Fujitsu Ltd is apparently set to scrap the traditional Japanese system of seniority among employees and move to a merit-based system more in line with practices in the US and Europe, according to a report in the Wall Street Journal. The computer and semiconductor giant says that by October this year, it will make all promotion and salary decisions based on twice-yearly employee evaluations, which is a major departure from the traditional Japanese way of giving wage increases based on seniority and length of service. While the company says the changes may take some time to implement and will not immediately impact its operations, the changes could eventually set a precedent for other blue-chip Japanese companies. The traditional Japanese employee-based management has been predicated upon the idea of employee loyalty, lifetime employment with one company and rewards for seniority. If this is shaken up, the whole dynamic of the Japanese market could change beyond recognition.
