The Japanese bonus system that simultaneously produces this solidarity and

The japanese bonus system that simultaneously

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The Japanese bonus system that simultaneously produces this solidarity and normative binding fulfills its function under circumstances where there is little uncertainty and when the ability to concentrate is important, but in times with greater uncertainty when the ability to adapt to environments through the contributions of diverse and unrestrained individuals is crucial, this can have the adverse consequence of inhibiting risk-taking behavior on the part of individuals. Moreover, the existence of externalities has strengthened the shared responsibility between employees. In this way, under lifetime employment systems, seniority-based wage systems, long working hours, Japanese-style bonus systems and shared responsibility, it could be said that the development of a shared destiny-type situation that emerged during Japan’s high economic growth era, where company growth and regular employee income and status growth readily coincided, also laid the foundations for employees’ acceptance of “being restricted in exchange for job security.” Dysfunction of Japanese-style Employment Systems and the Non-utilization of Women The establishment of these kinds of mutually complementary systems had strategic rationality when built upon the premise of existing systems. However, as for the effectiveness of the systems developed in a mutually complementary fashion, when the premise upon which their functioning depends falls apart due to changing external conditions, it is almost impossible to make partial revisions to transform systems. These systems therefore persist in an inferior equilibrium, representing strong shackles from which many Japanese firms cannot extricate ourselves. Table 1 summarizes this. The combination of R1 and C1 represents the circumstances of a high
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Discuss Japan—Japan Foreign Policy Forum No. 32 growth period. On the other hand, the combination of R2 and C2 represents our current situation, in which lifetime employment and the internal labor market no longer function. This is because lifetime employment spells rigidity for employment adjustments, and because since internal labor markets mean that groups with homogeneous information hold the power to make decisions, they lack the ability to adapt to changing environments. Table 1 C1: Little Uncertainty in the successful model regarding the technological innovation and the like valued in the market C2: Great uncertainty in the successful model regarding the technological innovation and the like valued in the market, and the ability to adapt to changing environments is important. R1: Stable increases in the demand for labor can be expected. Flexibility in employment adjustments is not required. Lifetime employment and internal labor markets function Internal labor markets have an adverse effect; diversity functions R2: Labor demand is uncertain and flexibility is required in employment adjustments Lifetime employment has an adverse effect Lifetime employment and internal labor markets have an adverse
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