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Japanese Company Structure

The document compares the company structures in Japan and the United States. In Japan, lifetime employment is common where workers are expected to stay with a company until retirement. Salaries increase with age rather than performance. Workers are assigned various roles across departments. In the US, employment is typically short-term and salaries depend on current performance within a specific role or department. The Japanese system promotes strong company loyalty while the US system favors flexibility but with potentially lower trust between employers and employees.

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68 views

Japanese Company Structure

The document compares the company structures in Japan and the United States. In Japan, lifetime employment is common where workers are expected to stay with a company until retirement. Salaries increase with age rather than performance. Workers are assigned various roles across departments. In the US, employment is typically short-term and salaries depend on current performance within a specific role or department. The Japanese system promotes strong company loyalty while the US system favors flexibility but with potentially lower trust between employers and employees.

Uploaded by

SHAILY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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）
- You are assigned various kinds of jobs in
different departments within the company
Salary
 Japan  US
‘ 年功序列’
（ねんこうじょれつ）
Your salary is
－ You get higher salary
based on your
as you get older
current
performance
Salary you get now is
not always related to
your current
performance
Difference of salary you get and
salary based on your performance
1000000
900000
800000
700000 Salary you get
600000
500000 Salary base on your
performance
400000
300000
200000
100000
22 30 40 50 60
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  US
Cross functional
Workers are assigned
various jobs within a Vertical functional
company Workers are promoted
　人事異動（じんじいどう） within a department
Your career is developed
within a company
Your career is
developed within a
Ex)A marketing senior
manager is promoted to a market
HR Vice president
Recruiting and Promotion
Decision makers
 Japan  US

HR department Each department

There are recruiters but each


They have the function
department often has recruiting
of recruiting and functions too
promoting of allover the Managers of each department
company usually has promotion functions
Skills required
 Japan  US
General skills is Special skills that
required in a company is required for a
job in the market
Workers try to get
overall skills that is
necessary to fulfill Workers try to get
various jobs in a special skills that is
company necessary to fulfill
a specific job
Commitment
 Japan: Lifelong ( 終身雇  US: Short term
用）
You change
Once you are hired to the
company, basically you will companies or jobs
work for the company until and proceed within
you retire the market
Exception)Workers are
sometimes sent to an
another company that has Average Americans
relation with his/her have 6-8 different
company but mainly it is for
making stronger connection jobs and 3-4 different
between companies occupations
Japan:
Good points/ Bad points
 Bad
 Good  It is not easy to leave a
 You are able to see overall company which you find you do
company, which helps you to be a
manager who is fully
not fit
understanding the company
 You might be assigned to a
 Insider CEOs care more about department that you do not
company future or reputation than desire
their own reputation or benefit
 Not getting people who has
 Strong company culture and strong experience in a different
loyalty is developed market 　 makes companies
-employees are thought to be assets more difficult to get new wind
rather than cost
 It is not easy to fire low
 You can save the cost for workers
who quit jobs
productive workers
US:
Good points/ Bad points
 Good  Bad
 It is not easy to share company
culture with new workers
 Flexible-you are able to
change companies, jobs as  It is expensive to advertise a job
you desire opening, recruit and train a new
worker
 You can fire low productive
workers easily  Outsider CEOs care more about
their own reputation or benefit
than company reputation of
 Getting new workers who has future
experience of a different
market or jobs brings new  Companies lay-off employees
wind to a company easily, employees quits easily
-low trust

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