JAPAN: HR PRACTICES

AND THEIR LINK WITH

CULTURE
BY AHMED NAJEEB, MUHAMMAD UMAIR BAIG, MUSA
MALIK AND TABISH GHANI.
History
• With the rise of Japan as world’s second largest economy, the
inculcation of HR became necessary.
• Development policies.
• Investments.
• A decade of:
• rising unemployment
• Recession
• Low growth

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PEST Factors
Political Economical
• Japanese emperor considered head • Currently third largest economy of
of state the world
• High power distance • GDP $4873 Billion
• Territorial disputes with neighboring • Unemployment: 2.9%
countries
• Govt. regulates employers to not
dismiss employees

Social Technological
• Sinking birth rate • One of the most technologically
• Aging population advanced with focus on learning
• Consumers prefer Japanese products • Other countries compete with them
• Innovating in transport, robotics,
optics and chemicals.

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Japanese Management Model
• Nenko – promotion of senior officers takes precedence.
• Lifetime employment as a means of developing human
capital for organizations in the long run with
recruitment done initially of youngsters from
universities and high schools.
• Enterprise unions for workers below the managerial
levels. Encouraged since there’s no real effort to
organize them, also for temporary employees.

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• Skill formation and internal career development
• In-house training and centrality placed upon on-
the-job training (much of which is informal).
• Job rotation a major aspect of training
• Training done with mentorship from an immediate
superior
• Off-the-job training may be done in cases where
equipment needs to be learnt
• Training subject to appraisals to inculcate individual
learning with long term strategy of the firm.

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Key differences in HR strategies
• Preference given to experience given in the
organization
• Training practices
• Enterprise unionization
• Middle ground between group work and
individualism
• Technological problems emerging due to
advancement

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 Thank you!
Questions?

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