Companies rely on hiring freezes and on elimination of overtime.
The Emergence of a New
Paradigm
1. Companies
rely on hiring freezes and on elimination of overtime.
2. Extensive
use of job rotation and employee reassignments.
3. Wage, salary and bonus reductions
are shared by all groups in the enterprise; directors, managers as well as
workers.
4. Erosion
of seniority and promotions based on seniority.
5. Companies
are using various forms of early retirement incentives.
6. Relative
contributions of merit factors to pay raises
7. As a result, performance
appraisal systems and wage structures are undergoing changes.
8. Company
and work group loyalties are replaced by individualism.
9. Life time
employment is undergoing change.
10. Hiring on the basis of skills for
specific, narrowly defined job openings is growing.
11. Mobility
among Japanese managers and professionals is also increasing.
12. Japanese employees’ preference
for security over risk and opportunity is also changing.
13. Creation of multi-trade
employment system. Employees hired for life can enter the general track and can
be moved horizontally (job rotation) as well as vertically (grade promotion).
The changes going on are not
designed to destroy the old system, but to increase its flexibility. This is
very much in keeping with the traditional Japanese approach to change, however
fast and deep it is. Continuity with the uniquely Japanese “essence” must be
maintained. The new Japanese emerging paradigm will certainly be different. Yet like the
modern Japanese home which usually retains a Japanese style room among western
style rooms and furniture, the Japanese company will retain a core of Japanese
practices.
Tags : Management Concepts & Organisational Behaviour - Japanese Management Practices
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