Japanese Business Culture and Practices: A Guide to Twenty-First Century Japanese Business Protocols

Copyright © 2018 ISao Takei And Jon P. Alston.

All rights reserved. No part of this book may be used or reproduced by any means, graphic, electronic, or mechanical, including photocopying, recording, taping or by any information storage retrieval system without the written permission of the author except in the case of brief quotations embodied in critical articles and reviews.

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ISBN: 978-1-5320-4818-0 (sc)

ISBN: 978-1-5320-4819-7 (e)

Library of Congress Control Number: 2018905889

iUniverse rev. date: 05/24/2018

CONTENTS

Foreword to the Second Edition

Foreword to the First Edition

Introduction

Chapter 1   Japanese Culture

1.1. The Significance of Belonging

1.2. The On Society

1.3. The Japanese View of Time

1.4. The Search for Perfection (Kaizen)

1.5. The Search for Harmony: Wa

1.6. The Place of Lawyers

1.7. Honne and Tatemae

1.8. Trust, Benevolence, Amae, and Makoto

1.9. Friendships

1.10. The Hierarchical Society

1.11. Uncertainty Avoidance

1.12. Ageism at Work

1.13. The Equal Society

1.14. The Importance of Education

1.15. The Importance of Work in Japanese Culture

1.16. Language

1.17. The Haiku Society

1.18. Happiness Levels in Japan

1.19. Suggested Readings

Chapter 2   Japanese Social Etiquette

2.1. The Japanese Introduction

2.2. The Japanese Bow and Handshake

2.3. Apologies

2.4. Polite Restraint

2.5. Never Say No

2.6. Conversational Feedbacks

2.7. The Japanese Business Card

2.8. The First Meeting

2.9. Pointing and Other Gestures

2.10. Laughter, Smiles, and Politeness

2.11. Titles and Names

2.12. Japanese-Style Email

2.13. General Appearance

2.14. General Gift Giving

2.15. Expressing Complaints

2.16. Japanese Eating Etiquette

2.17. Japanese Drinking Etiquette

2.18. Your Five Best Friends in Japan

2.19. Who to Send to Japan

2.20. Enjoying Japan

2.21. Suggested Readings

Chapter 3   Work in Japan

3.1. Work Is Life

3.2. Work Is War

3.3. The Will to Work

3.4. The Five Ss and the Search for Quality

3.5. Decision Making

3.6. Loyalty

3.7. Lifetime Employment

3.8. Networking

3.9. Open Offices

3.10. Written Materials

3.11. Success Is Incremental

3.12. The Somu Bu and Kokusai Bu Divisions

3.13. Giving a Speech

3.14. Holidays

3.15. Meetings Japanese Style

3.15.1. Meetings, Meetings, and More Meetings

3.15.2. Meetings Etiquette

3.15.3. Pre-Meetings

3.15.4. Formal Meetings

3.15.5. Preliminary Meetings

3.15.6. Large Meetings

3.15.7. Long Meetings

3.15.8. Proper Meetings Behavior

3.15.9. Using Interpreters and Translators

3.15.10. Hosting a Business Party

3.16. Suggested Readings

Chapter 4   Negotiations

4.1. Introduction

4.2. The Negotiating Mindset

4.3. First Socialize

4.4. Knowing the Priorities

4.5. The Use of Silence

4.6. Slow Decisions

4.7. Preparations

4.8. The Invisible Negotiators

1.9. Gift Giving

4.10. Who Speaks First

4.11. Never Interrupt

4.12. Letters of Understanding

4.13. Ask Questions

4.14. Affirmative Responses

4.15. Dislike of Certainty

4.16. Attention to Details

4.17. Amae and Negotiations

4.18. Honne, Tatemae, and Negotiations

4.19. Negotiating Tactics

4.20. Pre-Negotiation Procedures

4.21. Prepare for Lots of Breaks

4.22. First Offers

4.23. Ignoring Statements

4.24. Be Patient

4.25. Do Not Come on Strong

4.26. Your Negotiating Team

4.27. Signing Celebrations

4.29. Suggested Readings

Chapter 5   Working with Japanese

5.1. U.S. Blue-Collars Working for Japanese

5.2. U.S. Managers Working for Japanese

5.3. The Gaikokujin Complex

5.4. Japanese Biases

5.5. Learn Japanese and Japanese Culture

5.6. Less Praise

5.7. Less Space

5.8. More Work

5.9. More Socializing

5.10. Less Criticism

5.11. Be Less Linear

5.12. Brag Less

5.13. Indicate Loyalty

5.14. Select a Mentor

5.15. The First Interview

5.16. Japanese To English

5.17. Hosting Japanese

5.18. Ask for help

5.19. Suggested Readings

Appendix A

Appendix B

References

About the Authors

Isao Takei My thanks go to the many persons who have supported me during the years. Among my friends in the U.S., Arthur Sakamoto, my former academic advisor, has encouraged and supported my research for years with his broad knowledge and kindness. I also offer special thanks to my co-author Jon Alston, Jing Li, Cheryl and Neal Nuwash, and the excellent faculty research associates and staff members at the Population Research Center, University of Texas at Austin for their generous support. In Japan, I wish to thank the many colleagues who have been my friends and mentors, including Dean and Professor Buichiro Watanabe, Professor Saburo Sato, and Nobuyoshi Suzuki.

Jon P. Alston I wish to acknowledge those who have been important in my personal and professional life over the years: My wife Letitia Alston, a talented researcher and salaryman in her own right, my daughter Margaret, another successful salaryman, John Boies, Dwight Bronnum, Bruce Dickson, Henry Howell, Wayne McCormack, Bill Roberts, Jane Sell, Dick Startzman, the 1956 class of Westminster Schools and its teachers, and the forty-six-year-old NAR book club.

FOREWORD TO THE SECOND EDITION

This updated edition by Takei and Alston is a much-welcomed update of their excellent work. The book is aimed to help Americans, and other westerners, learn more about the cultural and business practices of their Japanese clients, customers and other partners and be more effective at building productive relationships that can transcend different languages and cultural and business practices.

Takei and Alston are to be praised for coming back to the issue after several years have gone by. The fact is that many cultural, business and economic realities in both nations have changed markedly. While fundamental aspects of cultural preferences may be the same, specific applications, especially those pertaining to individual and business communication strategies, have taken on new life and new borders and limits. Greater dependence on social media and the Internet are new realities that must be acknowledged and prepared for.

In addition to these profound and new communication realities, there are other important changes that have taken place in both countries that need to be raised and faced so that better cooperation and understanding can be established. First, the international community for both nations has become more problematic as the growth of Chinese power and North Korean adventures create challenges for both Japan and the U.S. Issues of long-term trade and security must take these realities into account and demand new, and often, difficult, conversations about predictability and trust.

Economic realities have also changed in both nations. The recession of 2008 had severe effects on the confidence and economic well-being of both nations. New fears, new obligations and new measures of progress and failure must be factored into older patterns of interaction. New calls for national protectionism and exclusivity, in both nations, create new challenges for old patterns of cooperation and support.

So, the timing of this new book is very welcomed indeed. Takei and Alston’s excellent advice on how U.S. and western businesses and consumers can continue to improve their interactions with their Japanese partners remains a very important lesson. Acquiring a greater understanding of their traditions, values and goals, in this context of this new era of the individual, is essential knowledge. This new era brings on changes in Japanese and U.S. management practices, hiring practices and national economic policies. Takei and Alston prepare their readers on how to navigate these new realities while not obscuring enduring cultural themes.

Arnold Vedlitz

Bob Bullock Chair in Government and Public Policy

Bush School of Government and Public Service

Texas A&M University

College Station, Texas USA

FOREWORD TO THE FIRST EDITION

There is a Japanese word "kosobayui. This word contains subtle nuances translated as sensitive and subtle." When I read Japanese Business Culture and Practices, I experienced the feeling of "kosobayui" because this book describes and explains Japanese spirituality and culture in a skillful way and with a delicate sensibility.

I still remember the strong shock I felt when I first read a book on Japan written by an American anthropologist: The Chrysanthemum and the Sword by Ruth Benedict (1946). I used this book for my class readings as well as for my research. I was surprised to read that Benedict wrote about Japan in great detail as if she were Japanese.

Needless to say, Japanese Business Culture and Practices is different from The Chrysanthemum and the Sword. However, the analyses and insights are extremely subtle and this book is just as important as the work by Benedict. Japanese Business Culture and Practices is one of the best-referenced and most interesting books for those who want to know about Japan and for those planning to conduct business with Japanese. This is a very good reference for U.S. American businessmen who conduct business with Japanese. I highly admire the two authors’ efforts.

Because I am Japanese, those who say yes and no very clearly, like U.S. Americans, remain a wonder although I have had a long academic career in the area of international relations. I am also impressed with those who can bring a conversation to an end quickly and decide on issues quickly and concisely. By contrast, as the book explains, Japanese do not directly express their preferences and dislikes. The same holds true for saying no. Numerous researchers have studied this unique Japanese culture. However, their opinions vary in their viewpoints, ideas, and research methodologies. Different people use different perspectives and analyses to reach various conclusions. I respect the approach and presentations of Japanese national character found in the Alston and Takei book.

I am strongly opposed to looking at the Japanese people and Japanese culture in stereotypical ways. I read books only when they deal with concrete Japanese behavior and characteristics in detail rather than through the use of stereotypical generalizations. I determine the value of books by looking at the extent to which they are written objectively. In this sense, Japanese Business Culture and Practices is a work consistently objective as well as detailed. This book is very useful to the readers who are interested in business relations and negotiations with Japanese.

While contemporary Japanese enjoy the benefits of cutting-edge technology and science, they have nevertheless maintained their traditional culture. This balance of old and new is crucial for the Japanese. While accepting Western thought and Western modern spirit, the Japanese also maintain a traditional samurai spirit. Japanese still follow the demands of the sempai and kōhai relationship in modern business environments. While appreciating baroque buildings and paintings, Japanese also follow a simple and pure aesthetic sense, as seen in haiku poems, that is admired throughout the world. Different from the western drama expressing a manifestation of emotions, Japanese traditional drama conveys the internal (spiritual) world by silence and stillness. Martial arts that start and end with bows to opponents and teachers still prosper. Japan is a society where the logic of winning the game, but losing the fight (or match) continues to make sense. Winning means nothing if you lose face and pride. By contrast, sympathy for and support of the weaker person are part of the Japanese heart. Western heroes are not necessarily the heroes in Japan.

As the title, Japanese Business Culture and Practices: A Guide to Twenty-First Century Japanese Business suggests, there are on-going changes in the Japanese environment though the core foundations of Japanese society are stable and unchanging. As the increasing number of free-ta (temporary workers) shows, the central idea of working for one employer for a lifetime is changing among younger Japanese. Western principles of competition and payment based on ability do not directly fit into the traditional Japanese society. It has generally been thought that those who have ability to be overachievers and paid larger amounts of remuneration as a result violate the traditional Japanese sense of equality. Now, however, the payment systems based on seniority and age are changing, as this book points out.

Japanese, who have an innumerable number of gods, traditionally have a different view of life and sense of values from Westerners who believe in one absolute god. In front of a tutelary deity, Japanese are essentially ujiko (local residents worshiping the same guardian deity) and are equal. Japanese dislike differentiation and individualization. As early as the sixth century, Japanese have lived in social harmony, wa, which became the most important teaching for a respectful way of living. In spite of many twists and turns, the teaching of 1,400 years of history is still the base of today’s teaching among families and society.

As Japanese Business Culture and Practices notes, corporate presidents and employees in Japan eat together at the same cafeterias. They also take part in corporate excursions, and presidents and employees together share a hot spring communal bath. Having a heart-to-heart talk means people trust others and understand the humanity of others across different social statuses and positions. It is easy to declare that U.S. Americans are individualistic and Japanese are group-oriented. I oppose the idea that this rough categorization is enough to describe the differences between U.S. Americans and Japanese because such stereotypes are mistaken. This book offers details that avoid stereotypes.

As we like different kinds of flowers in their full glory in a flowerbed, contemporary Japanese need to be aware of the perspectives from different nationalities and multi-cultural ideas. Japanese Business Culture and Practices describes in clear language and presentation Japanese business negotiations and cultures and offers the reader detailed explanations of real situations. I recognize the value of this book. It is very easy to blame Japanese businessmen and Japanese culture for consistently ambiguous statements. Those who negotiate with Japanese should understand the background of these attitudes and behaviors; if you look at Japanese history, culture, educational system, religion, thought, aesthetics, human relations, family system, and customs, you will better understand how Japanese have succeeded in developing a modern and stable society in a group of small islands with few natural resources. Japanese Business Culture and Practices briefly explains how these important segments are related to the business behavior of Japanese.

Japanese Business Culture and Practices makes me think about Japan and Japanese culture. This book will be an important reference for those who are going to start business negotiations with the Japanese as well as for those who go to Japan for other business and for other purposes.

Saburo Sato

Vice President,

Dean of the College of International Relations,

and Professor,

Nihon University, Japan

Fall 2004, at the foot of Mt. Fuji

INTRODUCTION

The Japanese traditionally lived in close proximity to each other, whether living in small houses with paper walls, working together in rice fields, or protecting family and village members from dangerous natural and man-made environments. Further, living in a country the size of California, U.S.A. with only fifteen percent of the land capable of supporting agriculture (seventy percent of Japan’s land mass is forested mountains), being able to work harmoniously with others has been critical (half of Japan’s protein intake comes from fish, another crop demanding cooperation, often by whole villages). Without the safety valves of a frontier or emigration, the Japanese were forced to develop standards of behavior that de-emphasized the individual while emphasizing the importance of conformity to the group. The result was the development of formal ways of behavior (kata) forcing conformity to society A kata is a routine allowing people to interact smoothly. Face, or social honor or reputation, became supremely important, and everyone learned to control any emotion and behavior threatening social harmony.

The comment Our etiquette begins with learning how to hold a fan and ends with the rites for committing suicide implies that all of a Japanese’s life is ordered and defined by kata (nouns do not indicate plurality in the Japanese language). This book describes and explains the kata of the business-related parts of modern Japanese society. An intuitive translation of this term is good manners. This book also describes the common etiquette that allows business dealings with Japanese to go smoothly. No one can possibly succeed when conducting business with Japanese unless he or she is familiar with the kata that are in force today.

The Japanese themselves study closely their customers’ cultures and customs, including their languages. Proper etiquette toward one another and strangers is paramount and expected of everyone. Etiquette in Japan, however, means more than a set of loosely defined behaviors such as how to eat properly or how to greet and thank a person. More formal than societies in the west, Japanese culture contains strict expectations for proper behavior. In the past people were told how to dress, how to sit, and how to address various ranks; samurai warriors could instantly behead those who did not conform to these and many other standards of behavior. It was safer to conform to many kata by following custom and the expectations of the powerful.

While contemporary Japan does not demand as much conformity as in the past, Japanese still have fewer choices in how to behave than citizens in the U.S. These kata, or social forms or formulas, so permeate the society that it is hard to imagine a Japanese not behaving in terms of his culture’s kata. There remains much conformity in Japan today, though most contemporary Japanese do not know how to wrap a gift properly or hold a fan correctly. Increasingly, more Japanese expect to change employers several times during their working lives when once the ideal employment offered complete job security until retirement.

Both authors of this book are left-handed. Yet both write and eat using their right hands. They write with their right hands because both grew up in very kata-oriented societies, in this case Japan and France. Both hold their chopsticks and forks in their right hands when they eat because, again, kata demands holding eating utensils with one’s right hand. Using the left hand in Japan is considered impolite. Such distinctions are less important now but good manners nevertheless demand holding one’s chopsticks with the right hand. Parents and mentors taught each author to eat in the prescribed manner. French and Japanese schools both teach students to write right-handed. In such countries, conformity to meurs (French for customs) and kata is more important than the comfort or wishes of individuals.

The Japanese educational system is an example of the emphasis placed on conforming to kata expectations. School rules regulate clothing and hair length as well as what students are allowed to do outside of school. A teacher might visit a student’s parents in their homes to report their son has been seen in shops not considered respectable for a student of that particular school. Many students in kindergarten through high school wear the appropriate school uniforms and carry the correct book bags. They are taught to be polite and respectful towards teachers and adults in general. Younger students often distribute school lunches to their classmates; students then take turn by classes to sweep the schoolyard and classrooms. Teachers often punish the unacceptable behavior of individuals by punishing every member of the group.

In the same manner, Japanese adults seek direction from others, especially from their group leaders as well as their peers. A typical U.S. American leader might say, I don’t care how you do it; just get it done. By contrast, a Japanese leader is more likely to say, "Don’t do it unless you do it in the right way [kata]. This general attitude stressing conformity is more likely as the Japanese population ages and the average worker becomes older and more conservative. In many ways, doing things the correct" way is more important than doing something successfully, or in a newer, more efficient manner. While younger Japanese workers are less conservative and have become slightly more individualistic, those in higher management–promoted primarily because of their seniority and acceptance of traditional kata– remain traditional in attitude and behavior. These older leaders will expect foreigners to know Japanese kata-related business behavior.

Japanese learned to act in formal ways in the past and they continue to act in prescribed patterns during the twenty-first century; a person acting against the interests of the group or in non-conformist ways is said to be immature, as if he or she does not yet know proper etiquette. This book explains the kata of Japanese business including how to start a speech, how to exchange business cards, how to drink, how to write e-mails, and how business meetings are conducted.

Japanese expect foreigners to behave in the Japanese manner. Those who do not follow the strict rules of Japanese society risk being defined as immature or ridiculous, or worse, as insulting. The chances of successfully conducting business in Japan or with Japanese expatriates throughout the world decrease when non-Japanese do not follow the basic rules of Japanese behavior (Japan External Trade Organization [JETRO], 1999). Further, Japanese feel that following kata forms of behavior is a sign of goodwill and respect for Japanese culture and Japanese counterparts. Those who adapt to some extent to the Japanese ways of behavior are more likely to be successful when conducting business with Japanese than those who do not. As important is knowing why Japanese executives and negotiators behave the way they do.

Total conformity to one’s society or groups is impossible even among the Japanese. Often one has to decide which kata to observe and which others to ignore. This book, however, presents the most prevalent expectations of behavior that reflect the Japanese national character. The knowledge of how—and why—Japanese businessmen behave in the way they do is central to any successful business dealing with the Japanese.

Japanese have transformed their society three times: once when influenced by Chinese culture; the second time when Commodore Perry and his U.S. Navy black ships forced Japan to deal with the outside world; and the third time after the Japanese experienced the loss of the World War II, the post-war years of the hungry cage, and Allied Occupation. Japan has also experienced the development and loss of a colonial empire, rapid industrialization, urbanization, the introduction of democracy and land reform, and the development of a modern mass society.

Japan is currently going through more changes due to shifting demographic and economic conditions, and may be entering the beginning of Japan’s fourth transformation. Due to population decline, Japanese companies are forced to further expand their overseas markets. Japan is also facing new economic competitors, namely China, South Korea, and perhaps Vietnam and southeast Asia in general. In the next few decades, Japan may undergo major changes in the rules and systems associated with work and civil life in general.

Moreover, we believe Japan is prepared to become a global leader during its next economic cycle. Its educational system is modernizing, and most elementary school students will soon be taking mandatory English and computer programming classes. The quality of learning is high; PISA (Progamme for International Student Assessment) reports that, in 2015 in seventy-two countries, Japan ranked second (U.S.: 25) in science literacy and fifth (U.S.: 40) in mathematics. Interestingly, Japanese students self-reported that none had missed a school day in the two weeks prior to the PISA tests.

Japan’s scientific institutions are in the world’s top rankings. In 2014, Japanese applied for 325,986 patents, ranking third among the world’s nations (U.S.: 578,802; China: 928,177). In addition, twenty Japanese residing in Japan have been awarded Nobel prizes in the sciences since 1970. Japanese scientists have been awarded Nobel prizes in sciences during the years 2010, 2012, 2014, 2015, and 2016. Japanese companies have continued to produce world-class products and are at the cutting edge in a number of technologies, including robotics, consumer electronics, transportation (including high speed bullet trains), next-generation vehicle development, life sciences, and clinical medicine. Japanese agriculture continues to be one of the world’s most efficient.

Contemporary Japan is experiencing numerous problems and changing demands associated with its declining birth rate and a corresponding increasing older population. At present, Japan’s