aggressive pricing strategies and the search of economies of scale (this pursuit is consistent with long term firm value maximization). The Japanese firm is often modeled as optimizing more that simple stockholder value, while still remaining the calculating economic actor. The relationships developed with the suppliers are also a very important factor in Japanese competitive success; by doing so, firms make longer term commitments and reduce the market options they might have in order to take advantage of the close cooperation and coordination of the production process and coordination of the production process and the fast and flexible development of new products. Participation of workers and the middle management has been important for Japanese firms, in addition, consensus building and group loyalty are emphasized as important principles in Japanese management. Japanese firms scan both customers and competitors. Studies have shown that it is not just customer analysis, but the right kind of customer, that is the source of value in Japanese customer contact. Conecting product design and production is an important value for the Japanese firm. Flexible manufacturing is also strength of Japanese manufacturers. Finally, corporate values seem to guide a Japanese firm’s organization.
In terms of management style and working practices we can notice main some differences between Korea and Japan. The lifetime employment practice in Korean Firms is flexible, in that layoffs are more common than in Japanese firms. Korean workers tend to change jobs more frequently. Top managers in Korean firms tend to be authoritarian and important decisions are made mostly by the top management. Korean management styles tend to be more individualistic that Japanese
management in part due to the Korean culture.
References:
Lee, Jangho. Roehl; Thomas W; Choe, Soonkyoo. What makes management styles similar and distinct Across Borders? Growth, experiance and culture in Korean and Japanese firms.
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