Sunday, May 17, 2015

THE CURRENT STATE OF HUMAN RESOURCE DEVELOPMENT ADMINISTRATION IN JAPAN AND THE DEBATE ON ITS FUTURE

ARTICLE 6: THE CURRENT STATE OF HUMAN RESOURCE DEVELOPMENT ADMINISTRATION IN JAPAN AND THE DEBATE ON ITS FUTURE

Introduction
In Japan, the economy and society are undergoing drastic changes as the result of technological progress, an altering industrial structure and a rapidly ageing population. Given these circumstances, it has become increasingly important for workers to develop and improve their vocational abilities systematically by stages and for these abilities to be properly evaluated at each stage throughout their working lives.
For these purposes, the Ministry of Labour conducts vocational training for the public, supports vocational ability development in the private sector, establishes systems to evaluate vocational ability, and promotes international cooperation in the field of human resource development. This paper describes the areas of human resource development that currently come under the administration of the Human Resources Development Bureau of the Ministry, and then looks at possible areas of future development.

Framework of the human resource development administration
Organization of the human resource development administration
Figure 1 gives the structure of the total human resources development administration. Human resource development is administered at the national and prefectural level, each served by a council and nongovernmental providers. The Central Human Resources Development Council at the national level is part of the administrative organization of the Ministry of Labour, established to reflect the opinions of academic, business and labour communities in the administration of human resource development. The twenty members of the Council are appointed by the Ministry from these three backgrounds. Its main brief is to research and deliberate upon, in response to the Minister’s request, the basic plan for human resource development and to examine other key items relating to human resource development. The Council has the authority to advise related administrative organizations on matters in the areas which it deems important.
Each prefectural government has a Council on Human Resources Development and the role of these outer organizations is analogous to that of the Central Council.

Legislative foundation
The basic framework for the system of human resource development for workers is prescribed in the legislation of 1969, namely, the Vocational Training Law (later renamed Human Resources Development Promotion Law in 1985 with the essentials of the legislative aims unchanged). The law determines that the basic role of the human resources development administration is to lay the foundation for the realization of the systematic vocational ability development by stages, and to encourage the involvement of employers and workers in the process. The development and enhancement of the ability of workers required for their job is indispensable for the security of employment and the improvement of the workers’ position. It also constitutes the foundation of economic and social development.

Expenditure by the national government
The national government budget in fiscal year 1995 for the human resources development administration is Y157 billion (£1 billion approximately at £1=Y150). Part of this amount is granted to the prefectural governments to assist their administration financially. The allocation of this budget by major policies is as follows:
1. for the promotion of human resource development within enterprises ‐ Y28.2 billion (18.0 per cent);
2. for self‐education by workers ‐ Y2.0 billion (1.3 per cent);
3. for providing public vocational training ‐ Y116.7 billion (74.3 per cent).
Of the total budget of Y157 billion, 90 per cent comes from the Employment Insurance System in accordance with the Employment Insurance Law. The role of the Employment Insurance System is to finance the payment of unemployment allowances and the three undertakings of employment security, human resource development and labour welfare conducted by the national government.

Outline of human resources development administration and its function
The human resources development administration is conducted within the framework outlined in Figure 2.

Human resources development in the public sector
The Human Resources Development Promotion Law of 1985 stipulates that the national and prefectural governments should provide, as their statutory duty, vocational training for workers wishing to change their jobs, and other persons needing special assistance for the development and enhancement of their vocational abilities.
For this purpose, the national and prefectural governments have established 354 public human resource development facilities throughout the country to conduct vocational training, according to Vocational Training Standards determined by the Labour Minister. These facilities are mainly for recent graduates from schools, workers in small and medium enterprises, unemployed people and those wishing to change their employment.
The functions of the training centres are as follows:
1. Human resources development centres are established by prefectural or municipal governments. These centres provide long‐term vocational training courses for new graduates, giving them basic skills and the knowledge necessary to become skilled workers, and short‐term vocational training courses for the employed or workers changing jobs.
2. Polytechnic colleges are established by either the Employment Promotion Corporation or prefectural governments. These colleges provide long‐term vocational training courses for new senior high school graduates, giving them basic skills and the knowledge necessary to become workers with advanced skills, and short‐term advanced vocational training courses for the employed.
3. Polytechnic centres are established by the Employment Promotion Corporation, and provide short‐term vocational training courses (including advanced vocational training courses) for the employed and workers changing jobs.
4. The Polytechnic University founded by the Employment Promotion Corporation managed by the national government develops vocational training instructors and carries out research into vocational training.
5. Human resources development centres for the disabled offer vocational training with special consideration given to the training courses and methods for persons with severe physical handicaps or mental retardation, who find it difficult to attend courses with the non‐disabled at standard human resources development centres. These centres have dormitories for trainees who are unable to commute.
Of the public human resource development facilities there are 105 national establishments and 249 prefectural establishments (Figure 3).
To make public vocational training suitable for changes in technical innovation and for the fact that many workers are of an older age group, the curriculum for training is revised (Table I). Training equipement is upgraded or replaced. The instructors at the public human resource development facilities are required, in general, to obtain a licence of Instructor of Vocational Training issued by the Labour Minister.

Human resource development in the private sector
Systematic and continuous education and training in private enterprises is important in developing and improving working lives. The national and prefectural governments support human resources development in the private sector by promoting the authorized vocational training system, awarding grants for lifelong human resource development, offering advice and information and providing various aids for human resource development. Besides these measures, the Business Career Development System was established in 1993.
Authorized vocational training. The Government authorizes training managed by enterprises and enterprise groups, which meet a certain standard, in order to promote systematic and planned vocational training and to encourage human resource development in the private sector. The government provides various measures of support to these authorized training schemes. In 1994, there were 1,390 authorized vocational training centres and 24 authorised vocational training colleges.
Grants for lifelong human resource development. The purpose of these grants is to promote systematic and planned education and training in the private sector. They are given to enterprises administering education and training in company, and to employers who assist the effort of their employees at self‐development.
Additionally, the government promotes lifelong human resource development by giving grants to enterprises initiating education and training in conjunction with business diversification or conversions. Grants are also given to middle‐aged and older workers who engage in self‐education and training as a means of providing themselves with job stability in the later stage of their working years.
Human resources development service centres. Human Resources Development Service Centres have been established in every prefecture (see Figure 1). These centres support human resource development in enterprises. Specialists at these centres have access to the Ability Development Database System (ADDS), a database of information on human resource development. They use the database to consult, give advice and provide information to individual enterprises on education and training plans and effective methods of human resource development.
The business career development system. In the rapid development of technological innovation and the increasing importance of information, the key role played by the development and enhancement of the vocational ability of white‐collar workers has recently been emphasised. A system of acquiring vocational ability, named the Business Career Development System, was established in 1993. This system is for white‐collar workers to develop vocational abilities systematically by stages, so that they can meet the required level of specialization and enhancement of skills demanded by their duties.
The main components of the system are:
1. systematizing, in the form of a matrix, the occupational knowledge required of the white‐collar worker to carry out the tasks for each field of duty, and stipulating the standards of education and training for acquiring the knowledge;
2. authorizing and announcing officially the level of education and training to meet the standards for the acquisition of the knowledge required for each field of duty, mentioned above, and the appropriate course of education and training provided by private and public education and training organizations; and
3. conducting the end of course examination of each course of study through the Japan Vocational Ability Development Association which is affiliated to the Ministry of Labour, to test the competency of the workers on the subject of their study authorized by the Minister, and certifying the results of occupational ability development undertakings.
The authorized education and training courses have been running since April 1994 in the fields of:
1. personnel, labour and capability development;
2. accounting and financing;
3. sales and marketing;
4. production and management.

It is envisaged that the following six additional fields will be offered in the near future:
1 judicial and general affairs;
2 public relations and advertising;
3 management of information and business;
4 logistics;
5 business planning;
6 international business.
Each field of study is organized into the three progressive grades of elementary, intermediate and advanced, and related to the level of the post held by the participant (see Table II). For example, the elementary grade of the personnel management section in the personnel, labour and ability development matrix is made up of four area‐based modules, requiring 54 hours of study in total, while the intermediate grade is made up of four separate subject units each requiring between 24 and 36 hours of study (Figure 4). Each module is a self‐contained unit of ability competency, and functions as the basis for qualification.
In 1994 there were about 3,700 authorized education and training lectures being run at 149 organizations nationwide, and approximately 5,000 participants completed the elementary and intermediate courses and took the examination. Completing all four units at the intermediate grade would take more than one year. The advanced grade is at the stage of being fully developed.

Evaluation of vocational abilities
To advance the vocational ability of workers it is essential, besides providing vocational training, to evaluate the skills that workers obtain, at respective stages of development, to encourage them to recognize the results of their efforts. Furthermore, it increases a worker’s volition to make progress towards new targets for the acquisition of further skills.
For these reasons, the national government has been strengthening the system of evaluating skills it conducts. To this end it has been utilizing the skills’ test system and in‐house test system adopted by private organizations and enterprises.
In addition, for a society which sets a high value on trade skills, the Labour Minister awards outstanding skilled workers and holds a National Skill Exhibition, a National Vocational Skills Competition, a Trade Skill Grand Prix and Skill Competitions for the Disabled.
Trade skill tests system. The trade skill tests system, established in 1959, is administered by the government to certify workers’ vocational abilities. The trade skill tests are currently being conducted in 133 vocational categories. These tests are graded, according to proficiency, into: Special grade; 1st grade; 2nd grade; 3rd grade; basic grade, 1; and basic grade 2, in that descending order.
Trade skill tests for some vocational categories are not classified into grades. These tests consist of a paper test and a practical test. In principle, it is necessary for a person to have practical experience in a designated vocational category for him to apply for a trade skill test, although this condition can be changed depending on the individual’s education and training history.
Authorized system of trade skill tests by the private sector. The Labour Minister authorizes non‐profit service corporations in the private sector to administer trade skill tests provided they meet certain standards and are considered worthy of encouragement in relation to the promotion of trade skills. These trade skill tests evaluate and certify vocational knowledge and skills.
In‐company trade skill tests. The Labour Minister similarly authorizes in‐company trade skill tests administered by enterprises which meet specified standards and are considered worthy of encouragement in relation to the promotion of trade skills. These in‐company trade skill tests evaluate and certify the abilities necessary for vocations related to individual enterprises.

Various official events are organized:
1. annual awards for outstanding skilled workers are given by the Labour Minister to workers who have attained top level skills;
2. a national skills exhibition is held annually to encourage trainees at human resource development facilities to upgrade their skills level, and to gain public understanding of the promotion of trade skills and human resource development;
3. a vocational skills competition is held every year for workers under the age of 22. Winners of this domestic competition can participate in the International Vocational Skills Competition;
4. at the annual Trade Skill Grand Prix outstanding certified skilled workers selected from each prefecture compete against each other;
5. both National and International Skill Competitions for the Disabled are held to promote their employment and to upgrade the social status of the disabled as skilled workers.

International cooperation
Being called upon to play a larger role in international affairs, Japan is giving positive aid to developing countries. Human resource development as a foundation for social and economic progress is one of the most important areas of co‐operation. The following measures are carried out to promote international co‐operation in developing countries:

1. co‐operating in the establishment and operation of overseas human resource development facilities;
2. accepting foreign trainees;
3. co‐operating with international organizations such as the Asian and Pacific Skill Development Programme;
4. accepting foreign students at the Polytechnic University and polytechnic colleges at national expense;
5. assisting overseas vocational training managed by private enterprises.

Debate for the future
Human resource development in Japan faces several issues requiring discussion.
Support for human resource development in response to the change in industrial structure
To relocate smoothly the labour force among industries, while trying to keep employment stable under the changing industrial structure, it is desirable that the enterprises in declining sectors shift their business activities to fields where higher returns are expected or diversify into several different areas where an increase in demand is expected to develop, and at the same time relocate their workers to such areas. It is necessary that the administration support such positive restructuring of business.
What is important in this regard is the support for the efforts put in by enterprises to develop people who can cope with the realization of high returns and the development of new business fields. Especially as many medium‐ and small‐sized enterprises have not established an in‐company system to develop human resources, the role played by the public sector will be highly significant in this respect.
On the other hand, it has become necessary to strengthen the training courses at public human resources facilities in terms of both quality and quantity so that those workers who are forced to leave or change their jobs due to changes in the industrial structure can find enhanced employment opportunities by the further development of their skills. Consequently the strengthening of the system for human resource development within and outside the enterprises is a very important issue.

Assistance for self‐education by workers
In the situation where reward by merit, rather than by seniority, operates in an enterprise, the need for development of ability by the workers’ own initiative and effort will increase, in addition to the effort by the enterprise. Therefore, to support self‐education by workers, an examination should be made for adopting and promoting a system of long‐term leave of absence to enable workers to attend universities or other higher educational institutions. At such institutions they could engage in courses of advanced specialist ability development.

Vocational ability development for white‐collar workers
To meet the increasing needs by enterprises and workers for vocational ability development, it is desirable to establish and strengthen the system in which any person can receive ability development at anytime and anywhere by means of the construction of an education and training network using satellite communications.
Furthermore, to develop the vocational ability of white‐collar workers, for which the demand is becoming increasingly significant, it is necessary to expand the business career development system to assist those workers to acquire, systematically by stages, relevant occupational knowledge. It is also important to establish and strengthen the facilities which have overall functions such as:
1. the collection of information and the implementation of research regarding the development of the ability of white‐collar workers;
2. pioneering advanced education and training at the levels of universities and graduate schools;
3. positive provision of knowledge and information, based on achievements, to enterprises and workers.

Conclusion
In the current situation where both the international and the domestic economic environment surrounding Japan are changing rapidly, the development of people with an ability to cope swiftly and effectively with its multifarious effects is becoming increasingly vital for the future development of the Japanese economy and society. In particular, as the key issue for Japanese industry is to raise the substance of its business activity as well as to open up new fields of business, the development of vocational abilities such as creativity, planning, and problem solving is becoming critical. This largely depends on the skills and the quality of individuals. Towards this end, it is an important issue for the government, besides providing support and assistance for the human resource development within the enterprise, to create an environment that promotes the enhancement of vocational abilities initiated by the workers themselves.

SOURCE: http://www.emeraldinsight.com.eserv.uum.edu.my/doi/full/10.1108/02621719610145960

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