Difference between Japanese and American HRM Styles
In mid 1980's due to predominance financial situation in Japanese economy many researchers compared Japanese HRM style and American HRM style in order to find the "secret of success". Abegglen (1958) was among first few who understood Japanese HRM and identified key differences between two HRM styles. Japanese HRM styles have constant informal communications within groups and Nemawashi. Nemawashi is an activity to build support for a project or decision through communication in advance mainly to gain consensus. (Sagi, 2015) This process will help to get onboard everyone fast and clear out doubts. This technique is also largely used in companies like Toyota in their decision making process. The decentralization of decision making support to promote committed employees, helps them to feel sense of contribution, increases loyalty and has become a competitive advantage in Japanese HRM style. Conversely, in American HRM style is more depends on formal corporate planning pro...