Ho-Ren-Sō

Hōkoku is to report on a process or result of business, from a subordinate to a superior.^[1] In Japan, subordinates do not have much authority to make business decisions. Usually the decisions are made by an organisation as a whole. Therefore, a subordinate must report everything to their superior(s) immediately and exactly. It is especially important to report a mistake or a problem immediately, as one's superiors hold responsibility for it.

Renraku is to inform and notify of facts. One must inform relevant parties about facts and decisions, without including opinions or guesses. If this is not completed, then it is not possible to control a team. These facts should also be communicated to only people who need to hear them. Finally, the communication be done quickly, as the knowledge may be needed to prepare for the next action.

Sōdan is to consult or discuss. For example, a superior should give advice to a subordinate, and employers should employee talk over their work with superiors.

Benefits of the Ho-Ren-So philosophy include the ability for issues to be resolved quickly as they are communicated effectively to managers, who then decide how to resolve the situation at hand. Additionally, if information is made known to all members of a team, ownership of the schedule and tasks can be divided up. Finally, if a subordinate proactively asks for information, a decrease of quality will be prevented and likely won't occur again.

Ho-Ren-So also comes with management costs. It is a time-consuming process, leaving employees with little time to complete their various work assignments. Moreover, since subordinate must wait for instructions from supervisors, this prevents employees from applying problem-solving skills on their own, and initiative is prevented by the constant need for managerial input, leading to micromanagement.