Abstract
This article discusses internal fit amongst human resource polices using a survey about performance-based pay in Japan. Four human resource policies derived from human resource practices named after human resource functions were used: wage policy suited for performance-based pay, promotion policy suited for performance-based pay, justice policy, and human resource development policy. In addition, this article investigates the effects of wage and promotion policies on performance-based pay to the firm's performance using justice policy and human resource development policy as contingent factors.
The results showed that even if both justice and human resource development policies were secured at a high level, both wage and promotion polices had no beneficial effect on the firm's performance.
