An Attractive Japanese Export

The XYZs of management theory challenge American bosses

Their prices are cheap because they pay their workers subsistence-level wages. Their products are top quality because their plants are all brand new and automated. They get billions annually in government handouts and subsidies and, what is more, they do not abide by the rules of fair trade.

This view of Japanese corporations has long been the familiar refrain of U.S. businessmen seeking to explain the economic success of Japan. Now, however, a much less recognized proposition is being advanced: the real secret of Japan's success is better management, especially in personnel policy. That...