Human Resource Management Keiichiro HAMAGUCHI

CONTENTS OF LECTURE ON HUMAN RESOUCE MANAGEMENT (WINTER 2007 HAMAGUCHI) Chapter 1: Japanese Employment System2007/04/02 13:20 Chapter 2: Historical Development of Japanese Employment System Section 1: Long-Term Employment Practice2007/04/09 13:20 Section 2: Seniority System2007/04/16 13:20 Section 3: Industrial Relations2007/04/23 13:20 Chapter 3: Legal Aspects of Japanese Employment System Section 1: Employment Contract and Work Rules2007/05/07 13:20 Section 2: Recruiting and Hiring2007/05/14 13:20 Section 3: Retirement and Dismissals2007/05/21 13:20 Section 4: Assignment, Transfers and Disciplinary Action 2007/05/28 13:20 Section 5: Wage System and Working Hours2007/06/04 13:20 Section 6: Trade Union and Labor-Management Consultation 2007/06/11 13:20 Section 7: Regular Workers and Non-Regular workers2007/06/18 13:20 Section 8: Male Workers and Female Workers2007/06/25 13:20 Chapter 4: Considerations on Japanese Employment System 2007/07/02 13:20 Examination2007/07/09 13:20

Chapter 1 Japanese Employment System

1 The Essence of Japanese Employment System: The Nature of Employment Contract

(1)Employment Contract without “Job” The “3 imperial treasures” of Japanese employment system are said to be: -Long-term employment practice, -Seniority-based wage system and -Enterprise-based trade unions. But the essence of it lies in the nature of employment contract.

Generally, job should be defined clearly in the employment contract. In Japan, job is not specified in the employment contract. It is up to the order by the employer. Employment contract is a “blank slate” in which particular jobs should be wrote each time. Employment in Japan is not “job” but “membership.”

(2) Characteristics of the Japanese Employment System In the job-based society, if the job is lost, the workers can be dismissed. In Japan, the employer must transfer the workers to other jobs to avoid dismissals. Top priority is the maintenance of membership. In the job-based society, wages should be determined with the job (equal pay for equal work principle).

In Japan, wages are generally determined with length of service and age (apart from job). But actual wage levels are determined with performance evaluation which covers most workers. In the job-based society, collective bargaining is carried out at sectoral level. In Japan, bargaining should be carried out at company level because wages are determined at the level.

2 Aspects of Japanese Human Resource Management

(1) Employment Management At the entry stage, companies hire new graduates simultaneously on 1 st April (new graduate regular hiring system). The authority to hire lies not with line manages but with personnel department. At the exit stage, workers are excluded from the company based on their age (mandatory retirement system). Between them, workers are transferred to another job periodically (job rotation system). They acquire skills via OJT.

(2) Remuneration Management A sort of monthly salary system applies to both blue-collar and white-collar workers. Seniority-based wages are generated by regular pay increase system. Even blue-collar workers undergo performance evaluation, mainly on subjective factors. Promotion in status is also remuneration. Bonuses and retirement allowances are also based on seniority.

(3) Industrial Relations Japanese trade unions are organizations representing all employees in the company. Their main function is labor-management consultation. Japanese collective bargaining focuses on raising the amount of pay increase.

(4) New Challenges This system is applied to only regular workers. HRM for non-regular workers is completely opposite to that for regular workers. They are hired and dismissed occasionally by line managers, not transferred, not trained in- house, paid hourly based on labor market, not promoted, excluded from bonus and retirement allowance, denied membership of unions. In a word, they are not “members” of the company. With the increase of young non-regular workers, these differences becomes social problems.