“JAPANISATION” AND RECENT DEVELOPMENTS IN BRITAIN
| DOI | https://doi.org/10.1108/eb055125 |
| Published date | 01 April 1988 |
| Pages | 6-12 |
| Date | 01 April 1988 |
| Author | Steve McKenna |
| Subject Matter | HR & organizational behaviour |
"JAPANISATION" AND RECENT
DEVELOPMENTS IN BRITAIN
by Steve McKenna
School of Business Administration, Ealing College of Higher Education, UK
Introduction
The idea that Japanese management and employee relations techniques are slowly but surely impacting on
the thoughts and practices of British management is one which is currently receiving much attention in both
management [1] and academic literature [2]. This article assesses the utility of the concept of "Japanisation"
by reviewing recent developments in British industry. It will outline what Japanese practices are perceived
to be, whether such practices are being adopted by British and other foreign-owned companies operating
in Britain and will conclude with some thoughts on the concept of "Japanisation".
Japanese Employment Practices
There is general agreement among writers, although
differing stress, as to what constitutes Japanese
employment practices [3]. Many writers have argued
that a very large element of the commercial success
of Japanese companies should be attributed to the key
features of Japanese employment practices: lifetime
employment, seniority wages and enterprise unionism.
Lifetime employment refers to the belief that most
Japanese employees in large enterprises enjoy security
of employment at least until the age of 55. It has been
argued that the practice of lifetime employment has
particular implications for flexibility and training. The
long-term security of employment offered to employees
requires that they have "to be willing to undertake a
range of jobs, and in the prosperous times work rather
longer hours". This suggests functional and numerical
flexibility is required of the workforce in relation to multi-
skilling and hours of work [4]. Some of those who have
considered Japanese employment practices, however,
have suggested that, despite such flexibility,
"commitment" to lifetime employment can cause
considerable problems for Japanese companies in
recessionary economic conditions, for example, through
the under-utilisation of staff [5].
The second "pillar" or key feature of Japanese
employment practices is the seniority wage principle
or the seniority system. This refers to the practice by
which employees, throughout a particular company, are
ranked primarily, but not exclusively, on the basis of the
length of service, and independently of the precise
nature of the job performed. Marchington and Parker
[6] have noted the significant rigidities which such a
system introduces into the wages system, and again,
as with lifetime employment, companies in Japan
appear to be weakening their commitment to the
practice in order to enhance their competitive
advantage [7].
The typical organisation of trade unions in Japan is
within the enterprise; that is, trade unions are congruent
with the company (rather than industry-wide or
occupational) [8]. It is this form of unionism which
constitutes the third pillar of the Japanese system. The
outstanding features of enterprise unionism are that
membership is restricted to permanent and regular
employees of an enterprise; all workers both manual
and non-manual are organised in one union; union
representatives are elected from, and by, the workforce,
and are paid by the unions; and although most
enterprise unions are affiliated to an external federation,
they retain great autonomy.
Secondary Practices
It is generally argued that the consequences of these
"three pillars" of Japanese employment practices will
be to produce a workforce overwhelmingly committed
to the long-term business success of the enterprise in
which they work. However, there are other, equally
significant, institutional and structural supports within
enterprises which underpin the "three pillars" and
further compound the workforces' commitment to the
enterprise. These supports are also regarded as typical
of the Japanese system of employment practices and
should be briefly outlined.
The first supplementary supports to the "three pillars"
are
recruitment and selection practices. Given that most
new recruits to large Japanese enterprises are likely to
spend the majority of their working lives with that
enterprise or company, it is hardly surprising that the
recruitment and selection processes in Japanese
companies are rigorous. Most employees are recruited
from school or university and trained "on the job" to
fit the organisation's requirements. They are subjected,
in effect, to an organisation-specific socialisation
process.
The "three pillars" are also supported by salary and
bonus systems. While the recruitment and selection
practices are most specifically linked to lifetime or
long-
term employment, salary and bonus systems are
primarily associated with the seniority wage system, in
that pay is primarily determined by length of service,
and payment systems are often constructed around this
philosophy. These practices have been the subject of
criticism particularly from the view that they restrict
ER 10,4
1988
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