The Importance of Participatory Strategy in Japanese Enterprises

Japanese Enterprises and their Competitiveness

Japanese enterprises have drawn worldwide attention for their competitiveness. These enterprises involve all organizational levels in the formulation of implementation plans. Generally, the enterprises usually send circulars concerning any proposal to all management levels for approval and before any decisions are made (Kato, & Morishima, 2002). This strategy is appropriate since it helps in strengthening the decision making process and cooperation in any business or an organization. In contrast, the United States only involve top management in decision making (Martinsons, & Davison, 2007). Prioritizing individual goals and motive over the other leaders is considered as a norm.

Benefits of Japanese Participatory Strategy

The company I have worked for did not embrace participatory strategy where all levels of the organization are involved in the development of implementation plans. \u00a0Japanese participatory strategy will be beneficial to the company if executed correctly. For instance, it will ensure that all the departments within the company are on board with a decision and are ready to implement it (Kato, & Morishima, 2002). This draws many meaningful ideas in all perspectives since every individual, in all the levels of the organization, will have looked at any given potential decision. At the same time, this strategy forms the basis for the motivation of the employees for the reasons that they are the implementers; they have to be fully involved in the achievement of the organization\u2019s objectives (Kato, & Morishima, 2002). As a result, this approach helps the company to harness its maximum potential.

Diversification and Strategic Planning

A key strategic issue of an organization is whether to diversify their business or not. However, there must be economies of scope in order for this to have performance implication. The economies of scope are easy to come up with while the management maintains its strategic planning and implementation (Martinsons, & Davison, 2007). The Japanese system is considered the most effective approach in this case because it ensures worker participation, unlike the US where employees are involved in consensus, and the overall team leader makes the final decision.

References

Kato, T., & Morishima, M. (2002). The productivity effects of participatory employment practices: Evidence from new Japanese panel data. Industrial Relations: A Journal of Economy and Society, 41(4), 487-520.

Martinsons, M. G., & Davison, R. M. (2007). Strategic decision making and support systems: Comparing American, Japanese and Chinese management. Decision Support Systems, 43(1), 284-300.