Human Resources In Japan Essay Research Paper

Human Resources In Japan Essay, Research Paper

International human resources management (IHRM) is the process of selecting, training, developing, and compensating personnel in overseas positions. This paper will examine each of these activities in Japan. Before doing so, however, it is important to understand the general nature of this overall process, which begins with selecting and hiring.There are three basic sources of personnel talent that MNCs can tap for positions. One is home country nationals, who reside abroad but are citizens of the parent country of the multinational. These individuals are typically called expatriates. An example is a U.S. manager assigned to head an R&D department in Tokyo for IBM Japan. A second is host country nationals, who are local people hired by the MNEs. An example is a British manager working for Ford Motor in London. The last is a third country national; who are citizens of countries other than one in which the MNC is headquartered or the one in which they are assigned to work by the multinational. An example is a French manager working for Mercedes-Benz in the United States.Staffing patterns may vary depending on the length of time that the MNE has been operating. Many MNE will initially rely on home country managers to staff their overseas unites, gradually putting more host country nationals into management positions as the firm gains experience. Another approach is to use home country national in less developed countries and employ host country nationals in more developed regions. This pattern has been found fairly prevalent among U.S. and European MNEs. A third pattern is to put home country manager in charge of a new operation, but once the unit is up running, turn it over to a host country manager. As the firm begins initial manufacture in that country, the use of expatriate managers and third country nationals begins to increase. As the company moves through the ensuing stages of internationalization, the nationality mix of the mangers in the overseas unit continues to change to meet the changing demands of the environment (Brandt, 1991, pp.34-44)In some cases staffing decisions are handled uniformly. For example, most Japanese MNEs rely on home country managers to staff senior-level positions. Similarly, some European MNEs assign home country managers to overseas unite for their entire career. U.S. MNEs typically view overseas assignments as temporary, and so it is more common to find many of these expatriates working under the supervision of host country managers.The size of the compensation package also plays an important role in personnel selection and placement. As the cost of sending people overseas has increased, there has been a trend toward using host country or third country nationals who know the local language and customs. For example, in recent years many U.S. multinationals have hired English managers for the top positions at subsidiaries in former British colonies such as Jamaica, India, and Kenya (Hodgetts & Luthan, 1991, p.231)The above factors influence IHRM strategies and help MNEs to integrate an international perspective into their human resource policies and practices.Profile of JapanJapan consists of four main islands (Hokkaido, Honshu, Shikoku, and Kyushu) and a number of smaller islands. The country is approximately the size of California, and over the last two decades it has become a major industrial power. Today the Japanese yen is one of the strongest currencies in the world as the nation s massive international trade has helped it to maintain vigorous, sustained economic growth.Political and Legal SystemThe branches of the Japanese government are very similar to those in the United States: legislative, executive, and judicial. Legislative power is vested in the Diet, which consists of a popularly elected House of Representatives and House of Councilors. There are five major political parties. The strongest of these is the Liberal-Democratic party, which is conservative and generally supported by the tow most powerful groups in the country: business and agriculture.Population and Social PatternsThere are approximately 125 million people in Japan. But because much of country is mountainous and unsuitable for living, the population is densely concentrated. Approximately 20 percent of the people live in or around Tokyo.The standard dialect of Japanese is understood throughout the country, even though there are some local differences. English is the most frequently taught foreign language, and in business circles visitors can generally communicate in English, although involved negotiations typically require an interpreter.It is important to remember that Japan is a triad power. The country has experienced the fastest and longest period of sustained economic growth in world history over the past 30 years. Although the rate of growth began to slow in 1992 and 1993 and trade surpluses may soon start to decline, Japan s momentum will keep it going in to the twenty-first century. Indeed, this century may be the pacific century, with other Asian nations following the Japanese model of rapid growth and development (Sanger, 1994, p.29). Managing on-site operations requires attention to a number of importance areas. Primary among these are recruiting which is one of the first, and certainly the most difficult tasks for subsidiaries managing on-site operations in Japan is that of recruiting personnel. Unlike the Uni