ABSTRACT
This chapter discusses how the Japanese employment system is geared toward supporting the type of long-term generalized exchange. The system is set up to penalize workers who change jobs, and a high visibility environment, coupled with high dependence on the group, makes monitoring and sanctioning easy and effective. The point that school and the examination system encourage students to display their determination, endurance, and willingness to meet institutional obligations without questioning the value or meaning of those obligations. In addition, companies tend to spend a great deal of time resocializing new employees, reinforcing some social norms, and creating new values and loyalties. Although one might think that a system that promotes lifetime employment and seniority-based promotions and raises might not be able to effectively sanction inappropriate behavior, this is not the case. It is important to note that while everyone in a company can expect to be promoted, merit is also rewarded.
