Abstract
Since the breakdown of the bubble economy, many people have claimed the breakdown of the seniority system. However, another main pillar of Japanese-style management, long-term, or ‘lifetime’, employment, has remained almost unchanged. Since these two systems are complementary, some inconsistency must occur when one of them changes. For competitive advantage under global competition, Japanese firms must achieve a dynamic compatibility between strategy and management style, as well as ensure value creation in innovations. This new style must reflect an element of positivity from individual employees. For long-term advantage, the output of the individual must be difficult for competitors to reproduce. In this respect, firms need to develop their own in-house human resources rather than recruit personnel from the external labor market. Such a system would augment the debate on long-term or lifetime employment and answer the demerits of such employment. Where high performers are able to move to other companies, knowledge that could give rise to nonimitability cannot accumulate within a firm. Companies must therefore cultivate a new type of commitment, based on the management of developing an attitude of autonomy or positivity in employees – in other words, empowerment.
Published Version
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