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Opinion

Is the Merit System Good?

By CHRISTINE CUNANAN-NOMURA


能力主義はいいものか?

欧米の企業ではかなり浸透している「能力主義」。年功序列や終身雇用といった従来の日本企業の人事概念とはまったく異なるシステムだが、日本企業には果たして根付くだろうか、と筆者は考える

The introduction of the merit system at more and more Japanese companies is eliciting mixed responses from employees — and for valid reasons.

Until recently, the Japanese management system was based primarily on seniority and lifetime employment. This meant that most employees spent their whole lives working for one company and were compensated with salaries and benefits according to their age or to the number of years they had spent in the company.

This was a good arrangement for the average employee who was guaranteed a job and corresponding pay raises and perks as he grew olderregardless of how he actually performed. As long as he did not commit any serious mistakes or wrongdoings, he could feel secure about his place in the company.

For ambitious or very qualified employees, however, the system was tantamount to working under a glass ceiling. No matter how hard they worked or how good they were at their jobs, they had to patiently rise up the ranks with their less-qualified peers at least until the senior management levels.

This system frustrated many excellent workers who did not feel amply rewarded for the jobs they did or for the capabilities they had. Of course few such individuals dared to voice their frustrations publicly for fear of reprisals

However, I guarantee that ample rewards, recognition and motivation are universal human needs.

Many Japanese managers have privately spoken of disillusionment, hardship and depression. "Why should I work harder from now on?" one such manager told me. "No matter what I do, I'll still have to wait for the slowest person in my year level." Not a few eventually left their companies to work in more "individualistic" corporate environments such as those offered by foreign corporations or local technology companies.

The merit system, on the other hand, rewards employees according to their achievements and work contributions to the company. There is minimal distinction between age or qualifications. The most important factors are one's track record, present performance and potential value to the company.

The merit system is highly competitive and pressure-filled, since employees know they are constantly being rated and will be rewarded accordingly. Those who cannot fulfill company expectations may be fired. There is no security system and there are very few second chances.

For many people, this environment is too stressful and demanding compared to the family or team atmosphere of the traditional Japanese company.

However, some of Japan's most capable people may work better under the merit system and be encouraged to undertake daunting challenges — such as steering their companies through the current recession and making them more internationally competitive. Such tasks are not for everyone, but those who can do them successfully should probably be compensated for their true worth.

Both the traditional system and the merit system which is observed in many Western workplaces obviously have advantages and disadvantages. Which do you think is better for your company and for Japan's future?


Shukan ST: Nov. 27, 1998

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