This book examines corporate reform in Japan by focusing on corporate governance and the employment system. Contrary to a prevailing assertion of radical change, it is revealed that actual change is gradual, and a new type of Japanese firm is generated by reform with gradual change. Throughout the book, Japanese firms are seen to be evolving through gradual institutional change. Chapter 1 discusses how Japanese corporate governance changed incrementally and cumulatively to rebuild management and restore corporate performance. Chapter 2 focuses on reform in work organization and discusses how performance-related pay was introduced in tandem with corporate governance reform. It is shown that the practice of long-term employment has been maintained despite the prolonged depression and mounting pressure to shift to shareholder-oriented corporate governance. Chapter 3 investigates how Japanese firms are diversified into four types, based on whether performance-related pay is introduced and whether long-term employment is maintained. The author demonstrates that major Japanese firms reconstruct their organization as hybrid structures based on a combination of long-term employment and performance-related pay. Chapter 4 investigates how performance-related pay actually operates. It is analyzed by distinguishing the three main objectives to be attained by performance pay: succeeding in individual performance, contributing to overall organization performance, and meeting the challenge of new tasks. Finally, Chapter 5 investigates how employees react to changes in corporate governance. Using survey data, the book shows that Japanese employees approve of increasing shareholder value, regarding it as corporate value. They not only approve the monitoring of management by shareholders, but also demand a part in the monitoring. Employees seek to be engaged in corporate governance—a true challenge for a Japanese corporation.

scihub/10.1007/978-981-10-8851-3.pdf

zlib/no-category/Miyamoto, Mitsuharu/[Evolutionary Economics and Social Complexity Science] The new Japanese Firm as a Hybrid Organization Volume 16 ||_101612315.pdf

Mitsuharu Miyamoto; SpringerLink (Online service)

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宮本光晴, 1948- author

Springer Science + Business Media Singapore Pte Ltd

Springer Nature Singapore

Evolutionary economics and social complexity science, 16, 1st ed. 2018, Singapore, 2018

Evolutionary economics and social complexity science, volume 16, Singapore, 2018

Springer Nature, Singapore, 2018

Singapore, Singapore

2, 20180509

sm69702634

producers:
Adobe PDF Library 15.0

Preface and Acknowledgment 6
Introduction 7
Contents 12
Chapter 1: Change and Continuity in Japanese Corporate Governance 14
1.1 Introduction 14
1.2 Traditional Japanese Firm: Managerial Autonomy 15
1.3 Banking and Managerial Crisis 18
1.4 Increase in Dividends and Introduction of the Executive Officer System 22
1.5 Reform of the Board of Directors 26
1.6 Gradual Institutional Change in the Corporate Governance Structure 30
1.7 Further Change 33
1.8 Concluding Discussion 34
Chapter 2: Reform of the Work Organization: Performance-Related Pay and Employment System 36
2.1 Introduction 36
2.2 Introduction of Performance-Related Pay 37
2.3 Modification of Performance-Related Pay 39
2.4 Long-Term Employment and Its Employment Rule 41
2.5 Dualism in Labor Markets 45
2.6 Pay for Job Versus Pay for Competence 49
2.7 Problem of Internal Labor Market 51
2.8 Concluding Discussion 55
Chapter 3: Diversification of Japanese Firms: How Did a Hybrid Organization Emerge from Corporate Governance Reform? 57
3.1 Introduction 57
3.2 Findings on the Change in Japanese Firms 58
3.3 Analysis 64
3.3.1 Estimation of the Board Reform 64
3.3.2 Estimation of the Employment Policy 68
3.3.3 Estimation of the Introduction of Performance-Related Pay 73
3.3.4 Estimation of the Diversification of Japanese Firms 76
3.4 Concluding Discussion 81
Chapter 4: How Do Japanese Employees React to Performance-Related Pay?: The Working of Hybrid Organizations 85
4.1 Introduction 85
4.2 Hybrid Organization 86
4.3 Previous Studies 89
4.4 The Scheme of Performance-Related Pay 93
4.5 Estimation of the Work of Performance-Related Pay 99
4.6 Concluding Discussion 111
Chapter 5: How Are Japanese Employees Reacting to Changing Corporate Governance? 115
5.1 Introduction 115
5.2 Overview of Corporate Reform in Japanese Firms 116
5.3 Employees’ Attitudes to Corporate Governance 118
5.4 Estimation of Employees’ Attitudes 123
5.5 Employees’ Voice in Management 135
5.6 Concluding Discussions 139
Chapter 6: Conclusions 143
6.1 Gradual Change in Corporate Governance 144
6.2 Reform of the Employment System: Radical or Gradual 145
6.3 Diversification of Japanese Firms 147
6.4 The Work of Performance-Related Pay Within Hybrid Organization 149
6.5 Employees’ Attitudes to Changing Corporate Governance 151
References 154

2018-05-12