INTRODUCTION
The case introduces us to Ken Morikawa and John Sinclair, two employees of a Japanese manufacturing plant under construction in Georgia. John Sinclair, the Personnel Manager, is keen to hire a Japanese professor to “translate their corporate philosophy”. The real question is – Can a corporate philosophy simply be translated? Will it be understood in its depth and entirety when simply converted from Japanese to English? The case does not merely deal with language. It deals with the crux of a company’s philosophy – its culture. In trying to understand how to marry Japanese and American culture in business, both Ken Morikawa and John Sinclair visit Chiba International, a success story in this arena. Before we entail to analyze the methodology used by Chiba International and put forth our recommendations, we will first explain the generic differences between the cultures of Japan and America.

CULTURAL ANALYSIS
We can analyze the differences between Japanese and American cultures using Hofstede’s Cultural Dimensions: Japan Score: 54 A borderline hierarchical society. Business decisions are slow and must be confirmed by each hierarchical layer and then by Top management. Individualism Score: 46 Harmony of group is generally placed above expression of individual opinions. They are considered collectivist by Western standards and individualistic by Asian standards. Masculinity Score: 95 Japan is one of the most masculine societies in the world. There is a strong drive for excellence and perfection in one’s work. Spending long hours at work is the norm. Uncertainty Score: 92 Avoidance One of the most uncertainty avoiding countries on earth. Life is highly ritualized. Managers require all the detailed facts and figures before arriving at a decision. Dimension Power Distance United States of America Score: 40 Hierarchy is established for convenience. Superiors rely on subordinates for their expertise. Communication is participative. Score: 91 One of the most individualistic cultures in the world. Focus on “Liberty & justice for all.”

Score: 62 A combination of high masculinity and individualism results in the “Winner takes all” mentality. They stress greatly on success and often “live to work”. Score: 46 Americans are fairly open to new ideas and are willing to do something new and different. Companies are open to change and adaptable.

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Using Trompenaars’ Model of National Cultural Differences, we can see the following differences between Japan and America: Dimension Universalism vs. Particularism Japan Japan is neither highly universalistic nor particularistic. Written records are important, but relationships play a key role as well. Is communitarian in nature. Society plays a large role in the life of the individual. Ranks highest on the scale as the most neutral country. Emotions are rarely shown in public and respect is given to those who can keep their emotions in check. Neither particularly specific/diffuse in nature. Work life and private life are intertwined. More ascription oriented, respect is given due to gender and seniority. United States of America Ranks highest on universalism. Contracts must be written and are legally binding. Ranks highest on individualism. Focuses on self and close family. Neither extremely emotional nor neutral. However, expresses emotions much more freely than the Japanese. Highly specific. There is a strong separation between work life and private life. Achievement oriented. People are known and revered depending on their successes.

Individualism vs. Communitarianism Neutral vs. Emotional

Specific vs. Diffuse Achievement vs. Ascription

These stark differences between Japanese and American culture led the two protagonists of the case to visit Chiba International Inc, a Japanese Company that successfully functions in San Jose, California.

CHIBA’S METHODOLOGY
The case explains the methods that Chiba International uses in dealing with its managers and employees. Although these methods cannot be directly applied to the Japanese manufacturing plant in Georgia, there are many lessons that will be useful to the said company. This is explained below: Company Background Chiba International started in the US by acquiring an American competitor which was making heavy losses. It is interesting to note at this point, that the American managers were terminated and replaced by Japanese management. They did not try to mix the two cultures immediately. In doing so, they turned around the company in 2 years. Key Takeaway: Morikawa’s company need not hasten to hand over the reins of management to the locals. The handing over should be done only after the company is 100% sure that the

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Americans have understood the company philosophy and management style. The company should focus on establishing itself first. Chiba’s Philosophy Even after more than 12 years, Chiba had not shared its translated company song with its American counterparts. As stated in the case, the company does not hold a specific training on their philosophy. Instead, it provides its employees with a leaflet of the same and gives the employee time to warm up to the company philosophy. The gradual acceptance of this was far more powerful than an enforced rule. Key Takeaway: The Japanese greatly value consistency over speed. It is more important for them that the employees internalize the company philosophy in their own time. This, in a way, appeals to the individualistic nature of American employees. They can decide whether to accept or reject the philosophy. It is not thrust upon them. Instead, as their tenure in the company increases, the importance of the philosophy will dawn on them. Meetings Chiba International conducted many different types of meetings, frequently. This is in tune with the Japanese trait of Uncertainty Avoidance. These meetings ensure that the management and employees are both fully aware of the situation that the company is in. This is unlike the general American culture, which views long and frequent meetings with disdain. However, they have noticed that the complaints regarding this reduced. This could be due to the fact that individuals (even at the lowest exempt level) are allowed to speak. The employees are also kept up to date on the company’s progress through this. The daily calisthenics eventually saw complete participation and enthusiasm from the workforce. Key Takeaway: Most companies would tailor make their approach based on the host country, rather than the home country. However, Chiba International has shown us that American employees can adapt to Japanese rituals if managed well by the company in the long run. Morikawa’s company can also follow this. What is most important is that nothing was enforced in such a way that the employee’s individualism was attacked. Employees were given the chance to make their own decisions. Once made, an employee’s loyalty and motivation would increase. Sales Force Chiba had to train its American Sales Force to do the opposite of what came to them naturally. The Japanese lay great emphasis on customer service. Going above and beyond for a customer would seem natural. However, the American salesmen were more arrogant and proud. Chiba turned this around by:  Being honest with their salesmen and expecting the same in return  Giving them simple guidelines on the characteristics of sales (Sincerity, Ability, Love, Energy and Service) Page | 3

 

Removing commission so as to be fair Allowing each salesman to decide his targets with his boss instead of giving a unilateral sales quota

The last point in particular makes a huge difference in the culture of a company. Not only does an employee feel that he has some say over his job, but the knowledge of what is expected of him goes a long way in motivating him. Employees who decide their own targets become self-motivated to achieve it. Since performance against goals becomes a factor for merit increase in salary, the employee can focus his efforts towards it instead of just trying to outdo the general sales quota. This also ensures that employees set realistically challenging goals for themselves. Key Takeaway: Morikawa’s company can adopt a similar approach when dealing with its employees. When employees set their own goals, they will be more motivated to achieve it. They must also be able to provide their employees with simple guidelines for their job. U.S. Management Chiba hired its American managers carefully, with a panel of 5-10 interviewers. They hire based on the candidate’s pattern of thinking. Unlike America’s extreme achievement oriented culture, Chiba did not place great value on a Harvard degree. Although it was beneficial, they looked primarily at the attitude of the employee. Staying true to the Japanese way of life, there are no private offices and the employees work long hours, six days a week. Here, we notice a divide between the Japanese and American employees. Companies in America generally have a 5 day workweek, with the work day ending after 8-9 hours. The Japanese, however, are accustomed to working more than 12 hours a day. It is understood and respected by their families. Chiba’s only counter to this was to ask the American employees to stay as late as possible as the Japanese employees began to take decisions without them. In Japan, work takes top priority while Americans place personal and family happiness first. This is ingrained in their culture and it is difficult to change. However, Chiba has focused on trying to change what it can – the fact that decisions were being taken after the Americans had left for the day. Key Takeaway: How can Morikawa ensure that this does not occur in his company? Should the employees be encouraged to work long hours? Here, Morikawa and Sinclair must decide on how to strike the appropriate balance between Japanese and American business culture. They can also ensure that important decisions are taken only during regular business hours. Financial People Chiba International operated on a zero inventory principle, taking very little risk with expenditure. This echoes the Japanese tendency to avoid uncertainty and be prepared for any contingency.

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Key Takeaway: Despite the Americans having a better appetite for risk, Chiba has continued to operate conservatively. Perhaps Morikawa can incorporate this into his company, ensuring that decisions taken involved well measured risks. Open Communication Chiba stresses on open communication at all levels of business. In addition to meetings, they have a suggestion box that they take seriously and have allotted one person the task of just touring the plant to keep abreast of the issues. They also host ‘kompas’ or small gatherings off work premises. Key Takeaway: An employee cannot be treated as a machine. The company must genuinely show that it cares for the employees through actions such as this – open and honest communication, taking time to listen and act upon employee grievances and even host small gatherings off campus to ensure that the employees get along. Morikawa can incorporate this as well. Appraisal & Reward Systems Chiba International shows its care and concern for its employees through its reward systems. They have an explicit no-layoff commitment. They refrain from hiring from outside and promote people when they are ready for the job. They evaluate based on service and performance. They ensure round the year feedback so that the subordinate is not surprised at review time. The process is structured in such a way as to minimize unfair judgments. Key Takeaway: In Japan, lifetime employment is the norm. It is not so in America. However, Chiba has found a way to marry both cultures by promising that the employees will not be laid off. They are able to appeal to the achievement oriented nature of their American employees while still maintaining their Japanese culture. Quality & Service The Chiba story is a testament that hard work and persistence pays off in the end. The company was able to develop the required expertise internally and drastically improved their productivity. They instituted their founder’s ‘zero defect theory’ and found that it met with success. They had a low turnover rate when compared to the market and did not even have to advertise much for new employees. This means that positive word of mouth about the company has spread. Key Takeaway: Mirokawa and Sinclair cannot expect to achieve success immediately. The Chiba case has shown that they need to approach the mixing of both cultures carefully and slowly. They must focus first on the organizational vision and help employees to understand it.

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APPLICABLE THEORIES
This case shows us examples of how theories work in real life. The motivational theories we believe are applicable in this case are: Goal-Setting Theory As seen in the Sales Force team, allowing an employee to jointly set goals with his manager will increase his motivation towards achieving it. Since there is no commission, his merit pay is based on his performance in relation to the target set. This ensures that he sets realistic, yet challenging goals. This theory states that the existence of a goal will be a motivating factor. Equity Theory Chiba International ensured procedural justice. No employee could say they were being treated unfairly or in an unjust manner. By providing the no-layoff commitment, the employees know that the company is serious about their development and long term stability in the company. Further to this, open communication through meetings, suggestion boxes and dedicated personnel officers promote the fairness of the system. Even the lower level employees are allowed to speak. The Equity Theory focuses on whether the employees have been fairly treated. If not, they will try to restore fairness in many ways. Chiba International, after years in the US Market, still did not even have a union. The fairness of the management’s methods of dealing with the employees can be credited for this. Achievement Theory As seen through Hofstede’s and Trompenaars’ cultural dimensions, the United States ranks very high on achievement orientation. Thus, a company which values ‘zero defects’ and provides rewards based on service and excellence would appeal to the American work force. The Achievement Theory states that individuals are motivated based on their need for affiliation/achievement/power. In USA, the need for achievement is very high.

RECOMMENDATIONS
The meeting with the managers of Chiba provided Mirokawa and Sinclair with a wealth of information. Based on this, we recommend the following: Patience When attempting to mix two cultures successfully, patience is an indispensible quality. The kind of balance achieved by Chiba might take years to achieve. Mirokawa must ensure that he hands over the reins to American management only after they have thoroughly understood the company’s real philosophy. Treat the Employee as Important American companies do not lay as great an emphasis on the well being of their employees as Japanese companies do. Through their actions, policies and open communication, Page | 6

Mirokawa’s company can convince the new employees that their concern is legitimate. The employee must also be given a certain level of freedom, as this would increase job satisfaction. The employee must also be involved in setting his targets for the following term. Ensure that Cultural Diversity does not cause Division The managers at Chiba realized that once the Americans had left, the Japanese employees would speak in Japanese and take decisions. It is important to note that the company took quick steps to remedy this. Although they cannot force the Americans to stay in the office late, they have done their best to ensure that decisions are not taken in isolation. Honesty & Justice No matter which culture one belongs to, people the world over respond to honesty and justice. Mirokawa must take special measures to ensure open communication in his company and that the procedures are fair and justified. In addition to these recommendations, we have stated particular actions that Mirokawa can emulate in the ‘Key Takeaways’ paragraph after each subheading. It is rather comical that after the wealth of information provided by Chiba, John Sinclair is still fixated on hiring the Japanese translator. It is clear through this case that the company needs to take time to understand its employees and ensure that company philosophy is communicated in a sensitive and non-threatening way. A company’s philosophy explains its core values, its direction, its ethics and even establishes its reputation to the public. Imbibing a company’s philosophy cannot simply be done in a day. It is a process that takes years of effort, both from the careful planned actions of the management and from the enthusiastic participation of the employee.

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