Abstract
After the collapse of the Japanese bubble, in late 1990s, Japanese companies have started to bring in the Merit-based Personnel System in order to activate their organization. The Merit-based Personnel System is a evaluation system in which a persons is evaluated by his job or role, and we will call this system the merit system for short.But in many companies this system resulted in failure and began to be reviewed. So I considered what the success of the merit system is, through the case of diagnosis and guidance at N company.Then I concluded as follows.I premise that the success of the merit system means motivation improvement and productivity improvement by high motivation.There is no relation between the merit system and productivity, or between change in wage and productivity.Rather productivity relates to exective's capability, fairness wage determination, duties and responsibility. And the success of the merit system depends on its introduciton process and operation in the company.