Central in the Japanese economy is the family approach. Somebody who joins a company
joins a family. And there are "families" of companies. The three sacred treasures makes this
Since you know that you are going to work in the same company until you retire you care
much more for that the company is doing well. If the company is doing well you get
bonus(can be considered profit sharing). Up to 30 % of the wage is bonus-based.
In Japan they have so called J-mode (not H-mode as in the US and European corporations
with hierarchy) meaning that there is horizontal communications between management and
workers. The fact that difference in wages are relatively small and that managers often have
been workers themselves before enables good relations between management and workers. So
when a decision is to be made everyone is involved because everyone cares.
Another element of lifetime- employment is that the company teaches you how to work in
many different ways within the company, but the workers know little about how to work in
other companies so this creates a loyalty to the company. The company is also loyal to the
workers and is willing teach them these skills because they know that the workers will stay
Another thing why workers are loyal to the company. If they stay in the company they get
higher and higher wages. But there is a movement now towards performance-based pay.
Same basic idea as above. If you are attached to one company through lifetime employment
and have learned many different skills there it is natural to belong to a union that negotiates
with this company. Both management and workers join the union and support it.
Another central aspect is the keiretsu system. There is the horizontal keiretsu and the vertical
...