Human Resource Management

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Human Resource Management

• Keiichiro HAMAGUCHI

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Chapter 4Considerations on Japanese
Employment System
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Employment Security and the Employment System

• The degree of employment security is crucial for
  the nature of employment system.
• Without employment security, US relies on
  external flexibility.
• With employment security, Japan relies on
  internal flexibility.

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(2) The Norm Consciousness and the Government
Employment Policy

• Employers have maintained long-term employment as
  a norm.
• Government policy has contributed to the norm
  with Employment Adjustment Subsidy.

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(3) Structural Change Affecting Employment
Security

• Intensified global competition, shift to service
  economy, change in corporate governance and aging
  of workforce all increase mobility in Japanese
  labor market.
• But core system of long-term employment is still
  maintained for regular workers.

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(4)(a) Merits of Long-term Employment System

• It provides employers incentive to train workers.
• It nourishes cooperation between an employer and
  workers.

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(b) Demerits of Long-term Employment System

• Internal adjustment is time-consuming.
• It lacks fair evaluation system of an
  individuals price.
• It infringes the individuals freedom to choose.
• It may be disadvantageous to women.
• High security for regular workers leads low
  conditions for non-regular workers.

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(5) The Future of Japanese Employment System

• Seniority-based system will be drastically
  modified.
• Security-oriented employment system will be
  maintained, but it will also evolve to new
  balance between internal and external
  flexibility.
• Instead of two options, there shall be various
  combinations of internal and external flexibility.