Adaptation in Japanese Management: The Engineers Case

Abstract

Recent technological innovations have brought about a rapid growth in the number of engineering professionals and technical specialists in Japanese companies, particularly in the electronic and information technology industries. This drift towards specialisation among the Japanese workforce and the increasing demand for high-level skills and technical expertise are said to be creating tensions 1n the generalist-oriented personnel management strategy adopted by the major companies . This paper examines the current state of the 'engineers problem' and the emerging policy issues as revealed by two recent studies : (1) The Japan Productivity Centre (JPC) Study on Engineers (1985) indicates the existence of a severe mismatch in expectations and perceptions between t op management and engineers in t he areas of career development pattern, reward structure and methods of skill development . ( 2 ) The Denki Roren survey (1987) on 2,500 engineers and researchers indicates a high level of dissatisfaction and professional insecurity among these people . Four key policy issues with regard to technical specialists in the areas of recruitment , utilisation and career structure , reward structure and skill development are discussed in this paper . Recent survey evidence indicates that major firms are rather reluctant to introduce drastic changes in the current pattern o f personnel management system. Top management of major companies are well aware o f the fact that t he main source of engineering strength in Japan is to have a core group of highly committed, organisationally-minded engineers . The special adaptive strategies introduced in recent years function t o preserve the existing personnel management system more effectively for a smaller number of core engineers and technical specialists . However, the conflict between the need to encourage the innovative endeavours of talented young engineers and the need to preserve a seniority (nenko) element in career hierarchy design and in the distribution of rewards , still awaits resolution.