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Policy Proposals
2002
Proposals for Japanese-style Principles of Management-by-Results
(July 29, 2002)
Research Committee for Japanese-style Principles of Management-by-Results
 
Principles of management-by-results (MBR) in Japan should ideally assimilate with Japanese organizational practices and be based on the individual from the perspective of the development of human resources. This is essentially what is called Japanese-style MBR, and covers the following points.
 
1. Reforming the job-based grade system into a system based more on individual ability
   
2. Combining the merit system with a performance-based system to create a benefits system which provides motivation
   
3. Shifting emphasis from a merit system to a performance-based system as employees develop their career within a company
   
4. Setting assignment, promotion, and role objectives according to a personnel system based on ability and merit
   
5. Installing an evaluation system to enhance employee satisfaction

Sufficient sharing of information and discussions between labor and management are keys to the implementation of Japanese-style MBR. Modification of the existing system requires a basic consensus between labor and management regarding present and future trends in the economy and market. More importantly, they must reveal disparities and divergences in their views of the existing system, share information, and explore issues from both sides. In addition, a “grievance committee” formed by members of both parties must function effectively in addressing the complaints of individual employees.
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