Business historian Michael A. Cusumano details the spectacular developments in Japanese productivity, quality, and process flexibility that have occurred over the past thirty years. His findings complement those of John F. It also reflects how effectively they reduce the number of parts and semifinished goods; these add to operating costs and often cover up inefficient practices or process errors.
How to Write a Summary of an Article? Sources of change5 2. Much of this success was attributed to the forms of human-resource Management found in Japanese companies Abegglen and Stalk ; Clark ; Dore ; Tachibanaki and Noda However, during the period of Asian Financial crisis and economic recession for most of the s, the typical Japanese features that supported comparatively high performance until the late s came in for severe criticism.
Considering the high performance of the US economy in the s, Neoliberals, based on the universal relevance of liberal markets, argue that the Japanese model is dead, and that Japan must and will adopt the US liberal market model Lindsey and Lukas, ; Lin, ; Dornbusch, ; Krugman, In this report, the recent trends of Japanese employment relations will be examined.
Two questions have been addressed here. First, why the traditional Japanese employment system has been changed. Second, to what extent has ER system has been changed? To answer these questions we will first examine the traditional Japanese model and then after considering some issues relating to the reasons of this change, we will analysis the current trends to find out the extent of modification in a number of typical ER practices.
A discussion of the implications of these changes is then be presented, followed by the conclusion. In doing so, the Japanese have been able to copy Western technology, science, education and politics, while still keeping their unique cultural identity.
One distinct feature of Japan that separated it from other Asian countries was it collective culture which has been carried over to the companies Kashima and Callan, Typically, the company is seen as a provider of security and welfare.
To a large extent, loyalty to the company surpasses the family bond. The concept of lifetime employment emerged as a result of the peculiar aspects of Japanese employer-employees relations that were supported by narrow labour markets during the post-war period when Japan experienced a labour shortage for the first time in her industrial history.
This system developed and was established at many large and mid-sized companies during this period of high economic growth. With rapid technology innovation and expansion of businesses, large-sized companies hired inexperienced manpower directly from the labour market and through in-house training and development programs these workers developed various skills and techniques.
According to this system, the decisive factors determining pay are the length of service, age and educational background, not the work performed.
This system presumably comes from the idea that the Confucian traditions, together with an assumption that human is the most important and precious resource of the Japanese, have placed the people at the centre of the management system. Western Influence on Japanese Business Management Essay - Japanese management: how the western influence and the s crises have modified management practices in Japan, and in Japanese companies broadly speaking. Hiromoto, “Management Accounting System as a Micro-Macro Loop,” The Hitotsubashi Review , no.5 (): ; T. Hiromoto, “A Study on Business Organization and Management Accounting” (special committee report of the Japan Accounting Association, ).
The system goes hand-in-hand with the lifetime employment. Traditionally, the seniority-based reward system had two different aims. The second was to make extensive use of non-cash fringe benefits for employees and their families.
In Japan, unions are organized at the enterprise level, collectively bargain with a single employer, and conclude collective agreements on the enterprise level. In principle, it organizes all regular employees of a company indiscriminately into one union, i.
Such a labor union is not dominated by the company; it represents the workforce, and as such, enjoys appropriate prestige and benefits provided by the company.
Relations between management and the union are between insiders, namely, all the members of the union are company employees.
Intervention by outsiders such as industrial and national labor organizations, outside business agents, or attorneys is not tolerated. However, the market became saturated and the economy slowed down, these competitive advantages were turned into liabilities.
Keiretsu banks found themselves saddled with bad debts from group companies, inter-group purchasing became barriers to cost reduction, and excess size of an albeit loyal labour force was viewed as a burden to struggling companies.
Japanese companies were also reacting to the information revolution and were left behind by their American counterparts.
Although, most Japanese companies have found change at a quick pace too much to ask they had to adopt foreign practices and policies in order to survive. Deregulation is another force for change. It has made Japanese markets more accessible to competitors, foreign as well as domestic.
In heretofore-protected industries like financial services, distribution and agriculture few firms are prepared for the onslaught of competition and uncertainty Lincoln and Nakata, The aging population also has clear implications for corporate employment relation practice. With an aging workforce, the permanent employment and seniority system burdens firms with rising numbers of higher-paid and less productive workers.
Previously, these systems were more suitable to employers, since the steep seniority escalator resulted in less payment for the relatively young workforce and the permanent employment norm reduced the uncertainties and costs of high staff turnover.
Even though leading-edge manufacturers are still competitive, their contribution to Japanese domestic employment and income is shrinking, in favor of the emerging service sector as the next great engine of jobs and wealth. Employment practices of sales and service firms are different from those of manufacturing.
Their younger workforce is more mobile, less committed to work and the firm.
Furthermore, since the organization of work in service firms is less team based, individual performance is more easily evaluated. Also, occupational skills are valued over firm-specific skills, so that broad job experience becomes the main driver of wages and performance rather than loyalty to one employer Debroux, ; Lincoln and Nakata, ; Ornatowski, Lifetime employment One of the distinct features of the Japanese employment relations system is lifetime employment.
Japanese workers joins companies at a young age, and spend a larger portion of their life in the company compared to other countries. The figure below can show that Japanese workers in terms of length of service, average number of years and median years compared to workers in other countries was much higher.Management Style: For Better Understanding of Cultural Differences in Comparing MBTI However, these facts still remain in the Japanese management system: Corporations Essay Foreign language Major-related achievement test.
This system presumably comes from the idea that the Confucian traditions, together with an assumption that human is the most important and precious resource of the Japanese, have placed the people at the centre of the management system.
Relevancy of the Japanese Model of Human Resource Management in the Contemporary Business Environment. By late s, most Japanese firms had gained competitive advantages over their European and American counterparts in related industries (Price ).
Hiromoto, “Management Accounting System as a Micro-Macro Loop,” The Hitotsubashi Review , no.5 (): ; T. Hiromoto, “A Study on Business Organization and Management Accounting” (special committee report of the Japan Accounting Association, ).
Japanese Management System Japan is a democratic nation and has a highly refined and formalized culture that is in many ways restrained. The work ethics of Japanese business appears to focus dealing with work pressures in ways that are remarkably different to those of western industries.
And also, was explained historical progress of Japanese management style. Then, shortly was explained structure and types of companies and enterprizes which work in Japan.
The main place in the first half was allocated to Japanese management system’s core characteristics.