Wa, Guanxi and Inhwa: Managerial Principles of Japan, China and Korea

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Wa, Guanxi, and Inhwa:
Managerial Principle in Japan, China, and Korea

I. Introduction:

MANAGERIAL is an act of management in all business and organization to get the desired goals and objectives by inserting PRINCIPLES depends on the philosophies, behavior and culture of an organization.

According to Jon P. Alston article, each society has its separate, distinctive philosophy which leads to specific behavior appropriate to the setting and having knowledge of their principles is not only helpful but also a critical success in dealing with people in business particularly in different countries.

Since organization is viewed as a system, management can consider this as an act to the organization to managing their resources including interaction to their environment (external).

The management principles governing Japan, China and Korea are considered as an unavoidable challenge to the foreign investors when business ventures are materialized. These enormous market potential tend to determine the boundaries on how one may respond to the culture and philosophies of these countries. The institutions, including formal organizations (e.g., social, economic, and political bodies), and social norms and rules (North 1990; Scott 1995) are known to govern how individuals, firms, and governments behave. Studies across disciplines, including sociology, economics, and management, have noted how these institutions foster collusions among firms and between firms and local governments to create regional economic warlords (Walder 1995) and network capitalists (Boisot and Child 1996), thus twisting free product flows in the country. Within the firm, these institutions command the way internal firm resources are valued and allocated (Hoskisson et al. 2000); outside the firm, these institutions define the complex firm-to-firm and firm-to-government relationships and changing marketplace (Lau, Tse, and Zhou 2002).

This report aims to summarize the distinct business culture and philosophies of the aforementioned countries which are considered to have an economic influence in the global environment. The managerial principles represented by these countries are Wa, Guanxi, and InhWa, respectively.

II. Background of the Article

In this context, it will discuss main managerial principle of Japan, China, and Korea namely Wa, Guanxi, and Inhwa. Wa refers to the value the Japanese place on group loyalty and consensus. It translates as the search for or the existence of mutual cooperation so a group’s member can devote their energies to attaining group goals. Guanxi, however, is considered as one of the major dynamics in Chinese society. The terms refer to special relationships two persons have with each other. Lastly, Inhwa is a key principle of Korean business behavior which stresses the harmony of between unequal ranks. It refers to harmonious relationship of superior and subordinate relationship.

In addition, the main principles of the said countries will be evaluated and compared against Philippine set up of doing business, i.e., whether these principles are likewise practiced or applicable here in the Philippines and if this principles could draw favorable outcome based on the local way of managing business affairs. III. Summary of the Article

* Management Principle in Japan (Wa)

Japan is the land of peace and harmony that continues to evolve in a positive unification of tradition and modernization. With its elaborate and colorful history and culture, Japan has formed a distinct model of hierarchy, honor and etiquette that is still reflected in many social and business practices today. If your organization is planning to conduct business with Japan, potential success depends upon an understanding of this culturally influenced protocol.

Today, the most valued principle still alive in Japanese society is the concept of Wa. It’s translated variously as "harmony," "peace," "reconciliation" and "unity," and is...
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