Managerial Principles

Far Eastern University
Graduate School of Business
MBA Program

Principles of Managemet
2nd Trimester, SY 2012-2012


Prepared by:
Nerissa T. Luanzon
Claire Tumangday

Submitted to:
Prof. Mundy Gonzales

September 19, 2012

Wa, Guanxi and Inhwa: Managerial Principles of Japan, China and Korea
Japanese, Chinese, and Korean business organizations do not run on the same managerial principles. Each society has its separate, distinctive philosophy which leads to specific behavior appropriate to the setting and having knowledge of these principles is not only helpful but also critical to success in dealings with managers from those countries. Although each of the three principles is unique, each also resembles the others to some degree.
| Japan | China | Korea |
Managerial Principle | Wa | Guanxi | Inhwa |
Definition | Wa refers to the value the Japanese place on group loyalty and consensus. | Guanxi refers to special relationships two persons have with each other. | Inhwa stresses harmony between persons who are unequal in rank, prestige and power. |
General Description | Members of the group are expected to submerge their individual goals in favor of the group’s. | The two persons involved assume that each is fully committed to the other and agrees to exchange favors in spite of official commands to act neutrally. | Requires that subordinates be loyal to their superiors and superiors be concerned with the well-being of subordinates.   Categorized as clan management. An individual must be loyal to hierarchical rankings |
Coverage | Takes place in a group context. | Operates on the individual level. | Relatively individualistic. |
Time Dimension/ Duration | The group’s survival and eventual success are keyed to a long-term perspective. | Guanxi relations that are no longer profitable or based on equal exchanges are easily broken. | There is little organizational loyalty. |
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