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Japanese Shukko Technique

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Japanese Shukko Technique
WISSENSCHAFTSZENTRUM BERLIN FÜR SOZIALFORSCHUNG

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SOCIAL SCIENCE RESEARCH CENTER BERLIN

FS IV 98 - 5 Shukko in Japanese Companies and Its Economic and Managerial Effects

Shiho Futagami* Tomoki Waragai** Thomas Westphal***

* Yokohama National University ** Waseda University *** Wissenschaftszentrum Berlin für Sozialforschung

June 1998

ISSN Nr. 0722 - 6748

Forschungsschwerpunkt Marktprozeß und Unternehmensentwicklung Research Area Market Processes and Corporate Development

Zitierweise/Citation: Shiho Futagami, Tomoki Waragai, Thomas Westphal, Shukko in Japanese Companies and Its Economic and Managerial Effects, Discussion Paper FS IV 98 - 5, Wissenschaftszentrum Berlin, 1998. Wissenschaftszentrum Berlin für Sozialforschung gGmbH, Reichpietschufer 50, D-10785 Berlin, Tel. (+49 - 30) 2 54 91 - 0

ABSTRACT Shukko in Japanese Companies and Its Economic and Managerial Effects by Shiho Futagami, Tomoki Waragai, Thomas Westphal Japanese-style management is characterized by the traditional practice of so-called lifetime employment. Shukko plays an important role in supporting and supplementing Japanese long-term employment. Shukko involves the transfer of parent company employees to an affiliated company or a non-affiliated company. In Japan’s current prolonged recession, Japanese companies are forced to transfer employees to affiliated companies and non-affiliated companies in order to cut personnel expenses. So Shukko has negative implications. However, Shukko also has positive aspects. Japanese companies have strategies to educate and train employees and to enable them to acquire know-how through Shukko in affiliated companies and non-affiliated companies. This allows Japanese companies to adapt their capabilities in a flexible way to a changing environment.

ZUSAMMENFASSUNG Die ökonomischen und managementbezogenen Wirkungen von Shukko in japanischen Unternehmen Eine Besonderheit japanischen Managements ist die Praxis der



Bibliography: Hanada, Mitsuyo; Jinji seido ni okeru kyôsô genri no jittai - Shôshin/Shôkaku shisutemu kara mita nihon kigyô no jinji senryaku (The Principle of Competition in the Personnel System - The Personnel Strategies of Japanese Companies Seen From Promotion- and Status Raising Systems); Soshiki Kagaku (Organizational Science); Vol. 21, No. 2; 4453; Maruzen; Tokyo; 1987. Nagano, Hitoshi; Genka no kigyô gurûpu nai jinzai idô: Shukko no tenbô to taisaku (The [Career] Movements of Talented Employees in Present Corporate Groupings - Prospects for and Counter-Measures Through Shukko); Seikei-Ronsô (The Review of Economics and Political Science); Vol. 61, No. 5-6, 191-213; Meiji University, Tokyo; 1993. Pucik, Vladimir; Promotion Patterns in a Japanese Trading Company; Columbia Journal of World Business; Vol. 20; No. 3; 73-79; Columbia University, New York; 1985. Rosenbaum, James E.; Tournament Mobility: Career Patterns in a Corporation; Administrative Science Quarterly; Vol. 24, No. 2; 220-241; Cornell University, Ithaka, New York; 1979. Rosenbaum, James E.; Career Mobility in a Corporate Hierarchy; Academic Press Inc.; Orlando, Florida; 1984. Rômu Gyôsei Kenkyûjo (Research Institute of Labor Administration); Gakureki seibetsu nyûsha nendo betsu ni mita teichakuritsu no jittai (Facts about the Rate of Fixation According to Academic Background, Gender and Year of Entering a Company); Rôsei Jihô; No. 3229; Tokyo; 1995. Urabe, Kuniyoshi; Nihonteki keiei wo kangaeru (Considering Economics Typically Japanese) ; Tokyo; Chuo Keizaisha; 1978.

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