japanese company structure vs american company structure
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Japanese company structure VS American company structure. Key concepts to understand Japanese Business system. 年功序列(ねんこうじょれつ) -Salary goes higher as you get older 終身雇用(しゅうしんこよう) - Once you are hired by the company, you will work for it until you retire 人事異動(じんじいどう)

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key concepts to understand japanese business system
Key concepts to understandJapanese Business system
  • 年功序列(ねんこうじょれつ)

-Salary goes higher as you get older

  • 終身雇用(しゅうしんこよう)

- Once you are hired by the company, you will work for it until you retire

  • 人事異動(じんじいどう)

- You are assigned various kinds of jobs in different departments within the company

salary
Japan

‘年功序列’

(ねんこうじょれつ)

-You get higher salary as you get older

Salary you get now is not always related to your current performance

US

Your salary is based on your current performance

Salary
findings
Findings
  • You need to stay in the company until you retire to get the salary that you haven not received
  • This salary system (年功序列) is closely related to 永年雇用 system
company system
Japan

Cross functional

Workers are assigned various jobs within a company

 人事異動(じんじいどう)

Your career is developed within a company

Ex)A marketing senior manager is promoted to a HR Vice president

US

Vertical functional

Workers are promoted within a department

Your career is developed within a market

Company system
recruiting and promotion decision makers
Japan

HR department

They have the function

of recruiting and

promoting of allover the company

US

Each department

There are recruiters but each department often has recruiting functions too

Managers of each department usually has promotion functions

Recruiting and Promotion Decision makers
skills required
Japan

General skills is required in a company

Workers try to get overall skills that is necessary to fulfill various jobs in a company

US

Special skillsthatis required for a job in the market

Workers try to get special skills that is necessary to fulfill a specific job

Skills required
commitment
Japan: Lifelong (終身雇用)

Once you are hired to the company, basically you will work for the company until you retire

Exception)Workers are sometimes sent to an another company that has relation with his/her company but mainly it is for making stronger connection between companies

US: Short term

You change companies or jobs and proceed within the market

Average Americans have 6-8 different jobs and 3-4 different occupations

Commitment
japan good points bad points
Good

You are able to see overall company, which helps you to be a manager who is fully understanding the company

Insider CEOs care more about company future or reputation than their own reputation or benefit

Strong company culture and strong loyalty is developed

-employees are thought to be assets rather than cost

You can save the cost for workers who quit jobs

Bad

It is not easy to leave a company which you find you do not fit

You might be assigned to a department that you do not desire

Not getting people who has experience in a different market makes companies more difficult to get new wind

It is not easy to fire low productive workers

Japan:Good points/ Bad points
us good points bad points
Good

Flexible-you are able to change companies, jobs as you desire

You can fire low productive workers easily

Getting new workers who has experience of a different market or jobs brings new wind to a company

Bad

It is not easy to share company culture with new workers

It is expensive to advertise a job opening, recruit and train a new worker

Outsider CEOs care more about their own reputation or benefit than company reputation of future

Companies lay-off employees easily, employees quits easily

-low trust

US:Good points/ Bad points
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