Business Decisions

Paper Summary:

The paper considers cultural differences in the Japanese and Western styles of business decision-making and addresses the issue of whether it is useful to integrate such widely differing paradigms. The paper explains the Japanese system of business decision-making known as Ringi, which means decision-making by consensus. The paper contrasts this to the United States' pioneering spirit and individualistic emphasis which is the basis of American business decision-making. The paper contends that both the Western and Ringi decision-making systems have advantages. The paper precision and detail-oriented approach of the Ringi system could be integrated by Western companies in order to avoid making rash and potentially costly mistakes and by partnering with the West, Japanese companies could profit from a paradigm of innovation.

From the Paper:

"The Japanese system of business decision-making is known as Ringi, which means decision-making by consensus (Ala & Cordeiro, 1999). This system is based upon the evolution of Japanese culture. The evolution of the Japanese household serves as a model and basis for this business practice. Traditionally, all the decision-making power lay with the head of the household. This autocratic system was also used for business practices. However, with the increasing complexity of Japanese businesses, delegation and sub-management became increasingly important. The welfare of the group began to be seen as taking precedence over the concerns of the individual."

Sample of Sources Used:

• Ala, Mohammad & Cordeiro, William P. (1999, Winter-Spring). Can we learn management techniques from the Japanese Ringi process? In Business Forum. Available online: http://www.allbusiness.com/periodicals/article/393248-1.html
• Bartlett, Christopher A. & Ghoshal, Sumantra. (1999, Nov 2.). Companies, cultures and the transformation to the transnational. In Working Knowledge for Business Leaders. Available online: http://hbswk.hbs.edu/item.jhtml?id=1145&t=globalization
• Miyachi, Atsuo. (1999, Spring). Bringing Accountability to Japan's Bureaucracy. In NIRA Review. Available online: www.nira.go.jp/publ/review/99spring/miyachi.html
• Tomlinson, Scott ( 1996, Spring). Comparison of consensus Japanese style and Quaker style. Available online: www.earlham.edu/~consense/scott2.shtml
• Venture Japan (2004-2006). Japanese Business Culture. http://www.venturejapan.com

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