Japan's Changing Culture - Business

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Q2. How might Japan’s changing culture influence the way Japanese business operate in the future? What are the potential implications of such changes for the Japanese economy? The economic recession in the year of 1990 triggered the cultural change of doing business in Japan. The traditional Confucian values in traditional Japanese business mainly focused on loyalty, ethical values and high moral. As a result of cultural change the traditional way of doing business and perception of hard working loyal salary men were slowly being replaced by movements toward individualism among employees. (Hayashi, F., & Prescott, E. C. (2012)) As a result of this changing cultural trend, companies have to modify their traditional practices. Also it would influence the way Japanese business operate in future as it would have significant implications particularly on human resource strategies. Instead of paying bonus and salaries based on seniority, it would be based on performances. In traditional practice a junior employee with perfect performances got lower salary or benefits than a senior with poor performances because of the seniority, age and ranking base. It did not encourage employees to devote all of themselves to the company. But today employees are exactly valued by their performances, qualifications ranking by their managers or the superiors. So they will tend to work more and benefit more to the company growth and also they will provide quality and efficient work which benefit for the companies development. Due to the diminishing of traditional recruitment and selection criteria, the new employee pool that is more focused on self-benefit and individualism without support structures of paternalistic companies would mean different pay schemes and incentives. It will leads for more international investments and dealings with business and will have m re diverse, get

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