Values, co-operation and lifetime employment

Many types of work in an organization can be characterized by high degrees of discretion on the part of interdependent workers. Thus their productivity increases if effective co-operation can be achieved in this game situation. This paper will analyze the relationships among the values individuals possess, their co-operative behavior, and cultural and institutional factors that affect the outcomes of games played within an organization. Under lifetime employment some values (and beliefs) generate more co-operation and increase productivity. Moreover, lifetime employment per se, as well as its effects through communication, persuasion, etc., change workers' values in favor of co-operation. In particular, it will be shown by an experiment that co-operative workers will not be victims if communication and/or persuasion is undertaken suitably. It will also be argued that culture is an important determinant of the prevalence of lifetime employment in a society.