Lifetime employment

To manage the flow of human resources within organizations, some large and prestigious Japanese firms have adopted the policy of “lifetime employment” (Fisher et al, 1990). There have never been any official rules concerning implementation of lifetime employment, but there has been a convention of long-term employment among the large corporations. It is based on the concept that if an employee devotes his life to his company, the company will in return provide him with a guarantee of lifelong employment, housing and other things to take care of his needs. In a sense, this commitment means that the employee ceases to be an individual and becomes a part of the company (Osamu, 1995). Fisher et al (1990) found the employees covered by this policy comprise 22 to 30 percent of the full-time work force. Many are white-collar and some are blue collar workers. They are guaranteed job security from the time they hired-upon graduation-until they reach the retirement age of fifty-five.

Why ...