Japanese HR Management

8/10/2019 Japanese HR Management

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ETHILA PALIT (ID: 133003806)

FARZANA SHAHIN (ID: 133002006)

MAHMUDUL ALAM (ID: 133000806)

ISTIAK AHMED (ID:

NUSRAT JAHAN (ID: 133002606)


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Human Resource Management


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The HR

Management has

several dimensionsin the organization

as it supports the

organization in itsgrowth and

competitiveness.

Formalness

xplicitness

Time Horizon

Participation

Scope

Justice

Groupism


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Japanese firms have been identified as having a longterm time horizon.

Hiring fresh graduates and maintaining long-termemployment patterns, a strong emphasis on training

over the career of the employee, and corporateobjectives which focus on market share and other long-term objectives have all been noted as reflective of thelong-term time horizon of Japanese firms.

"Lifetime employment" and the mutual lifetimecommitment of employees and the company have beenindicated as an important basis of strong employeeconsistency and company loyalty


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On-the-job training in Japanese organizations

is intensive and designed to train employees

with a broad range of skills to be productive in a

variety of capacities for a significant length of

time.

Compensation is also based on a premise of

long-term employment with gradual increases

in pay at a minimal level for the first part of an

employee s tenure, leading to a more equitable

pay package after an individual has been with

the company for a long period of time


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Participation is the extent towhich employees and

departments participate in HRMdecisions.

The participative approach todecision making is the most

distinctive and well-knownfeature of Japanese MNCs.

Authority is more centralized in

the Japanese plants.


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The major decisions are always made by the

top management in these Japanese firms.

The overall attitude of Japanese managers ismore consultative rather than participative.

The Japanese managers are reluctant to sharetheir decision-making power with employees.


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Scope refers to the breadth of focus of HRM

activities, i.e., the extent to which such

activities are concentrated on or directed at a

limited set versus a wide range of goals or

purposes, or are confined to specific or a large

group of individuals.

Japanese MNCs have been described as

having a broader scope, focusing on a

relatively wide set of goals and activities.


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Justice refers to the extent to which HRMactivities encompass equity as opposed toequality in the distribution of resources to

employees

Japanese organizations are widely recognizedfor their pursuit of equality rather than equity.

Salaries are decided in balance with others onone's team and practically all employees in agiven unit are given the same salary package.


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There is a strong preference forcollective responsibility andaccountability in Japanese firms, aswell as consensus decision making in a

culture that has a strong "groupthink"mentality.

This group orientation is also reflected

in pay and promotion patterns whichfollow an approach whereby mostemployees remain undifferentiatedfrom their cohort until ten to fifteenyears after they have begun

employment.


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Compensation Approach


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Use of control mechanisms MNCs

of Japan

Control Mechanisms Japan

Personal centralized control

Medium

Bureaucratic formalized control Low

Output control Very Low

Control by socialization andNetworks

Low

Expatriate control

Very High


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The strong reliance on expatriates offers Japanese MNCs thesame disadvantages in coordinating and controlling their

subsidiaries.

Qualified local workers become frustrated and leave the

company because of insufficient participation in decision-

making, limited career opportunities and a non merit-based

appraisal system

Firms suffer decreased ability for flexibility in their response tothe market because of limited information flows from the

bottom.

Finally, the heavy reliance on expatriates also meant limited

career opportunities for HCN managers.


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Value of varied life:

Regarding work flow, it is found that job and task rotation is

most common for factory workers in Japanese MNCs. Jobrotation implies the value of varied life, while lack thereofindicates social order.

Values of broad-minded,and socialpower:

Proactive management in teams is found in firms in Japan, withJapanese MNCs showing a partial adjustment. Using a narrowand technical definition, the proactive nature of such teamsimplies participation which is indicative of the values broad-minded,senseof belonging,and socialpower.


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Security value-type

We find that the security value-type is important in humanresource flow in Japanese MNCs. In Japanese MNCs, employee

promotions are not based on length of service in Japanese MNCs.This result may reveal an inconsistency in practices, as whenpromotions early in a career are based on length of service but isno longer the case at a later stage.

Value sense of belonging

Management positions were found to be filled through internalpromotions in Japanese firms indicating a distinctive element ofHRM in Japanese MNCs. This internal promotion is interpreted asbeing expressive of the value sense of belonging.


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Values wealthand variedlife:

In the case of compensation, bonuses are offered to employees infirms in Japan and in Japanese MNCs, indicating the values wealth

and varied life. But Japanese firms and MNCs do not offer stockoptions.

Values of wisdomand creativity:

Japanese MNCs, inform employees of management conditions andfuture plans, whereby such information may be reflective of thevalue wisdom. Suggestion systems are used, implying the valueswisdom and creativity, in Japanese MNCs, by using suggestionboxes.


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Values of social power and achievement

In firms in Japan, decisions are made by all

departments, a practice that is less common in

Japanese MNCs. And so the values of social power,

sense of belonging, broad-minded, and achievement arenot usually carried out in the Japanese MNCs.

Value of hedonism and sense of belonging

Fun events held for employees and families are onlyfound in Japanese MNCs, in a narrow sense implying

the values sense of belonging and hedonism. Those

events are interpreted as expressive of the value

hedonism and sense of belonging because the events

aim to be fun.

Values of HRM practices in Japanese MNCs


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Huge reliance on the Expatriates of Parent country ensures that thecontrol is maintained among the subsidiaries.

The Japanese follow in long term time horizon even in case of foreign

assignment. They do not expect the expatriates to perform outstandingly

until three years. They think this period as Adjustment Period for theexpatriates.

MNCs provide widespread training for broadly defined tasks (goal: to

create a generalist). They have a tendency to be extensive and focused on

the work group.

Japanese were found to believe that a company and its members are like

a family. This approach ensures a feeling of security among the employees

and as a result, the turnover rate in Japan based MNCs are much less

compared to MNCs based in other countries.


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Problem of Non-Flexibility:

Japanese MNCs have very limited ability to react to rapidchanges in the operating environment.

Problem of high reliance on Expatriates:

Delays and mistakes in generating correct information insubsidiaries resulting from the absence of local hires in middle

management. Control by socialization and networks, JapaneseMNCs restrict the international exchange of information nearlyexclusively to Japanese employees .Due to inabilityinternational exchange of information Japanese IMC systemoften fails to provide the sufficient structure.


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Problem of unshared values and FormalCommunication:

Japanese MNC do not allow for a cross-border

flow of information between subsidiaries of twodifferent countries that bypass Japaneseheadquarters. The same holds true forinternational task forces and cross functionalteams. They rarely take place in Japanese MNCs

involving managers from more than one othercountry. And also Japanese and non-Japaneseemployees at the managerial level are fairlyrestricted.


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Language Problem:

English is the international business language and is a

prerequisite for all kinds of international networking at the

formal and informal level. Since the beginning of international

operations, lack of proficiency in English has put Japanese

MNCs in a disadvantageous position versus firms from other

industrialized countries.

Managing Problems

More Japanese senior managers stress employee task rotation,

give general directions to teams, stress breadth, and emphasize

values rather than rewards.


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Documents

Japanese HR Management