Discussion
The human resource management within international business refers to analyse the concepts and technique where the users manage the HR challenges of their international operations, training, appraisal, acquiring and attending the labour in relation to labour relations and other similar concern. In the world of modern business, it is being more rapid where firms are becoming diverse and global (Sekiguchi, Jintae and Iguchi 2016). The aim of the report is to critically evaluate the HRM issues UK companies can face while locating their call center operation in Japan. In the discussion section of the paper the culture of Japan along with the advantages and potential issues of conducting business will be analysed and reviewed. However, as it is the age of globalization of business firm, the emergence of cross-cultural and international human resource management has turned out to be vital. At the end of the report, necessary recommendation will be given emphasizing on the culture of HRM practice of Japan.
Impact of culture on managerial decision making in relation to the international human resource management (advantages of conducting business)
Every country has a different cultural aspect and based on this factor it is necessary for the UK business firm to firstly analyse the cultural factors of Japan. Some of the consideration that is necessary to make before UK can set its operation of call center are punctuality, the local language of Japan, professionalism and group solidarity (Furusawa and Brewster 2016). With reference to punctuality, the people of Japan consider this factor as stereotype but is true to some extent. However, it is right that the people of Japan are very punctual and every event or meetings are held three minutes before time. Hence, for UK companies it is required to be on time to conduct business operation in Japan. Secondly, the language that is majorly used is Japanese and English. Hence, it might not be important for the UK companies to include an interpreter. If the meetings are conducted in English, then the representative should use understandable words and speak clearly (Ouwehand 2017). The next consideration to be made is with regards to professionalism which is the key aspect of cultural attribute of Japan. Hence, the UK companies should maintain a good care of unnecessary mistakes and should maintain a hierarchy. Lastly, the UK business firm should also consider the group solidarity where Japan value mire for individualism. The Japanese people prefers to work untimely and prefers to value the believe that no one can break them if they work collectively (Rohlfer and Zhang 2016). In this situation it will easy for UK business to think about a common interest rather than just individualism.
Features of Japanese practice of HRM
The impact of cross cultural human resource management has become of the significant practices within the management research. Since the year 1960 there has been enhanced quality with lower cost pf production by the Japanese business firm and this is one of the major reasons of their success in international market.
The first distinctive feature of Japanese practice within human resource management comprises development, enterprise-based unions, seniority-based compensation and promotion and teamwork orientation (Maharjan and Sekiguchi 2017). It is the practice of Japanese companies to recruit employee based on the entry level and thereby develop them individually with the strategy of rotating them through departmental functions. However, another feature of the business firm that operate in Japan refers to the labour unions to be company based rather than just being industry based. On the other hand, the working culture prevails to work with teams and UK companies requires to consider the same.
On the other hand, with reference to the culture of Japan workplace it can be stated that that the HRM operate in contour with presence of establishing principles of Japanese cooperation which is of a higher setting culture with unprinted rules, consensus-building, collectivist culture that highlights teamwork (Maharjan and Sekiguchi 2016). Furthermore, the workplace includes the Confucian ritual with modern level of hierarchy within which the older people are respected and therefore harmony is maintained. These are some of the Japanese culture which is embedded within the Japan business system. However, the HRM practice of Japan has a set of organised principle which enables the business firm to cater a flexible and strong workforce within which the workforce remains multi-skilled and flexible to change and also has high specified knowledge. It can also be an effective approach if the call center can develop a workforce combining the people from Japan and from UK. Hence, the people of Japan are high level towards the firm-specific skills and is considered to work hard (Froese, Sekiguchi and Maharjan 2018). On the other hand, the people of UK can be considered to be peripheral where they are provided with the same training as employees of Japan but excludes from core managerial activities. Furthermore, the HRM practice of Japan is considered to be optimal where the core competencies become a foundation of modest benefit for the firm.
The theories of human resource management can be emphasized on universalistic perspective. There are many researchers who have included a greater finding on a single human resource theory which is appropriate in every state, in every organisation and culture. During the process of cross-cultural management, it becomes essential to be clear about the universalistic theory and the solution of the theory should be sought in contextual (Tjosvold and Leung 2017). On the other hand, the contingency theory assists to revenue into version a wide variety of factors which influence the fitness of human resource model.
Theories and Model
Evaluation of people working in Japan as business resources integration with international organisational strategies can be analysed with the assistance of HRM theory. The Hofstede’s cultural dimension theory, it can be analysed that it offers a framework of cross-cultural communication (Khlif 2016). With the help of this theory, it will be effective to analyse the culture of Japan, know their cultural value and how these values relate to the behaviour, by using the framework derived from the factor analysis. The theory will also assist to distinguish between the national culture and asses its influence on a commercial setting. However, the Hofstede theory identified six major groups which define culture and they are power distance index, collective vs individualism, uncertainty avoidance index, femineity vs masculinity, short term vs long term orientation and lastly, restraints vs indulgence.
With reference to power distances, it can be stated that the intermediate score of Japan is 54 which is considered as the borderline hierarchical society. It is true that the people of Japan are continuously cognizant of its hierarchical position in society location and acts therefore. Therefore, it is not as ranked as greatest of the Asian nation (Minkov and Kaasa 2020). Japan is considered to be a strong nation within which Japanese education system contributes to be equal for everyone and can aspire to become anything. Secondly, with reference to the component of individualism, Japan scores 46 and the cultural society shows the features and traits of collective society by placing harmony on individual opinion. One of the effective paradoxal example of Japanese people is that they are famous for their loyalty towards their workplace. Hence, it is the loyalty that they have chosen for themselves and is an individual thing to do. On the other hand, with reference to masculinity Japan is at 95. Within the cooperative sector Japan can see its employee to be mostly motivated when they work hard and win against the competitors (Gerlach and Eriksson 2021). Hence, the masculinity in Japan is driven for excellence as well as perfection for the material production and services. Similarly, the situation of uncertain avoidance for Japan is at 92 where it is one of the uncertain countries in the world. Within the corporate sector Japan, there is lot of time and effort which is put in feasible educations and all the risk attributes must be worked within and before any project that starts. There are managers who ask for every detailed fact and starting every project with effective descion making. This is referred as high essential for hesitation avoidance where one of the reasons why it is changing and is difficult to realize (Conrad and Meyer-Ohle 2019). Lastly, the factor of long-term orientation can be identified at 88 for Japan. The people of the country reflect their life to be a short moment and from this perspective some of fatalism is not strange for the people living in Japan. Within the field of management Japan witness the long-term alignment which is continually has high rate of investment in R&D even within the economical difficult times, owing to higher capital rates. The company’s services durability to every company and the main idea of the company is not to make money but to serve every stakeholder for higher generation to come. However, the last factor of indulgence within which Japan is at a lower score of 42. The societies with the inclusion of lower score in its dimensions they have a tendency to pessimism and cynicism (Beugelsdijk, Kostova and Roth 2017). It is the restrained society which does not put stress on luxurious time as well as gratifies their desire.
Considering the situation of changing business environment in Japan it can be analysed that Japan sideways with the additional countries are grief from demographic decline which is important to smaller consumer segment and lack of gift. Considering the median age and life expectancy, Japan comprises of the oldest population (Froese, Sekiguchi and Maharjan 2018). This will ultimately lead the UK business firm to hire people from Japan for the managerial position. Hence, this would require the business to recruit and retain employees from diverse field both from host and home country. On the other hand, the objective of external and internal internalization will lead to integrate the Japanese as well as the non-Japanese employees at operational and managerial levels. It is the work of the department to manage foreign subsidiaries with consideration of local responsiveness (Ershova 2017). Therefore, the premise of external and internal factors is that the competitive advantage of international market cannot be established without the achievement of local responsibility and global integration. Similarly, the issue of management style can be influenced by the high-level context of Japan. It is the culture of Japan which leads to a management style which refers to the scope of authority and responsibility of each employees in vague and unclear. The local employees in Japan oversea subsidiaries are not familiar with a system that finds difficulty to manage the system effectively.
Furthermore, it can be analysed that the challenge which can be encountered within the business is the main target segment of business firm which is no longer situated within home market but is progressively found overseas. Some of the major MNC within Japan requires to tailor the product with the demands of foreign consumer but the current strategy is to maintain the core competencies’ such as the research and development team which suit all needs. In addition to the manufacturing sector of MNC are increasing the pressure o relocate the core technical and managerial functions (Grill, Maharjan and Sekiguchi 2016). Hence, the local factors are considered and the Japanese require to progressively employee highly qualified local staffs. On the other hand, the issue can be further analysed from the traditional Japanese HRM and the firms which are organising the principles and are having its creation to non-Japanese searching for service in HQ of Japanese company level if they are employed it is crucial to contribute in decision making. There are even existences of homogeneity which tends to lead in-group as well as out-group differences where the group memberships of in-group can be treated preferential whereas out group member will be disregarded. This will lead towards discrimination and will be treated with non-Japanese employees as specific outsiders (Teece and Linden 2017). It is the perception of discrimination which is frequent about the problem solving among the foreign resident in Japan and it can be interpreted in the problem which exist in the workplace. This tendency is enforced with the language and in high-context situation culture. There is existence of people who cannot speak in Japanese language and therefore struggles to communicate meaningful with Japanese staff. In addition to that the issue is partly in high-context values where the organization responsibility and information and job parts might not be obviously well-defined.
Hence, it can be recommended that the international human resource department should build strategies which is essential while operating a business in international nation. This can be applied to international human resource management as it does to other components of market operation (Brewster et al, 2016). The business can focus on recruitment, organisational structure, training, compensation, global mobility and organisational structure where they will receive the best exploit in order to benefit the global operation of call center. Similarly, the business should conduct varies studies knowing the preference and skills of the people so that it can offer the same in the entire workforce.
Conclusion
Hence, it can be concluded that the human resource practice of Japan can become the main focus through effective internationalization of HRM from the starting level till the stage of strategic perception. Therefore, while promoting the external and internal business in Japan it can target to move from ethnocentric IHRM approach towards polycentric. However, the international human resource management considers the cross-border merger and acquisition integration where the IHRM issues of international strategic alliance can be a strategic approach to conduct business. It will effective for the UK business firm to operate its call center in Japan if it considers the above-mentioned factors and recommendation.
Reference
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