Southeast Asian Studies, Vol. 23, No.1, June 1985

Japanese Management in Singapore
Kuniyoshi URABE*

Appendix: Questionnaires for Top JapaneseI

Job-hopping in Singapore

Managers

andQuestionnaires

for

Local

One of the greatest problems Japanese-

Middle Managers, local workers employed byaffiliated companies in Singapore are con-Japanese-affiliated companies continued in

fronted with is job-hopping.

Needless totheir service for 2.5 years on the average insay, job-hopping is the practice of moving

Singapore, for four years in the Philippines,

from one job to another.

and for 4.1 years in Malaysia (Question No.

In Singapore,

there is a tendency among workers to readily

14).

change their employment by finding a posi-very short in Singapore; the separation ratetion in a different company with better pay.
The labor turnover rates being very highis 4.9 % per month and reaches about 60 % a
year. In other words, in a company em-

there, some companies showed even more thanploying 100 local workers, approximately 60

100 % in their annual separation rates.

of them leave every year.

A great many advertisements for workers
are placed in newspapers and magazines
occupying a lot of space.

Thus, the average length of service is

As was mentioned

before, there are some companies where theannual separation rate is over 100%.

Even in com-

The table below shows the numbers andmuting buses, which many companies operate

percentages of local employees classified byfor their employees, similar advertisements are
displayed. A number of job applicants are

the lengths of continuous service in a certain
Japanese-affiliated company in Singapore.

often seen waiting for an interview at reception
offices. It is not rare that when visiting a

Those who left the company within one year
after being employed account for as high asfactory you find several workers who havejust been employed starting a new job.

45.7 %.

separation rate is, the shorter the period ofEvery day, many workers are employed andcontinuous service becomes.

many leave companies in Singapore.

It is natural that the higher theThis isSuch a high separation rate induces heavya phenomenon seldom seen in companies in

expenditure on recruitment and training new

Japan, where fresh graduates are employedemployees and also leads to a high percentage

at fixed periods.
As was shown in the previous issue ofof inferior goods.
It requires time for new employees toSoutheast

achieve optimum efficiency even in simple
work. Thus, a high separation rate serves as

Asian Studies,Vol. 22,

No.4,* ~$~~, School of Business Administration,
Matsuyama University of Commerce, 4-2
Bunkyo-cho, Matsuyama City 790, Japana negative factor in terms of both expenditureand the quality of products.
93

Table The Numbers and Percentages of Employees by the Lengthsof Continuous Service

In Japanese-style management, improvements,

More Than
Less Than I 1-2 I 2-3
I 3-4 I 4-5 I 5 Years
Years Years Years Years
1 YearNumbers

75

319
I

45.7

%

I

10.7

I
I

112

63
I

16.1

I

I

49

I

I

and

innova-tions are continuously

80

made by making use

11.5

of the effects of the

I

7.0

9.0

progress

experience curve, which

Among the advantages of companies inJapan are increases in productivity andresults in yearly rises in productivity andquality.

quality which are attributable to rises inlearning and experience curves. The learning

In the case of companies with a very highannual separation rate of 60 % or so, short-curve represents the degree of proficiency interm employment caused by the high sepa-a job: as one becomes more proficient in aration rate makes it impossible to take fulljob by learning, productive efficiency in-advantage of the effects of the experiencecreases.

In addition to this, an increase in

curve.

Therefore, if the effects of the experi-

productivity due to a rise of the experience

ence curve are to be made use of as they are

curve is also attracting attention: as thein Japan, job-hopping has to be prevented.

accumulative output increases, the cost of
production shows a proportionate, rapid

It is not until job-hopping has been curtailed

decrease. As the effect of the experiencecurve, it is maintained that when the ac-

be implemented to the full extent.
could also be vice versa.

cumulative output

doubles,that the Japanese style of management can
But itthe cost of

production decreases by 20 % to 30 %.
Not merely does a worker's skill increase in

II Promotion of Japanese-style Management

proportion to learning but an increase in the

In view of this, a few years ago the Singa-

accumulative output leads to new ideas for

porean government began to enthusiastically

improvements of working processes, tools andcarry out a policy to promote Japanese-equipment. As a result, quality is greatly
increased and the proportion of inferior goods

style management. For instance, "the Japanese-Style Management Promotion Com-is decreased. Thus, a rise of the experiencecurve greatly contributes to a reduction ofmittee," which includes leading members ofJapanese-affiliated companies was establishedproduction costs.

as an advisory organ directly responsible toCompared with large companies in the U.S.

the President.

The government also broad-and Europe, those in Japan, which are stable

casts the slogan "Learn from Japanese-in terms of employment because of thestyle management" on the radio and television.

adoption of the lifetime employment system,

Here are a few of the suggestions advanced

can be markedly characterized by their using

for the promotion of Japanese-style man-the experience curve to the best advantage
through the long-term employment system.

agement by the above-mentioned committee.
One is the suggestion that the ceiling set on

94

K. URABE:

Japanese Management in Singapore

Until then, bonuses

is, 11 % of the total wages to be paid) and that

had been limited to the amount equivalent to

the interest revenue coming from that fund be

three months' pay as part of the government's

invested for the improvement of intracom-

The bonus system in whichpany welfare facilities such as company

bonuses are paid not only to management

apartments and sports facilities for theirmembers of a company but also to its em-

workers.

ployees in general is one of the characteristics
This system has

corporate solidarity among workers by meansof companies' direct investment in intra-

the advantage of fostering loyalty to thecompany welfare projects in place of thecompany by making the payment of bonuses

government projects and, thereby, at prevent-take on the character of distribution of profits

ing job-hopping.

bonuses be removed.

incomes policy.

of Japanese management.

This proposal aimed at enhancing

It is notable

This proposal was underlain by the idea thatthat the adoption of the Japanese bonus

employees' loyalty to their companies would

system has been suggested as a step toward

be heightened and the rate of labor im-

fostering workers' loyalty to their companies.

mobility would be increased when companies

Another proposal advanced by the com-themselves were responsible for their own

mittee was related to the government's policy
concerning a social welfare fund called thewelfare policies for their employees after theexample of Japanese management style rather

Central Provisional Fund.

In this social

than when the government entirely undertook

welfare system, each employee was obliged

the nation's social welfare policy after theto put 22.5 % of his or her income into the

British style.

or sharing of achievements.

fund and, what is more, each company had

A third proposal made by the committee

to put 22 % of the total wages to be paid into
the fund. In other words, an amount equal

was related to the reformation of the educational system. The practice of job-hopping

to almost half of the total salaries was allotted
for this social welfare fund. The ample funds
thus raised were assigned for, among others,

and the high separation rate can be attributedin part to the fact that Singapore, which was

retirement annuities, housing loans and theconstruction of multistory apartment houses

aspects of British culture. The population ofSingapore consists of about 75 % Chinese,

for workers.

multistory apartment buildings in the vicin-

20 % Malays and 5 % Indians. The peopleof this multiracial nation have a strong sense

ities of their factories was enthusiasticallyof individualism and have a marked tendency

promoted, for the government had adopted
a policy of the adjacency of one's job site andto attach great importance to money.
These aspects and the adoption of British

residence.

culture are reflected in the educational system.

Especially the construction oflong a colony of Britain, has adopted various

In relation to this social welfare system, theFor instance, reflecting the British idea thatcommittee advanced a reform that from 1982

universities are institutes for training the elite,

onward companies reserve half of the sum they

there are only two in all-- the University

were to pay into the social welfare fund (thatof Singapore and Nanyang University.

(As a
95

matter of fact, these two universities werelocal way of management while the remaining

integrated into one in 1982.)

25 % are implementing Japanese-style man-

As a foundation for promoting Japanesestyle management, the Singaporean government adopted a policy to reform the educational

system.

For example,

they

have

agement.

This would indicate that thosecompanies of the acclimatization type overwhelmingly outnumber those of the other
type.

In

practice,

however,theformerdecided to establish a new technological university. Furthermore, they plan to introduce

management more or less.

collective education into elementary, juniorsome companies are actually implementing

and senior high schools; Japanese school

Japanese-style management, though adjusting
to local practices to some extent instead of .

customs and events such as athletic meetings

include companies adopting Japanese-style

adopting entirely

In other words,

the same management

and morning assembly are to be adopted forjunior and senior high schools as part of thesystem as is taken in Japan.

collective training.

some of the other questions will be helpful toThus, the policy of the Singaporean government is to actively promote Japanese-style
management.

In reality, however, it is not

so easy to implement.

One of the six

Japanese-affiliated companies I visited hap-comprehend this.

The answers toHere, I would emphasizethat the companies classified as the acclimatization type (75 %) actually include thoseadopting Japanese-style management to one
degree or another.

pened to be refurbishing its office premises;

Five of the six Japanese-affiliated companies

the refurbishment was for the express purpose

I visited were actively carrying out Japanese-of constructing a private office for the native
manager, for native managers are liable tostyle management,

leave without a private room.

The otherwhich determine a company's policy as tofive companies adopted tl~e policy of large,

whether to adopt Japanese management or

unpartitioned rooms for all office workers

not is the distinctiveness of its products:

including managers, which is one of thewhen a company succeeds in the productcharacteristics

management.

differentiation and therefore has an advan-

Some hesitation persists among Japanese

tageous position in the market, it is easy to

managers about wheter they should push theimplement Japanese-style management, but

Japanese style of management or adapt

when its products are not differentiated andthemselves to the local way of management.

the company is faced with keen competition,ofJapanese

In relation to this, I would like to show someslightly in degree.

thoughtheydiffered

One of the decisive factors

it is difficult to carry out.

This is the caseof the results obtained through the questionnaire mentioned at the beginning of thiswith one of the above-mentioned six companies. This company produces vinyl pipes,

The answers to Question No. 12 tellwhich makes product differentiation difficult,and has decided on a policy of adapting itself

report.

us that 75 % of the Japanese-affiliated companies in Singapore which answered theto the demand of the local managerial per-questionnaire are adapting themselves to thesonnel for private office room.

96

Another

K. URABE:

Japanese Management in Singapore

decisive factor is the type of ownership, thatnew or modernized Japanese style of manage-is, whether a company is owned jointly or
unilaterally. It goes without saying that whenment is being developed in the Japanese

a company is a joint venture and the local side
has the right of management with a local

examine from an evolutionary standpoint theactual development of Japanese-style man-owner installed as president, it is most difficult

agement now carried out in Singapore.

companies overseas.

Next, I would like toto implement Japanese-style management.
When a company is a joint venture and its
management is entrusted to the Japanese side(i)

The Separation of Ownership and Managementwith a Japanese appointed as president, theOne of the characteristics of Japanese-styleactive promotion of Japanese-style manage-

management is the separation of ownership

ment is possible to some extent.

and management.

And when

In Southeast Asian coun-a company is entirely owned by Japanesetries, local companies are usually small inenterprise, Japanese management can be mostscale and many of them are family concerns.

easily carried out.

Furthermore, the stockmarkets are still at an

In view of this, Japanese-

affiliated companies in Singapore tend tounderdeveloped stage.

change their ownership structure to that of a

not usual for capital and management to bewholly-owned subsidiary.

Among the few

separated.

Accordingly, it isThis means that when a jointcompanies which have recently made thisventure is undertaken capital and managementchange is Seiko's subsidiary in Singapore.

can easily be linked together; the local ownermore often than not holds the right of management and, as a result, the actual manage-

III Evolution of Japanese-style
Management in Overseas Enterprises

ment style takes on a capitalistic feature.

The Japanese style of management which ischaracterized by the separation of ownership

now being implemented overseas certainly

and management and the entrusting ofshares some of the characteristics of Japanesemanagement to a managerial expert, that is,

management described by James A begglen,
who did research into the Japanese companies

the professionalization of the managerial
function. On the basis of this separation ofof the 1950s.

Among them are the lifetime

capital and management, other factors of

employment system, the wages system based

Japanese-style management are incorporated.

on seniority, the seniority promotion system

For instance, in the case of a joint venture

and the company's own welfare system.

In contrast, Japanese-style management is

Butformed by Mitsubishi Electric Co. and a

it is also true that Japanese-style management

Singaporean owner, Mitsubishi's share ac-developed in Japanese enterprises overseas

counted for only 35 % of the capital of thehas some different characteristics, that is,company, but management was entrusted to

aspects considerably different from those J.

Mitsubishi Electric Co. after a failure due to

Abegglen characterized as the Japanese lifetime employment system. In other words, amismanagement by the local owner.

In thebeginning, the joint venture was headed by a97

Singaporean president and Mitsubishi af-

growth of South Korea and Taiwan.

forded technological and managerial support.
With the local owner as president, however,result, salaries almost doubled in two years.
The reform of the industrial structure

the management of the corporation could not
help assuming a capitalistic character and thecorporation did not produce satisfactory
results. After a Japanese managerial expert
was installed as president, however, it began
to make a better showing.
Culture and conditions in Southeast Asia
make it difficult for companies there to makemeant shifting labor-intensive industries outof Singapore to other countries and inviting
technology-intensive industries to take theirplace. Because of this, a subsidiary of Matsushita Electric Co., for example, discontinued

the separation of capital and management anda capitalistic management is apt to be imple-

they decided to manufacture rather high-grade
audio products requiring higher technology inmented. Without the separation of capitaland management, however, Japanese-style

Singapore. Owing to this strategic decision,
Matsushita subsidiary in Singapore wasmanagement could never be carried out.
The professionalization of the managerial
function is an indispensable basis for therealization of Japanese-style management.
The Japanese enterprises overseas in Singapore
tend to change their ownership structure fromobliged to suspend operations for about twomonths. But the factory employees numbering some 200 were not laid off but allowed
to remain for study and training or conducting
miscellaneous affairs. This means that theJapanese-style employment policy was put

joint ownership to a wholly-owned subsidiaryfor the purpose of implementing the Japanese

into practice.
It should be noted that the policy of notstyle of management.

laying off employees is not necessarily economically disadvantageous to the company,
for expenditure is required to employ and(ii)

Stable Employment Policy

As athe production of inexpensive popular audio
products in Singapore and moved its production to the Philippines. To take its place,

Industrialization of Singapore is rapidly
advancing, and many foreign companies aretrain new workers until they master the
specific skills required of them. Nevertheless,extending their business to this country.
Therefore, in view of the sellers' market forlabor, the lifetime employment system, inthe fact still remains that even Japaneseaffiliated companies can not help reducing

which once you have been employed you
continue to work for the same company until
retirement age, does not seem to be highly
evaluated by native workers.

a structural depression in business causes
the company to be overstaffed semipermanently. In the case of American-affiliatedcompanies in Southeast Asia, for instance,

In 1981, the Singaporean government
carried out a policy of a drastic pay raise.

it is not unusual to dismiss employees who
have not been able to achieve expected results.

It aimed at reforming the industrial structure

But Japanese-affiliated companies seldom, if
ever, dismiss employees because they haveof Singapore to cope with the rapid industrial
98

personnel in some cases where, for instance,

K. URABE:

Japanese Management in Singapore

attained unsatisfactory results or are inefficient. Instead they retrain or relocate suchagement system."

employees, thereby ensuring the continuity

mobility of labor, allowing long-term employ-of their employment in the company.

ment, but to intensification of employees'

Therefore,

Japanese-style

management

This system contributes

not only to an increase in the rate of im-

loyalty to the company.

Furthermore, it

today can be marked more by a stableleads to the accumulation of the enterprise-

employment policy, as opposed to an em-

specific skills and, in turn, serves as a major

ployment policy characterized by "firing afterfactor in bringing about an improvement in

a disappointing performance," according toquality and cost-effectiveness.

which the ensurance of as stable employment

Thus, the company loyalty and managerial

as possible is aimed at from the viewpoint ofefficiency is built upon the internal pro-human interests.

motion system.

Some local workers em-

phasize that Japanese-affiliated companies
treat them as human beings.

Most

Japanese-affiliatedcompaniesin

One of theSingapore intend to implement the internal

merits of contemporary Japanese-style man-promotion policy, though in practice theagement lies in the embodiment of thispolicy does not always work well.

philosophy of treating the company employees

instance, Matsushita Electric Co.'s subsidiaryas human beings.

in Singapore successfully trained an employeeFor

as a personnel manager at considerable cost.
(iii)

The Internal Promotion System (Career

But he soon left the company for a better-paidManagement System)

position, which forced them to employ an

Singaporean companies in general, whichhave been strongly influenced by British

experienced manager from the outside to fill
the vacant position immediately.

industrial culture, usually employ even man-This company makes it a rule to educate

agerial officers such as chief accountants andand train local prospective managers, super-

personnel managers by advertising in news-

visors and chief engineers in Japan for threepapers.

and a half months on the average.

In Britain and the U.S., it isWith

customary to employ experienced people
even for managerial positions from the labor

this program, the company aims at not
merely cultivating technical skills but at

market outside the company.
In contrast to this, in the Japanese system,

inculcating the Japanese culture, sense of

fresh graduates who have no managerial
skills or experience are employed and trained

spective managers. They are expected toplay central roles in Japanese-style man-within the company and after some length ofagement when they return to Singapore.

service they are promoted to managerial

the advancement of Japanese-style man-positions including thosemanager or chief accountant.

of personnel
This is referredagement in the future, it would be necessary
to further promote the educational andto as "the internal promotion system." It
can also be described as a "career man-training system within the company.
The seniority promotion system was pointed

values and way of thinking into local pro-

For

99

out by J. Abegglen as one characteristic ofagreement stipulates wages per hour for each

Japanese-style management. Today, however, in view of the modernized system of thedifferent job and also the rates of increase inwages after one-year and two-year continuous

Japanese management recently developed, itwould be more appropriate to replace this term

service. The wage system is literally basedon length of service. But it should be notedwith "the internal promotion system (careerthat this system is a manifestation of the

The old promotion

seniority rule demanded by the labor union.

system in which promotion is based merely

The seniority rule which is characteristic ofon length of service is today utterly opposedlabor agreements in Britain and the U.S.

in Singapore. But even in the internal promotion system, length of service is taken into
account for promotion to one degree ordoes not contain the concept of personnel
evaluation but rather means automatic pay

management system)."raises merely on the basis of length of service.

Therefore, although this system isThis is also true of promotion when thehelpful in increasing the rate of immobility

British-or American-style seniority system isof labor, it does cause complaints amonglaid down: promotion is decided on according

local employees, who claim "promotion isto length of service without giving con-slow in Japanese companies."

sideration to personnel evaluation, that is,

another.

to each employee's work efficiency and atThe Seniority Wage System and Per-titude.

sonnel Evaluation
The seniority wage system is another char-

the British- or American-style seniority
system results. from the union's claim and isacteristic of Japanese-style management, which
was pointed out by J. Abegglen, too. But

helpful in forging loyalty to the union, not tothe company.

some Japanese scholars, like Prof. K. Koike,

In contrast, the seniority promotion system

maintain that the seniority wage system is notand the seniority wage system in Japan arelimited to Japanese companies but is adopted

institutionalized for the purpose of increasing

by American companies as well on the basis

loyalty to the company.

of the seniority rule stipulated in the laborsystem, pay raises and promotion are decided

agreement between labor and management.

on the basis not only of length of service, but

However, I would like to stress that theseniority rule in the U.S. or Britain is com-of personnel evaluation of such aspects asservice efficiency, service record and coop-pletely different from the seniority wage
system or seniority promotion system inerativeness.

Japan.

Koike did, that the seniority system in( iv)

For example, in the case of the joint
venture which was established by the acqui-

The conclusion of an agreement ofIn the JapaneseIn this sense,

it wouldbeinappropriate to maintain like, as Prof. K.
Britain and the U.S. is the same as the seniority
promotion and wage systems in Japan.

sition of Mitsubishi Electric Co., a Western-

On the other hand, subsidiaries of Matsu-

style wage agreement is concluded between

shita Electric Co. and Seiko in Singapore are

the management and the labor union.

carrying out a policy to decide on wage

100

The

K. URABE:

Japanese Management in Singapore

raises and promotion by taking the result ofand Chemical Industries Workers' Union

personnel evaluation as well as length of(CIWU).

service into consideration even in the case ofunions are Stevedore and Seamen Unions

factory workers.

(S'sU) and Sea-Vessels Workers' Association(S-VWA). General unions are those or-

As a contemporary charac-

teristic of Japanese-style management theseniority system is intermingled with theability principle as reflected in the personnel

Among those classified as craft

ganized regionally irrespective of types ofindustry or craft.

This helps to heighten

Recently, however, a new trend to organize

employees' willingness to work and loyalty

enterprise unions as part of the reform toto their companies.

implement Japanese-style management has

evaluation system.

Some kind of personnel evaluation forms

appeared.

Among the companies which haveare used by almost every Japanese-affiliatedformed enterprise unions are Robin Ship-company in Singapore.

There are threebuilding Company affiliated with Hitachi

kinds of evaluation forms: those for factory

Shipbuilding Co., Juron Shipyard, Metalbox

workers, for managers and for staff.

Company and National Steel Company.

indicatedby these

forms,

As is(2)

Japanese-style

Cooperative Labor-management Re-

personnel evaluation is marked by the amountlationships

of importance attached to personal aspects

recently stated "Harmony between labor andsuch as attitude and personality as well as tomanagement would enable them to success-ability to perform one's duties.

fully meet the needs of the new economic
age.

(v)
(1 )

The secretary-general of NTUC

For this purpose, a cooperative labor-

management relationship is a necessity."Enterprise Unions

Unions in Singapore

In

The rate ofSingapore,throughstrictunion

labor-

management

conciliation policy is

being

carried out.

Not a single strike was staged

exercised

it was 33 % in 1980 and decreased to 28 %in 1982. In the case of manufacturingindustries, the rate went down to 19 ~{ in 1982.

since 1978.

and

is

a

formation of unions in Singapore is not high:NTUC

control

Union members in Singapore number about

A labor agreement was concluded in 1978

220,000 in all, and unions whose members

between Robin Shipbuilding Company affil-

total 210,000 belong to the National Tradeiated with Hitachi and the Pioneer Industries

Union Congress (NTUC).

Union.

The unions are composed mainly of industrial, craft and general unions.

But it

It is interesting to note that theagreement contains clauses related to labormanagement cooperation.

Article 3 (B) of

deserves attention that enterprise unions havethe agreement reads as follows.

been recently organized.

Labor and management

Among the in-dustrial unions are United Transport Workers'

1.

shall actively carry out all procedures

Union (UTWU), United Workers of Elec-devised for increases in productivity andtronics and Electric Industries (UWEEI),

efficiency, andMetal Industries Workers' Union (MIWU)

2.

shall encourage all company employees to101make the utmost effort to increase proIV

ductivity, and3.

Employment Systemshall cultivate the spirit of close cooperation between labor and management

Modernization of the Lifetime

In making acomparative analysis

ofconcerning every aspect, especially theeffective use of time, materials andmanagement in Japanese and Western companies as of today, those aspects of the

facilities.

Japanese lifetime employment system which

The agreement also stipulates the establish-

have been modernized since the end ofment of productivity and safety committees

World War II cannot be ignored.

Con-each consisting of representatives of both labortemporary companies in Japan are at theand management as well as union participation

stage of internationalization and setting up

in management in conformity with the spirit of

their factories overseas with a view in part tolabor-management cooperation.

solving the problem of trade friction.

In

In the case of industrial unions, however,this situation, the comprehension of thetheir cooperation with the managerial sideand their participation in management haveessential qualities of the modernized lifetime
employment system would be necessary forlimits.

The leading members of branches ofan accurate understanding of the characteris-industrial unions have not necessarily beentics of Japanese-style management practiced

employed by the companies concerned but are

by Japanese companies overseas.

usually people outside the companies.

They

tend to limit their scope of interest to suchmatters as negotiations for pay raises andamendments of labor agreements.

(i)

Equalization 0/ Status

Every business organization forms a hier-

But it isarchy in terms of power and responsibility:

not surprising that they show little interest

men holding different positions have different

in the practical promotion of labor-management cooperation as stipulated in labor

competence and responsibilities and are accorded different salaries, status and treatment.

agreements.

As the industrial unions officers

This is almost the same in every country.

are outside of companies concerned, they haveBusiness organizations always have a hier-little of the working knowledge indispensablearchical status system.

for increasing productivity.

In addition, whyshouldpromotethey

positively

In companies, especially those in capitalistic

labor-

nations, there is class distinction in statusmanagement relations when they lack a sense

between staff members and factory workers

of unity with the companies?

within the company.

This is true of com-

The formation of enterprise unions by somepanies in the U.S. and Europe even today.

companies including Robin Shipbuilding Co.
was underlain by the idea of overcoming the

The same situation existed in Japan before
World War II.

limitations of the industrial unions.

After the war, however, humanization of the
lifetime employment system developed inJapan in line with the abolition of class102

K. URABE:

Japanese Management in Singapore

distinction in status within the companies.

In European and American companies,

The movement was triggered by claims forthere remains class distinction in statusdemocratization of industries by postwar

between staff members and factory workers

radical labor movements, and it was accom-

within the company.

panied by a change in the ideology underlying

business organizations, which are after all

the Japanese management through the post-

hierarchical organizations, also have a system

war abolition of paternalism in prewar daysin which employees standing in a vertical hier-to the philosophy of humanization.

archy are accorded different responsibilities,

The abolition of class distinction in status

It is true that Japanese

power and salaries.

In this sense, status

within the company was a major reform in the

distinctions do remain; it would be practicallysocial structure of the Japanese company andimpossible for any business organization tomade an undeniable contribution to al-

carry out equalization of status in the literalleviating class confrontations between labor

sense of the word.

and management.

distinction in status in Japanese organizations

But there is no class

In the lifetime employment system in prewar

like there is in the U.S. and Europe, andJapan, new employees had been classified into

status differentiation has been further reduced

two status groups, that is, office staff andin Japanese companies.

factory workers on the basis of their educa-by an evolved characteristic of the Japanesetional background, and class distinction had

management system.

been made between the groups in treatment

set up overseas by Japanese companies,

and promotion.

compared with their American and European

After the abolition of the two-class status

This is what is meantSociety in the plants

system through postwar democratic reforms

counterparts, is strongly characterized by thefeatures of status equalization.

within the company, factory workers, too,

For instance, in Japanese-affiliated com-were paid monthly salaries and given bonuses.

panies in Singapore, Japanese presidents andIn addition, they were allowed to share theplant-superintendents wear the same uniform

companies' welfare facilities, such as theas local workers inside the plants and takecanteens, dormitory and recreation facilities

meals together with local workers in thewith staff members on an equal basis.

In

company canteens; they often visit work sites

prewar years, the promotion ladder for
workers was limited to the foreman level.

and are ready to talk to workers; the Japanese
executives, mixing with local workers, take

In postwar years, the limit was abolished.

part in the companies' sports day and otherIn other words, in prewar Japan, while staff

sports activities like volleyball and soccer.

members were considered to be the company's

The policy of status equalization shown byregular employees, factory workers were notthese facts contributes to increasing mutual

necessarily so.

But after postwar democratic

understanding between labor and management

all employees including factory

and to easing labor-management confron-reforms,

workers were treated as full members of thetation.

This is one attractive quality ofcompany.

Japanese-style management that local workers
103

Status egalitarianism like3.

interviewing program

this is seldom witnessed in European- or

4.

personnel counselling

American-affiliated companies.

5.

education of foremen and superintend-

highly appreciate.

ents
(ii)

6.

Human Relations Policies

recreational activities

theories advanced in the U.S. had a great

How far these human relations policies are
diffused in Japanese companies needs noinfluence on and played an important role inexplanation.

the postwar modernization of the Japanese

when compared with their American ormanagement system.

European counterparts, are noticeably dis-In the 1950s and 1960s human relations

In Japan there is an old expression "Anenterprise depends entirely on human beings."

Japanese enterprises overseas,tinguished by the substantiation of humanrelations policies.

This expression is indicative of the JapaneseIn the case of Matsushita Electric Co.'s

philosophy of management that more impor-subsidiary, it is an established rule to hold atance should be given to the administration of

10-minute meeting in each workshop every

human resources than to any other resource.

morning before work starts.

The human relations policy comprised a

the superintendent gives instructions necessary

cardinal factor of Japanese management, infor the day, a worker whose turn it is to makewhich the spirit of harmony was traditionallya speech expresses his opinions, and all theworkers sing the company song together atthought most important.
Therefore, the traditions of Japanese man-the end of the meeting.

At the meeting,

Other Japanese-agement already had a conceptual conformity

affiliated companies in Singapore, too, mostly

with the managerial philosophy unfolded inhold a morning assembly every day, though

the human relations theory formulated in the
As a result, various human relations

they may not go so far as to have their employees sing their company songs. The

policies taken on the basis of these theories

morning meeting is instrumental in promoting

were actively incorporated into the postwar

betterJapanese management system, and contributed

solidarity, and is a realization of the human

to its evolution.
According to the human relations theory,

relations policy.

employees' morale is a decisive factor inseen in companies affiliated with European orenhancing productivity, and improvements ofAmerican corporations.

human relations are indispensable in raising

due partly to the fact that workers in the Westtheir morale.
Some of the human relations policies

generally regard labor power as a commodity
and lack a sense of loyalty to their companies.

incorporated

They would be presumably reluctant to leave

U.S.A.

intotheevolvedJapanesemanagement system are as follows:1.

promotion of better communication2.

employees' suggestion system104

mutualunderstanding

and

group

On the contrary, a similar practice is seldom
Probably this istheir homes 10 minutes earlier for a morning
assembly.
Japanese-affiliated companies in Singapore

K. URABE:

Japanese Management in Singapore

hold such annual events as sports day and aharmonious relations with their colleagues

year-end party.

than to the work itself, or to be content toOften referred to as anannual party in Singapore, the year-end party

follow others' ideas.

is attended by all employees as well as theinto the habit of merely aligning themselvespresident and executives.

Year-end parties

with others and lose their own individualities,

held by some companies are each attended byindependence and their challenging quality.

as many as 1,000 or so.

Events like this are

How to activate these innovative qualities inalso significant in the sense of practicing

the work group in harmony with the group

human relations policies, for they are helpful

solidarity is a great problem which thefor promoting better mutual understanding

Japanese management system faces.

Thus, they tend to fall

through

Employees', too, began to feel dissatisfied

human contact and eventually for strength-with merely good human relations after rises

ening their spiritual bond.

in income and educational standards which

between labor and management

In the case of a corporation m Singapore

followed the high growth of Japanese econ-

affiliated with Sekisui Chemical Company,

omy.

the Japanese plant manager often holds

that employees' needs for self-actualization

informal drinking parties, inviting assistantshould be satisfied in the workplace.

managers of different nationalities such as
Indians, Chinese and Malaysians.

Even labor unions came to demand

It was the advent of new human relations

The effort

theory that provided a theoretical support inhe makes to bring about mutual understand-solving the problem of how each individual's

ing among people of different color, customs

needs for self-actualization could be satisfied

and languages can be described as touching.

without disrupting group harmony.

This is another example of the realizationthese new theories were the X.Y theoryof human relations policies.

advanced by D. McGregor, the participative

Still another typical example is seen

Among

In

management theory of R. Likert, and theSingapore Time Company, Seiko's subsidiary.

hygienemotivations theory of F. Herzberg.

In this company, a number of club ac-

In the new theories, importance was placed

tivities are organized for the employees,

on satisfying employees' desire for self-actuali-

ranging from sports such as baseball, soccer

zation, while the earlier human relationsand volleyball to arts and crafts including

policies aimed at satisfying employees' desire

photography.

to belong to a group.
The employees' need for self-actualization(iii)

The Adoption of New Human Relations

will be satisfied by the formation of the

Theories

autonomous work group.

The human relations policies mentioned

In line with theadvent of new human relations theories,

Under these

activities in small groups were widely adopted

policies in which top priority is given to

by Japanese companies in the 1960s andestablishing good human relations, employees

1970s in the forms of the ZD (Zero Defects)

are liable either to give more consideration to

campaign and the organization of work

above have their limitations.

105

improvement teams and QC circles, and theyJapan than in America.

took root as an important aspect of thecan be explained as follows.

evolving Japanese management system.

The reason for thisIn American companies, duties are specialized and each employee assumes responsibility(iv)

His wage is com-only for a specific duty.

Small Group Activities

Small group activities are characterized bymensurate with his specific duty.

Therefore,

the principle of self-management. Smallgroups of workers are organized and the leader

he shows little interest in otherof each group is elected. Each group holds
discussions to decide on its own targets

and short-term employment naturally makethe length of the employee's service in aconcerning product quality and improvements

specific company short.

of operations on its own judgement.

Thendisadvantageous to the effectiveness of thethe group is responsible for its own admin-

method of small group activities, for theistration.

immobility of labor is necessary in order for

duties.

Furthermore, the high rate of labor turnover

These factors are

Small group activities are not a product of

employees to be able to make use of theirmere collectivism but they aim at raising

service experience to improve quality or

employees' morale and at improving quality

operations by this method.

and productivity by satisfying their desire for

Stillanotherfactor

which

has

made

self-actualization while activating their senseof challenge within limits not prejudicial todiffusion of autonomous group activities
difficult in American and European companies

group harmony.

is the relatively hostile relations between labor

The ZD campaign has its origin in a U.S.

and management.

In the U.S., where labor-

space plan, for the fulfillment of which related

management relations are dominatedindustries were called upon to carry out acollective bargaining, not only introduction of

campaign to make defectives zero.

This drive

new apparatus but even changes in the method

is conducted on the basis of autonomous man-or speed of their operation are regarded asagement by small groups of workers.
The QC circle method, which is now at-alterations of working conditions, and they
are subject to collective bargaining in addition

tracting global attention, is also based on
autonomous management by small groups.

to wages and working hours. The shop rules
stipulating methods and speeds of operations

Originally devised by the Japan Scientificform a part of the labor agreement.

Technological Federation, it has become

fore, improvements in quality and operations

widespread in Japanese companies.

through their autonomous work group would

byThere-The idea of small group activities camebe regarded as changes in methods andoriginally from the new human relations

processes of operations, which must be subject

theories mentioned before and a theory ofgroup dynamics advanced in the U.S.A.

to collective bargaining as the alteration
problems of labor agreement. As a result,

However, the method of small group activities

it is hard for the method of small groupis more widely spread among companies in

activities to take hold.

106

It is not only in the

K. URABE:

Japanese Management in Singapore

U.S. but also in Britain as well that labor-

foremen and workers are both union members

management relations in which collective

and are on senior-junior terms.

bargaining is frequently resorted to serve as aare in the position of providing friendly

great barrier to the improvement of pro-

protection to the latter while the latter support

ductivity and quality by the autonomous

the former.

work group's activities.

the foreman acts as a friendly adviser to the

In contrast, the effectiveness of small group

The former

In the small group activities,

workers' group.

The supportive relationshipsisthus formed between foremen and workers in

attributable first to employees' strong sense offactories are making a contribution to theunity with or loyalty to their companies which

effectiveness of small group activities among

results from the lifetime employment system.

Japanese companies.

activities among companies

in Japan

Another reason is employees' experiences

Small group activities can be considered a

in various jobs through job-rotation during

by-product of the Japanese lifetime employ-

their long-term service:ment system and today they are one of thetheir varied ex-periences are helpful in providing solutions

distinctive

features of evolving Japanese-to the problems of improving quality andstyle management.
Whether small group activities are effec-

operations in their workplaces.
A third reason is the high educational andtively practiced or not is one criterion for

intellectual standards of Japanese factory

judging the degree of infiltration of theworkers: nowadays senior high school grad-

Japanese management system in Japaneseuates are accounting for a higher and higher

enterprises overseas.

percentage of workers.
A fourth reason is a cooperative relation
between the management and the enterprise

References(1)

union which was organized under the Japanese
lifetime employment system.

(2)

tions that alterations in operation methods
and speeds are subject to collective bargaining
Therefore, the existence

Sophia University.
Cole, R. E. 1971.

(4)of Calif. Press.
1979.

(5)

Berkeley: Univ. of Calif. Press.
Dore, R. 1973.
British Factory -of unions does not serve as an obstacle todaily improvement of work methods by small
group activities.
Still another reason is the fact that there

in the workplaces of the U.S. companies.
In the case of Japanese enterprise unions,Japanese Blue Collar,
The Changing Tradition. Berkeley: Univ.

Work, Mobility andParticipation: A Comparative Study ofAmericanandJapanese
Industry.

Japanese Factory; The Origin of National
Diversity in Industrial Relations. Berkeley:are not such antagonistic or hostile relations
between the foremen and workers as are seen

. 1973.
Management and theWorker: The Japanese Solution.
Tokyo:(3)or that an article to this effect is stipulated in
the labor agreement.

1958.
The Japanese
Factory .. Aspects of Its Social Organization.

New York: Free Press.

It seldom oc-

curs in the Japanese labor-management rela-

Abegglen, J. C.

(6)

Univ. of Calif. Press.
Marsh, R. M.; andMannari, H. 1977.

Modernization and the Japanese Factory.

Princeton: Princeton Univ. Press.
107(7) Urabe, K. 1978. Nihonteki Keiei 0 Kangaeru [A Thought on Japanese Management]. Tokyo: Tokyo Chuo Keizai Sha.
(8)
. 1979. A Critique of Theoriesof the Japanese-Style Management System.
Japanese Economic Studies 7(4): 33-35.

108

(9)

(10)

1984.
Nihonteki Keiei wa
Shinka Suru [Japanese Management Does
Evolve]. Tokyo: Tokyo Chuo Keizai Sha.
Japan's MultiYoshino, M. Y. 1976.
national Enterprise. Cambridge: Harvard
Univ. Press.