Lack of a manual, or an imperfect manual, can invite haphazard management and inconsistencies in policy enforcement. Such inconsistencies can give the impression of favoritism or discrimination, not to mention headaches for managers who have to keep re-hashing the same issues over and over again. For example, one manager might take a hard-line approach, while another becomes known as a softie. Or a single manager may be willing to bend the rules for an employee he likes, while forcing a less-favored employee to toe the line. Careful adherence by all managers to a clear, complete employee manual is the best way to avoid such potentially dangerous inconsistencies.
Most Japanese companies create an employee manual when they first set up their U.S. operations.
Many Japanese firms established their U.S. operation in the time period 1985 to 1990. The following are some reasons why a 5-10 year old manual may no longer be meeting a company's needs. Employment related laws are constantly changing, and these need to be reflected in the employee manual. As a company grows, its practices change, and these changes need to be reflected in the employee manual. For example, a company with only 3 or 4 people may have a more casual approach to certain procedures, such as purchase of supplies or use of overnight delivery services, whereas it needs to formalize these as it grows.