The system of the life time commitment and groupism encouraged employee dependence and suppressed individual creativity.
The Inherent Weaknesses of
Japanese Management
The system of the life time
commitment and groupism encouraged employee dependence and suppressed
individual creativity.
The employment system
discriminated against non-life time employees and prevented the formation of a
free horizontal labour market.
The seniority based system of
rewards created a promotion grid lock for middle management and especially for
the younger outstanding employee. By the mid -1980s the entire
system of Japanese management faced three major challenges: After the dramatic rise in the
value of Yen, the problem of cost containment became much more difficult. How
to reduce labour cost and restructure without restoring to massive layoffs had
become a problem. How to continue to motivate
employees in a new environment in which the system of evaluation and rewards,
as well as employee attitudes and expectations are fast changing; How to redesign employment
relationships in a way that would blend the advantages of the order system of
dependence in the company with the necessity to promote employees
self-reliance, initiative and creativity.
Tags : Management Concepts & Organisational Behaviour - Japanese Management Practices
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