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Multiskilling, Delegation, and Continuous Process Improvement: A Comparative Analysis of U.S.-Japanese Work Organizations

Author

Listed:
  • Hodaka Morita

    (University of New South Wales and Cornell University)

Abstract

This paper focuses on the following U.S.-Japanese differences in work organizations and labor market practices: in Japanese firms, (i) real decision-making authority is delegated more to lower hierarchical levels, (ii) employees are multiple-skilled, (iii) human capital accumulation is more firm-specific, (iv) labor turnover rate is lower, and (v) continuous process improvement is more prevalent. I present a model that addresses interconnections among three key features of work organizations (multiskilling, delegation, and continuous process improvement), and analyses ways in which they are related to labor market practices. It analyses strategic interactions among firms concerning their choices of the nature of work organizations, and shows that strategic complementarity due to labor market externality can yield the multiplicity of equilibria, which provides a systematic explanation for the U.S.-Japanese differences.

Suggested Citation

  • Hodaka Morita, 2002. "Multiskilling, Delegation, and Continuous Process Improvement: A Comparative Analysis of U.S.-Japanese Work Organizations," Labor and Demography 0207004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0207004
    Note: Type of Document - pdf; pages: 35; figures: none
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    References listed on IDEAS

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    More about this item

    Keywords

    Delegation; Multiskilling; Process Improvement; U.S.-Japanese Differences; Work Organization;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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