Human Values and HRM Practice: The Japanese Shukko System

Abstract

Aspects of the Japanese human resources management system are discussed to illustrate the underly ing significance of human values in Japanese organizational management, with a particular aspect of Japanese human resource management used as an illustrative case. Relevant literature is reviewed to introduce the relational Japanese management and human resources management (HRM) systems, and to explain the system of inter-firm employee transfer within the corporate group known as the 'shukko' system. The paper then discusses various impacts of this HRM practice upon major stakehold ers and identifies otherwise redundant employees as major beneficiaries of the system, thereby demon strating that human values are critical to the conceptualization and application of Japanese human resources management practices.