The fact that the West and East--and more specifically, the United States and Japan--

have vastly different cultural values is well-acknowledged. The U.S. is characterized by

such values as assertiveness, decisiveness, innovativeness, and risk-taking which stem
from its frontier-conquering history (Hall and Hall, 1990). The U.S. culture is also
characterized by individualism--the belief in the power and autonomy of the individual
(e.g., Goodman, 1981; Yeh, 1995) and emphasis on results and lack of flexibility. For
instance, Easterners, particularly the Japanese, complain that Americans are too legalistic
and less willing to be flexible (Thornton, 1993).

The cultural value system in Japan, on the other hand, has been heavily influenced by
Shinto, Buddhism, and Confucianism. As a result, the Japanese tend to emphasize the
virtues of hard work and attention to detail (Rhody and Tang, 1995). Indeed, a detail
orientation is a major factor that has attributed to the successes of prominent Japanese
firms (Lazer, Murata, Kosaka, 1985; Song and Parry, 1997). Further, Japan has a
consensus-bonded, group-oriented culture that emphasizes conflict avoidance, respect
and concern for people, and the importance of close, long-lasting relationships with
others (Sandelands, 1994). The culture focuses individual and corporate success criteria
on harmony, uniformity, and subordination to the group (Hall and Hall, 1990). Thus, it is
particularly important for Japanese employees to feel that they "fit in;" indeed, employees
tend to identify with their firms, resulting in a relatively high level of company loyalty
(Holden and Gross, 1992).

P1: The relationships between the cultural values of flexibility, people orientation, detail
orientation, and team orientation and outcomes (customer satisfaction and business
performance) will be greater for Japanese than for U.S. firms.

P2: The relationships between the cultural values of innovation, outcome orientation, and
aggressiveness and outcomes (customer satisfaction and business performance) will be
greater for U.S. than for Japanese firms.
Some analysts refer to Germany's rule-oriented, hierarchical focus on task
accomplishment as an example of an Eiffel Tower management style.

While it is true that German subordinates rarely disobey or openly question orders from
higher level authority, corporate power structures in Germany are typically more flat than
they are tall. That's because German businesses are collections of highly specialized
teams.

Difficulty Handling Organizational Changes

When changes need to be made, the German culture is often ill-equipped to handle the
complex burdens that a rule-based Eiffel Tower bureaucracy demands. Manuals must be
rewritten, procedures changed, job descriptions altered, promotions reconsidered and
qualifications reassessed.

Germans Resist Changes

Generally, German managers are slow to accept changes partly because of Germany's
strong aversion to risk. Also, Germany is the world's number one exporter noted for
precision engineered products. Germans strongly believe that their processes have been
proved superior, and it's hard to argue with their successes.

However, Germany's superiority complex sometimes leads to an ethnocentric style of

management in which strong nationalism compels German headquarters to maintain
control of key international management positions. Today, a more global management
approach that focuses on the best qualified applicants regardless of country of origin may
be a better long-term strategy.

German Leadership and Motivation Style

Systems integrators that they are, Germans have evolved a unique leadership and
motivation style that integrates the features that most closely fit with the strongest
German cultural characteristics. Therefore, German leadership and motivation style
synthesizes the most pertinent characteristics from Authoritative Theory X, Paternalistic
Theory Y and Participative Theory Z.

Below is a summary of Theory G, based on the most relevant features from the above
three theories.

From Theory X:

• Germans like to be directed.

• In Germany, job security is primary.
From Theory Y:

• Since Germans are committed to goals, they exercise high self-control.

• No threats of punishment are required to ensure task completion.

From Theory Z:

• Germans are motivated by a strong commitment to be part of a greater whole in

general, and more specifically to their German organization
• Through teamwork, Germans derive self-satisfaction while contributing to their
company’s success.