What We Can Learn from the Japanese Organizational Design and Leadership Model

Abstract

Japanese companies, led by bureaucratic management have not stifled innovation. In fact, the rigidity of leadership functions has led to the management by objectives (MBO) style of leadership decision-making. MBO, while criticized for rigidly, works. Look at Chrysler under the leadership of Lee Iacocca, who led the way in the automotive industry during challenging times. Japanese companies have relied on the expertise-based structure that has led them to achieve amazing success. In these companies, leaders must learn to adapt to the local awareness and authentic leadership necessary to meet the needs of customers worldwide. Our practice of training executives has led to applying management theories that work and abandoning those that do not. Management fads come and go but we feel that authentic leadership remains the heart of successful Japanese companies' way and this must manifest itself worldwide to help organizations reap success. In this opinion article, we will look at Japanese companies' organizational design and leadership model and examine its advantages and disadvantages.