Human Resource Management System Reforms at Matsushita

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : HROB028 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


HR Practices and Policies
Case Length : 15 Pages
Period : 2001
Pub Date : 2003
Teaching Note : Not Available
Organization : Varied
Industry : Consumer Electronics
Countries : Japan


The case discusses in detail about the reforms in the liberal human resource management policies at Matsushita and the lifetime employment policy at Japanese corporations. Matsushita was a traditional Japanese company that followed the policy of lifetime employment. However, due to various problems like falling revenues, company posting losses and slowdown in the global economy, the company was forced to change its employment policy. The case discusses how Nakamura, the President of Matsushita, introduced a new personnel system at the company with the objective of reducing human resources costs to the company. Finally, the case talks about the benefits reaped by the new system.


Identifying the circumstances that led to the change in the employment policies at Matsushita


  Page No.
Revising the 'Generous' Employment System 1
'Lifetime' Employment at Japanese Corporations 2
'Lifetime' Employment at Matsushita 3
Human Resource Management System Reforms 4
The Early Retirement Plan 6
The Road Ahead 7
Exhibits 9

Key Words:

Reforms, liberal, human resource management, policies, Matsushita, lifetime employment policy, Japanese corporations, Matsushita, Japanese company, falling revenues, losses, slowdown, global economy, employment policy, Nakamura, President of Matsushita, personnel system, human resources costs

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