unique Japanese characteristics in the areas of recruitment, training and
development, group-based activities including decision-making, quality control
and incentives, and other management practices such as just-in-time (JIT) and
total quality management (TQM) were also being adopted (Sako and Sato, 1997).
In post-war Japan, employees were recruited from different levels of grad-
uates. The first group were factory workers who came from regional middle
schools. The second were high school graduates who would work as factory
workers or lower level clerks. The third was composed of administrative strata
candidates who had experienced an urban lifestyle, came from the middle class
and were university graduates (Sano, 1995). While each group was distinct, the
common denominator was the fact that they were selected directly after grad-
uation without work experience. Selection was related not to special technical
skills or knowledge, but to more general abilities and characteristics.
Individuals would follow the organisational needs for their career development
and the company would provide training for individuals to achieve that goal.
Therefore, training and development are crucial for both individuals and
organisations to be able to fulfil the operational tasks in both the short and
long term. In Japanese organisations, internal training and development are
pivotal HRM functions (Morishima, 1999: 331). As Koike (1988 and 1992)
found, the Japanese training system emphasises the content of employee learn-
ing on the job; so-called ‘on-the-job training’ (OJT). Most Japanese firms pay
attention to problem-solving and decision-making skills for routine and non-
routine problems and systematically use OJT to train workers to handle pro-
gressively difficult non-routine operations.
The philosophy of collectivism is also found in the Japanese organisation
in terms of its group-oriented approach. Group-based activities include team-
work and decision-making. Quality control and incentives are common man-
agerial practices. In the Japanese organisation, decisions are group-based (Sano,
1995). Employee participation and the reaching of consensus are important
steps in the decision-making process. It may take time to make the final deci-
sion but implementation can then be quick and smooth due to the better
understanding of a particular decision among employees. Total quality man-
agement (TQM) and quality control circles (QCC) are also practices based on
the philosophy of collectivism. QCC usually involves seven or eight workers
from the same work unit and aims not just at the satisfactory execution of
duties assigned to the unit, but also at the improvement (Kaizen) of productiv-
ity, product quality and the work environment (Watanabe, 2000: 314). It is a
collective effort to implement changes for better outcomes and it provides
valuable learning opportunities for employees. In addition, it motivates people
to design and manage their own work (ibid.). Another group-based activity
relates to the payment of bonuses. A bonus is usually considered as a specific
individual incentive, however in Japan the bonus calculation to a large degree
reflects organisational/group performance rather than individual performance.
It is usually paid twice a year and is equivalent to three to five months’
202 International Human Resource Management