RESEARCH
Bridging Diverse Work Styles
and Organizational Equity
The Potential of Performance
Management
Bridging Diverse Work Styles
and Organizational Equity
The Potential of Performance
Management
In today’s workplace, including within organizations like Shiseido, there is a growing number of employees who face time constraints due to childcare, elderly care, and other responsibilities. While accommodating individual circumstances is necessary, personalized arrangements can sometimes lead to perceptions of unfairness among colleagues. This article examines Shiseido’s evaluation system as one approach to balance individual circumstances with organizational equity.
Shiseido has implemented a performance management evaluation system alongside its job-based personnel system to drive business success and employee growth.
【Performance Management】
A systematic approach in which supervisors and team members engage in ongoing dialogue throughout the year to enhance both their current and future performance. At the beginning of the period, goals are established based on job grades* and job descriptions**. During the period, progress is regularly reviewed with supervisors, allowing for necessary adjustments along the way. At the end of the period, the overall achievement of goals is evaluated, and supervisors provide a comprehensive evaluation along with feedback aimed at fostering performance improvement and career development for the following year.
*Job Grade: A classification system based on roles and responsibilities.
**Job Description: A document outlining the responsibilities, tasks, and required qualifications for a specific role.
In Shiseido’s performance management approach, employees are expected to set goals based on job descriptions that correspond to their individual grades and job levels, and to demonstrate proactive behavior in achieving these goals. Employees are encouraged to utilize flexible work arrangements, such as flextime and telecommuting, to drive their work autonomously. Evaluation is based not on the length of working hours, but on the degree of achievement of the agreed-upon goals.
INDEX
01
Performance Management Creating Evaluation Fairness
Excessive accommodation of individual circumstances can lead to feelings of unfairness and division (“why do they get special treatment?”) and may also inadvertently disadvantage the very individuals in their desired career choices.
How can organizations address this reality while advancing their business objectives? Shiseido’s DE&I Lab considered that the key question was whether employees felt their work goals were appropriately set and fairly evaluated within their organizations. To explore this, they examined the relationship between daily management processes and satisfaction with evaluations.
The analysis utilized Shiseido’s engagement survey. Results showed that scores related to performance management processes (such as “I clearly understand what is expected of me” and “I receive feedback that helps improve my performance”) correlated positively with perceptions of evaluation fairness.
Positive relationship between the performance management process and the perceptions of evaluation fairness.
02
Evaluation Systems That Enhance Job Satisfaction and Inclusion
Further analysis of the engagement survey revealed additional benefits of the performance management process.
The findings indicated that implementing performance management had positive associations with sentiments such as “working with enthusiasm/vigor,” “building trust in work relationships,” “feeling part of the company,” and “being able to work authentically.” This suggests that the performance management approach to evaluation can help foster both wellbeing and inclusion.
The evaluation system, designed to encourage proactive behavior and results against objectives, appears to support not just fairness but also the employees’ desire to realize their potential and work authentically.
The possibility of the performance management process to foster feelings of job satisfaction and inclusion.
03
Practical Management Points
Under its “PEOPLE FIRST” philosophy, Shiseido values enabling each individual to work authentically and grow together. The findings suggest that the evaluation system can help balance inclusion and equity, enabling diverse talent to flourish in their true selves.
Here are key points about how managers at Shiseido conduct performance management through daily dialogue:
Clearly link organizational strategies and goals with individual performance objectives.
Establish regular dialogue sessions to facilitate specific communication for advancing work.
Make course corrections as needed.
Provide coaching and feedback necessary to enhance current and future performance.
Discuss not only job responsibilities but also desired career paths.
In practice, some teams incorporate discussions about medium to long-term career development during regular one-on-ones and team meetings. These conversations about growth opportunities contribute to longer-term career planning and serve as valuable inspiration for both managers and team members. This suggests the importance of building relationships where career aspirations can be openly shared in everyday interactions, not just in formal settings.
While it requires continuous effort to fine-tune daily dialogue between managers and team members, focusing on honest discussions about achieving agreed-upon goals and coaching that drives behavioral excellence and motivation could be a step toward positive change.
This investigation has shown that performance management can serve as a foundation for fairness and a crucial element in enabling proactive work by individuals and organizations. Of course, systems alone cannot solve everything, and changing the environment and culture takes time. To create a compassionate and equitable workplace that respects and accepts diverse work styles, it’s essential to first address the root causes of perceived unfairness and consider how we communicate daily. Organizational equity is fundamental to creating an environment where everyone can succeed. Building a workplace where people can autonomously develop their careers means creating a beautiful organization where diverse individuals can shine—truly maximizing human capital.
The Shiseido DE&I Lab will continue researching ways to create inclusive workplaces where diverse talent can reach their full potential.
Statistical Analysis: Shintaro Yamaguchi (University of Tokyo), Yoko Okuyama (Uppsala University), Keisuke Tsugumi (Hitotsubashi University), Yuma Oshima (University of Tokyo), Sae Yamamoto (University of Tokyo).
