Japan: Slowly warming to MBAs

There are numerous reasons for the increase of MBA programs:  government deregulation made it easier for schools to offer MBA programs; simultaneously Japanese schools became more flexible, making their programs more accessible to local students. Many schools now offer part-time study for students unable or unwilling to take time out from their current jobs, reports the US magazine Business Week.

Yet in spite of all that, it's difficult to make the case that Japan Inc. embraces employees with MBA’s. On the contrary, many big companies still prefer to hire graduates fresh out of college and mould them into the type of managers that they themselves want.  Corporate Japan doesn't seem convinced of the merits of MBA’s. Many companies still have a lifetime employment system with pay and promotions based solely on seniority. Graduates can't simply expect rapid progression or improved compensation based on their MBA alone. Nor have recent events helped to raise the profile of MBA’s in Japan. With the current recession blamed on the excesses of U.S.-style capitalism, Japan's MBA holders may actually be losing some of their lustre. 

"Many Japanese companies can't make really good use of MBA graduates when they come back to work," says Yoshito Hori, president of Globis, a Tokyo management school. Still, it's not all doom and gloom, Hori, whose school tops a ranking of student satisfaction, adds that the answer may lie in tailoring courses that bridge the gap between Japanese and global business practices. Hori says the school's approach borrows heavily from Harvard in its use of detailed case studies, often drawing on examples from successful Japanese companies. Globis also places importance on programs that foster the spiritual side of business leadership. For instance, there are classes in which would-be executives study the Analects of Confucius.

And while Japan might not reward MBA students to the same extent as the U.S., that could change in time. One hopeful sign: Japan's best-known manufacturer, Toyota - a company not renowned for MBA’s in the boardroom – will appoint an MBA graduate from Babson College near Boston when Akio Toyoda succeeds the current boss.

www.businessweek.com