The two oil shocks paralyzed Japanese rapid economic growth. The Japanese shipbuilding industry confronted many hardships. As a first step, the management reduced the percentage of items ordered from outside suppliers and reduced overtime work. Many surplus employees were temporarily transferred to subsidiary and associated companies. As a second step, the company decided to implement the following three strategic policies. These were
(1) the diversification of operation
(2) introduction of microelectrics technology, and
(3) shutting down the old non efficient facilities and concentration of production.
The key was technical skill's development. According to these practices, the Japanese shipbuilding industry reconstructed the business power. But the management policy of minimizing the employees' number affected definitively the age structure and technical abilities of work groups. A large number of high-skilled workers will retire in these 10 years. After their retirement the technical power of production will undoubtedly decline without effective measures.
To maintain and improve the core technical abilities of the company, the succession of the technical skills inside the firm has turned into the key problem of management. New education and training program for the succession of technical skill has to be developed besides the ordinary OJT program. Management will encourage the young people to develop own career program for the special technical skill.
