Loyalty and treachery
Right after we formed our American company, we needed a lot of people in a hurry to establish our sales organization because business got very good very fast. Some of our new employees were good and some, we realized later, we shouldn’t have hired. We had trouble with one man and I was exasperated and constantly worried about him. Finally, I discussed his case with my American colleagues. “What can we do with this guy?” I asked one day. They all looked at me as though I was slowwitted. “Why, fire him, of course,” they said. I was stunned by the idea. I had never fired anybody, and even in this case it had never crossed my mind. But to solve a problem by firing the man was the American system. It seemed so clear and straightforward and logical. I began to think America is a manager’s paradise; you can do anything you want to do. Then a few months later I saw the other side of the coin. I was stunned by the idea. I had never fired anybody, and even in this case it had never crossed my mind. But to solve a problem by firing the man was the American system… Then a few months later I saw the other side of the coin.
We had a district sales manager who looked very promising, so promising, in fact, that I sent him to Tokyo on an extended trip to meet everybody at the home office and get acquainted with the philosophy and spirit of our organization. He did beautifully, impressing everybody in Tokyo. He came back to the States and went to work and continued to please us until one day, without any warning, he came into my office and said, “Mr. Morita, thanks for everything but I’m quitting.” I couldn’t believe my ears. But it was no joke.
A competitor had offered to double or triple his salary, and he thought he couldn’t refuse it. This is the American way, I realized. I was very embarrassed and embittered by this episode, and, frankly, I didn’t really know how to handle it. Months later, I went to an electronics show and there at the booth of one of our competitors was this traitor. I thought we should avoid each other, but instead of hiding from me, he rushed over to me full of greetings and conversation, as though there was nothing to be to be ashamed. I vowed that my company would do its best to avoid adopting this aspect of American managerial technique.
- Morita Akio https://t.co/IxJDAwLDlw
Business benefit
It’s more difficult to start a business in Japan, but once I started it, once I had the company, it would be easier to keep the loyalty - An Interview with Softbank’S CEO, Masayoshi Son 1992
difference between an American company and Idemitsu is this: In America, able managers are baited with high salaries like fish and change from one company to another. In Japan such a man would be considered a traitor and a mean fellow - Idemitsu Sazo
Their own system
Plenty of them have reiterated time & again very vocally that they intend to stick with their system including Toyota & Nidec. Nagamori was vocal in his criticism including taking a shot at Japanese who earn MBA’s in the West & want to bring the hire & fire culture to Japan. He also discouraged investors who want that sort of thing from investing in Nidec.
Toyota reiterated the same on a recent call when a Western shareholder asked why they won’t offshore production & fire their Japanese employees.
SIGMA CEO Kazuto Yamaki is another. He even keeps the company private so that they can provide employment in rural Aizu & avoid shareholders.