Hybrid Japanese Human Resource Management in the Post-bubble Economy & Aging Society of Japan
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Abstract
Background and Objectives: Prior to entering into a recession, Japanese human resource management systems had garnered recognition for best practices, which were introduced in various countries. This paper seeks to understand the format of Japanese human resource management during times of economic and social change in accordance with the framework of strategic choice theory. In doing so, we hope to provide adjustment guidelines for Thai business operators, employees, or investors who conduct their operations in Japan. The paper first introduces the concept of Japanese human resource management systems in terms of lifetime employment, seniority-based promotion and union enterprises. Secondly, this paper analyses the impact of economic recession, a rapidly aging society, as well as changing legisterative and societal values on the system. Thirdly, this paper investigates the hybridization of this system in the postbubble economy of Japan.
Methodology: Drawing on strategic choice theory and other relevant literature in the area of Japanese management systems, the author extensively reviewed and analyzed the content from both primary and secondary data sources. Sources include textbooks, research papers, academic articles, theses, reports, periodicals, newspapers, as well as internet documents. Thus, an integrative model of hybrid human resource management in Japanese organizations was developed.
Main Results: At present, Japanese human resource management includes a harmonious combination of traditional Japanese human resource management and that which is dictated by market mechanisms. As such, people with experience as well as immigrants and new graduates are employed as well. The types of employment have also been differentiated. The assessment of their work depends on work outcomes; however, the seniority-based system is still maintained. This mixed type of performance appraisal is observed to be varied from one organization to the next. Union enterprises shift their roles from serving as mechanisms of job security for the employees, to employee participation and involvement at the top level. This integrative model of a human resource management system emanates from the negotiation processes between the outer and inner contexts of each Japanese firm.
Discussions: The results of this research show the influences of economic, political and societal values that affect one another in specifying the future of organizations and the roles administrators play in choosing a human resource management strategy that is appropriate. The author advocates for the recognition and awareness of human resource management system changes in response to the context of socioeconomic development not only among employees, but also employers and other relevant agencies.
Conclusions: Socioeconomic factors along with shared decision making by stakeholders in the organization become the outer and inner driving forces respectively for Japanese traditional human resource management to develop into a hybrid system. Acknowledging the importance of strategic choice, this paper provides insight into the transformation of Japanese human resource management and opens new avenues to apply this practice in responsive business world.
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