Human Resource ManagementKeiichiro HAMAGUCHI

CONTENTS OF LECTURE ON HUMAN RESOUCE MANAGEMENT (WINTER 2007 HAMAGUCHI)

• Chapter 1: Japanese Employment System 2007/04/02 13:20• Chapter 2: Historical Development of Japanese Employment System• Section 1: Long-Term Employment Practice 2007/04/09 13:20• Section 2: Seniority System 2007/04/16 13:20• Section 3: Industrial Relations 2007/04/23 13:20• Chapter 3: Legal Aspects of Japanese Employment System• Section 1: Employment Contract and Work Rules 2007/05/07 13:20• Section 2: Recruiting and Hiring 2007/05/14 13:20• Section 3: Retirement and Dismissals 2007/05/21 13:20• Section 4: Assignment, Transfers and Disciplinary Action 2007/05/28 13:20• Section 5: Wage System and Working Hours 2007/06/04 13:20• Section 6: Trade Union and Labor-Management Consultation 2007/06/11 13:20• Section 7: Regular Workers and Non-Regular workers 2007/06/18 13:20• Section 8: Male Workers and Female Workers 2007/06/25 13:20• Chapter 4: Considerations on Japanese Employment System 　

2007/07/02 13:20• Examination 2007/07/09 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 1st 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.