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Changes in Japanese companies

Employees are not machines

The recent recession has made companies rethink their employment strategies. Traditionally, Japanese companies have promoted people on the basis of age and seniority, at least until they neared top management. A young recruit, no matter how able, has to wait for those above him to be promoted before he too could move up. Foreign firms in Japan have followed the merit-based promotion system and the Japanese working abroad have helped spread the idea back at home. In a survey conducted by the Prime Minister’s Office, young adults are less favorable towards the seniority system. They prefer salaries commensurate with performance rather than age. In addition, nearly three-quarters of men and 70 percent of women in their 20s said that they would change jobs if they could find more challenging employment, compared with 44 percent of all respondents.



The objective of Japanese corporations to have lifetime employment is to ensure employee loyalty. Though an increasing number of lifetime employees switch jobs, most are expected to spend their lives in the same firm. Today’s talk of restructuring comes at a time when values are changing. When lifetime employment was being questioned in the ‘70s, Japan's priority was to build a strong economy and manufacturing base that could hold its own internationally.  No one questioned the need for hard work and personal sacrifice to do this. Now, with that objective met, or even exceeded, people are considering the quality of their lives.

Most Japanese agree that improving quality means working less. In 1992, the total number of hours worked by the average employee dropped below 2,000 for the first time ever, to reach 1,972 hours. But this is a long way from the government’s target of 1,800. Cutting total hours equates to a combination of shortening the working day, adopting a five-day week in more companies, and persuading employees to take longer holidays. The concern is so widespread that even former Prime Minister Hosokawa made a suggestion that the national holidays be clubbed with weekends to give people a chance to have longer breaks for recreation. Tokyo local government offices have their lights switched off at the closing hours to discourage employees from staying late at the workplace (the strategy does not seem to work very effectively since the Japanese still think it is a disgrace to get back home before midnight; so they will kill their time in a bar or go to a pachinko parlor).

 

Continued:  Leisure comes to Japan

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