Japanese Culture and Leadership: a case of Honda
Honda Motor Company, Limited or popularly labeled as Honda was established in 1948 by Soichiro Honda and tagged as the world’s largest motorcycle manufacturers and one of the leading automakers. Their present domain reports that Honda comprises of more than 400 subsidiaries and affiliates that make their global network headed by Takeo Fukui as CEO and significantly recorded a total of US.24 billion revenue in 2007 while employing more than 160,000 people. With visions of value creation, ‘glocalization’, and commitment for the future, they offer a wide variety range of products ranging from small general-purpose engines and scooters to specialty sports cars. Up to the present, their consistency in providing products of highest quality that creates new values and reasonable price makes them outstanding in terms of worldwide customer satisfaction. These two attributes also serve as their competitive edge – high quality and reasonable in price.
Japan is considered as among the highly industrialised countries in the world, recognised as second largest business affiliate of US, leader in innovations, and uses participative leadership. Although the Japanese are considered to be quite diverse as compared to Americans in terms of cultural values, Japanese leaders appear to use an array of leadership styles (both task-oriented/autocratic and relationship-oriented/participative) in a manner similar to American leaders (Gibson and Marcoulides 1995). In most research literatures, the participative nature of leadership style is clearly employed by Japanese leaders and managers (Fukushige and Spicer 2007; Chan 2004; Jenkins 2004; Kustin and Jones 1995; Taka and Foglia 1994). The case of American leadership styles is also evident on the case of Japanese. Japanese leaders are also directed to achievement of organisational goals but not to the expense of the members of the staff (Sarros and Santora 2001). Unlike Americans, Japanese criticise themselves while Americans keep away from criticism (Robie et al. 2005; Pasa 2000). However, there are identified cultural similarities and differences in terms of other factors or aspects of leadership.
In reference to Japanese culture, a degree of masculinity is high while medium on collectivism (Fukushige and Spicer 2007). This is predominantly associated on their paternalistic tradition and history. Referring to Hofstede’s research, Japan is moderate on power distance and individualism while high on masculinity and uncertainty avoidance (cited in Fukushige and Spicer 2007). The unique cultural values of Japanese include consensus decision making, loyalty to firms, and lifetime employment. However, it is argued that such values may have changed considering the various global occurrences affecting the world and different people. Amidst the extremely structured and ordered organisational design, Japanese leaders and managers give employees the freedom to achieve goals, as reflected in the phrase omasake or “I trust you, you can do it” (Sarros and Santora 2001; Kustin and Jones 1995). Japanese also establish an atmosphere of respect and obedience from their subordinates (Sarros and Santora 2001) but they do not impose more rules and laws that affect overall working relationships and conditions. Their paternalistic history emerges on the manner they manage their subordinates (Dorfman et al. 1997). While most Japanese organisations – like Americans, are highly and rigidly structured in terms of hierarchy, they have an outstanding concern for the personal lives of their subordinates (Fukushige and Spicer 2007; Sarros and Santora 2001; Wu et al. 2000). Human relationships extend beyond organisational standards as Japanese leaders tend to be caring and friendly (Sarros and Santora 2001). There is increased emphasis on harmony with others where symbol of respect, guidance and consultation is prioritised. Relationships are mainly supported by high level of respect, trust and commitment as rooted on Confucian ideology, which contains a valuable degree of respect and obedience to figures of authority. Trust plays a vital role, for example, most Japanese leaders leave their subordinates set of instructions and it is up to them to carry out the works. In terms of decision making, they similarly acknowledge the consensus of everyone particularly during extensive consultation. This is also seen on cases of working in a specific project where teamwork is high and keeping satisfaction is vital (Wu et al. 2000). Mainly most leadership studies (e.g. Chan 2004; Wu et al. 2000; Bass 1990) construe Japanese leaders as advocates of equality and group harmony. Charisma is shown by leaders when they set up overall organisational theme, develop strategy, and employ high-level outside relations (Bass 1990). Taking risk is something that is very improbable because a Japanese leader is flexible, fair, empathetic listener, active, and accountable.
Accordingly, the leadership style used by Japanese leaders is effective especially in achieving superior levels of employee motivation, commitment, delegation in terms of decision making and intrinsic job satisfaction (Keys and Miller 1982 cited in Wu 2006). Like American leaders, the encouragement for collective decision making and extensive consultation among Japanese leaders towards the members of staff is highly regarded (Yukl 2002; Kustin and Jones 1995). In communication, Japanese leaders have been able to act as efficient communicators in their respective companies because they are natural lovers of harmony at workplace. Group harmony is critically acknowledged all the time (Wu et al. 2000; Bass 1990). They are bounded by human relationship as they needed to know their subordinates’ lives so as to provide understanding on the manner in which they behave and from here, leadership techniques are developed. Aside from the given traits in relation to leadership styles, Japanese are identified not to have more analytical tools to analyse workplace situations because they are much into many fields of expertise rather than specialising into single area.
On the case of Japan’s culture, Honda is the world’s largest motorcycle manufacturers and one of the leading automakers. Honda maintains their high quality through sticking to their philosophy as determined by founder Soichiro Honda. Honda’s philosophy revolves around four major specifications namely: (1) high expectations set for itself and its suppliers, (2) willingness to apply whatever resources necessary to get the job done, (3) commitment to cooperation and collaboration, and (4) unrelenting attention to detail. The leadership style of Honda reflects the performance of the company especially on the execution of its marketing and management strategies. Honda is different from other automobile companies because of the aforementioned philosophy that guides them in every decision and action at every level in the Company. With those, the success and market reputation of the brand is unquestionable.
The willingness to apply available resources to get the job done provide cost efficiency to the Company. Today, the increasing amount of raw materials is one of the most unsettled problems of business organizations. As prices increase, the suppliers also go with the flow. The supply and demand chain affects the overall conditions of the business. As Honda cling to their available materials, financial stability is guaranteed. In terms of human resources, Honda management wants multi-talented individuals that are able to work in various positions and perform activities in high expectations. Training and development opportunities are thriving. Also, the value of open communication, positive attitude and teamwork is proliferated. Honda perfected the art of cost management. The sharing of resources both at raw materials and semi-finished products leads to additional cost reduction for the Company, at least to its consolidated financial costs. With this, benefits and incentives are far greater than the actual and potential (risks) costs of strategic alliances and FDI (Vernon 1996).
Honda’s commitment to cooperation and collaboration allows that whole company to explore wider horizons that will lead them to productive economic ventures and human knowledge acquisition. Their given importance to affiliation and networking contributes to the continuous expansion of their branches and dealers. The expansion activities of Honda can be considered as optimal strategies with greatest amount of risks (Shrivastava 1995). Optimal because economies of scale, scope and cost-efficiencies are eminent although huge investments post risks. Further, the establishment of subsidiaries, regional offices, and joint-plants made it possible for exports and licensing grants to be possible due to location advantages (Mauri and Phatak 2001).
The unrelenting attention to detail of the Company still proves to be effective. For instance, in addressing the global call of environmental friendliness in all automobile products, Honda worked hard in enhancing the environmental and safety aspect of their products. With this, it has direct impact on brand recognition and loyalty (Kotler 2003). In relation to their products, Honda implements continuous research and development, studies emerging trends and technology innovations, and at the same time plans their future products and operations.
Honda is different from other automobile companies because of the aforementioned philosophy that guides them in every decision and action at every level in the Company. With those, the success and market reputation of the brand is unquestionable. Additionally, the capability of the Company in addressing issues that concern the environment and customer satisfaction is always prompt and remarkable. The advantages in maintaining an international viewpoint are wider market scope for sales and production operations, brand awareness and development, international recognition, and ability to compete globally. The disadvantages, on the other hand, are stiff competition, diversity of location and managerial functions, and unstable economy of a region. But then again, with the proper implementation of the managerial functions, marketing strategies, and the dedication of supplying products of the highest efficiency yet reasonable prices and guaranteed worldwide customer satisfaction will make the Company more successful.
Meanwhile, cost reduction is not a problem to the Company. Since it is indicative in their basic philosophy, Honda has all the necessary means to have high quality products yet cost efficient and effective. In some cases cost reduction is strictly implemented when there are economic and financial difficulties, production barriers, and onset changes in the trends of the industry.
In building and sustaining supplier relationships, Honda and its management can easily refer to the existing culture of supply chain management being utilized by their Company throughout the long years of operations. Integration and acquisition are potential methods to retain good supplier relationship. Also, increase awareness to the conditions of affiliates and subsidiaries will somewhat determine the potency of the Company. With this, training and retention are deemed crucial to international success of subsidiaries (Hitt, Hoskisson and Ireland 2003).
Quality improvement in Honda is crucial. In aggregate, Honda is there not only to produce quality products but also affordable, safe and environment-sensitive ones. This makes the brand competitive in both private, industrial and public utilities’ needs. Due to this, the firm had always aspire to be approached by the society as a “must” brand to exist (Honda 2008). Improvement is seen on the implementing research-based activities of Honda. Innovation and research findings need not be strictly established in every subsidiary office (Anders 2002). Honda’s action to intensify R&D may not just suggest that it would try to personalize models in each country instead such strategy could be suitably suspected to maximize sharing of resources. The findings of one country can be applied to global operations since safety and environment issues are of general concerns. In such case, the firm had settled to invest heavily on R&D not to disqualify this claim but to prove its financial capability supported by joint-ventures.
Technology improvement is linked with the environmental-friendliness of the brand. Innovations are also designed in the manufacturing, distribution and research mobile. The improved integration combines the expertise of local associates into global spectrum that will hasten improvement of technology. For instance, the launch of “Green Factory” not only makes Honda “green” in its products but on manufacturing as well. A global strategy suited to create value-added components and brand loyalty to customers. In addition to this, safety is also an ingredient in its produced with the commitment of “Safety for Everyone” scheme (Honda 2008). Some of the product innovations that ultimately held local market are the introduction of flagship luxury sedan, supplying fuel cell vehicle to private companies for sub-freezing temperatures and innovation of fuel economy/ low emission motorcycle engines below government regulation levels. Production technologies become mobile wherein the developed technology within the regional and local research facilities was transferred to a specific plant that has high requirement for such technology.
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