Mitarai says that there are a lot of Japanese
employees who regard the company they have
joined as a country like the country of Canon or
the country of Hitachi, and offer the company
their allegiance. They begin to like and take pride
in their company simply because they have joined
it. They, therefore, do not easily take up different
employment unless something very unusual
happens. Good or bad, love it or hate it, this is the
Japanese culture.
If those employees sharing a common destiny
become aware of what they have to do and begin
working on their own initiative, the company can
become very strong. The company will no longer
lose excellent personnel even if it declines a bit
or has to cut their salaries. A lot of foreigners
mistakenly think that Japan has a system of
lifelong employment. Actually, however, there is
no such system in Japan. In addition, there is no
agreement for lifelong employment between the
employers and employees in their job contracts.
The employment situation in Japan is not so
different from that in other countries including
the “contract societies” of Europe and the United
States. The only difference is that, in Japanese
companies, both the management and workers
take lifelong employment for granted.
I think that Japan should develop this unique
culture from now on rather than aiming at
Westernization. Japanese companies will then find
another source for their competitive power. A good
example is the case of Yoichi Kawabata who played
a key role in Canon’s withdrawal from the personal
computer business. Kawabata was the head of
Canon’s wholly-owned subsidiary in California that
was engaged in the development and designing
of arithmetic circuits used as the heart of PCs.
However, the odds were against this company. Mitarai says he is happy to see that all of the
employees transferred due to the disposal of
businesses are actively working in the company.
Although Canon withdrew from some businesses,
it has made full use of the talents of its engineers
in the businesses on which it is focused. Thus,
Canon has realized “selection and concentrated
operation of businesses” while maintaining the
lifelong employment system.
“Selection and concentrated operation of
businesses” is a management approach that the
Japanese people learned from Western countries.
But under Mitarai’s leadership, it has been realized
in the Japanese culture of lifelong employment.
This “Japanese spirit with Western learning” is the
style of Mitarai’s management. This combination
enabled Canon to dispose of underperforming
businesses and concentrate its technologies and
human resources into key businesses, and has
brought a significant increase in its profits.
When the employees of a company share
the same destiny of lifelong employment, they
come to have a determination or a philosophy
to work together to improve their company. The
management also comes to have a sense that such
highly-motivated and competent human resources
must not be wasted. Then, rather than leaving the
capable personnel stuck in a hopeless business, the
management will have the courage to eliminate
the business and transfer the personnel to other
businesses.