RecensionsBook Reviews

Changes in Japanese Employment Practices: Beyond the Japanese Model, By Arjan Keizer, London and New York: Routledge, xii + 204 pp., ISBN 978-0-45-44-758-4.[Record]

  • Peter Matanle

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  • Peter Matanle
    University of Sheffield

The two most significant changes to corporate employment practices in Japan since the collapse of the country’s asset price bubble in the early 1990s have been the introduction of performance related pay and the expansion of the proportion of non-regular employees, writes Arjan Keizer in this excellent and detailed overview of the employment system in large Japanese firms in the early 21st century. Keizer goes on to argue that, despite repeated predictions of a collapse in a corporate system that is rooted in the employment of regular workers at a single organization for the majority of an employee’s working life, no such collapse has taken place and, if the intentions of employees and management to maintain the normative and institutional legitimacy of lifetime employment are anything to go by, there will be no collapse in the foreseeable future (p. 21-23). Such is the nature of a set of practices that is locked into a tight system of national and corporate institutions and which has become deeply embedded into Japanese society as a normative principle. With the theoretical discussions and literature review laid out, Keizer’s study then presents five chapters of detailed empirical analysis that provide the factual basis for the book’s final three chapters of discussions and conclusions. The first of these empirical chapters provides analysis of macro-level data on adjustments in employment and employment practices, while the next four move one by one through the firm level analysis, which is arranged according to their four industrial sectors: automotive and electronics manufacture, construction, and retail. In these we find that management by objectives and performance related pay have been introduced across the board, with some differences in implementation between firms, and that the implementation of these systems does not amount to an abandonment or weakening of lifetime employment. Chapter 8 on the retail sector shows the most marked evidence of the increasing diversity of employment styles in the Japanese firm, with far greater use of non-regular employment than in the other three sectors. Keizer explains this differential by reference to the nature of service sector employment and management in a sector where fluctuations in demand can be sudden and severe. Chapter 9 then provides the first of the books two main conclusions; that the introduction of performance related pay, or seikashugi, has been the most significant change to corporate employment practices, while Chapter 10 argues that the second has been the expansion in non-regular employment. Importantly, Keizer contends that neither of these two changes amount to a change in the nature of the system itself. Indeed they may be indicative of its persistent strength, since seikashugi is described as being enabled by lifetime employment as an adaptation within a more encompassing institutional framework, proving the system’s flexibility and durability. Keizer also argues that the increase in the proportion of non-regular employees, particularly in the retail sector, serves to confirm the continued existence of regular employment as the other side of a persistent employment dualism. We then are introduced, in Chapter 11, to the book’s main conclusions; that the recent history of corporate employment practices can be characterized by the presence of these continued and renewed dualities, and that there has not been an appreciable convergence of Japan on Anglo-American market-based systems. This book demonstrates well that there is no substitute for painstaking and detailed empirical data collection, and that multiple perspectives of analysis are necessary for an accurate representation of contemporary employment systems in developed countries. Keizer investigates the vertical relationships between national, sectoral and firm systems, as well as the coexistence of horizontal differentiation and unity across sectors and …