For other local Japanese employees, the subsidiaries in Japan manage the
Japanese employees. Except the AS3 and AS5 subsidiaries, other subsidiaries
partially changed performance appraisal systems that are made by headquarters
human resource departments of their parent firms. At the AS2 subsidiary,
Japanese blue- and white-collar employees are evaluated by using the same
performance appraisal system, in contrast to the parent firm in the United States
where both of the employees are treated separately.