The Historical Origins of High Performance Work Systems: Two Case Studies from Prewar Japan

Abstract

This paper aims to disclose the historical origin of high performance work systems in Japan. Two cases are investigated: cotton spinning works and a trade union affiliated with Sōdōmei in the 1920s and 30s. Cotton spinning is a focus area since Japanese production surpassed that of the UK in the early 1930s. It is commonly thought that this achievement was possible due to the low wages of young female laborers working short periods of service. Yet, an increasing number of workers acquired skills to deal with problems in the production process as the share of groups with longer periods of service grew, particularly workers commuting from home rather than living in company dormitories. The key incentive system was an individual base pay, which increased significantly over a worker’s career, in light of performance evaluations of his or her ability to handle production problems. Another case is that of the trade union for the rope and cable manufacturing industry, which gave workers voice. Affiliated to Sōdōmei, a non-left wing national center, this union not only declared its intention to promote productivity in the labor agreement, but in practice cooperated to achieve this as well. These cases imply that high performance work systems have an earlier origin, and that Japan may have firmer foundations in these systems, than usually thought. This historical analysis aims to shed light on the origins and functioning of these systems

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