2. 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）
- You are assigned various kinds of jobs in
different departments within the company
3. 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
4. Difference of salary you get and
salary based on your performance
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
22 30 40 50 60
Salary you get
Salary base on your
performance
5. 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
6. 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
7. 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
8. 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 skills that
is required for a
job in the market
Workers try to get
special skills that
is necessary to
fulfill a specific job
9. 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
10. 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
11. 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
