International HRM: Cultural and HRM Issues for UK Companies in Japan

This article evaluates the cultural issues that UK companies should consider when locating their operations in Japan. It also discusses the HRM issues that need to be addressed by The Contact People Limited, a UK-based call centre, when expanding their operations in Japan. The article highlights the importance of change management, leadership development, management practices, legal parameters, and recruitment and selection techniques. The article also discusses Hofstede's cultural model and its relevance to cross-cultural differences in human resource practices at the international level.

HRM

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Critical evaluation of cultural issues that should be undertaken by companies operating in
United Kingdom while locating call centre at Japan...................................................................1
Critical evaluation of HRM issues that need to be considered by chosen organisation of UK
when locating their operations in Japan.......................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
International HRM can be described as set of practices that are undertaken by human
resource managers for striving personnel at global level (Aust, Muller-Camen and Poutsma.,
2018). It is significant for human resource managers to manage their employees who are working
in differential geographical locations. It comprises of varied practices such as recruitment,
training, development and preparing pay rolls as well as compensation plans for employees. It is
a complex practice which is majorly affected by external as well as internal factors. For better
understanding of international HRM, The Contact People Limited is taken into consideration. It
is an UK based call centre provides its services in multiple sectors like councils, charities, heath
care, manufacturing and many more. It is a private held company which is situated at Liverpool,
England.
This project highlights the critical appraisal of on the impact of culture in taking managerial
decision in relevance to manage activities of human resource management at international level.
This project also depicts an evaluation on how people are managed in relation to international
organisational strategies.
MAIN BODY
Critical evaluation of cultural issues that should be undertaken by companies operating in United
Kingdom while locating call centre at Japan
Culture can be defined as interests, values and norms that are held by individuals and build
as a basis of their governing behaviour (Boxall, 2018). Organisational culture can be described as
a set of values and expectations that helps in guiding and providing directions to team members
in order to achieve common goals. An effective organisational culture should consisted of clearly
framed mission as well as values for employees. Organisational culture assists in defining the
environment in relation to happenings within in a specific country.
Cultural issues are concerned with challenges or issues that occur in meeting culture conflicts
in relation with systems, goals and objectives (Brewster and Cerdin, 2018). It is significant for
the managers of The Contact People Limited to critical analyse the cultural difference while
allocating their business operations to Japan. For better understanding of cultural differences
among UK and Japan, Hofstede's cultural model is taken into consideration. This framework can
be used by managers of The Contact People Limited for gaining insights into about cross cultural
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differences in order to better understand human resource practices at international level. All the
segments of Hofstede's cultural dimension model in which should be undertaken by managers of
The Contact People Limited are discussed below:
 Power Distance index- This dimension is related with degree through which power can
be distributed on equal basis. Under this dimension, inequality and power can be viewed
from the point of view of people who belongs to lower level of society (Brewster, 2017).
High power index depicts that there is inequality and power differences in society.
Whereas, low power index depicts that there is a decentralised decision-making approach
in society. It is significant for managers of The Contact People Limited to understand the
beliefs of large population of Japan in relation to equalities as well as inequalities. It has
been critically assessed that Japan is country where hierarchal channels are implemented
in companies and having high power index. Japanese are conscious for their better
positions in an organisational setting. This helps them to build proper and open
communication channels while interacting with their employees. It is disadvantageous as
it does not provide any scope for employees for providing suggestions.
 Collectivism vs. Individualism- This dimension talks about the extent by which societies
are integrated into groups on the basis of dependency (Crawshaw, Budhwar and Davis,
2020). Individualism suggests that greater significance is placed on attaining personal
objectives. Whereas, collectivism depicts the importance on attaining group goals team
cohesiveness. In context to The Contact People Limited managers have to understand the
Japanese society and behaviour of people they to take care of. Japanese society is
considered as collective in their approach and belief in accomplishing group goals. It is
desirable for managers of The Contact People Limited to engage human resources in
collective manner while making decisions. This can be disadvantageous for managers of
The Contact People Limited as collective decision making is time-consuming process. It
is advantageous as it helps in developing team collaborations and cohesiveness in order
attain organisational goals collectively.
 Uncertainty avoidance index- This dimension implies on degree of how efficiently
people can avoid uncertainty in society (Dalton and Bingham, 2017). It illustrated
situations or circumstances which are unexpected and unpredictable. High uncertainty
avoidance index depicts low tolerance for uncertain and risk-taking situations. There are
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strict rules and regulations which are to be followed by people. Whereas, low uncertainty
avoidance index relates with low rules and regulations. Japanese citizens have low
uncertainty avoidance which indicates framing of low regulations. In accordance with
The Contact People Limited, managers should not frame strict rules for managing their
personnel in Japan. This is disadvantageous for them as it can hamper the performance of
their operations. It can be advantageous for organisation as they have to manage them by
providing them flexible working environment.
 Masculinity vs. Femininity- This dimension is essentially related with achieving
objectives and maintaining equal behaviour for people in society (Dickmann, 2021).
Masculinity is concerned with wealth-building and assertiveness of people in a society.
Whereas, femininity features comprises of modest and nurturing characteristics of people
residing in society. Japanese culture majorly conducted on masculinity characteristics.
They believes in wealth-building and accomplishing organisational goals above anything.
In context to The Contact People Limited, managers should make those policies through
which their personnel can attain objectives in an effective manner.
 Short and long term orientations- This dimension is considered with the extent by which
society reflects their time horizons in attaining objectives (Dickmann, Suutari and Wurtz,
2018). Long term orientations are related with focusing on future and attaining long term
objectives with persistence and perseverance. Whereas, short term orientation illustrates
attaining goals in coming future. These are concerned with short term results and have
respect for tradition. Japanese people respect their traditions very much and believe in
attaining short term goals. In context to The Contact People Limited, managers have to
plan strategies for attaining organisational goals for shorter period. It is disadvantageous
for organisation as it lead them not to accomplish long term goals.
 Indulgence and restraint- This dimension is concerned as extent of which people want to
fulfil their desires in a society. It talks about on how societies controls their desires and
impulses. Indulgence relates with society approach where people are love to enjoy their
lives and having fun. Whereas, restraint relates with those societal structure which follow
regulations and social norms in a vast manner. Japanese culture is restraint such that
people adhere to all the framed laws and regulations. In context to The Contact People
Limited, managers get the dedicated workforce in Japan while expanding their operations
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there. It is disadvantageous for organisation as they have to deal with those people who
are restraint. As a result, managers have to think different motivational strategies for
them.
It has been critically evaluated that Japanese people believes in following proper hierarchal
channel which helps them in clarifying different roles and responsibilities accordingly (Harzing
and van Ruysseveldt, 2017). This can be disadvantageous as it can slower down the process of
decision making. In Japanese culture, people are restraint and wants to achieve their goals in a
righteous way. This can be helpful for The Contact People Limited as dedicated workforce helps
them in gaining organisational objectives in an effective manner. They essentially believed in
accomplishing organisational goals which are necessary for near future. This helps organisation
in achieving short-term goals in an effective manner. However, this practice can lead to
ignorance if long term organisational objectives.
Critical evaluation of HRM issues that need to be considered by chosen organisation of UK
when locating their operations in Japan
Human resource management is considered as an important practice that essentially
involves handling of varied tasks and personnel of the organisation in a systematic way
(Ozbilgin, 2020). Management of human resources tasks effectively at global level and by
following particular nation laws is known as international human resource practises. It involves
employing staff at international branches, provide them training in the ways they understand,
resolves cross cultural issues and improve performances of organizations. In Call Centre, there
are several human resources management problems that are important to analyse while opening
new business in Japan. The key HRM issues of The Contact People Limited needs to focus on
while commencing operations in Japan are explained underneath:
 Change Management- This can be understood as an ability that link with structural
changes in the specified behaviour of employees. This is the issue faced by companies for
conversion and transformation of processes, technologies and operational practises. It is
concerned with implementing strategic planning to manage, control and guide people in
order to bring change (Qi, Zheng and Pyman, A., 2021). In context with The Contact
People Limited, change management is one of the major HRM challenge while moving
its operations in Japan. The human resource management have to develop or modify
various practises, strategies and principles to carry out operations optimally. Furthermore,
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additional value should be given to training and development to increase efficiency of
organization and to face change management effectively. It is difficult task for managers
of The Contact People Limited as they don’t have to manage personnel but from a
divergent cultural background. It is advantageous for organisation as it help in working
with new people which enhances the skills of existing staff. It is disadvantageous for
organisation as if not manage effectively, it can increase labour turnover rate of THE
Contact People Limited.
 Leadership Management- Another human resource management challenge which
requires urgent attention by businesses at global level is leadership development. In
Japan, leadership management will prove to be essential strategic programme. In
reference with The Contact People Limited, HR managers are responsible to evaluate
these issues and give essential techniques, suggestions, processes and composition to
eliminate them (Sinha, Patel and Prikshat, 2022). This will help the company to create
and select best leaders for future. It is imperative for managers of The Contact People
Limited to adopt right leadership strategy on the basis of behaviour, working style of
Japanese people. It is desirable for organisation to implement adaptive leadership strategy
for persuading employees to perform their tasks effectively.
 Management practices- Scientific management theory is an essential practise of
businesses to evaluate and synthesizes flow of work (Thite, 2018). It is important to
enhance economic efficiency and productivity of employees. It is defined by Frederick
Taylor to evaluate work performances and to motivate employees to work with their full
potential. Within The Contact People Limited, applying scientific management theory is
essential as this allows managers to modify tasks into simple units as well as allocate
them to people according to their skills and abilities.
By scientific theory, managers of The Contact People Limited are able to eliminate
change management issues as this theory suggest motivating individuals to bring effective
change and increase productivity by optimum use of resources. The issue of leadership
development can be reduce by using theory which aims at giving more emphasis on increasing
effectiveness of leaders and provide them with the opportunity to give training to develop other
employees in Japan. It will also help managers to distinguish between efficient and inefficient
workers. This practice helps them to frame effective motivational; strategies for differential set
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of personnel. This theory also suggests adoption of standards techniques or benchmarking for
measuring the performance of employees. This helps in assessing the worth of employees.
Taylor also advocated to use scientific methods in assessing performance with differential tools
that helps them to prepare compensation packages for their employees.
 Legal parameters- It is significant for managers of The Contact People Limited to know
and understand the legal laws in relation to locating their call centre in Japan. Strictness
and adherence of legal laws can be ascertained through knowing the varied regulation
which are related with human resources. In Japan, employability laws are very strict and
have to be followed by organisations who are residing there or those who came from
different country. Adherence to legal laws are significant for managers of The Contact
People Limited as it can helps them to make their image positive in new country. This
also led them to manage their employees in an effective manner. This also help in feeling
employees valued and satisfied which in turn increase their productivity levels.
Incompliance with these laws can become a serious issue for establishment and can lend
them in a problem of facing expensive litigation. This exercise can demotivate employees
and minimizes their performance level.
 Recruitment and selection- Recruitment is termed as an exercise which helps in
persuading candidates for applying for the specified jobs. It is desirable for managers of
The Contact People Limited in having a pool of candidates for choosing at desired
position. Recruitment and selection techniques which are different in differential
countries can be act as an issue for establishment. As they have to manage cultural
differences while recruiting their employees from Japan. Japanese citizens have different
set of skills and approach which is not deductible form their behaviours while recruiting
them. It is imperative for managers of The Contact People Limited to assess expatriate
workers as they can resign from their jobs in urgent or disastrous situations. This can
increase the labour turnover rate of organisation.
Benefits of scientific management theory to The Contact People Limited are to be
achieved by providing best quality services, minimising conflicts in organization, better assign
jobs and by maintaining proper functioning of operations in relation to Japan. But this theory
also has some limitations which are that application of this theory involves huge capital
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investment, sometimes fails to motivate employees, monotonous work every day and gives
deadlines of work that sometimes lead to wrong work.
CONCLUSION
From the above presented report, it has been concluded that human resources managers
are significant for organisations as they perform varied crucial functions like recruitment,
selection, training, development and many more. It is important for businesses to critically
analyse cultural differences between two countries while they are planning to expand their
operations. Many critical issues are to be faced by human resource managers in managing
personnel who came from different countries having diverse background and interests.
Hofstede’s cultural dimensional model is used by organisations for critically access the cross
culture differences among varied nations. It helps in ascertaining the ways or solutions that are to
be undertaken by managers while operating in a different nation. Change management is a
process whereby organisational managers strives to find the different ways for inducing the
changes in establishment. It is desirable for managers to critically evaluate varied challenges
relates to personnel and also find differential ways to resolve them in an efficient manner.
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REFERENCES
Books and Journals:
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international perspective. In Handbook of research on comparative human resource
management. Edward Elgar Publishing.
Boxall, P., 2018. The development of strategic HRM: Reflections on a 30-year journey. Labour
& Industry: a journal of the social and economic relations of work. 28(1). pp.21-30.
Brewster, C. and Cerdin, J. L., 2018. HRM in mission driven organizations. Cham: Palgrave
Macmillan.
Brewster, C., 2017. The integration of human resource management and corporate
strategy. Policy and practice in European human resource management, pp.22-35.
Crawshaw, J., Budhwar, P. and Davis, A. eds., 2020. Human resource management: Strategic
and international perspectives. Sage.
Dalton, K. and Bingham, C., 2017. A social institutionalist perspective on HR diffusion:
historical and cultural receptivity to HRM in a post-communist context. The International
Journal of Human Resource Management. 28(6). pp.825-851.
Dickmann, M., 2021. INTERNATIONAL HUMAN RESOURCE MANAGEMENT–HISTORICAL
DEVELOPMENTS, MODELS, POLICIES AND PRACTICES IN MNCs (p. 225). SAGE.\
Dickmann, M., Suutari, V. and Wurtz, O. eds., 2018. The management of global careers:
exploring the rise of international work. Springer.
Harzing, A. W. and van Ruysseveldt, J. eds., 2017. International human resource management:
A critical text. Red Globe Press.
Ozbilgin, M., 2020. International human resource management: Theory and practice.
Bloomsbury Publishing.
Qi, S .L., Zheng, C. and Pyman, A., 2021. HRM Policies and Practices in Emerging Market
Multinationals: A Contextual Analysis. International HRM and Development in
Emerging Market Multinationals. pp.32-56.
Sinha, P., Patel, P. and Prikshat, V. eds., 2022. International HRM and Development in
Emerging Market Multinationals. Routledge.
Thite, M. ed., 2018. e-HRM: Digital approaches, directions & applications. Routledge.
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