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The infiltration of ability-oriented management into Japanese corporate society is a process of ongoing managerial effort, rather than a bracketed period of change; however, it can be broadly divided into three periods. The first period spans the mid-1960s to the mid-1970s; the second period includes the mid-1970s to 1992; and the third period covers 1992 to the present. To understand the Japanese perspective on ability and work using these categories, we should not confine our discussion to wage-paying methods. We must also consider labor (organization) management, so-called worker incentives, and the employment system. Based on the introductory chapter (Kumazawa 1997), let us begin by discussing the recent management-led reorganization of seniority-based wages.