The Effect of Japan's Structural Difficulties in the 1990s on the Japanese Management Model (PDF)

Essay from the year 2003 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3 (A), University of Nottingham (Nottingham University Business School), course: East Asian Business and Society, language: English, abstract: In the decades after the second World War the Japanese economy experienced
phenomenal growth. Western academics and press have often praised
the Japanese management model as a major success factor for the "Japanese
miracle". Many have called for the adoption of Japanese practices in
Western firms in order to remain competitive against the Far-Eastern counterparts.
But in the 1990s the burst of the bubble economy and the resulting recession
have lead to a change in the view on Japanese management practices.
Many now see the Japanese model as outdated and ready for a thorough
overhaul.
This essay explores in how far the problems and structural changes that Japan
experienced over the last ten to fifteen years have necessitated a radical
change in her management practices. After briefly introducing the Japanese
management model in the second section, several social and economic developments
are discussed that might have a lasting impact in the management
practices. The fourth section examines and explains observations made
about the actual effect on Japanese management in the face of these developments.
Finally, the essay concludes that, while incremental adjustments are
taking place, rather than a radical change or, indeed, a westernisation of
Japanese management, a more fundamental rethinking might take place in
the future.