The Development of Human Resource Management and its Effect on Turnover Rate in Family Firm(in Japanese)

This paper examines the hypothesis that human resource management is less developed in family firms than in non-family firms and it has no effect of lowering turnover in family firms. From our analysis, the following main findings were obtained. First, compared to non-family firms, turnover rates and average length of service are higher in family firms, although the difference is not statistically significant for average length of service. Second, the institutions for human resource management are more developed in non-family firms than in family firms, although the coefficient is not significant in the case of bonus and reappointment of a person who has mandatorily retired. Third, human resource management lowers turnover rate, when the systems of periodic salary increase and training for manager are introduced in non-family firms which earn over 100 million yen sales, or hire over 100 employees, but it does not in family firms. Fourth, labor union lowers turnover rate in non-family firms which earn over 100 million yen sales, or hire over 100 employees, but it does not in family firms. Fifth, the systems of bonus and reappointment lower turnover rate in family firms which earn fewer than 100 million yen sales, or hire fewer than 100 employees. Finally, the negative correlation between the number of employee and turnover rates disappears when controlling the systems of human resource management. These results show that the development of human resource management and its effect on turnover rate differ between family firms and non-family firms.