Essay Panasonic and Japan’s Changing Culture

1059 Words Mar 16th, 2012 5 Pages
Panasonic and Japan’s Changing Culture
Summary
Japan is moving towards more individualism than collectivism after the economic bubble. Nonetheless, this is a good opportunity for Japan to adapt to the globalization world and be more competitive. The cultural change will lead to greater mobility of employees, which means people will move around jobs more than before. As a consequence, company loses loyal employees but what they get by recruiting other people is the experiences. When people have mobility, they tend to gain experiences among a lot of companies and build social network among various groups of people. When this happens, new ideas emerge and startups will be built around the new ideas. Hence by moving towards individualism,
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On the other hand Panasonic was mutual loyal to their workers and provided them with a wide range of benefits. After the World War II people haven’t had as great prospects as they had a few years later thus they were thankful for every job they could get and committed to it. Once hired they would spend the rest of their lives working for the same company, which supported to develop unique firm-specific knowledge. As a result Panasonic was at the forefront of the rise of Japan to the status of major economic power. As cultures change, people lacked the traditional values during the 1990s and early 2000s. But Panasonic didn’t want to give in on the traditional values and therefore it didn’t change their way of doing business until 1998. Unfortunately this adjustment came too late, and the company had already performed poorly several years before.
What is Panasonic trying to achieve with human resource changes it has announced? What are the impediments to successfully implementing these changes? What are the implications for Panasonic if (a) the changes are made quickly or (b) it takes years or even decades to fully implement the changes?
With its human resource changes Panasonic was trying to enhance its performance by offering a traditional option and making the company more attractive to new employees with its offers of a high start salary but no retirement

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