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Human Resource Management
In Japan
November, 2003
Akiko Cho
1
3 major characteristics
• ‘Life time employment’
• ‘Seniority’
• The enterprise union
2
‘Life Time Employment’
• hired directly from school > open market
• general abilities > particular skills
• a life-long career = no laid-off
3
Advantage of LTE
• Stable Human Resource
• Low cost recruitments and training
• Company as a family
4
Investment in individual
• Recruitment
• Education and training
5
Recruitments
• personal interviews (‘OB/OG’ visits/ companies)
• examinations
• investigation of the individual and family
background
• ‘Aota-gai’
• ‘where’ vs. ‘what’
6
Schedule for Recruitment
senior
junior
B.A.
Seminar/
application
junior
Science/
engineer
interview:/
exam
‘Naitei’
senior
MA
‘Zemi’
‘Naitei’
7
Education and Training
• Instructor
• ‘Saiyo-kikan’< probation
• On the Job Training
• Job rotation
• MBA
8
How about Women??
• 1986 : Equal Employment Opportunity Act
• ‘jimu-shoku’ vs. ‘sogo-shoku’
• ‘junior college’ vs. ‘university’
• Outsourcing ‘jimu-shoku’
9
‘Seniority’ pay and promotion
• age-grading
• length of service
• ‘Kogai’
However,
considerable pressure with slow economic
growth and the extension of life expectancy
10
Advantage of ‘seniority’ system
money for wife/ kids
apartment
dormitory
Job
10
20
Highest salary
loan
Marriag
e
House
30
40
manager
Job
University
Education
50
Retirement
60
80
General Manager
11
Fringe Benefit
• Housing: dormitory, apartment
• ‘Zaikei’: savings with higher interest rate
• Extra payment for having a wife and children
• Cost of social security
• Corporate pension fund
12
The enterprise unions
• Only company members
•
no differentiation as to skills or job categories
13
Administration of Salary
• ‘Teiki Shokyu’ = annual increase
• ‘Kihon-Kyu’ = monthly basic salary
• ‘Base-up’= negotiated salary increase
• ‘Bonus’= seasonal allowance
• ‘taishoku-kin’= retirement benefit
14
‘Kaisha’: The Japanese Corporation
15
Economic structure
• Convoy
• ‘Zaibatsu’, ‘Keiretsu’
• ‘Dango’
16
Zaibatsu vs. Non Zaibatsu
Giant holding companies:
-The Mitsui, Mitsubishi and Sumitomo groups
Non-Zaibatsu:
-Vehicles: Toyota, Honda
- Electronics: Hitachi, Sharp, Sanyo, Matsushita, Sony
- Personal Products: Shiseido, Kao, Lion
- Others : Fuji Film, Canon, Ricoh, Seiko
17
‘Kaisha’
• Social institution >economic institution
• Owned by the enterprise, NOT by investors
• Management by own employees, NOT outsiders
18
Management Style
• Marketing strategy :Market share, growth oriented
• HR strategy: Group, team work, resource
19
The process of decision making
• ‘nemawashi’ = informal pre-decision process
• ‘ringi’system = circulation of memorandum
• By groups vs. by an individual
• Meeting for consensus
20
‘Ringi’ system
決
裁 文 書
提案
2003 年 9 月 16 日
決裁
年 月 日
決 裁
所属上長
文書番号
Last Name
Date
認可番号
部
長
課
長
提
2003.09.30
案
合 議
金融グループ
担
当
2003.09.16
件
名
ｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘｘ
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Recent Change
• ‘freeter’
• Mobility in 20s, early 30s‘
• Collapse of the corporate pension funds
(401K: Defined Contribution)
22
Team work
VS.
‘Kaisha’
23
Change: 1991 vs. 2003(1)
Q : Would you like to work more than the average?
2003
1991
10%
17%
30%
47%
43%
53%
Yes
fine with others
Do not know
Source: Shakai-keizai Seisansei Hombu
24
Change: 1991 vs. 2003(2)
Q : You have a date tonight with your boy/girl friend,
but your boss ask you to stay for overtime work……..
2003
1991
21%
38%
62%
79%
stay at office
as scheduled
Source: Shakai-keizai Seisansei Hombu
25
Change: 1991 vs. 2001(3)
Q : Which company you would like to work?
1991
2003
24%
42%
58%
76%
Good salary but hard work
Avg salary and avg work
Source: Recruit Co. Ltd.
26
Change: 1991 vs. 2001(4)
Q : If your salary is lower than the average in the industry,
then……
2001
1991
16%
26%
32%
27%
57%
42%
change job/company near the future
work harder for better salary
do not care about money
Source: Recruit Co. Ltd.
27
Marketing in Japan
November, 2003
Akiko Cho
28
Consumer market
• Culture
• Social Classes
• Life Cycle
• Drive
29
Marketing Mix : 4Ps
• Price
• Product
• Place
• Promotion
30
Price: ‘Happoshu’(1)
• Beer: malt, hops and water
• 60% : the consumption of alcohol beverage
• 1994: Happoshu sparkling low malt beverage
Source: The Brewers Association of Japan
31
Price: ‘Happoshu’ (2)
• Shift to Happoshu: 2.7% in 1995, 30.0% in 2001
• 2003: Change in liquor tax
Consumption
Tax
11YEN(5%)
Beer
Happoshu
(until 2002)
229 YEN
142 YEN
79YEN
(35%)
37YEN
(26 %)
Happoshu
(2003)
152 YEN
47YEN
(31 %)
Consumption
Tax
7YEN(5%)
VS.
139YEN
(61%)
Source: Happoshu no Zeisei wo Kangaeru-kai
98 YEN
(69%)
98 YEN
(64%)
32
Price x Product : UNIQLO
￥1,900
• Low Price, High Quality
• 1998: Tokyo area
• 2002: Olympic Uniform
￥1,900
￥3,900
Copyright (C) 2003 FAST RETAILING CO., LTD. All Rights Reserved.
￥3,990
33
Product: ‘Bow- Lingual’
• autumn, 2002
• translation kit
• 300,000 products
14.800 YEN
(C) TAKARA Co.,Ltd. 2002
http://www.bow lingual.info/
34
Product: CQ Motors(EV)
• a traditional toy company
• 2002: from toy cars to electronic vehicle
￥1,990,000(before Tax)
￥1,290,000(before Tax)
(C) TAKARA Co.,Ltd. 2002
35
Takara Co. Ltd
Source: Takara Co. Ltd
36
Place x Promotion: ‘NOVA’
• Revenue : 61.5 billion yen (market share: 50% )
• # of students : 390,000 (market share: 60% )
• 2001: 24hrs. Operation; ‘any time, anywhere’
(C) NOVA Co.,Ltd. 2002
37
Reference
Kaisha -The Japanese Corporation-, James C. Abegglen,
George Stalk Jr., Charles E. Tuttle Company, Tokyo, Japan,
1987
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