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2010 Vol.2
The Effect of the Transition of Political Power on Personnel Management


This article examines the effect of the transition of political power in 2009 on business management, especially personnel management.
The transition of power that occurred in 2009 hasbrought new policies that had not traditionally existed in the areaof employed labor. As systems within individual companies and government policies are in a complementary relationship, the former is highly likely to be forced to change due to a shift in the latter. Those who are engaged in planning and actual operations in personnel management must respond precisely to such changes. To do so, they need to have an overall understanding of a shift to the so-called Northern European model in which government welfare benefits reach individuals without going through companies. They also need to take into account the possibility that policies of the Democratic administration reflect opinions of existing labor unions more heavily than traditional policies.
As examples of the policy shift, this article first examines policies associated with child rearing and education, such as the child subsidy scheme and tuition-free high school program. They potentially force companies to reassess salaries that are adjusted for household living expenses. Second, this article discusses the amendment to the law on the temporary workers. Regarding the amendment, we expect that companies will continue to hire non-regular employees, but not as temporary workers, and that the true objective of the law may not be realized. With the passing of the amendment, companies will probably shift toward more subtle and sophisticated utilization of nonregular employees.