Human Resource Management In Japan November 2003 Akiko
Human Resource Management In Japan November, 2003 Akiko Cho
3 major characteristics • ‘Life time employment’ • ‘Seniority’ • The enterprise union
‘Life Time Employment’ • hired directly from school > open market • general abilities > particular skills • a life-long career = no laid-off
Advantage of LTE • Stable Human Resource • Low cost recruitments and training • Company as a family
Investment in individual • Recruitment • Education and training
Recruitments • personal interviews (‘OB/OG’ visits/ companies) • examinations • investigation of the individual and family background • ‘Aota-gai’ • ‘where’ vs. ‘what’
Schedule for Recruitment senior junior B. A. Seminar/ application junior Science/ engineer interview: / exam ‘Naitei’ senior MA ‘Zemi’ ‘Naitei’
Education and Training • Instructor • ‘Saiyo-kikan’< probation • On the Job Training • Job rotation • MBA
How about Women? ? • 1986 : Equal Employment Opportunity Act • ‘jimu-shoku’ vs. ‘sogo-shoku’ • ‘junior college’ vs. ‘university’ • Outsourcing ‘jimu-shoku’
‘Seniority’ pay and promotion • age-grading • length of service • ‘Kogai’ However, considerable pressure with slow economic growth and the extension of life expectancy
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 General Manager Retirement 60 80
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
The enterprise unions • Only company members • no differentiation as to skills or job categories
Administration of Salary • ‘Teiki Shokyu’ = annual increase • ‘Kihon-Kyu’ = monthly basic salary • ‘Base-up’= negotiated salary increase • ‘Bonus’= seasonal allowance • ‘taishoku-kin’= retirement benefit
‘Kaisha’: The Japanese Corporation
Economic structure • Convoy • ‘Zaibatsu’, ‘Keiretsu’ • ‘Dango’
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
‘Kaisha’ • Social institution >economic institution • Owned by the enterprise, NOT by investors • Management by own employees, NOT outsiders
Management Style • Marketing strategy : Market share, growth oriented • HR strategy: Group, team work, resource
The process of decision making • ‘nemawashi’ = informal pre-decision process • ‘ringi’system = circulation of memorandum • By groups vs. by an individual • Meeting for consensus
‘Ringi’ system Last Name Date 2003. 09. 30 2003. 09. 16
Recent Change • ‘freeter’ • Mobility in 20 s, early 30 s‘ • Collapse of the corporate pension funds (401 K: Defined Contribution)
Team work VS. ‘Kaisha’
Change: 1991 vs. 2003(1) Q : Would you like to work more than the average? Source: Shakai-keizai Seisansei Hombu
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……. . Source: Shakai-keizai Seisansei Hombu
Change: 1991 vs. 2001(3) Q : Which company you would like to work? Source: Recruit Co. Ltd.
Change: 1991 vs. 2001(4) Q : If your salary is lower than the average in the industry, then…… Source: Recruit Co. Ltd.
Marketing in Japan November, 2003 Akiko Cho
Consumer market • Culture • Social Classes • Life Cycle • Drive
Marketing Mix : 4 Ps • Price • Product • Place • Promotion
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
Price: ‘Happoshu’ (2) • Shift to Happoshu: 2. 7% in 1995, 30. 0% in 2001 • 2003: Change in liquor tax Consumption Tax 11 YEN(5%) Beer Happoshu (until 2002) 229 YEN 142 YEN 79 YEN (35%) 37 YEN (26 %) Happoshu (2003) 152 YEN 47 YEN (31 %) VS. 139 YEN (61%) Source: Happoshu no Zeisei wo Kangaeru-kai 98 YEN (69%) 98 YEN (64%) Consumption Tax 7 YEN(5%)
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
Product: ‘Bow- Lingual’ • autumn, 2002 • translation kit • 300, 000 products 14. 800 YEN (C) TAKARA Co. , Ltd. 2002 http: //www. bow lingual. info/
Product: CQ Motors(EV) • a traditional toy company • 2002: from toy cars to electronic vehicle ￥ 1, 990, 000(before Tax) (C) TAKARA Co. , Ltd. 2002 ￥ 1, 290, 000(before Tax)
Takara Co. Ltd Source: Takara Co. Ltd
Place x Promotion: ‘NOVA’ • Revenue : 61. 5 billion yen (market share: 50% ) • # of students : 390, 000 (market share: 60% ) • 2001: 24 hrs. 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
- Slides: 38
