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Management Concepts & Organisational Behaviour - Japanese Management Practices

The Emergence of a New Paradigm - Japanese Management Practices

   Posted On :  19.05.2018 11:12 pm

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.
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