Keiretsu and management practices in Japan – resilience amid change

Abstract

Changes are under way in Japan’s distinctive human resources management practices as the state of the economy remains fragile following the country’s prolonged recession. However, such changes may not necessarily point to the eventual collapse of the Japanese employment system, as sometimes suggested. Despite the adjustments companies have made to cope with the economic downturn, distinctive human resources management practices in Japan’s large‐scale enterprises are unlikely to disappear altogether. This paper argues that the relationship between large‐scale enterprises and an even smaller segment of the permanent workforce will continue to be defined by distinctive management practices. Thus, what is actually taking place in Japanese management is an ad hoc reshuffle rather than substantial restructuring of internal labor markets.

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