Cultural Issues Faced by UK Companies in Locating Call Centre in Japan

International HRM

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical evaluation to cultural issues faced by UK companies for locating call centre in Japan. 1
HRM practises.................................................................................................................................4
Theories ...........................................................................................................................................6
Relation of theories with the case ...................................................................................................7
Advantages and disadvantages of theories......................................................................................7
Conclusion ......................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
This project is the evaluation of issues faced by UK companies while locating their
business operations in Japan. International HRM is the achievement of certain objectives by
acquirement of procedures such as allocation and utilization of Human Resources. Call centres
are centralized offices which are used for transmission of immense volume of telephonic
enquiries. Globalization is interconnection of increasing trade and cultural exchange which leads
to internationalization of businesses. In this report discussion of issues which are related to
culture will be made considering of call centre of UK located in Japan. This project will evaluate
HRM issues of UK companies needed to be considered while locating a call centre in Japan.
MAIN BODY
Critical evaluation to cultural issues faced by UK companies for locating call centre in Japan
Some important cultural issues faced in Globalization of businesses are,
Failure in adoption of local market by the global business :
Culture of a country highly influences the behaviour of the consumers (Barker and et.al,
2017). These behavioural differences are the result of change in local preferences, habits and
local preferences (Culture plus consulting,2018).
Failure in identification of regional and subcultural differences :
There are significant variations in the preferences of consumer and conditions of market.
Which require special variations in decision-making of the company (Boiko, 2019).
Failure in understanding business practices in locality :
Cultural barrier affect the local customs of businesses thus, requiring in-depth analysis
for the success of the business. These differences include economic, political, and cultural
influences (Odine, 2018).
Failure in Adaptation of management practices across culture :
All management practices and assumptions are based on the culture of the society and
local market. All the businesses run according to some management theories therefore change in
culture required change in there management style as well (Ellmer and Reichel, 2018).
Failure in identification of new opportunities :
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Not being familiar to the cultural differences some times may lead to loss of opportunity
of the company to grab certain situation opportunities which cannot be understood by foreign
businesses.
IHRM model or framework is defined as strategies of scheme and designs for
administrating and coordinating businesses internationally. These designs of administration have
functionalities in regard to Human capital and are a combination of soft and hard HRM
emphasizing on putting any of the two approaches.
Harvard HRM model or framework is one of the most used HR models, it is based on the
work of Paauwe and Richardson (1997) on how HR operates (Mayrhofer, Gooderham and
Brewster, 2019). It consists of four C's which are stated for achievement, Commitment,
Congruence, Competence and Cost-effectiveness. With the help of this model cultural
differences in IHRM can be explained. This model consists of six components such as,
Stake Holders :
According to this model a business should be carried out according to the interests of the
stake holders which include the share holders, managers and employees. Thus, in international
markets the differences in culture should be dealt in such a way that it benefits the stakeholder
first for any other preferences.
Situational Factors :
Such factors which are influenced by workforce, situations and unions. Do affect the
businesses in international markets as there are not much knowledge of such factors to the
company.
Core HR activities :
The best way of influencing the stakeholder and situational factors is by practising core
HR activities. In foreign markets it can be done by hiring local individuals and providing them
proper training in order to not only adapt to the local culture but also improve the system.
Following HRM outcomes :
By pulling of HRM policies in any market the company always receives positive
outcomes. Which includes retention, cost-effectiveness and maintaining competitive upper hand
in the market. Cultural differences does not affect the organization that much if it follows all the
given policies.
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