Ringi System

RINGI

The traditional decision-making process in Japanese firms is referred to as the “Ringi” system. The word Ringi in reality consists of two parts, the first being of “Rin” stands for submitting a proposal to one’s supervisor and receiving their approval, the second “Gi” meaning deliberations and decisions. The Ringi system is a traditional way of managerial decision-making in Japan. The system involves circulating proposals to all managers in the firm who are affected by an impending decision.

The Ringi system goes through four stages:

a. Proposal

b. Circulation

c. Approval

d. Record

Proposals are generally initiated by middle managers, though sometimes they may also come from top executives.

In a “Ringi” system the ideas and plans are discussed, developed, and refined in the informal meetings among the employees. This activity of informal discussions is a kind of pre-meeting stage which is called as “ Nemawashi”. The key point of “ Nemawashi” activity is to explain the details of an idea that is being proposed to promote for a decision to be made. This “Nemawashi” activity of “ Ringi” system acts as an essential means of knitting together as many people as possible into the vital function of the decision making process.

The procedure of “ Ringi” can be described in the following way: it usually starts at the lower level of management, even if the initiator is a higher-level manager, however, in almost every case he or she will give the idea to his or her subordinate(s) and let him (them) propose it. There are at least three good reasons for that. First, the first-line managers, as it is believed, are closer to the problem, and because of that, they have more information about it. Second, it has to start at the managerial level because decision-making is a typical managerial activity. Third, this is the way how the lower level managers can demonstrate their managerial skills to their superiors.

CONCLUSION

The “ Ringi” decision making process is...