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Working Paper

Is the Japanese System of Lifetime Employment Applicable to a Developing Country such as Korea?

페이스북
커버이미지
  • 저자 김수곤(金秀坤)
  • 발행일 1983/03/01
  • 시리즈 번호 8203
원문보기
요약 Managers in developing countries try ti imitate the Japanese
lifetime employment system as a means to reduce high employee
turnover rates, Workers, on the other hand, are attracted to the
system because they believe that their jobs would be protected
under the system. This study shows that these objectives can
be achieved to some extent without necessarily adopting the
Japanese lifetime employment system, which, in any case, is
impossible and undesirable.

Form the regression analysis presented above one can
conclude that a low-turnover firm tends to be one in which the
blue collar worker's level of job satisfaction is high, wage rate
is above average, work force is unionized, and in-service
training opportunities are available. This generalization is
consistent with the Japanese experience with the lifetime
employment system that has been based in the recognition of
the values of human resources, the emergence of trade unionism
and industrial democracy, and life-long in-service training
programs.

Implications form the analysis are obvious. In order to
reduce high turnover among blue collar workers, management
should 1) adjust wages of the lower echelon production workers
to be in line with market rates, 2) increase job satisfaction
among workers, particularly with respect to extrinsic factors, 3)
invest in human capital, and 4) permit labor union organization.
Worker's propensity to move may be reduced through fair
administration of company policies and practices, assurance of
job security, and increasing welfare benefits in such a way that
longevity of service with a company is rewarded.

In conclusion, the factors that motivate Korean workers to
commit themselves to their employer do not seem to differ from
those which motivate workers in Japan or any other country.
What one can learn form Japan is the management principles
that Japanese businessmen learned form the West and
successfully practices in Japanese industry.
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