The Effect of the Introduction of Paying for Performance and New Performance: Measurement on Japanese Management Control Systems

Abstract

This paper focuses on management control systems in Japanese companies. In Japan, many companies have introduced a paying for performance system and new performance measurements. In this paper, we thought of the effects of these new systems.

First, researched reward systems in the States through literature. Next, we analyzed the changes in reward systems and performance measurements in order to reform managers and employees' consciousness in Japanese companies. This reformation enabled changes in performance measurement and in reward systems tool place simultaneously.

In Japanese companies, management control systems are going to be one cycle systems. The effect well caus a mind change mind in many companies.