Human Resource Management in Japan

The purpose of this study is to examine the human resource management (HRM) problem affecting major Japanese companies in order to assess the effectiveness of such policies in an era of a changing global environment. In addition to examining and analyzing the evolution and application of HRM practices in Japan, this study develops a case study of the changes in HRM practices at Nissan Motor Company that were implemented as a part of that company's Nissan Revival Plan (Sproule, 2005).

The Bubble Economy in Japan was essentially a wildly speculative boom that eventually collapsed as all such speculative booms eventually do. An understanding of the Bubble Economy requires that the economic stage be set (Woods, 1992).

The sixth period of modern economic development in Japan covered the years 1965 through 1979. During this period of development, Japan reoriented much of its economy toward the international economy (Wilson, 1985). The crude oil crises of the 1970s caused serious problems for the Japanese economy. The country weathered the storm, however, and developed into a major player in the world economy (Sarathy, 1989).

The seventh period in modern economic development in Japan began in 1980 as the Japanese economy matured. During this phase of economic development in Japan, growth in gross domestic output slowed, which is typical in a mature economy, and the country was required to deal with probl

cial roles of employees and companies, led to a set of social concepts that defined the employment experience in Japan. The traditional Japanese organizational practices related to employment include (a) lifetime employment with the same firm, (b) non-specialized career paths, (c) slow promotions, and (d) a holistic organizational orientation (Maher, 1985). As is true of a successful Japanese family, the goal in the management of Japanese employment relationships has always been harmony within the group. Individuality is second in importance to peace in the Japanese family. Although the father of the family made the major decisions, the other family members were expected to discuss potential activities among themselves and decide courses of action without conflict. The family as a group took the agreed-upon action. These characteristics are diametrically opposite of the characteristics of the typical family in the United States (Schmidt, 1996). Thus, the Japanese family developed highly disciplined individual members who became obligated to fulfill the group's purposes. The group harmony provided collective responsibility and the individual was judged on how he contributed to the group. After the Japanese male left the cl