Patterns of Creativity in Japan Lessons from Successful Japanese Companies – A Resource

Group Based Incentives

Set goals and pay incentives to the groups (not individuals) that achieve them. Give them the freedom to use these bonuses to carry out the projects that they feel are important – increasing the motivation to develop ideas at the station level.

Example: At the district and station level East Japan Railways awards bonuses for surpassing revenue goals. Employees use these to improve services or facilities as they see fit.

Source: Katayama, O. (1996). Japanese business into the 21st Century: strategies for success.