HRM in Japanese Enterprises: Trends and Challenges

The rise in thc Western concept of HRM parallels the global success of Japanese manufacturing enterprises. HRM in these firms emphasized an internal labour market and stable relationships between all stakeholders. The global environment may now require firms to shift to a more market-oriented approach. The evidence points to peripheral changes taking place but within the overall structure of traditional Japanese management. This gradualism has important implications for Western firms adopting the HRM paradigm. The context and configuration of HRM is the essence of Japanese managerial strategy. Failure of Western firms to recognize this will mean that HRM will lack a strategic focus and be unable to produce the desired outcomes.