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 problems - both internal and external - that threatened continued economic progress (Wickman, 1993).
In the late-1980s, speculation became the byword for investment activity in Japan (Goldstein, 1992). As a consequence, a "bubble" developed in relation to asset prices - land, securities, and practically everything else (Terazono, 1994). Eventually, the "bubble" burst in 1991 following a four-year spiraling increase in asset prices (Impoco, 1993).
The profitability of Japan's leading corporations was severely deflated by the...