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Innovation in Japanese HRM: Are Japanese Companies Adopting the Pay for Performance Principle?

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Abstract

The late 1980s witnessed in the U.S. and subsequently in many other, mainly Western countries a major management innovation: the introduction of human resource management (HRM). Authors produced various catalogues of ‘best practices’ within HRM, which were established as check lists for enhancing corporate success.1 While these lists varied to some degree, the performance orientation and here in particular the link between incentives and performance was a common theme. It is through the setting of performance-based incentives that each employee should be motivated to perform better, with the accumulative effect of an augmented performance of the overall organization. This focus on individual performance is central with regard to two major incentive categories: pay and promotion.

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© 2010 Markus Pudelko

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Pudelko, M. (2010). Innovation in Japanese HRM: Are Japanese Companies Adopting the Pay for Performance Principle?. In: Haghirian, P. (eds) Innovation and Change in Japanese Management. Palgrave Macmillan, London. https://doi.org/10.1057/9780230250536_9

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