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Working for the Japanese the myths and realities

Stephanie Jones looks at 20 originally held beliefs of what it was imagined working for the Japanese would be like

Japanese business in Britain is booming. There are now nearly 200 Japanese banks and securities houses, more than 50 Japanese insurance companies, nearly 50 Japanese trading companies, nearly 150 Japanese electrical and electronics businesses, nearly 50 Japanese motor vehicle companies, more than 100 Japanese heavy industries, nearly 20 Japanese construction companies and nearly 100 others producing everything from fire alarm systems to fishing tackle.

Altogether, they employ more than 30 000 British workers, managers and executives.

In a survey based on more than 100 interviews with British employees of Japanese companies, interviewees were asked about their first reaction to the possibility of their joining a Japanese company and the views of their friends and families.

Twenty originally held beliefs of what it was imagined working for the Japanese would be like emerged. There was an element of truth in each of them, but many were exaggerated and almost all were grossly over simplified.

The realities described by the interviewees paint a rather different picture.

The Japanese always plan for the long-term

Japanese companies in Britain, although their strategic outlook is longer term than that of British and other foreign companies, are in reality subject to very real short-term pressures, mainly because Japanese executives seconded from Head Office are posted to the UK for short periods only - usually three to five years – disrupting continuity and emphasising short-term results.

'The Japanese believe in consensus decision-making'

Textbook Japanese management systems always Include consensus decision-making (RINGI). But to what extent is this borne out by reality, especially in the British context.

"On the surface, the practice of Japanese management is very consensus orientated. Japanese management don't take decisions in isolation. However, - explains Ronald Hepburn, head of public relations for Yamaichi International (Europe) Ltd., - this system is more of a theory than a practice. In reality, decisions are made by certain senior key individuals, rather than emerging from consensus-based discussions."

'The Japanese believe in lift-time employment'

Life-time employment is breaking down in the Japanese manufacturing sector, but the principal company does not lay off. "Take Toyota, for example, - says Mike Simpson of Dodwell and Co. Ltd., a Japan-based subsidiary of Incheape pic, distributors of Toyotas in the UK and in several other markets. They are within a large group, including several major companies in Japan, and have many associated companies and suppliers. If a staff member is surplus to requirements, he will be moved to one of these other companies."

The Japanese are very hard-working

"An advantage of working with Japanese staff is that they are incredibly hard-working and dedicated", - maintains Stuart Fletcher, finance and operations director of United Distillers Group (Japan) Lid. "However, there is a myth about Japanese efficiency and productivity. When I first arrived at UDG (Japan), there were only two PCs in the office and all distribution was manned and the way in which they do the work is very time-consuming."

All major decisions in a Japanese company are made in Tokyo

In the early days, decision-making emanated entirely from Japan and newly established British branches maintained open telephone lines with head office during crucial meetings. But as more non-Japanese reach senior positions autonomy is devolved away from Tokyo and subsidiaries are now left to get on with their business, subject to broad guidelines from Tokyo. Many of the most successful Japanese companies, in both manufacturing and financial services, are now seen as multinationals rather than as Japanese corporates.

The Japanese pay low salaries

In Japan high salaries are not earned until a certain level of seniority is reached, and pay for new recruits is low. "So, when Japanese companies first came to the UK, - explains Jonathon Baines, an executive search consultant, - they did not understand the need to pay the going rate. In fact, because they were unknown then, they had to pay over the odds to get good people. Now, with the increasing prestige of Japanese companies in Britain their salaries are no longer exceptionally low or high."

'All senior positions in Japanese companies are held by Japanese'

When Japanese companies first came to Britain, they sent over Japanese executives with good English end previous international experience, but now, relatively few Japanese businesses are still dependent on Japanese expatriates for all senior positions. Prospects, for promotion for British staff at first seen as non-existent, are now more promising than an American and other European companies.

'Working conditions are often bad in Japanese offices and factories'

In Japan factories are basic and without frills and offices are crowded: noisy sad hot. The same was true in many Japanese companies in Britain at first, but now conditions are more comparable with British or other foreign companies as Japanese businesses move to new premises to absorb their expansion.

'The Japanese feel superior and act accordingly'

Sir Peter Parker, chairman of Mitsubishi Electric (UE), explains this belief by suggesting that "the British attitude to the Japanese hinges on the mystery of their language and resentment at their success". In terms of the language view of the British, ten years ago, the British workplace was seen as unreliable, leisured and disadvantaged. Under professional management by the Japanese, this is no longer the case".

The Japanese distrust all foreigners

The trust of the Japanese is not easy to earn, but it can then be preserved and strengthened. Senior British executives are appointed only after long acquaintance, but then they are given great responsibility.

Sir Peter Parker of Mitsubishi Electric and Sir Douglas Vass of Nomura are the only chairman of Japanese companies in Britain. Both were approached after considerable familiarity with their future Japanese employers.

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