The Particular Features Of The Employment System In Japan :: essays research papers

The Particular Features Of The Employment System In JapanOne of the unique and well known features of the Japanese employmentsystem is permanent wave employment for workers. Japanese corporations responses torecessionary periods provide an opportunity to sort bring out the myths from therealities of the Japanese permanent employment system.During recessions Japanese companies forced to reduce their costs happen upon reductions in several ways. First, they reduce the number of women andtemporary workers they employ. During the recession that followed the 1973 oilshocks female employment dropped by eleven percent more then 5 times thedrop in male employment. It was easy to reduce female employment because womeneven if they hold permanent positions are thought of as brief workers whowill leave the workforce when they get married. Female and temporary workers area safety valve for Japanese companies that allow them to reduce costs in the short without firing permanent male workers. T he second way Japanesecompanies reduce costs is by giving early retirement to senior workers at thecompany. numerous of these workers forced into early retirement then take up farmingas is the custom in Japan for retires. Getting rid of senior workers is virtuoso themost effective tools companies have of reducing costs because these workers havemore seniority and thus make more money then the average worker. Japanesecompanies also are able to cut costs during recessions by reducing oreliminating bonuses paid to workers, cutting down on hiring of new workers,eliminating the farming out of work to subcontractors, transferring workersinternally with in the company to subsidiaries, and reducing profit margins tolevels that many American companies would find intolerable.Japanese companies response to recessions shows the benefits anddisadvantages of their employment system. Some of the benefits are that allegianceand labor relations are very good. This is due to the fact that for non-te mporary male workers not yet near retirement age companies make a great effortto continue the permanent employment system even during recessions. Most youngmale workers once entering a company baffle with it for their entire life and forthem Japans permanent employment system serves them well. These workers come toview their company as almost a benevolent parent the company leads them by dint offitness drills, training camps, and retreats. A workers identity is shaped notby their individual title but by the company they belong to.