※Translated with Notion AI. (Plus version)
The Growth Barriers Facing Japanese Companies: Dismissal Regulations and Their Impacts
The stagnation in growth experienced by Japanese companies is intertwined with a complex array of issues, among which the severity of dismissal regulations stands out as a particularly critical obstacle.
Often dismissed as a mere byproduct of Mr. Koizumi’s political agenda, these regulations actually represent a pivotal challenge linked to the resurgence of international competitiveness, economic growth, and the overall health of the labor market.
If the status quo persists, Japan’s labor market risks further entrenchment, stifling innovation and leading to ongoing losses in global competitiveness.
Many Japanese companies struggle with rigid internal personnel management and lack the flexibility needed for organizational adaptation due to the difficulties associated with employee dismissal.
Consequently, firms often retain underperforming employees, leading to a rise in businesses suffering from stagnant performance, while workers increasingly neglect self-improvement.
This situation also reflects managerial complacency and a tendency to evade responsibility.
