Company Paternalism and the Hidden-Investment Process

Abstract

This study investigates belief in company paternalism as an indicator of the "right type" for line managers in leading Japanese corporations. In five companies, 1,075 line managers were surveyed about their belief in company paternalism, their experience with both the formal and informal career-development systems within their company, their working relationships with their immediate superior (LMX), and their overall job satisfaction. Results indicated that belief in company paternalism contributed as hypothesized to formal career investments, informal career investments (including both self-investment and supervisor investment), LMX, and overall job satisfaction. These relationships held true both before and after experiences with the formal career-development system were controlled. Implications of right type for American organizations are discussed.