New's Special Report on Battle of Western and Japanese Style Management Practices,

Hofstede Model:

Hofstede was pioneer at determining the structural elements of culture, particularly those countries that have most strongly affect known behaviour in the work situations of organisations and institutions. In his research Hofstede collected the date about “value” from employees of an MNE’s located in more than fifty countries. Hofstede’s statistical analysis and reasoning revealed four underlying societal values of dimensions at the national level along with other countries could be positioned. These dimensions were labelled individualism, Power Distance, Uncertainty Avoidance and Masculinity. Another research by Hofstede revealed fifty dimensions: a short term versus long term orientation. After comparing the dimensions all the countries grouped in cultural areas on the basis of their scores on the four dimensions using cluster analysis and geographical and historical factors. In his research Hofstede also recommends that cultural values are likely to change over time and further research is required to access the extent and reasons for change.

Societal values of the US and Japan:

Individualism versus Collectivism:

In a society, a person cares of themselves and their immediate family only can be identified as an individual. On the other side individual expect their relative, cast or religion or even other people in groups to look after them in exchange for loyalty. In the US most of the persons care only for themselves and their immediate family while in Japan persons generally prefers to works in groups with exchange their loyalty to the company or others.

Large versus Small Power Distance:

Power Distance means member of a society accept idea that power in institution and/or organisation is distributed unequally. We recognize them by small power or large power depends on their behaviour. In small power distance people are able to use their decision power which is beneficial to the company without waiting from the permission from the higher...