International HRM: Cultural Issues and Challenges in Expanding to Japan

This report discusses the cultural issues and challenges faced by Argos Company in expanding its operations to Japan. It explores the impact of cultural diversity on HRM practices and provides strategies to overcome these challenges.

INTERNATIONAL HRM

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critical evaluation of cultural issues UK company need to trake into consideration..................3
Models and theories about the culture in international HRM......................................................4
HRM issues look into consideration............................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
International HRM is defined a managing the human resource related needs and
requirements of business. This report will discuss the case study of Argos Company in respect to
its human resource related practices. The organisation was founded in the year 1972 by the
founder Richard Tompkins. Headquarter of the company is located in England. Company is
currently catering its services under United Kingdom and Republic of Ireland. Company is
currently operating its practices at approximately 883 shops. This report will discuss about
international HRM Practices of company in respect to the organisation. Henceforth, report will
emphasis over a critical evaluation of cultural issues company is facing when it has opened a call
centre in Japan. Furthermore, report will discuss the critical issues UK company need to take into
consideration when locating a call centre in Japan.
MAIN BODY
Critical evaluation of cultural issues UK company need to trake into consideration
United Kingdom and Japan hold a strong cultural differences. The standard of living,
values, culture and many other values all are different in both the locations. This is a mutual
characteristic culture hold in the organisation where differences always arise irrespective of what
location an individual go and visit (Ayega and Muathe, 2018). Company always look for
business expansion practices as it allow the business entity to gain strong dominance in
respective market. Mind set at all the locations keep on changing of people that also allow the
cultural values to be changed at all the locations. Cultural diversity is among the major issue
business entity face every time they plan to expand the business operations at any of the
international location. This issue is more advanced and effective in context to such business
location over which company is not currently operating its practices.
Cultural differences create a huge barrier in the business operations entertained by the
organisation. Due to the changes in cultural value the through and opinions of people keep on
changing. Argos Company is currently planning to expand business internationally by opening
its call centre at Japan. Currently company is operating its business in United Kingdom and
expansion of practices in Japan will create a cultural differences in regard to the business
operations (Aderibigbe, 2021). The changes in culture further create many differences like in
mindset, education background, attitude of people and all other elements are change. Every

organisation hold its own individual culture that influence every single functional activity at the
organisation. It can demonstrate that these changes in the attitude of people also reflect over the
cultural influence company hold. In case of any organisation already well-established and hold a
good position under the respective market. For such entities it becomes difficult to adopt cultural
changes constantly is very difficult. The plan related to business expansion also need recruitment
support from the human resource team of the organisation. It is important that the business entity
allot employment opportunities to the human resources over different designated position role in
the work place. Japan holds a different values and expansion of business at new location will
allow the company to face challenges related to the cultural diversity at the organisation.
Recruiting human resources in respect to dealing with business expansion is a huge
challenge. Employees who are already working under the organisation hierarchy at the United
Kingdom will also face issue in getting international transfer at such new location. Human
resource find it difficult to adjust at the new location specially such that do not match with the
cultural values of the existing business location (Ayentimi, Burgess and Dayaram, 2017). Japan
and United Kingdom is very different and in such a situation this will be a huge challenge for the
Argos Company to transfer employees in the new location.
Models and theories about the culture in international HRM
Management of the Argos Company take support and guidance from the hofstede cultural
diversity model to make adjust based on the differences under the cultural values at both the
locations. This cultural diversity model contain different aspects such as power distance index
(high virsus low), individualism versus collectivism and long versus short term orientation.
Power distance index
Power distance index involve managing cultural diversity based on the power of
individual employee at the organisation. This denotes the fact that cultural model contain
different power related aspect. High power allotted to employees of company always allow the
company to achieve the best level of cultural diversity at the organisation level. High power
always motivated to the employees in company that it will empower the employee of company to
achieve the best level of cultural diversity at the organisation level (Bischoff and Wood, 2018).
Low power allotted to the human resources at the organisation will empower the employees to
achieve bets level of cultural motivation against the work pressure. The tendency of human
resources is such that if they get high power they can perform in the best of their capacity. This

can be stated as the process of motivation at work place. Low power allotted to employee will
restrict the employees of company to suffer and face issues. Power index model directly
connected with the cultural diversity at the work place.
Individualism vs collectivism
This cultural aspect denote that culture of organisation can only be enhanced if the
business entity support the individual values of the work force. Collectivism is all about putting
collective efforts to achieve the organisation goal. In case of organisation its important to put the
collective efforts to reach the business success in the respective market (Mohan and Nair, 2017).
IN context to the business success it become necessary that employees in company put
collaborative efforts to reach the overall business objectives of company. If the employee put
individual efforts only than the Argos Company will never be able to achieve the overall
objectives behind the business entertained by the company.
Long term vs short term orientation
Long term orientation refer to the process of development for the log term goal of the
business which they can develop through different ways and strategies. It allows the organization
to develop the process of increasing the unachieved short term goals of the business. It is crucial
for the organization to understand that they price the strategies in the business and allow the to
achieve the working of the organization. Long term goals are those which the organization make
to increase the future profit and also get the future benefit of the business (Ren and Chadee,
2017). It is crucial for them to develop the future objective and achieve them. It is crucial for the
long term goal to provide the ARGO with the facilities and strategies. Working in development
is important as they allow them in increasing the business and allow them to develop more goals
and objective pf the business. This help ARGO in increasing the working of the organization and
allow them in increasing the future benefit of the organization. It is crucial for them to make sure
that long term orientation for the culture in the business develop because culture need to be
developed in the workplace as it can cause and conflict a lot of issues in the business. It is to
increase the work of the organization and to increase there working condition. Profitability and
increase performance will get to increase a multi benefit of organization.
Short term orientation is going to focus on the important functioning which is going to
make sure that the company is being able to achieve the working which is a very important
factor. Focusing on the working and internal factor is going to be focused upon in the short term

working which is a very important factor. Social hierarchy is very important to make the
company be able to operate effectively in the market. Fulfilling the needs of the clients which are
present in Cargo is the aim of the company for which small steps are measured and planned so
that the company will be able to operate effectively. Future goals are set in the company to be
able to operate effectively which is going to make sure that the standards of the company are
going to be higher. Society also is being focused upon by the organization which is going to
make sure that the company is going to have higher outcomes and make the results be higher.
Profitability of the company has to be higher which is going to make the standards of the
company be higher and the rewards are going to be set for the employees also accordingly.
HRM issues look into consideration
At a time of establishing in Japan, HRM can face many challenges which can affected the before
entering into market. The factors may be political, economical, technological and social factors
which affect the operation of company. HRM practise can affect company to establish in smooth
manner due to these factors. It allows HRM to analyse the market of japan and their working
culture that may cause affect to company during their expansion. These factors are:
 Political factor: This factors which are affected due to various political rules and
regulation which impact the operation and working of company. The changing
environment of political party which can impact the working of Argos in japan. For
expanding in forging country political climate is one of the major challenges which are
faced by company (Froese, and et.al., 2020). The political parties are usually working for
developing the infrastructure in Japan and to develop the education system in country by
promoting more technology. The HRM practise are being changed according to the Japan
political factors which are had different rules and regulation regarding employee and
other company operation.
 Legal factors of Japan: This factors having legal rules and regulation which are implied
on foreign company set by government and other authorities. Different laws and
regulation are implied on Japan domestic company of Argos. These laws are design by
government and other authorities to protect the interest of employees and local people.
This also include tax structure which are applicable on different business format and on
foreign countries. This can impact the practise of HRM where they have to take all legal
activities which are implied by government to company for operating in Japan. It includes

huge cost and time taken to complete the document process with company (Dang, Qand
Rammal, 2020). As operating in new country they have their own rules and regulation
which need to be followed by company which need to be fulfilled by company. This
documents which are implied in foreign company are working policies of employees,
minimum wages to labours, training and development of employees, safety and security
of each local employees working for Argos, environment issues which need to be
followed by company operation and other factors like women empowerment in company,
leaves applicable, allowances for local and many other legal factors which are related to
employees and for country.
 Training and development cost: Expansion in japan include high cost of company due
new working culture for employees which are being transfer to Japan. The training and
development process of existing employees are being done by HRM which leads to
incurred in cost and time-consuming process to trained employee for working in new
culture. Also, new employees which are hired locally is also liable to trained by HRM of
Argos. The training mainly include the working culture, living standards and technology
which is being used by company in that area. Language can be a major barrier of
company which they affect the company practise, employees are being trained for learn
local language of Japan (Doetzer, 2020). As there is new working culture of employees
locally and international employees too, need top be trained by Argos HRM to generate
revenue from the Japan branch and develop infrastructure of company effectively
working. However, japan is very fast developed country where technology which is being
used by them is very high tech and innovative process are being develop by people to
complete their work in effective manner. Argos may face challenges due to there working
of employees and thinking level to complete their work according to order to achieve
goal.
 Huge Expat rate: Argos company and HRM face many challenges to maintain the
employees expatriate in company which is high for longer term. International Human
resource management of Argos is usually faced 3 type of employees in company which
are:
1. Citizen of parent company which are usually employees of Argos headquarters.
2. Citizen of host country which are hired in japan by Argos.

3. Other nationalist employee which are citizen of other country in Argos.
These three type of employees are being made handle by IHRM which is diverse in nature in
company and difficult to maintain all employees and effective expats. As the japan business
culture is quite unique and hierarchical system and follows objectivistic approaches in working.
However, employees are being find difficult to fit into new culture and adopt is easily in new
country like Japan (Arokiasamy, and Kim, 2020). HRM need to followed certain strategies
which are followed to retain the employees of Argos through motivate to work in new culture. It
can be done through providing various schemes like promotions, allowances which are given to
foreign employees, incentives structure and special support programs to employees.
 Economic factor: As Japan is one of the Most develop country which is being grown
fastly with technology they used, innovation they develop for country. Argos HRM may
affect due to employees working manner, company's technology used in country,
exchange rate of country which tent to be increased with time to time (Ererdi and et.al.,
2020). This may benefit to company to work with most innovative employees in japan
and assist company to use the technology they used for work.
CONCLUSION
The above report conclude that Argos may faced certain difficulties when it comes to
international culture which is quite dynamic in nature and change according to environment
change. This also affect the decision-making of company which impact the operation across the
country working in. however, the International human resource management practise are being
affected when company expand business in new countries. Local employees and international
employees are being affected through HRM practise of Argos. While these can be handled
through handling effective and making strategies to execute new expansion plan in smooth
manner.

REFERENCES
Books and journals
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A review and research agenda. Thunderbird International Business Review, 62(6),
pp.689-705.
Doetzer, M., 2020. The role of national culture on supply chain visibility: Lessons from
Germany, Japan, and the USA. International Journal of Production Economics, 230,
p.107829.
Arokiasamy, J.M. and Kim, S., 2020. When does emotional intelligence function better in
enhancing expatriates' cross-cultural adjustment? A study of Japanese PCNs in
Malaysia. Journal of Global Mobility: The Home of Expatriate Management Research.
Ererdi, C., and et.al., 2020. International HRM in the context of uncertainty and crisis: a
systematic review of literature (2000–2018). The International Journal of Human
Resource Management, pp.1-39.
Ayega, E. N. and Muathe, S., 2018. Critical review of literature on cultural diversity in the work
place and organizational performance: A research agenda. Journal of Human Resource
Management. 6(1). pp.9-17.
Aderibigbe, J. K., 2021. The Dynamism of Psychological Contract and Workforce Diversity:
Implications and Challenges for Industry 4.0 HRM. Redefining the Psychological
Contract in the Digital Era: Issues for Research and Practice. pp.247-259.
Ayentimi, D. T., Burgess, J. and Dayaram, K., 2017. Do multinational subsidiaries demonstrate a
convergence across their HRM practices in a less developed host-country?. Employee
Relations.
Bischoff, C. and Wood, G., 2018. HRM in sub-Saharan Africa: comparative perspectives.
In Handbook of research on comparative human resource management. Edward Elgar
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Mohan, B. and Nair, L. R., 2017. Cross Cultural HRM Issue: Cheng Hi's Chinese Construction
Company. SCMS Journal of Indian Management. 14(2). pp.98-104.
Ren, S. and Chadee, D., 2017. Influence of work pressure on proactive skill development in
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