Title
Status Quo and Prospects for Human Resources Management
of Resort Hotels in Okinawa
Author(s)
IWAMORI, Tatsuo
Citation
沖大経済論叢 = OKIDAI KEIZAI RONSO, 15(2): 105-116
Issue Date
1991-03-30
URL
http://hdl.handle.net/20.500.12001/6792
Status Quo and Prospects for Human Resources
Management of Resort Hotels in Okinawa
Tatsuo
IWAMORI
I.The Economic Impact of Resort Hotels in Okinawa.
Recently resort development has been expanding rapidly throughout the islands of Japan, from the northern part of Hokkaido to the
southern part of Okinawa. This resort development has been
especially active since 1988 because of the 1987 enactment of the Resort Development Act.
Prefectural projects of resort development which are recognized as being implemented under this act entitle the prefectures to preferential treatment in terms of taxes and application for non-interest loans, which are funded on sales profits of NTT ( Nippon Telephone and Telegraph ) stock. For this reason, approximately half of Japanese prefectures have already applied for and been
granted approval of a "Master Plan for Resort Development,n as
provided for by this act. In addition to development by these prefectures, there are other developments undertaken by private
enterprises and third sector institutions. According to the
National Land Agency, the land area of resort regions throughout Japan in 1989 amounted to about 17,900,000 acres ( 7,245,000 hectares ), including resort regions plotted as of December of
that year. The total area of these resort regions, in fact,
accounts for 19.2 percent of the total land area of entire nation. It should be obvious that in the prefecture of Okinawa, which in terms of geography and industrial structure is in many ways similar to the state of Hawaii, there is at the present time a great deal of resort development construction under way with the proliferation of resort hotels, golf courses, tennis courts, swimming pools, beaches and marinas. On the main island of Okinawa,
many local governments, viz, cities, towns, and villages, have
become oriented to resort development and have copious plans for
the reclamation of seashores. Already there are numberous cases of
the reclamation of the open seas by public agencies and of the
erection of facilities on the reclaimed seas by private
enterprises. And even in the remoter islands of Okinawa, spacious lands such as uninhabited islands and pastures have already been cornered or are being developed by private corporations of the mainland of Japan. In most of these cases, there has been the
building up of resort hotels, tennis courts, golf courses, beaches,
marinas, and so on.
What kind of economic impact do the resort hotels, the core of
this resort development, have on Okinawa? According to the Okinawa
General Bureau, this impact is thought to have four areas or stages of effects: (1) Effects of Investment for Development, (2)
Effects of Facility Demands, (3) Effects of Facility Location, and
(4) Effects of Guest Behavior. The first stage of impact, i.e.
Investment for Development, includes the effects of investments
generated in the process of implementing the construction of the resort hotels.
Specifically,
there are investment effects related to the
acquisition of resort hotel sites, the development of the land,
the construction of the facilities,etc. The second stage of impact,
i.e.Facility Demands, includes the effect of the generation of
demands
that
accompany
the
operation
of
the
facilities.
Specifically, these are the demand for labor, the consumption of
goods, the purchase and maintenance of durable goods, and so forth.
The third stage, i.e. Facility Location, encompasses repercussions
of the location of the facilities. Specifically, these include the
rising assessment of land in the vicinity of the facilities, the payment of fixed property taxes, and so on. The fourth stage, i.e.
Guest Behavior, subsumes a wide variety of effects brought about
by guest behavior outside of the actual facilities, behavior
involving recreation, transportation, shopping, etc!
In this article, the primary focus is on the second stage, the Facility Demands. In particular, what will be considered here is the demand for labor. From the viewpoint of Okinawa, optimal labor demand of the resort hotels would iclude not only the absorption of a large amount of local labor but also the utilization of that labor force in order to accomodate two seemingly contradictory goals: the attainment of profit-maximization of the hotels as well as the training and education of that labor force for future
management. The ability of the hotels to accomodate these
conflicting goals can be termed the level of the " social
responsibility of the company ".
n.An Historical Perspective on Japanese Human Resources
Management in Okinawa's Enterprises, Including Resort
Hotels.
First, I would like to define the term "Japanese Human Resources Management " in order to distinguish it from "Japanese Management." Although the former might be included in the latter, in accordance
with my definition the former refers to the aggregate of
management systems and operations which may involve a system of "Permanent (Long-term) Employment," a system of "Wage-increase and Promotion Based on Seniority," "Cooperation between Capital and
Labor," "Periodical Employment," "Observance of the Age-Limit
System," "TQC ( Total Quality Control ) Activity," "Job Rotation,"
and so on. On the other hand the latter, that is, the expression
"Japanese Management," is taken to refer to ways or systems of
financing, materials procurement, manufacturing, sales, public
relations and advertisement, R&D, organizations, philanthropy, and the like.
As for Japanese Management, discussions abound and will likely
opposing arguments regarding the characterization of Japanese
management : Speciality and Advancement vs. Universality and
Advancement. Proponents of the former position, Speciality and
Advancement, include H. Hazama ( Managerial Welfarism based on
Merchant's House in 1500s), M.Tsuda ( Company Community3), R.Iwata
( Group-Orientedness founded on the Village's Consciouseness4), K.
Odaka ( Collectiveness grounded on the 'village people in the sameboat1 consciousness in Tokugawa period (1600-18675), and so forth.
Proponents of the latter position, Universality and Advancement,
include K.Koike ( Universality except Job Rotation6), R.T. Pascale
and A.G. Athos ( Improvement of Human Value as a Universal Aim7),
R.B. Reich ( Human Resources and Human Relations System as aUniversal System8), and others.
My assumption is that all organizations will adopt Japanese Management regardless of business size, business category, and the organization's nationality if the CEO or shareholders take a long-term view of the organization's performance or if the organization seeks flexibility and stability in almost any situation. Therefore
resort hotels will also have to adopt Japanese Management,
including Japanese Human Resources Management, regardless of hotel size. Moreover, in matters of hotel management, Human Resources Management will receive the greatest emphasis among many possible forms of management, even in resort hotels, simply because hotels are not machine-intensive but labor-intensive.
Having outlined Japanese Human Resources Management, I come to the second task, which is to discuss from a historical viewpoint the Japanese Human Resources Management in Okinawa's private organizations, specifically in resort hotels. In the first place, the U.S.military office governed Okinawa both administratively and
economically between 1945 and 1972 ( for 27 years ). Because
Okinawa's private organizations were almost given their tasks by the U.S.military office, there seems to have been little principle of competition among them. Following reversion to Japan in 1972,
Okinawa has year by year become less and less economically dependent on U.S.military bases. Even so, the present annual income from the bases is still around 1.4 billion dollars ( 200 billion yen ). This, even now, is one " cash cow M for Okinawa, another " cash cow " being public engineering work provided by the Japanese Government, which totaled about 1.8 billion dollars ( 252 billion yen ) in 1988. This huge financial investment by the Japanese Government is the indemnification for the Okinawan people who had a bitter and humiliating experience under the military power of a foreign country ( the U.S.A. ) during World War . Okinawa has, since then, been of help as a barrier to communist countries for such liberal countries as Japan, the U.S.A.,the R.O. C., etc. But as for economic considerations, Okinawa currently relies heavily on income derived both from U.S.military bases and from government-financed public engineering works. With regard to this, mention should be made of the existence of "Dan Gou" in the Japanese construction industry, especially in public engineering projects. "Dan GouM is an operative principle involving not
competition but rather the law of distribution. The end result of
Okinawa's recent history of dependency on military and government-financed public works is that in terms of social effects, Okinawa can be characterized as a society ruled by the law of distribution, the kind of society which are not likely to give rise to entrepreneurship,superior managers,or even excellent organizations.
Added to this recent economic history is the cultural preservation
of the Kachashi—the traditional dance of celebration in which,
the Okinawan people become equal—at least while they are dancing.
This
fundamental
concept
of
participatory
equality,
which
permeates the society of Okinawa, accounts for the comparatively
horizontal
structure of
the society,
in contrast
to
the
perpendicular societal structure of the Japanese mainland. The
historical evolution of these two divergent structures may be
related to the fact that in the mainland there has been a long
history of domestic wars while, by contrast, Okinawa has experienced a long history of peace, even though both the mainland and Okinawa have been strongly influenced by the inheritance of the ethical norms of Confucianism. Under such dissimilar societal structures, one of the characteristic features of Japanese Human Resources Management, specifically the Long-Term Employment System, apparently brings about differing effects regarding employees. In the mainland, Japanese employees exhibit intense loyalty to their organization, while in Okinawa the workers exhibit less loyalty to their organization. In short, Okinawa's workers have been indulged
and supported by U.S.military office, Japanese Government, and
Japanese Human Resources Management ever since Okinawa returned to Japan in 1972. As a consequence of this difference in attitude and
behavior of employees, only a few large organizations have
successfully introduced and systematized Japanese Human Resources Management in Okinawa.
IE.Status Quo in Human Resources Management of Resort
Hotels in Okinawa
It follows from the preceding discussion that although Okinawa's resort hotels have for the most part not utilized Japanese Human Resources Management, they will have to do so in order to survive
in a more severe, competitive environment. I will now briefly
examine the empirical basis for this argument by analyzing data from 8 resort hotels in Okinawa, data having been compiled as of August, 1990.
As of August 22,1990, the total number of resort hotels in
Okinawa is twenty. These hotels can be classified into two types from the standpoints of ownership and management. The first type is that owned and managed by Okinawa's capitalist and executives. According to Table 1, eight hotels, viz, hotels B,E,G,I,J,M,0, and T, belong to this category. The second type is that owned and
managed by Tokyo's or Osaka's mega - capitalists and executives. According to the table, there are twelve such hotels, that is hotels A,C,D,F,H,K,L,N,P,Q,R, and S.
I sent questionnaires to the management of these twenty resort hotels in Okinawa to testify whether, from the view - point of
Japanese Human Resources Management, the two types of resort
hotels were similar either in systems or in operations. I received response from eight hotels, four of which belong to the first category with the remaining four belonging to the second category. The overall results of the survey are presented in Table 2.
From the survey results it is possible to ascertain two
significant facts : (1) resort hotels having Okinawan ownership
(capital) and management (executives) are not managed according to Japanese Human Resources Management as regards education and training systems, QC circle activity, job rotation, and employee fringe benefits ; (2) resort hotels owned and managed by Tokyo's or Osaka's mega-firms are operated according to Japanese Human Resources Management in terms of adequate fringe benefits, job rotation, and education and training systems.
W.Propects for Human Resources Management of Resort
Hotels in Okinawa
In the mainland, the traditional, intrinsic systems of Japanese Human Resources Management, specifically the u Seniority System and "Long-Term Employment System," appear to be collapsing because of a number of internal and external changes in the business environment : innovations in production and telecommunication technology, shortage of managerial positions, aging of employees,
the diversified and individualized needs of employees and
consumers, high cost of personnel, appreciation of the yen, and low economic growth. I expect the seniority system will ultimately change into a meritocracy system regardless of the status of the
long-term employment system because in this age of technological innovation less importance is attached to seniority whereas the long - term employment system is the essential and traditional foundation of Japanese Human Resources Management and is preserved through the use of female part - time employees and the use of job rotation within a company and its affiliate companies. The result will be that the substance of the u New Japanese Human Resources Management " is likely to be a meritocracy system within a long -term employment system. In the meantime, regarding the present and future Human Resources Management of the okinawanowned and managed hotels, I conjecture that Japanese Human Resources Management will eventually permeate the small scale, middle scale, and large scale resort hotels for the reason that excellent human resources, particularly eminent leaders, will eventually appear in Okinawa, because of Okinawa's increasing personnel intercourse with Japanese mainland and foreign countries. Such prominent leaders, however, ought not to be authoritative but rather supportive of
the homeland, Okinawa. If they set the goal of their hotel
organization as a " contribution to their hamlet, community, and
home town, n their subordinates will properly and dutifully
contribute to the rendering of major services to both their local environment and the resort hotel. Contemporary issues such as high labor turnover and employment based on nepotism will diminish through the induction of a system of competitiveness between communities within the workplace, all under the effects of a more keen or competitive business environment. These countermeasures might result in increased verticality of resort hotel organization
structure and the introduction of Japanese Human Resources
Management into the resort hotels. As for the current and future
Human Resources Management in Okinawa's resort hotels of the
second type ( not locally owned or managed ), I believe that the shift from u Japanese Human Resources Management w to u New Japanese Human Resources Management " will be delayed because new
changes may not be easily accepted owning to Okinawa's historical regionalism. Okinawa's historical regionalism means that Okinawa seems to be either geographically or mentally a little distant from Japanese mainland since it was governed by U.S.military office between 1945 and 1972. In both types of resort hotels in Okinawa, the introduction and expansion of Japanese Human Resources Management will enable the hotels to attain profit-maximization, especially from a long-term view-point, while at the same time contributing to the development of Okinawa's human
resources. For Okinawa's advancement, excellent human resources
are indispensable and of primary importance because the prefecture is not so blessed with other resources than resort resources viz. information resources, physical resources and so on.
NOTES/REFERENCES
(in Japanese)
1. Okinawa General Bureau of Okinawa Development
Agency, Economic and Social Survey of the Surrounding Regions with the Advancement of Large-Scale Resort
Facilities. Okinawa General Secretariat, Okinawa
Development Agency, 1986.
2. Hazama, Hiroshi. The Genealogy of Japanese
Management. Tokyo; Nippon Keizai Shinbun, 1982.
3. Tsuda, Masumi. The Pedestal of Japanese Management. Tokyo: Chuou Keizai, 1980.
4. Iwata, Ryushi. The Management Climate of Modern
Japan. Tokyo: Bunshindo, 1978.
5. Odaka, Kunio. Japanese Management.
Tokyo: Chuou Kouron, 1984.
6. Koike, Kazuo. Japanese Dexterity.
Tokyo Yuhikaku, 1981.
7. Pascale, R. T. and Athos, A. G. Japanese
Management. Translated by Yusuke Fukada.
Tokyo: Koudansha, 1981.
8. Reich, R. B. Next Frontier. Translated by
Table 1: The Status Quo of Resort Hotels in Okinawa Site Number (Capacity) Hotel Area of Rooms(Max.occp)Main Facilities Opening Date Capital Number of (in yen) Employees Other 10 ha 196 (645) cottage, seas] pool, tennis court, gymnasium, leisure filifacility July 20, 1978 April 6. 1986 90 million 150 million 222 JAL Affiliate B 33 ha 80 (323) hotel (58 rooms). cottage (22 rooms). tennis court, multi-purpose square ~otel, pool, two tennis courts hotel, golf course (18 rounds, par 57), ol, banquet hall tel, restaurant theater, big banquet hall, big bath, seashore leisure facility 60 80 million 65 million JTB Affiliate" HQ in Tokyo 723&T June. 1975 June 22. 1975 65 12" 81 (220) June 1. 1974 June 17, 198T" 210 million 2.6 billion 130 1.8ha 145 (660) F 14 ha 401 (1.196) hotel, pool, tennis court, disco, seashore leisure facility hotel, pool, tennis court,disco,lounge, seashore leisure facility July 12. 1975 328 500 million 300" * G 7.5ha 248 (1.000) April 1, 1987 "430" 340 HQ in Osaka H 6.4ha 200 (450) hotel, tennis court, pool, marina. putter golf, seashore leisure facility , golf < June 1. 1987 20 million 150 million putter golf, seasho * I 33 ha 220 (800) hotel, tennis court sure facility course(18 rounds). gate ball(croquet), seashore leisure facility hotel, marina, dis " ' July 8. 1988 20 million Owner": Osaka rvOsaka 2.8ha 392 (1,138) lisco, pool, chapel, facilit K 11.2ha 501 (1,200) tennis court, garden Hotel opened July 21, 1989 10.8ha 86-(240) hotel (58 rooms), cottage (28 rooms), ate ball (croquet), 2 tennis courts, 3 pools gate ball * M 94.3ha 52 (104) tenni " l f course (18 court, horse riding t. 1< Dec. May 19, 1977 2 billion "48" ANA Affiliate "Si Ohi" 80 (160) hote: seash tennis court, lounge leisure facility disco, * 0 2.6ha 125 (326) hotel, pool, tennis court, lounge. Feb. 2, 1986 seashore leisure facility P 17.8ha 151 (298) hotel, pool, tennis court, golf course(18 rounds). April 20.1984 seashore leisure facility 75 million 58 9 ha 150 (340) cottage, pool, tennis court. g, p seashore leisure facility hotel (62 ) ttae July 20. 1982 April 1. 1988 R 29.2ha 117 (250) (62 rooms), cottage (55 roams), pool, tennis court, golf course (9 rounds) 1979 3.2 billion 56~ S 158 ha 98 (300) cottage, tennis court, archery. seashore leisure facility Jan. 5,1989 permit to open summer 1990 28 ha — — EXPLANATION: Hotels are identified here by arbitrary letter assignment."Capacity" refers to maximum occupancy. Figures and information may no longer be complete or correct, but are based on information available as of August, 1990. Dash lines indicate that information was not available. Indicates that the hotel (Hotel "Type One") All other hotels are Japanese (Hotel "Type Two") SOURCE: Primarily reference 1 is Okinawan owned and managed (not Okinawan) owned and Managed , supplemented by the survery.
Table 2: Comparison of the Two Types of Resort Hotels in Okinawa (Survey results) *
TYPE ONE (Okinawan owner/mgmt) TYPE TWO (Non-Okinawan owner/ragmt)
STATIC EMPLOYMENT mostly Okinawan mostly okinawan Executives Staff workers * Managers (above section chief) DYNAMIC EMPLOYMENT
(a) Recruiting Priority (MA) (b) Employment Pattern (c) Priority Criteria for Employment (MA) (d) Education/Training for Employees
(e) QC Circle Activity (f) Mobility * (g) Criteria for Employee Appraisal mostly non-Okinawan mostly Okinawan mostly Okinawan l.want ads (public empl't.office) 2.newspaper 2.magazines
2.want ads (in schools)
2.word-of-mouth
2.temporary workers'agency local and aperiodic 1.character or personality 2.ability (experience) mostly for novices
none none
combination: ability to perform more than ability
to coordinate
(h) Ability vs.Seniority 51% vs.49% (on qualification system)
(i) Wage and Salary
(j) Labor Union (k) Fringe Benefits (1) Work Shift (m) Holidays (n) Reduction/Adjustment of Working Hours
based on job task rather than ability or seniority
none
little or none
generally 8-hour shifts
National Holidays and Sundays no consideration given
(o) Age Limit (p) Reemployment
mostly upper limit of 60 years
only if necessary
varies
l.want ads (in schools) 1.word-of-mouth l.want ads (public empl't.office) 1.newspaper 1.magazines local 1.character or personality 2.ability 3. sex 4.age
for novices, middle-, top-mgmt. use of parent company's training facilities perhaps special training for promoting promoting
local employees to management half
job rotation of middle or lower-mgmt. every 3 years relocation of top management to positions outside Okinawa combination: ability to perform more than ability to coordinate
primarily ability
based on mixture of ability and seniority
none (one exception) use of facilities not in use by guests generally 8-hour shifts
National holidays and Sundays (50%);6 holidays per 4 weeks (50%)
some implementation of
reduced total hours: (1) modified monthly working
hours system
(2) varied weekly working
hours system
57,58 or 60 (one exception:50 for
females; 57 for males)
(1) for one-year contract employees & part-time (2) not for voluntary retirees
NOTE These are composite survey results from 4"type one"hotels and 4"type two"hotels. Staff workers'includes full-time.part-time.and auxiliary employees.
