Tatsumichi, S., & Morishima, M. 2007. Seikashugi from an employee perspective. Japan Labor Review, 4 (2): 79-104.
In this paper Seikashugi is considered to be “ideal type” and is explained in more detail in the next section, “Organization principles of Seikashugi.” In short, it is an employee assessment and compensation system for companies wishing “to assess and offer benefits based on short-term individual business results and performance.”
..... Naturally, before this mechanism was introduced companies already had a personnel system for assessing employee performance and adjusting wages accordingly. For instance, even companies with an ability-based grade, which is a form of a merit-based assessment and compensation, have often measured performance and reflected it in the form of a bonus. One could claim that no personnel system neglects to measure performance (roughly speaking ‘marked ability’) as the foundation for personnel management.
Okunishi, Yoshio. 2001. “Seikashugi” chingin donyu no joken [Conditions for the
introduction of “performance-based pay system” wages]. Soshiki Kagaku
(Organizational Science) 34, no. 3:6-17.
Okunishi (2001) insists that the following three elements of Seikashugi be filled: 1)
Emphasize business results and not various other variables affecting them (skill,
knowledge, and effort, etc.), 2) Emphasize short-term business results over long-term
business results, and 3) Create a major differential with the actual wage.
Takahashi, K. 2008. Assessing Personnel Traits in Internal and External Labor Markets. The Japanese Journal of Labour Studies, 578, 4-16.
Federation of Economic Organizations 1996. The report of the follow-up survey on Japanese management in the new generation. Roumu Kenkyu、580, 28-32 (in Japanese).
Seikashugi or the performance-based human resource practice is defined as measuring performance during the specific period and immediately reflecting the performance on compensation and promotion decisions.
