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Doing Business in Japan

Japan is well known internationally for its engineering pre-eminence, especially in high quality electronic products. Many companies from western countries send their representatives to learn the stringent quality control systems that Japanese companies have in place, and to understand their proven business practices and renowned management style. Visiting delegates who want to enter into collaborative business ventures with Japanese companies will find that the Japanese religiously keep to certain customs and practices, and that they will have to follow suit if they are to meet with success.

The Language & Culture

To attempt to understand the Japanese culture without having any knowledge of the language would be difficult, as the two go hand in hand. The Japanese have a strong sense of harmony and balance in their everyday lives and in the way they conduct themselves with others around them. This concept is referred to as Nemawashi, which indicates that all actions are the result of careful preparation and with the consent of all those concerned with the matter. The Japanese place great emphasis on taking a consensus approach to decision making.
The Japanese also have a high esteem for family values, and the concept of integrity, honour and duty rank very high in the list of cultural values that they uphold.

Employment & Management Style

Large Japanese corporations and business houses recruit graduates from only the top thirty leading universities. A strong academic background is the quality that is the most sought after when selecting management trainees. Candidates are put through a rigorous induction programme for six months, and upon successful completion, are likely to remain with the company for the rest of their working life. The Japanese practice a unique management style called shūshin koyō, or permanent employment. Once an employee has completed the arduous term of probation, they are never dismissed except for a breach of the firm’s ethical code of conduct.

Business Dress

The Japanese have not yet come to accept the casual style of dress that is in vogue in the USA and in many parts of Europe despite the large volumes of business transacted with these countries. It is mandatory for people to wear a sober style of dress to the office, at meetings or conferences. The accepted style of business wear is a shirt and tie with a dark suit for the men, and a sober attire for the women, although the men find trousers offensive when worn by women. If the latter choose to wear a kimono, they must take care to wrap the left side over the right. Footwear should be such as to be easily removable, and shoes of the ‘slip on’ type are much preferred over lace-ups. Women are not expected to wear high heeled shoes as they are likely to tower over the average Japanese man, which may give the appearance of being domineering, which is not appreciated in Japan.

Social Etiquette

There is an unwritten code of conduct for social etiquette, which most people follow as a matter of habit. People do not eat or snack while journeying on short distance trains when commuting to the school or workplace. There are a number of things that you must never do in public including blowing your nose in front of others or kissing a friend or acquaintance. Also, throwing objects for others to catch, is just never done. Most things are offered with a polite bow of the head as a mark of respect.

Etiquette in Business Negotiation

The Japanese take a long time to come to a conclusion about whether or not they wish to go ahead in dealing with a particular project or business relationship. They are very exacting in their demands and everything must be thoroughly discussed and finalised to their complete satisfaction before they make a commitment. Any niggling doubt in their minds about the prospective associate’s capacity to deliver on the promise or about integrity issues, may be a deciding factor against the deal.

The Japanese ‘do their homework’ thoroughly and expect the same from others they deal with in business. It will not be possible to push a deal through if they are not 100% convinced and satisfied.

In meetings, the hierarchy within the organisation is given great importance. The head of the host company takes a position at the head of the conference table, while the seating of others close by will be in the order of their status or position in the organisation. Visitors also have places assigned, and all present will take their seats when the cue is given by the senior person. A similar ritual is held at the completion of the discussions.

Gifts are received and given in business circles with great appreciation and ceremony. Take care not to open them immediately lest you be perceived as being too eager.

Conclusion

The Japanese are very thorough in their business dealings, right from the planning to the implementation stage. They are just as much concerned with the form as they are with the substance in every aspect of conducting business and also in a social context. They are painstaking and do their utmost to achieve perfection, and expect the same from all those they deal with. It would therefore be wise for anyone wanting to succeed in doing business in Japan or with the Japanese to pay close attention to some of their key cultural practices and forms of etiquette.

Roger Jefferson writes and researches on business and finance related subjects.

Communicaid is a Culture and Communication Skills Consultancy and a global leader in the design and delivery of Cultural Awareness Training
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