Earlier I described that there are, broadly speaking, four options in the associates system. The first is a type for those desiring stability and is an in-house small group style about the size of a section. The second is the subsidiary type with a few venture qualities. This is also a choice for the individual that desires relative stability. The third choice is the venture firm. This is a high-risk, high-return choice represented by the Strawberry Corporation, described earlier. The fourth choice is a contractual relationship in which an individual works "independently" in a factory of Kato Spring. This is also a high-risk, high-return choice. This system differs from traditional business department and company systems in the following four ways:

1. The style of work can be chosen
2. It is a small-group system in which results can be felt
3. It is a flat organization
4. There is a transfer of authority.
   

  Although no one has chosen the contractual relationship as of yet, the working style would consist of the following. The Katoite resigns from Kato Spring and collects his/her pension, however, he/she continues to wear his/her uniform and work at the factory. This is not an employment relationship but rather a relationship based on a contract concluded between a person and the company.
  Since the individual is using the factory and facilities of Kato Spring, he/she must pay costs equivalent to space-use fee, machine-use fee and utilities. With this in mind, the individual and Kato Spring negotiate the contract rate. This aspect is identical to negotiations between companies. There is a market price for outsourcing and so there is a negotiation between them on an equal stage with this figure as an index.
  Although the individual is no longer paid a salary by Kato Spring, there is no limit to earnings as it depends on productivity. In other words, the concept changes from the idea that a salary is something you receive to something that you earn through your efforts. As long as this person conducts dependable work in the areas of quality, and meeting deadlines and costs, it will probably be beneficial to outsource tasks to that person rather than make the product inside the company. It just depends on the work ethics of the individual.

  To add another characteristic of the associates system here, we would like this contract to not only be a monetary contract but to also maintain a friendly "at home" relationship between the parties. In the case of people assuming the contractual relationship, although the individual has quit the company, they can continue to come to the plant they worked at for many years and work with friends. Thus, this type of a relationship can be maintained even after this decision is made.
  Fortunately, we have a treasure called Japanese-style management that we earnestly created over a certain period of time. Just because society has thrown it out, doesn't mean we should no longer follow it and deny it totally. That would be utter nonsense. Instead, won't the ability of Japanese management to broadcast information worsen if we dispose of the positive attitude of reanalyzing its good qualities? In my case, I believe this to be true.
  If the high-risk, high-return method is introduced throughout just because the societal trend is the merit system, the satisfaction of all company members cannot be attained. I have made this type of a statement several times.

  What is ability? What is the merit system?
  Earlier I said that there is no need to feel alive when passing over another person. At the end of last year, the series "Ningen Hakken" (Discovering People), which appeared in the evening edition of the Nihon Keizai Shimbun, featured Yoshiharu Yamaguchi, coach of the rugby team at Fushimi Technical High School just after the team won the national championship. The following is an excerpt from his discussion about what frame of mind he had while nurturing what had initially been a very weak team:

  "I think that we can't lose if the regular team is assigned in the order of students with a kind heart. I always say the following to the members before a game, 'You are probably satisfied and your parents are probably happy. However, your teammates (subs) cheering from the sidelines probably wanted to play today, and their parents are sad because they aren't. The next hour is not just your hour.' At this point, all the players start crying."
  "People truly become strong when they have the kindness to think about others."

  Management that focuses on the hearts of others will only increase in importance from now on. This feeling strengthens every time I hear a story like the one above.