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NEGOTIATING WITH THE JAPANESE by The Japan External Trade Organization - JETRO !SINESS RE"ATIONSHIPS IN JAPAN Business relationships in Japan are characterized by a well -structured hierarchy and a strong emphasis on nurturing personal contacts. Generally, they are built up over long periods of time or are based on common roots, such as birthplace, school or college. Also, an unusually strong emphasis is placed on social activities to strengthen ties. It is not surprising, therefore, that those looing in fr om the outside may see the Japanese business world as comparatively hard to brea into. In fact, there are many different inds of business relationships, but most share two features - they have been built up slowly and carefully, and much time is spent in eeping them up to date. Na#igating $orporate Hierar%hie& !he structure of Japanese companies tends to be very hierarchical, with a great deal of deference to superiors. In the "est, ability generally is the main factor on which careers are based regardless of a person#s age. Japan#s system, however, often has been compared to an $escalator$ on which employees rise gradually, but slowly, along with their peers. Although there are cases of unusually rapid promotion, the $escalator$ system has been applied widely for several decades. Its implementation has a broad impact on business relationships within a company, since people now that they are liely to be stuc with their peer group %generally those who entered the company at the same time as they did&, and it is in their best interest to get on with them. It is also essential to be well-considered by superiors who are mentors and can help in maing the escalator course more pleasant. !he typical Japanese company employee will, therefore, divide fellow- worers into several categories and lavish different degrees of attention on them. !he closest group is the dooki , which comprises individuals who entered the company together. !hese are the people with whom to commiserate and go out drining, and they are the source of much information and gossip as to what is going on in the company as a whole. 'ften, a peer group will have (oint tr aining sessions when they are first employed, and that is when the networ is established. Senpai  form the ne)t group. !hese are more senior employees who attended the same school or university. !hey are potential mentors who can provide more substantial information about the company and its practices. A younger person#s position in relation to senpai  is that of koohai , which are younger employees who hail from the same school or university. !hey are e)pected by the senpai  to run errands and perform menial tass. *mployees outside this immediate senpai-koohai  circle are treated according to their position and anyone with a title is deferred to, especially outside the company. !he structured nature of relationships and the way in which decisions fre+uently are based on consensus means that a great deal of time is spent on $oiling wheels,$ even within a

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