Changes are under way in Japan's distinctive human resources management practices
as the state of the economy remains fragile following the country's prolonged recession. However,
such changes may not necessarily point to the eventual collapse of the Japanese employment
system, as sometimes suggested. Despite the adjustments companies have made to cope with the
economic downturn, distinctive human resources management practices in Japan's large-scale
enterprises are unlikely to disappear altogether. This paper argues that the relationship between
large-scale enterprises and an even smaller segment of the permanent workforce will continue to
be defined by distinctive management practices. Thus, what is actually taking place in Japanese
management is an ad hoc reshuffle rather than substantial restructuring of internal labor
markets