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Beyond the "japanese style of management"?: Transformation of the capitalist spirit in Japan today

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Chapter Summary

The management system and practices of Japanese companies were termed the “Japanese Style of Management” (JSM) and were hailed as the secret of Japan’s economic success. This chapter examines whether the managerial modes of Japanese enterprises are transforming, and determines how fast, if at all, the transformation is actually occurring. It also examines empirically the current state and the future direction of the JSM, based on recent data that has been made available. JSM, in a broad sense, comprises an employment system and practices, a manufacturing system, and other management practices. The characteristics of JSM can be observed in several aspects of corporate organizations: decision-making methods, organizational hierarchy, and independence of operating divisions. In fact, an important part of the Japanese capitalist spirit is its ability to make flexible adjustments in the face of changing environments.

Keywords: corporate organizations; employment system; Japanese capitalist spirit; Japanese Style of Management (JSM)



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