HUMAN RESOURCE MANAGEMENT IN JAPAN2.1 Introduction For several decades, Japanese companies have been successful in their human resource department. Traditional features of Japanese HRM included lifetime employment and a pay and promotion system based on seniority. These systems were considered the key to the good performance of Japanese companies. However, several changes in recent years, such as international competition, changes in the service sector, an older and aging workforce, and changes in the mindsets of the younger workforce, are challenges. compelling changes in Japanese companies.2.2 Global CompetitionDuring global competition In the 1990s, there was a reduction in the number of freshmen due to excess labor. This forced leaders to abandon the employment-for-life approach. Employers started believing in outsourcing labor to other labor supply companies as it allowed them to control and manage the level of labor according to of their needs. 2.3 Current SituationTo reduce costs, the benefits and profits of jobs have been slowly reduced. Cost reduction has helped companies compete with foreign companies. Instead of the time employees worked, companies began paying them based on their performance, known as the piece rate.