It was not until recently that both students and practitioners in management began to realize the fact that management and human relations in industry are influenced by the society and culture just as are other aspects of human endeavor. In this respect, the case of Japan's industrialization has drawn particular attention in recent years since the patterns of organization and behavior observed in Japanese industry are so distinctly different from those in the Western industrial World. Furthermore, the unique socio-cultural heritage has undoubtedly contributed to the success of Japanese industry in bringing about organizational efficiency and worker satisfaction.
The basic rationale for human relations in Japanese industry still appears to be wide acceptance of an authoritarian-patriarchal relationship by both management and the worker in their enterprise. Even in recent years, the role of management as organizational leader and source of paternal protection has seldom been challenged by the worker as completely undesirable. To the extent to which management fulfills this role of responsibility for work authority and personal welfare in the eyes of the worker, management seems to command a correspondingly high degree of worker loyalty and motivation in work.
In a country where relative surplus of manpower has always existed, the most obvious protection ever afforded to the worker is the provision of lifetime security of employment extended by each firm to some selected group in its workforce. Although the practice has undergone changes in both its scope and implication, career commitment of “permanent” male workers at least constitutes an unwritten law for both management and such workers. Career employment indeed accounts for most of the major personnel practices so dissimilar to their counterparts in the West.
Within the framework of protective authority and stable personnel, a well-defined hierarchal structure has emerged which appears highly conducive to systematic social order and discipline in Japanese organizations. At present, the level of previous educational attainment provides the basic dividing lines in hierarchy. However, work tenure functions as a primary determinant of the relative status of individuals within each educational group. Although performance and ability play no insignificant role in managerial promotions, precaution is taken not to disturb the preexisting senior-junior relationship among the individuals affected.
As a consequence, the process of making and implementing decisions at the management level takes a unique form which may be termed “decentralized planning with centralized control”. Young staff assistants at the bottom of the hierarchy in each managerial function carry most of the research and planning responsibility, and their proposed actions are implemented often with only nominal sanction of higher levels of management. The dynamic strength of Japanese enterprises may be accounted for, at least partially, by this
de facto assumption of authority on the part of jonior executives.
Even such a cursory review seems to suggest the uniqueness of management and human relations in Japanese industry, which has led to a relatively high degree of success in achieving both organizational and individual goals in management-worker relationships. It would be far too naive, however, to underestimate the significance of recent changes, both social and economic, that have been taking place in business organizations and society as a whole, that may in fact undermine the earlier panacean effect of traditional approaches in Japanese industry.
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