By J. Abegglen
Japan's economic system and companies are getting into this century with new administration platforms yet their values unchanged. Drawing at the author's research of the Fifties, monetary platforms, group of workers administration tools, position of the company and R&D functions are re-assessed to supply a complete research of Japan's monetary and commercial adjustments.
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Additional resources for 21st-Century Japanese Management: New Systems, Lasting Values
2 Redesign for a Competitive Future Japan’s decade of economic problems and the massive redesign of Japan’s businesses are a direct result of Japan’s amazing economic success since the mid-1950s. In 1955 Japan’s economy was half the size of the economies of France and Britain with per capita output well under that even of Italy. Over the next 40 years the economy grew in US dollar terms by 230 times, becoming by 1995 more than three times the size of the French economy and more than four times the size of the British economy, second in the world to the United States.
Personnel management inevitably was caught up in the need to tighten and rationalize. NEC had in 1946 established a system to encourage and reward long service. After 20 and 30 years of continuous service, the employee received special holiday time and a gift of money. This system was ended and instead, on reaching 30, 40, and 50 years of age, the company will provide five to ten days for “career support” studies, and at age 50, providing as well financing for post-retirement career planning. Nishigaki stated, “Employees must hone their skills in preparation for any number of job changes in the course of their careers.
Asset values plummeted with the end to growth, but liabilities did not. The result was effective balance sheet bankruptcies, and an end to investment as cash flows went to pay off debt and restore balance sheet strength. 0 percent from 1991 to 2002! Too many companies; too many businesses The redesign of Japanese business that has taken place since the mid1990s has required a focus on two sets of industry structure problems, both the consequence of high growth and the behaviors that go with high growth.
21st-Century Japanese Management: New Systems, Lasting Values by J. Abegglen