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

Skill-Based Pay

Place a greater emphasis on skills or ability in remuneration packages.

Paying by ability to perform a job even if a worker is not performing it at the time of the evaluation encourages flexibility, breadth of knowledge, and the ability to problem-solve over more than one area of the firm.

“…this superior ability allows them to deal with unexpected or difficult to perceive problems.”

Example: Toyota; Canon; A comparative study of American and Japanese factories; A study of Japanese production systems.

Source: Katayama, O. (1996). Japanese business into the 21st Century: strategies for success.; Lincoln, J.R. and Kalleberg, A.L. (1990). Culture, Control and Commitment.; Koike, K. (1990) Aspects of excellence in Japan’s production system. Economic Eye, Vol. 11, No. 4, pp. 27-31. ; Xu, F. and Rickards, T. (2007). Creative management: a predicted development from research into creativity and management. Creativity and Innovation Management 16(3), pp.216-228.