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Career Development International
Emerald Article: Effects of wage and promotion incentives on the motivation levels of Japanese employees Kiyoshi Takahashi

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To cite this document: Kiyoshi Takahashi, (2006),"Effects of wage and promotion incentives on the motivation levels of Japanese employees", Career Development International, Vol. 11 Iss: 3 pp. 193 - 203 Permanent link to this document: http://dx.doi.org/10.1108/13620430610661722 Downloaded on: 10-01-2013 References: This document contains references to 18 other documents Citations: This document has been cited by 2 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 5035 times since 2006. *

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Kiyoshi Takahashi, (2006),"Effects of wage and promotion incentives on the motivation levels of Japanese employees", Career Development International, Vol. 11 Iss: 3 pp. 193 - 203 http://dx.doi.org/10.1108/13620430610661722 Kiyoshi Takahashi, (2006),"Effects of wage and promotion incentives on the motivation levels of Japanese employees", Career Development International, Vol. 11 Iss: 3 pp. 193 - 203 http://dx.doi.org/10.1108/13620430610661722 Kiyoshi Takahashi, (2006),"Effects of wage and promotion incentives on the motivation levels of Japanese employees", Career Development International, Vol. 11 Iss: 3 pp. 193 - 203 http://dx.doi.org/10.1108/13620430610661722

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Effects of wage and promotion incentives on the motivation levels of Japanese employees Kiyoshi Takahashi
Graduate School of Business Administration, Kobe University, Kobe, Japan Abstract
Purpose – This study aims to focus on the incentive effects in Japanese organizations where job security is valued. In particular, the study seeks to investigate the relative strengths of the effects of wage and promotion incentives on employees’ motivation. Design/methodology/approach – A survey was conducted involving 1,823 Japanese employees working at the group companies of Toyota Motors. Multiple regression analyses were performed to separately analyze the effects on white-collar (n ¼ 928) and blue-collar (n ¼ 818) workers. Findings – The results showed that both promotion and wages positively influence employees’ work motivation. A comparison of the relative strengths of the effects reveals that fair promotion was a more powerful motivator than wage level and wage increase. Originality/value – The reason why fairness in promotion was more effective than wage to motivate employees was discussed in light of the unique career system existing in Japanese companies and the agency problems between companies and their supervisors. Keywords Japan, Remuneration, Incentive schemes, Automotive industry, Promotion Paper type...
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