Mid‐Career Crisis in Japanese Business Organisations

Abstract

Many Japanese companies still retain seniority‐oriented promotion as the basis of their personnel management. One of its most significant characteristics is that rank and age co‐vary — the older the employee, the higher he is expected to be promoted in the company. Up to the age of 35 the Genten principle applies, involving slow but steady promotion, where junior managers are allowed to make mistakes as a necessary part of training. After the age of 35, the Tokuten principle applies. The manager enters a system where only merit and abilities allow further promotion. In order to be successful a Japanese manager is typically forced to alter his behaviour from that of a conformist to a self‐actualiser as his position goes up the promotional ladder. In the American business organisation, the single, over‐riding principle for promotion is the Tokuten principle — the US businessman has only to prove his merit to be promoted. Many American companies as well as the US‐Japanese joint ventures operating in the US claim that they are to adopt the life‐long employment and seniority‐oriented promotion system in their companies. However, the general trend in the Japanese business community is clearly moving towards the merit‐oriented system with increasingly less emphasis on life‐long employment. Typical Japanese career development and current changes in the promotion system are discussed.

Citation

Suzuki, N. (1986), "Mid‐Career Crisis in Japanese Business Organisations", Journal of Management Development, Vol. 5 No. 5, pp. 23-32. https://doi.org/10.1108/eb051627