Differences between Filipino and Japanese Managerial Decision-Making Process in Philippine Hitachi Plant Corporation

Abstract

Decision-making is the most important thing that managers do in carrying out their organizational responsibilities. This constitutes a critical factor in the competitiveness and growth of a country’s entire economic system, the stability, and well-being of their total society, and the continuing survival of their sovereign state (Harrison, 1999). Competition is becoming more intense for many reasons, including increased management capability in many countries, which leads to globalization and to the rise of multinational corporations. As these multinational corporations develop operations worldwide and as companies develop joint ventures with foreign partners, managers have to become capable of working with people from different cultures. Philippine Hitachi Plant Corporation (PHPC), a Japanese-owned construction firm, feels the impact of having one Filipino and one Japanese managers to decide on operations involved in each of their projects. With this management approach, they are experiencing differences between Filipino and Japanese managerial decision-making process. This research employed descriptive method specifically a case study focusing on Philippine Hitachi Plant Corporation (PHPC). The participants of the study, who are the Filipino and Japanese project managers assigned in the construction of ROHM Electronics Philippines, Inc. in Carmona, Cavite, were chosen based on the criterion that they are working with the other nationality as counterpart. The main objective of the study is to find the differences between Filipino and Japanese managerial decision-making process in PHPC. The specific objectives of the study are: 1) to describe the steps followed by Filipino and Japanese managers respectively in conducting managerial decision-making; 2) to determine the dominant approach exhibited by Filipino and Japanese managers in dealing with the two dimensions of way of thinking and tolerance for ambiguity: 3) to identify the cultural factors affecting Filipino and Japanese managers in performing managerial decision making. From the data gathered it has been concluded that Filipino and Japanese managers appeared to thoroughly consider several aspects of decision making before choosing an alternative course of action. The Filipino managers’ responses indicated that in decision-making, they likely do the following: 1) analyze the decision-making situation to be decided upon by probing the contributing factors to the problem; 2) weigh the pros and cons of the solutions they regard will best solve the situation; 3) discuss the identified advantages and disadvantages with Japanese managers; 4) select the best solution; and 5) implement the best solution while considering its effect to all those concerned. Japanese managers’ responses revealed that they follow the following decision making steps: 1) analyzing the situation; 2) investigating the factors causing the decision-making situation; 3) seeking the proposal or opinions of those concerned by negotiating with them; 4) coming up with a decision; 5) implementing the decision; and 6) making recommendation. In terms of the dominant approach used in dealing with way of thinking and tolerance for ambiguity, Filipino managers use analytic approach to managerial decision making while Japanese managers employ directive approach. The researcher also determined the cultural factors affecting Filipino and Japanese managers in performing managerial decision-making. Filipino managers are influenced by low uncertainty avoidance, high power distance, present-orientedness, masculinity, and individualism in performing managerial decision-making process. Japanese managers are influenced by high uncertainty avoidance, low power distance, past-orientedness, femininity, and collectivism. Recommendations are given to the future researchers who wish to replicate this study. First, consider factors like educational background, attitude, and communication skills, which may have indirect effect on the managerial decision-making process. Second, obtain information from staff with regard to the managerial decision making process of PHPC project managers. Third, focus on the effect of counterpart system in decision- making of two nationalities be carried out. Fourth, study how significant differences on the managerial decision-making process relate with the effectivity of the decision-making of managers working together from different cultures. Fifth, look into the possibility of finding the relationship on the nature of organization and the decision making style. For PHPC, a seminar on Intercultural Communication is recommended to further enhance the communication, interaction, and decision-making process of Filipino and Japanese managers.