Performance Evaluation of Microprofit Center and Blurred Link with Compensation : Literature Review of Japanese Performance Evaluation System
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概要
- 論文の詳細を見る
In recent years, some Japanese firms have moved towards a microprofit center (MPC) system. A MPC is usually an operational unit that used to be a cost center but is instead treated as a profit center. The size of a MPC is usually very small. It has been reported that the introduction of a MPC is effective in revitalizing the corporate operations and increasing productivity. The paper aims to clarify the nature of MPC system as a team and the reason why MPC system is effective though its performance and compensation are not directly linked. MPC system is operated in the context of Japanese companies' evaluation system which characteristics are diversified evaluation, prolonged promotion selection and skill-based payment in the long time employment background. This context allows MPC members to believe that their efforts for MPC performance would pay off in the future. Consequently this expectation of MPC members encourage cost reduction and an increase in employees' motivation even though MPC performance is not linked with immediate monetary incentives. Lastly this paper points out potential limitation of Japanese MPC system. Japanese MPC is built on Japanese companies' long term employment premises, but recently many Japanese companies no longer maintain this employment condition. Because of this, if Japanese companies' employment condition change drastically in the future, MPC system might be threatened with the change.
- 青森公立大学の論文
- 2004-03-20