Ishida’s study was an interim report and draws no conclusions. But its implications are clear. The U.S. social system, especially its labor-management relations, impedes the transfer of Japanese methods. Unlike in counties such as those in Southeast Asia with a short history of industrialization, in counties where industrial relations and workshop practices are firmly entrenched it is difficult for intellectual skill formation—merit rating and yearly pay increments. Intellectual skill formation thus is also difficult.
Indeed, the United States, the countries of Western Europe, and other areas that have lengthy histories of labor-management relations may have difficulty adopting regular pay increments, performance appraisal, and other incentive programs to promote skill formation. It would be a mistake, though, to conclude that this is a manifestation of cultural difference. In white-collar workplaces in Western Europe, as mentioned earlier, regular pay increments and merit ratings are common, and the percentage of white-collar workers is steadily rising. It will take time for these methods to spread to blue-collar workers in the West. But if local workers approve, and the Japanese company pushes, implementation is not impossible. There are reports that merit ratings have already been accepted by British blue-collar workers. In 1997 , a more 22 percent of the U.K.- based companies surveyed appraised performance; by 1986, 24 percent did so.