| Research Abstract |
Since the prolonged economic stagnation following the burst of the bubble economy, Japanese firms have steadily reshaped their human resources (HR) systems and practices. The keyword of the restructuring campaigns has been "performance-oriented", as in performance-oriented HR practices and wage determination. However, it is not clear to what extent performance-oriented testructuring has actually transformed firms' organizational structures and employment systems. Furthermore, previous studies have not investigated how performance-oriented restructuring changed firms' internal pay structures.
To understand these changes, we have applied different methodologies to pursue three fundamental objectives. First, using personal interviews and case studies, we have analyzed the strategies and processes behind the restructuring of firms' organizations and HR practices. Second, using questionnaire surveys, we have tried to identify the degree of diffusion and the determinants of the restructuring.
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Third, using the personnel files of private companies, we have investigated continuities and discontinuities in wage determination following revisions of firms' HR systems.
Our research has revealed the following results. First, evidence from case studies of electronics companies suggests that the firms have shifted their business areas from manufacturing toward services and IT-intensive product development Also, they have bundled their organizational divisions, corresponding to the fusion of their products (for example, the fusion of hardware and software). As a result of this shift toward organizational bundling, large-scale surpluses and shortages of particular types of employees have occurred within firms ; in particular, there have been many redundant manufacturing workers and serious shortages of research & development and design personnel. Second, questionnaire survey has confirmed the findings of the case studies. However, the performance effect of the restructuring is mixed : some companies have restored profitability after restructuring, while others have not. Third, analysis of personnel files revealed the weakening of the age effect on wages and the strengthening of the effect of performance ratings on wages following revisions of HR practices. From these results, we conclude that the decade-long stagnation of the Japanese economy has generated strong pressure for drastic change in firms' organization and employment systems. However, extensive restructuring has not yet yielded a clear recovery of firm performance. Less
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