I believe the best way to derive insights on how Japanese companies work, and consequently apply them where practicable is not just to enumerate their key practices but to frame their practices over a simple yet comprehensive framework based on empirical studies. With this we shall be elucidated on how culture manifests and reflects itself in business. The objective is to better understand their practices in the context of culture. This puts us in a better position to understand and deal with the Japanese in our work and not just to have a superficial knowledge of what their practices are. Ergo, my approach is an attempt to ask “why” and not “what”. Pursuant of this I shall use the well known Hofstede Cultural Dimensions. Here is how Japan fares:

Cultural Dimension	Rating	Comment
Power Distance	50	Medium
Individualism	40	Low
Masculinity	90	High
Long-term orientation	70	High

Medium power distance:
I interpret the medium rating as a manifestation of interplay between two Japanese schools of thought: (1) the traditional nobility and seniority system which manifests itself in formal titles, strict protocols and strong respect for seniors and superiors and (2) the modern post-war meritocracy.

Japan has lowered its power distance at a rapid pace, primarily as a matter of necessity. A turning point for this was the post-war era when everybody was pretty much equal and had to rely on their cooperation with each other in order to survive. Testament to this sudden equality is the dissolution of the nobility system and the Zaibatsu. The modern Japan we see to day is the bastion of meritocracy where one progresses through his own efforts and rarely due to inheritance or connections. Government invests heavily on education for all, which is the great equalizer. It must be noted however that such meritocratic practices are still married to the traditional practice of seniority manifested by long-term appraisal and slow promotion. Again, this is reflective of the traditions that have fused with modern culture.

The importance of middle management is reflective of this fusion. While there is immense regard for the wisdom and seniority of top management, middle managers (the buchō and the kachō) are given the latitude and authority to formulate, circulate, broker for approval and implement them as the see fit. Implicit in these organizational dynamics is the immense trust among all levels of the organization.

Japanese employees also have a way of cutting through the heavy formality and implicit communications generally mandated in the workplace. This was termed in the reading as Nominication. Based on my limited knowledge of Nihongo, this term was derived from nomimasu (to drink). Employees, once they go out and drink together strip-off their office rank and speak as if they were close friends.

Empirical data reinforces the lowering power distance index in Japan. Income leveling within a company has progressed at a rapid pace. The difference in pay between company president and a new employee was 100 to 1 in 1927 compared to 1980 when it was 7.5 to 1. Also, the Gini coefficient which shows the inequality of income distribution, is 0.27 for Japan compared to 0.41 in the US. I would not be surprised, if a survey conducted today reflects that the Japanese have a significantly lower power distance. This is testament to the dynamic (as opposed to the static) nature of culture.

Low individualism:
Low individualism is immediately observable in the layout of Japanese offices – they are made up of large communal office rooms. In some cases, this also applies even to top-management composed of the Chairman, President and EVP. This is to foster a sense of community as well as to enhance informal communications which is necessary in balancing the heavy formality and implicitness of Japanese correspondence.

A sense of community and ownership is imbibed at all levels or parts of the organization through decision-making by consensus. Consultation from bottom-up, top-to-bottom and sideways is imperative in Japanese decision-making. This is facilitated by nemawashi or informal information sharing characterized by the process of providing information to those concerned and incorporating their ideas and opinions to build consensus beforehand as well as ringi which is the formal form of nemawashi. This is the decision making procedure where action plans are drafted by middle and lower management into a document called a ringi-sho. It has been observed that while decision making is slow, implementation is very quick and efficient as there is already buy-in and approval for all concerned. This is the opposite of the western style of management where decision-making is quick and implementation is relatively slow.

Flexibility and ambiguity of job descriptions is also a distinctive feature of Japanese work culture reflective of their low individualism. The success of the company and the common good comes first before individual aspirations. It goes to show that Japanese employees go to great lengths to make sure that their tasks are accomplished properly. It is routine and normal for them to go beyond the call of duty. Suffice it to say, they become more ambitious for the company than for themselves. The company in return rewards them for their loyalty and perseverance through lifetime employment. Layoff or dismissal of employees during hard times is the last resort – employees at all levels, from top management down to rank-and-file would rather have their salaries cut in order to prevent layoffs or dismissals

High masculinity:
Japan is ranked as highest in masculinity. This seems to be a paradox, in that it has been observed that they focus on the harmony of relationships (feminine) yet are very competitive (masculine). At the risk of sounding like a celebrity shrink counseling a closet homosexual, my theory is that Japanese tend to be masculine externally and feminine externally. They foster strong interpersonal bonds within their company yet they compete fanatically with other companies within and outside Japan. This also holds true for individuals in that the Japanese are very strong-willed and competitive (masculine) and yet they are heavily dependent on implicit and confrontation-avoiding communications (feminine) - paramdam in Filipino.

Also, this is manifested in their fanatical and continuous drive towards increasing quality and overall competitiveness of the company (masculine). And yet they are wary of being frank or direct to each other. They are very particular not to offend anyone within the company – especially superiors (feminine).

High long-term orientation:
Finally, the Japanese focus more on the importance of long-term goals rather than quick ROI (characteristic of American companies). In fact, their business plans span 100 years. They have higher regard for employees rather than shareholders or investors. They provide them with lifetime employment and gradual internal promotion. This is in-line with their low individualism and orientation towards the greater good - the company exists for the welfare for the sake of society as a whole and not to enrich a few investors. They have an Incremental approach towards improvement of the company. All these are pursuant to increasing the company’s intrinsic value and long-term success.

Crab mentality is to outdo another at other's expense (Tan-Alora and Lumitao). This is widely acknowledged as one of the negative characteristics of Filipino culture. Needless to say, this must be addressed - especially in the context of managing a business. To do this, we must first try to understand how crab mentality made its way into our culture.

My theory is this: crab mentality in Filipino culture (and maybe also in other cultures) is a result of two factors: (1) high power distance and (2) lack of competitiveness. Having a high power distance implies that we put emphasis on hierarchical differences - so much so that some or even most of us feel that our present circumstances prevent us from rising up the hierarchy. True competitiveness pertains to wanting and giving committed and passionate effort to win fair and square. In contrast, the lack of competitiveness implies that there could be no will to win at all or perhaps to win using underhanded means. To a truly competitive person the manner of winning is as important as winning itself.

Given these two factors, I have concluded that some Filipinos would tend compete underhandedly in the belief that their current status in the company or society prevents them from winning. They feel that they can only outdo another at other's expense.

As a manager, a way to address this is to create an informal work environment that emphasizes on meritocracy rather than seniority. Needless to say, a flat organizational structure is imperative. It is also important to practice fair and transparent processes in formulating and implementing policies, performance appraisals, rewards and punishments. This is to neutralize the high power distance. With this in place, competitiveness is enhanced and would naturally manifest itself not through destructive crab mentality but through productive, result yielding friendly competition.