Human Resource Management (HRM) of non-regular workers in Japan: Areview from a quadrilateral framework

Kumudinei Dissanayake, PhD.
(Invited Foreign Researcher)

Foreign Researcher Invitation Program – 2014
Japan Institute for Labor Policy and Planning (JILPT)
Kamishakujii, Nerima-ku,
Tokyo, Japan1. Introduction
Widening boundaries of organizations (Ashkenas et al., 1995) and individual careers (Peiperl& Baruch, 1997) as well as enhanced flexibilities at work (Skorstad & Ramsdal, 2009;
Zeytinoglu, 2002) have created diverse opportunities for organizations and workers to
involve in non-regular work arrangements in different occupations. Enabled by government
policies, and activated through ministerial plans (MHLW, 2005), some of such work
arrangements have addressed policy issues and strategic decisions at apex level oforganizational management (Christensen, 1998; Ghosh, Willinger, and Ghosh, 2009).
Accordingly, several changes in the existing human resource management (HRM) practices
have been visible in the contemporary organizations (Benson & Debroux, 2005). Not only
these additions and changes have incorporated in the existing policies, practices, andstrategies of human resource (HR), but also there have been structural changes taken place inorganizations subsequently. Thus, the knowledge created in this field through empirical aswell as theoretical means seems to be substantial in its volume. While accommodating allthese changes, organizations in the current dynamic economic system continue to deploy
non-regular workers, and assign them core functions at work due to ample of justifiablereasons. Thus, the trend is upward and continuous (Fu, 2012; Gleason, 2006; Houseman andOsawa, 2003; McCourt and Eldridge, 2003; Ozeki and Wakisaka, 2006; Wooden and Warren,2003).
The systems those being adapting for deploying non-regular workers throughout the recent
past have been in transition. Empirical evidences show the adaptation of conversion systems,
introduction of flexible arrangements, changing HRM practices etc. directed towards the nonregular workforce at differing levels and phases at different organizations (e.g., Hirano, 2011).
However, these diverse systems stand along and even appear in diverse organizationalsettings, as they are highlighted in separate research sites or findings. The value of such
literature dispersed at different levels would generate less theoretical and pragmatic value incomprehending the complete HRM system that prepared to deploy non-regular workforce inorganizations. Thus, putting all such efforts together to visualize the entire HRM system thatworked for non-regular workers at the Japanese workplace would be more beneficial for
researchers and practitioners in the field of HRM of non-regular workers. Accordingly,
objective of this study is two-fold. First it conceptualizes a framework, and then proceed to
examine the existing HRM system of deploying non-regular workers in the Japanese
workplace.
Accordingly, the purpose of this study is to provide a comprehensive base of literature on‘HRM of non-regular workers’ accumulated and condensed into one document for the use ofJapanese and foreign researchers who are interested in theorizing and designing empiricalresearch in this area of study. The structure of the paper is as follows. First, it reviews theliterature pertaining to diverse organizational models of HRM for identifying the mostcompelling variables for the study. Next, drawing from the review, it conceptualizes a model
for studying the HRM system for non-regular workers. Third, it briefly presents the method
adopted in the study for reaching its objectives. Then it provides the analysis based on theframework adopted, and finally presents the observation, conclusion and implications of thestudy.
2. Diverse Models for Reviewing HRM Systems and Variables for Analysis
2.1 The Model of Organizational Policies, Strategies, Practices, and Structure
Organizations exist in any society to achieve certain common objectives or purposes, whichcannot be achieved by people individually (Barnard, 1938; Simon, 1945). In broader sense,
those objectives/purposes may include serving the society, earning profits, satisfying
stakeholders, preserving resources etc. Thus, the entire organizational system and its
processes stand to help achieve the set purpose or objectives in every aspect. Accordingly, thetypical organizational process demonstrates a linear relationship as below.

External Environment
Opportunities
Threats

Strategic Direction
Top
MGT
Team

Vision,Mission,Goals,
Policies,
Objectives,
Strategies

Achievement
Organization Design
Structure
Technology
CultureHR practices-Organizational
effectiveness-Stakeholder
satisfaction

Internal Environment
Strengths
Weaknesses

Figure 1: The Model of Organizational Processes
Source: Adopted from Daft (2013)
Environment and Strategic Direction
Simply, it depicts that the top management, being influenced by (or subject to) the prevailingor forecasted environmental conditions (both external and internal), gives the strategic
direction to organizations, which leads to form the appropriate design for achieving the set
objectives. Thus, the unavoidable external environmental conditions, such as, globalization,
recession, uncertainty and related economic downturns, together with government decisions
and regulations necessarily influence the management decisions of the policies and strategies
for reaching organizational objectives. Further, the already possessing workforce, market
leadership, technological knowhow (strengths) and any other liability (weaknesses) may
affect it. Organizational vision, mission, values, and policy framework usually paint a broader
portrait of how its decision makers wish the organization to be.
Organizational Strategies and HR Strategies

Organizational strategies can be seen in a hierarchical order, flowing from corporate strategy
at the top (which focuses on organizational level decisions ensuring long-term survival andgrowth), through business strategies (which focuses on particular lines of business), towards
the functional strategies (such as HR strategy, financial strategy, marketing strategy etc.). HR
strategy of an organization involves the major decisions on acquiring, developing, andmaintaining the most appropriate human resources for achieving organizational objectives,and its replacements too in a more efficient and effective way. Corporate strategy and HR
strategy are reciprocally interdependent (Belcourt & McBey, 2004). An effective HR strategy
is characterized with the following; it satisfies business needs, is founded on detailed analysis,
can be turned into actionable programs, and takes account of the needs of line managers,
employees, organization and its other stakeholders (Armstrong, 2006).
HR Practices
Based on the HR strategy that is formulated in line with the corporate strategy, the HRM(division) of the organizations proceed to adopt their HR practices, such as recruitment andplanning, remuneration, promotions, career and succession planning, training anddevelopment, termination, and replacements etc. as appropriately. These practices can be
explained in a 4R model, which contains (a) Recruiting (recruitment and selection), (b)Reinforcing (evaluation and rewards), (c) Retaining (training and development), and (d)Replacing (employment flexibility and outplacement) (Bae & Rowley, 2004). Japanese HRM
practices have recently emphasized remuneration, other benefits, and employee recognition inits changing HRM system (Benson & Debroux, 2004; Meyer-Ohle, 2009). Accordingly,
present study extends the 4R model into a 6R model by introducing three more HR practices,which can further explain `reinforcement` with the use of remuneration, rewards, andrecognition as given in the figure below.
Remuneration
Recruitment& Selection

Retention

Replacement

Recognition

Figure 2: Basic HR Practices
Source: Based on 4R Model (Bae & Rowley, 2004)
Organizational Design, Structure and Job Design
Organizations are designed and structured in order for facilitating the implementation of theirstrategies. As Chandler (1962) set forth, the organizational structure depends on the strategy.
As structural contingency theory depicts, organizational structure and design is contingent on
several factors, such as, environment, strategy, technology, and workforce (Donaldson, 1995).
Organization structure shows, (a) how the jobs are designed (task structure), (b) work
specialization (division of labor), (c) departmentalization (grouping of jobs), (d) authority
relationships (who reports to whom), (e) span of management (number of subordinates
reporting to one superior), and (f) coordination (how the entire set up has been linked andintegrated) (Daft, 2013; Robbins, 2004). Thus, designing jobs become an importantorganizational decision which requires managerial concern in relation to individual work
motivation, individual performance (Luthans, 2008) and organizational effectiveness(Robbins, 2004).
Job design in the organizational structure includes the activity of organizing tasks, duties andresponsibilities of a particular job into a single unit of work for achieving desiredorganizational objectives. Thus, it the important questions of who, what, where, when, why
and how things should be done in performing a job are easily addresses and successfully
answered in an appropriate job design. The decisions involved in job design can be depictedin the figure below.
Designing jobs are affected by the organizational level factors
such as organizational culture, its technology, structure, and strategy too. However, thedesigned jobs may affect the level of motivation and job satisfaction of individual workers,
and it may create dull and monotonous work environments too. Thus, the techniques such as
job rotation, job enlargement, job enrichment are used for eliminating the human level
negative impacts of job design at work organizations (Daft, 2014).

Achievements
The resulting outcomes of this process claim the effective or ineffective performances, which
may appear in terms of profits (or losses), growth (or stagnation / decline) of the organization,customer satisfaction (or complaints), human effects (employee satisfaction or dissatisfaction,
work-related stress / depression, career success) and many other effects that are created on its
diverse set of stakeholders.
Thus, policies at broader level, strategies and practices at functional level, and structure anddesign for facilitating the work environment are imperatives for any common
accomplishments in organizations.
2.2 HRM Models
Other than the macro level organizational model for understanding the entire system that
reviewed above, there are several HRM models those inform the components of an HRM
system of a work organization. Below review examines four different HRM models for
identifying the components for a framework for present study.
The Harvard model
The Harvard model of HRM depicts the relationships between four categories of variables:such as, (a) stakeholder interests and situational factors (in the workplace and external
environment), (b) HRM policy, (c) HRM outcomes, and (d) long-term consequences (for theorganization and its external environment) (Armstrong, 2006; Beer et al., 1984).

Figure 3: Components suggested in the Harvard model of HRM
The Michigan model
The Michigan model differentiates between the internal and external environment, it
identifies the major components in both. Thus, economic, political, and social environment’s
influence on the internal system is depicted in it. The internal system of the organization isdefined in terms of mission and strategy, organizational structure, and HRM (Fombrun, Tichy& Devanna, 1984).
Political
ForcesEconomic
ForcesCultural
ForcesMission/Strategy

FIRM
Org.
Structure

HRM

Figure 4: Components suggested in the Michigan Model of HRM
Tatsumachi’s Model of HRM (2007)
Tatsumachi in an examination of business strategy and HRM in Japanese organizations,emphasizes the relationships between mainly three components, i.e., the business strategy(cost strategy and differentiation strategy), HRM practice, and improved company
performance (Tatsumachi, 2007).

2.3 Conceptual Framework of the Study
Based on the above literature review, this study identifies the four dimensions to examine theHR system of an organization for the purpose of evaluating its deployment of non-regular
workforce. HR strategy, flowing from the organizational strategy, directs the HR function in
the organization. It is supported and guided by the HR policy, and typical human resource
related functions are activated through HR practices. Finally, the organizational structure,along with the job design and related adjustments, facilitate the deployment of humanresources within the organization. Accordingly, the ‘HRM of non-regular workers’ in thepresent study is synthesized on the quadrilateral framework constituted of the (a) HR
strategies, (b) HR policies, (c) HR practices and (d) organizational structures adopted in
deploying non-regular workers in Japanese organizations.
HRM of Non-regular workforce
HR Policy

HR Strategy

Changing
HRM

HR Practices

dimensions

Organizational
Structure

Figure 5: The conceptual framework of the study
As per the above framework, the following aspects have been examined in the study. HR
policies adopted in deploying non-regular workers in terms of (a) legislative facilitation, and(b) government labor policy and initiatives; HR strategies and organizational strategies
adopted in deploying non-regular workers; HR practices used in deploying non-regular
workers in terms of ‘4R’s [such as recruitment (including HR planning, job design,
recruitment & selection), reinforcement/Remuneration (including rewards, recognitions,promotions), retaining (including training & development), and replacement (administrationof outplacement)]; and structural adjustments made for deploying non-regular workers (anyspecial structural arrangement made for deploying them).
3. Method
Present study was mainly based on reviews and analysis of secondary data sources. Thus, it
adapted following methods in collecting data for the study.
1. Review of research reports
2. Review of secondary data published in surveys

Accordingly, the major data sources were:
1.
2.
3.
4.

Research reports published by Japan Institute for Labor Policy and Training (JILPT)
Survey data from Ministry of Internal Affairs & Communications, Japan
Research papers of Japanese researchers in the field
Reports from foreign writers on the topic

Diverse categories of non-regular workers in the Japanese work place were identified withparticular definitions to each category. Further, diverse work groups such as young workers,
female workers, elderly workers, mid-careered workers were identified for the study. The
investigation of HR strategies, policies, practices, and structural changes for diverse work
categories and groups were conducted in a review of literature.
4. Analysis
4.1 HR Policies
HR policies with regards to non-regular workers were mainly seen at macro level through;(a) government labor policy and initiatives,(b) legislative facilitation, and(c) other supportive actions.
Government labor policy and initiatives
Within the threatening demographic and socio-cultural changes, the government is in theprocess of taking certain measures in supporting diverse life-styles of people. The main areas
focused are:(a) equal employment,(b) work-life balance, and(c) fair and diverse working styles.
Further, these initiatives were taken through;(a) Changing from excessive employment stability to labor fluidity (achieving labor
movement without unemployment)(b) Enhancing matching function (jobs and job seekers) by using both public sector(PESS) and private sector HR business(c) Promoting and facilitating diverse ways of working(d) Promoting active (labor force) participation by women(e) Promoting active participation by young, the elderly and others
Legislative facilitation
Legislative facilitation was behind the policy background of deploying regular/non-regular
workers in Japan. This legal framework summarized below.

Constitution[Right to Work and Right of Workers]

Individual Labor
Relations Laws
 Labor Standards Law
 Minimum Wages Law
 Security of Wage Payment
Law Industrial Safety and
Health Law
 Workers’ Accident
Compensation InsuranceLaw Equal Employment
Opportunity Law
 Child Care and Family
Care Leave Law
 Labor Contract Succession
Law

Collective Labor
Relations Laws
 Trade Union Law
 Labor Relations
Adjustment Law

Labor Market
Laws
 Employment Measures
Law Employment Security Law
 Worker Dispatching Law
 Part Time Work Law
 Employment InsuranceLaw Older Persons Employment
Stabilization Law
 Disabled Persons’
Employment Promotion
Law Regional Employment
Development Promotion
Law Human Resource
Development Promotion
Law

Figure 6: Legislative facilitation in relation to work in Japanese workplace
Source: Adapted from Araki (2004)

Legislative facilitation for modification of employment strategies
There are facilitation made by enacting, revising, and renaming some of the Laws and Acts
related to the employment strategies of organizations. Some of them are:
1. Labor Standards Act (1947) Amended in 1998, 2003
2. Disabled Person` Employment Promotion Act (1960)
3. Older Person`s Employment Stabilization Law (1971)
4. Human Resource Development Promotion Law (1985)
5. Stabilization of Employment of Older Persons (1986) revised
6. Equal Employment Opportunity Law (1985) amended in 2007
7. Employment Promotion of Disabled Persons (1986) revised
8. Part-time Workers Law (1993)
9. Child-care Leave Law (1991)
10. Family-care Leave Law (1992)
11. Shorter Working Hours Law (1992)
12. Employment Security Law

13. Act for Securing the Proper Operation of Worker Dispatching Undertakings andImproved Working Conditions for Dispatched Workers (Revised in 1999, 2003, &2004).
Table 1: Labor Laws affecting Non-regular Employment, Target Non-regular Worker
Category, and Purposes
PolicyTarget NRW category

PurposeLabor Standard Act (1947) i(Amendment in 1998)(Amendment in 2003)

Fixed-term employees

To shorten contract period (05-01 yr.)
To increase contract period for special cases (01-03 yr.)
To increase contract period for all types (up to 03 yr.)

Equal Employment Opportunity
Law (1985)ii(Amended in 2007)

Men and women in all
categories
Female workers

To ensure equal treatments for all in recruitment, hiring,assignment, and promotion
To promote welfare for female workers
Placement, allocation of duties, grant of authority, demotionof workers, change in job type or employment status

Part-time Work Law (1992)iii(Amended in 2007)(Amended in 2011)

Part-time workers

Human Resource Development
Promotion Law (1985)iv(Revised Vocational Training
Law, 1958)

Entire labor force

To eliminate discrimination against part-time workers (indetermining wages, implementing education and training,utilizing welfare facilities and other treatments)

To systematize lifelong training
To upgrade skills of workers

1

Takeuchi-Okuno (2010)

2
3
4

Sakuraba (2008)
Hamaguchi & Ogino (2011)
Taniguchi (1993)

Other supportive actions
Actions enforced by the Equal Employment, Children and Families Bureau (EECFB) wereseen as another policy level initiative at organizational level. They were included:(a) Promoting flexible working styles based on Childcare and Family Leave Act.
(b) Providing guidance based on the Part-Time Employment Act(c) Supporting the introduction of Short-Time Regular Employee System(d) Encouraging organizations to follow the stipulations in the Act on Advancement of
Measures to Support Raising Next-Generation Children

4.2 HR Strategies in Deploying Non-regular Workers
Corporate strategies in Japanese Organizations
Being vigilant to the prevailing and forecasted conditions at the macro environment, Japaneseorganizations have revealed the change of their corporate strategies as of the priorities(MHLW, 2005a). It demonstrates the major concern on ‘cost’ aspect whereas profits,production, and diversification of products have been highlighted consecutively. Thus, thecorporate management strategies are prioritized as below.
1.
2.
3.
4.
5.
6.

Reduce costs
Focus on profits rather than sales
Develop value-added products
Diversify business by stepping into new areas
Focus business attention
Develop overseas markets

HR Strategies
Accordingly, their HR strategies have been formulated around cost consciousness anddevelopment of human competencies for improving productivity and profits. In line with the‘Corporate study’ conducted by the JILPT, the MHLW (2005a) further revealed theprioritization of HR strategies by Japanese organizations as below.
1.
2.
3.
4.
5.

Develop human abilities
Use elderly workers by extending retirement age
Enhance use of female workers
Outsourcing
Mechanization of business operations and production processes

Employment Strategy
In order for implementing the formulated HR strategies, organizations have designed theiremployment strategies with the focus of getting access to low-cost labor while maintaining
their capacity for smooth business operations, but changing the employment structure. Thus,
following have been the major concern.
1. Maintain the total number of employees, while expanding the proportion of nonregular employees and slightly reducing the regular employees
2. Expand the proportion of part-time employees, direct-contract employees anddispatched workers
3. Increase assigning non-routine jobs to non-regular employees
4. Active utilization of female workers
5. Offer non-conventional working modes, including short and flexible working
hours
With this strategic direction, organizations have increased the proportion of non-regular
workers in their employment structure.
Relationship between Corporate Strategies and Deployment of Non-regular Workers inJapanese Organizations
As noted by the MHLW (2005), Japanese organizations deploy non-regular workers due tovarious reasons. The highly cited reason seems to be ‘saving wage cost’, given the category

of workers being part-time employees. Secondly prioritized reason is ‘assigning specialized
jobs’, where they focus on the contract-based workers. Then, ‘securing personnel withcapability and adaptable potential’ and ‘re-employing elderly workers’ (contract-based /dispatched workers) has been highlighted. Most of the part-time workers have been deployed
for the reasons such as, employment adjustment in line with business cycle, adjusting
fluctuation of work, saving costs other than wages, filling temporary vacancies appeared due
to leave of regular workers, responding to temporary or seasonal work fluctuations, assigning
regular workers more critical jobs, work shifts being designed to cope with long business /operating hours, and due to inability to recruit regular workers.
This reveals a few strategies, as given below, that the Japanese organizations are mainly
focusing on when they deploy non-regular workers.
Table 2: Strategies for Deploying Non-regular Workers
ReasonStrategy

1. Saving wage cost
2. Saving cost other than wages

Reducing HR related costs

1. Assigning specialized jobs
2. Securing personnel with capability and adaptablepotential
3. Re-employing elderly workers

Assuring more competent, productive,
adaptable workforce

1. Adjusting employment in line with business cycles
2. Adjusting fluctuation of work
3. Responding to temporary and seasonal work
fluctuations
4. Designed work shifts to cope with long business hours

Maintaining smooth /uninterrupted
business operations

1. Filling temporary vacancies of regular workers
2. Assigning regular workers more critical jobs

Retain and utilize regular workers more
effectively

Source: MHLW (2005)

Table 3 below depicts a summary of the change of environmental conditions, organizational
strategies, and human resource strategies in three major industries in Japan from1990s.

Table 3: Change of Environmental Conditions, Organizational Strategies, and Human Resource Strategies in Three Major Industries inJapan from1990s
Environmental Conditions/
Problems Encountered

Organizational Strategies

HRM Strategies

Electronics Industry:








Worldwide competition
Active overseas competitors
Depressed consumer demand
Falling market shares
Falling unit prices of products
Modularization of products (US)Low profitability- Shift of production to overseas- Consolidation of business activities- Scaling down capacity / declining- Outsourcing some activities- Merging with competitors- Reduction in employee numbers- Changing composition of workforce- Changing employment conditions of regular
workers- Strengthening ties with other financial
institutions- Restructuring and merging- Reorganization and consolidation(reduction of branches and branch
networks)- Reducing the regular workforce- Increasing non-regular employees- Adherence to Equal Employment Act& employing female employees- Decreasing administrative staff- Flattening hierarchies- Retaining and motivating young & capable
employees

Banking Industry:






Burst of bubble economy
Decrease in asset base
(Bank & creditors)
Accumulation of bad loans
Deregulation of financial policies
Government funding to Banks

Retailing Industry:









Ill-advised investment projects
Intensified competition
Falling prices
Changes in consumer behavior
Depressed consumer demandIll-fated diversification
Deregulation(easing large-store openings)
Internationalization- Discount strategies- Increasing service levels- Restructuring- Declining

Source: Adopted from Meyer-Ohle (2009)- Reducing regular workforce- Changing management of regular workforce- Increasing part-time employees- Work re-design for non-regular workers

4.3 HR Practices used for Non-regular Workers in Japanese Organizations
HR practices especially aimed at facilitating non-conventionally careered workers can be seen atseveral worker categories. Thus, following section presents some of the HR strategies andpractices adapted in employing atypical workers (in general), contract workers (in special),
female workers (those not seeking regular employment), youth (those at exploratory stage ofcareer), older or retired workers (males & females those who wish to continue work), and reemployed workers or mid-career transfers (transferring among organizations/occupations). (SeeTable 4 for a summary).
Table 4: HR strategies for diverse categories of workers
Employee Category

HR Strategy

Atypical workers

a. Employing them as a stationary workforce (not as atemporary workforce)b. Providing on-the-job training opportunities
c. Structuring wages to reflect skills
d. Introducing flexible work hours
e. Supporting acquire external qualifications

Contract workers

a. Establishment of human resource development systems
b. Implementing skill development programsc. Implementing skill-based wage systems
d. Introducing promotion and pay-raise systems

Strategies of contractor-managed companies for workers with high technical skills:
Hiringa. Assessing candidates’ possibilities of quitting(checking employment history/commutation facilities etc.)
b. Screening at selection in order to maintain a high retention
rate
c. Workplace tours prior to commencement of work
Site management
Select leaders from contract workers
Evaluation & Development Systems
a. Not limiting contract periods,
b. Offering pay increasesc. Offering chances to be regular workers
d. Conducting job rotations (occasionally)e. Holding training sessions for leadersStrategies of Client-managed companies for employees without high technical skills:
Hiringa. Maintaining a human resource database registering thosewishing to workb. Utilizing informal networks among immigrants
Site managementa. Leaders only to take attendance & supervise production
lines
b. Onsite managers only for labor management
Developmenta. No skilled-based evaluation and treatment(Fujimoto and Kimura, 2005)
Female workers

a. Systems enabling mothers to work while raising children
b. Providing challenging and rewarding workc. Work hours for child-care and nursing cared. Providing colleagues and superiors to whom one can turnfor advice
e. Creating environments in which women are notdiscriminated against marriage, childbirth, child-care etc.
f. Equal treatment of men and women and fair personnel
evaluations
g. Not assigning too much overtime
h. Allowing flexible work hours
i. Free-working system (work from home)j. Rehiring programs

Youtha. Achievement-based wages
b. Positions on preferencec. Promotion to management
d. Appointing leaders for traininge. Providing more opportunities for interaction
f. Follow-up interviews & opinion surveys
g. Employee counselingOlder workers

a. Removal of legal restrictions for working after retirement
b. Extending working period after mandatory retirementc. step-by-step extension of retirement age

Reemployed workers

a. Providing supportive services for child-careb. Making flexi-time arrangement

Source: Based on Ariga, Kambayashi & Sano (2009), Fujimoto and Kimura (2005), Okutsu &Kuniyoshi (2010), Mitani (2008) and MHLW (2005)

Different HR strategies and HR practices have been used for deploying regular/non-regular
workers in different industries. Importantly, the HR strategies and practices used in the
manufacturing industry are quite different from that of banking and retail trade industry. Thisvariation is reasoned by the industry status at different times and the nature of human resource
requirements of the organizations in each industry. The Table 5 provides a summary of HR
strategies and HR practices used for regular/non-regular workers in three major industries inJapan from 1990s.

Table 5: HR Strategies and HR Practices for Regular/Non-regular Workers in Three Major Industries in Japan from 1990s
HR Strategies

HR Practices for Regular/Non-regular Workers

Electronics Industry:

Changing composition of workforce

Reduction in regular workers

Changing management of regular
workers- Recruitment
 Recruiting less regular workers
 Cutting back on the hiring of fresh graduates- Remuneration/Reinforcement Freezing regular pay increases
 Differentiating pay for new entrants
 Abandoning seniority-based wage systems
 Introducing merit-based wage systems
 Differentiating remuneration and promotions within companies
 Abolishing extra allowances Disintegrate work & incentive patterns
 Differentiating employment and incentive systems between various units andsubsidiaries
 Linking retirement allowance to achievements
 Reducing seniority component in calculating retirement allowances Introducing a complex ranking system for base wages and for evaluating
performance Introducing systems on accumulating points for achievements
 Introducing systems for honoring professional skills
 Introducing systems for designating certain employees as specialists
 Introducing a grading systems for managerial employees-

Replacement
 Forced vacations

Banking Industry

Reducing the regular workforce



Changing management of regular
workers

Increasing non-regular workers

Adherence to Equal Employment Act& employing female employeesFlattening hierarchies- Recruitment
 Freezing the hiring of new graduates- Replacement
 Reducing internal administrative staff
 Reducing branch networks
 Reducing sales personnel engaged in outside sales activities
 Introducing early retirement schemes for older workers
 Introducing IT for replacing workers- Remuneration/Reinforcement
 Introducing merit-oriented wage systems (for regular workers)
 Reducing salaries directly Introducing performance-based component into retirement allowance Eliminating family and meal allowances- Recruitment
 Recruiting more part-time workers (e.g., counter staff)- Recruitment
 Recruiting more female workers (with prior work experience)- Retaining Abolishing distinctions between managerial and clerical tracks
 Promoting females into branch manager positions- Retaining
 Eliminating certain positions (e.g., section manager/below HOD)Retaining and motivating young &capable employees Reducing number of ranks- Retaining Offering advancement opportunities for young workers

Retailing Industry:

Reducing regular workforce



Changing management of regular
workforce

Increasing part-time employeesManagement of non-regular workers- Recruitment
 Freezing hiring of new employees (for a certain period)- Replacement
 Arranging early retirement exercises- Remuneration/Reinforcement
 Reducing retirement payments (e.g., Tokyū Department store-by 25%)
- Recruitment
 Recruiting more part-time workers
 Employing fresh high school graduates on non-regular contract
 Raising the proportion of non-regular workers
 Arranging open recruitment system for all managerial positions (e.g., Ito-Yokado
and Seven-Eleven)- Retaining Introducing new qualification schemes for part-time workers (e.g. Aeon) Opening positions for part-time workers in the managerial grade (e.g., store
management and procurement) Promoting part-time workers to managerial positions (e.g., assistant store managerIto-Yokado)
 Introducing different ranks for part-time workers (e.g., Roger general discounter) Eliminating distinguishing between regular and non-regular workers
 Allowing both regular and non-regular workers to apply for advertised positions- Introducing 360 degree evaluation system for part-time workers
Remuneration/Reinforcement
 Paying equal wages for equal work
 Abolishing regular salary increments based on the length of service, andintroducing career development paths leading to managerial positions (e.g.,
Sapporo co-op)

Changing management of regular
workforce Introducing merit-based payment over seniority
 Annual salary system based on merits for all employees regardless of tenure andposition (e.g., Tokyū Department store)

Source: Based on Meyer-Ohle (2009)

4.4 Structural Arrangements
Unfortunately, the structural adjustments made by organizations when deploying non-regular
workers were not well documented. However, organizing function in general, and subsequentjob design function in particular are critical functions from the individual as well asorganizational performance viewpoints. Some theoretical suggestions appeared in foreign
literature in relation to this point can be highlighted ad below:
1. Revisiting organizing function (e.g., division of labor, departmentalization, deciding
span of control, establishing reporting relationships etc.) (Robbins, 2004) at the
deployment of NRWs.
2. Establishing boundary spanning positions at the interface of organization/employment
agencies (Christensen, 1998).
4.5 Evaluation Summary of the Existing System of HRM for Non-regular Workers
In line with the above review and analysis, and with respect to the framework adopted in thepresent study, the evaluation summary can be presented as below.

HR Policies
 Encouraging diverse work styles
 Encouraging diverse work groups Encouraging labor force
participation of minority workgroups Promoting flexible work
arrangements

HR Strategies

HR Practices (towards
non-regular workers)

 Develop human abilities Use elderly workers byextending retirement age
 Enhance use of female
workers
 Labor outsourcing
 Mechanization ofbusiness operations

 Reduce wage gaps (withregular workers) Design promotion schemes Introduce conversion
systems
 Introducing performance
evaluation systems
 Equal treatments

Organizational Structure Not well documented.
 Appointing a coordinator/
 Establishing a separate division
for dealing with non-regular
workers?

Figure 7: Evaluation summary of the HRM system for non-regular workers inquadrilateral framework

5. Observations, Conclusion and Implications
The human resource management of non-regular workers seems to be different from that ofregular workers, when seen from the aspects of policies, strategies, and practices at workorganizations. On the grounds of increasing numbers and categories of non-regular workers,
this postulates the significance of paying more and closer attention to the human resource
management of non-regular workers. Further, the following points too have been observed:a.

b.

Different (employment) categories of non-regular workers (e.g., part-time workers,
contract workers, dispatched workers etc.) are composed of different demographic
categories, such as young workers (e.g., students), young mothers (those reentering into workforce after child-birth), and elderly workers (including retirees).
Different (employment) categories of non-regular workers have different reasonsfor and desires and expectations of getting into non-regular employment.

This condition leads to a situation where some of the policies, practices, and structuralarrangements of organizations cannot be generalized and (need not be) implemented acrossthe entire non-regular workforce. This may lead to the implication that the HR policies, HR
practices, and structural arrangements those focusing non-regular workers be customer-madefor fitting into the particular employment category as well as the demographic category ofworkers.
Within the portrait of macro level policy framework for deploying non-regular workers as awhole, it is observed that HR practices towards non-regular workers show differences indifferent industries, despite the common strategic direction visualized through the strategy
priorities of organizations across the border. Thus, it may be important to pay at least a little
attention to the industry-specificity of HRM of non-regular workers.
Lack of evidence of the decisions made on division of labor, grouping jobs, span of control,
establishing reporting relationships, delegating authority, selecting coordination mechanisms
etc. at the deployment of non-regular workers may be revealing the absence of such practices
or less arrangements for those effects within organizations. However, re-visiting the existing
structural arrangements at the point of deployment of non-regular workers may provide theopportunity for work organizations to utilize them more effectively, by assigning them nonroutine tasks, combining with regular workers, or using as a buffer labor force asappropriately, and as the case may be.
Organizations in the manufacturing industry exhibit the exercise of more HR practices
towards managing regular workers than that of non-regular workers. This may be due to theless number of non-regular workers employed in the manufacturing sector, when compared tothe services sector. Accordingly, service sector evidences to the performing of many HR
practices for getting access to and retaining non-regular workers. Most of the human resource
practices towards the management of non-regular workers, such as direct recruitment fromhigh school graduates, introducing promotion schemes, introducing performance evaluation
schemes, implementing conversion systems from non-regular to regular employment,
reducing wage gaps between regular and non-regular workers, and promoting to managerialpositions have been visible in the retailing industry. Despite some of the organizations inretailing industry, the organizations those effectively using the practice of job design for nonregular workers was not well seen.
Implications
Organizations that are struggling to manage a high proportion of non-regular workforce on acontinuous basis, as guided by their organizational and HR strategies, may be better off withsome structural arrangements which ease them dealing with most of the HR practices related
to them. Several of these are indicated below.
(a) Establishing a separate division for dealing with non-regular workers,(b) Appointing a coordinator for dealing with non-regular workers,(c) Establishing a unit for continuous dealing with Employment Agencies, or(d) Appointing a coordinator for dealing with Employment agencies, and(e) Establishing arrangements for continuous survey/research into working/living
conditions of non-regular workers.
Moreover, designing the jobs of different categories of non-regular workers may help inincreasing productivity (at organizational level) and motivation and job satisfaction (atindividual level), while providing opportunities for training and career development at a zeroor low cost. Thus, following may be some techniques for job designing:(a) Job simplification or enlargement (changing the volume of work),(b) Job enrichment (changing the responsibility of work),(c) Job rotation (changing the nature/division of work)
Limitations and Directions for Future ResearchThis study is not free from limitations. The two major limitations should be noted as (a) the
absence of HR policy assessment at organizational level (limiting it to macro level policy
analysis), and (b) limiting the review only to the literature published in English language (dueto language barrier for accessing the rich literature written and published in Japanese
language).
Subject to these limitations, the present study suggests two directions for future research.
First, it suggests a comprehensive study into each HR practices towards the deployment of
non-regular workers in this workplace. This may enhance the scholarly knowledge for
guiding more effective HR practices towards HRM of non-regular workers, and enlighten
practitioners with workplace realities. Second, it suggests to looking into the soft side of
HRM of non-regular workers (Benson & Debroux, 2004), i.e., the quality of work,
performances, learning agility, commitment etc. Such an investigation too may help
researchers and practitioners to search for more avenues for improving productivity of (andthrough) this workforce.
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