The ringi system is a collective process of decision making by circular letter (ringisho) that is known to be specific to large bureaucratic organizations and companies in Japan. The ringi system of sharing authority is a practice that dates back to the Tokugawa shogunate during the Edo period (1600/1603–1868). A proposal is initiated at the middle or lower level of management. It then takes the form of a written proposal that is circulated among the interested parties through the organizational hierarchies, as well as at the divisional and corporate levels for consultation, comment, and approval. After each individual involved has signified agreement by stamping a personal seal (hanko) on the document, it is returned to the original person in charge for implementation. From this process, a final decision emerges that will be enacted by the authority of the organization or company. This process is called ringiseido (request for decision system), which emphasizes the importance the Japanese place on group decisions. In negotiations, it means that the confidence of the entire group will have to be reached. In the end, the decision can be implemented quickly and with full cooperation because it already has unanimous support.
This practice of sharing the responsibility for decision making that emphasizes group consensus is time consuming and explains why the negotiating process takes so long. The reason is that a great deal of informal discussion will have taken place before the ringisho is even drawn up. This informal decisionmaking stage in a Japanese organization is called nemawashi (prior consultation). When used together, the nemawashi and ringi systems ensure that corporate management at both horizontal and verticals level are kept completely informed.
A basic condition for implementing the ringi system effectively is the necessity for each individual involved to have shared understanding and values. The ringi system, however, has been criticized. Consensusbased decision making does not clarify with whom the responsibility rests. Accountability for actions and decisions is diffused, which protects an individual from being criticized for proposals that are ill-advised. In situations where a quick decision is desirable, Western-style decision making involving top-level management has been adopted. More and more, in order to accelerate the speed of the ringi process and to eliminate bureaucracy, some companies are simplifying the procedure by the use of in-house communication networks, including intranets.
Taplin, Ruth. (1995) Decision-Making and Japan: A Study ofCorporate Japanese Decision-Making and its Relevance to Western Companies. Folkestone, Kent, U.K.: Japan Library.
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