BMP6003 - Critically Evaluating HRM for UK Call Centres in Japan

This report provides a critical evaluation of the cultural and HRM issues that UK companies face when establishing call centres in Japan. It examines the advantages of entering the Japanese market, such as enhanced brand presence, increased market size, and a well-educated workforce. However, it also highlights cultural challenges like adapting to local markets, managing diversity, and internal conflicts stemming from differing opinions and values. The report uses Hofstede's Cultural Dimensions to analyze cultural differences. Furthermore, it addresses HRM issues, including recruiting from other countries, maintaining communication, encouraging feedback, and achieving diversity with inclusion, and it also considers PEST model factors impacting HRM practices. The analysis emphasizes the need for UK companies to understand and adapt to Japanese culture and HRM practices for successful operations.

BSc (Hons) Business Management Top up
BMP6003
International HRM
Critical evaluation of cultural and HRM issues for a UK
business locating a call centre in Japan
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Table of Contents
Advantages of entering Japanese market from HRM and Cultural aspect............................2
A critical evaluation of cultural issues UK companies need to take into consideration........3
when locating a call centre operation in Japan.......................................................................3
A critical evaluation of HRM issues UK companies need to take into consideration when
locating a call centre operation in Japan................................................................................5
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Introduction
International human resource management is associated with the procurement and
allocation of human resources in a multinational company and ensure the effective of
resources in an efficient way to attain the organizational goals in an efficient manner. In
addition, IHRM has to deal with various diversities in the workforce (Vaiman and et. al.,
2018). The present study is based on the evaluation of cultural and HRM issues that are being
faced by the companies of UK that are opening call center in Japan. It is identified that
culture of Japan and UK is completely different. In this situation, it is quiet challenging for
the UK companies to cope up with the culture. The study will cover advantages and issues
which can be encountered by the company while exploring business in other country.
Main Body
Advantages of entering Japanese market from HRM and Cultural aspect
Opening a call center in Japan is quiet beneficial and will help the companies to
expand the business significantly. In Japan, there are nearly 250000 call centers. It can be
started with limited amount of investment. In context of UK companies, they can start
business of call center in Japan. It will help in expansion and enlarge the business in an
efficient manner. In this scenario potential advantages and challenges are mentioned below:
Expanding business in other country will help in enlarging the profit margin of the
business. It will enhance the customer base of the entity and formulate positive image of
brand in international market place. In this context, advantages of expanding business in
Japan for the companies of UK are briefly explained below:
Enhance brand presence: In current competitive time, enhancing the brand
presence is imperative to sustain in the market for longer period of time. When the companies
of UK will expand business in Japan, it will enhance the presence of brand in international
market. In addition, enhancing the brand presence will help the organization in enlarging the
existing customer base in order to earn higher sales and profit margin. In addition, it will also
allow the business entity to make a unique presence of the company in the competitive
market place (Lalwani, Wang and Silvera, 2020).
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Increase the market size: Business expansion is helpful in enlarging the market
share so that a company can earn substantial profit margin. In preset competitive world, each
and every company is looking forward to expand business internationally in order to face
competition effectively. In current scenario, UK companies can easily expand their existing
market size by expanding the boundaries of business. Here, starting call center in Japan will
allow the business entities to enlarge current market size to earn high revenue and profit
margin.
Highly expanded workforce: In Japanese culture, there is emphasis on education
which further helps in getting trained and competent candidates onboard with ample of
expertise and knowledge. It is assumed that Japanese workforce is highly competent and
hardworking across the globe. Hence, it will be significant for British companies to expand
business in Japanese market. With presence of competent workforce, there will be higher
probability of organizational success and growth.
Well-Educated workforce: Economy of Japan is considered as one of the strongest
and developed economy in the world. Japan is considered as highly digitally transformed
country across the globe. Here, the digital literacy rate is really high (Brannen, Mughan and
Moore, 2020). It will create opportunities for UK companies to expand business in Japan in
an efficient manner.
A critical evaluation of cultural issues UK companies need to take into consideration
when locating a call centre operation in Japan
In current time, companies are likely to expand business in more countries. They look
forward to enhance the presence of brand in order to attract more number of customers. It is
important to earn substantial amount of profit margin. However, the entities have to face
cultural and HRM issues while operating business at international level. Culture issues are
those which occur due to conflicts with the system, goals or cultures. Individuals live in a
particular culture that affects their living standard, personality attitude and more. Due to
increasing globalization, companies are expanding business at international level. In this
situation, people belong from different culture work together in order to attain the
organizational goals (Ali, 2020). Here, diversity in workforce can further create cultural
issues at workplace which will influence growth of the business entity. In the given context,
UK companies are enlarging business in the Japan. They are operating call center in Japan.
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Here, the culture of both countries are different that will create cultural issues in an efficient
manner. Difference in opinions, values of the individuals created constraint in effective
decision making. In this context, the cultural issues and their impact on decision making are
briefly explained below:
Failing to adapt global business models to the local market: Attitude of customers is
highly influenced by the culture. When a company moves in new business environment, it is
imperative to modify the business practices as per the change in preferences, habits and
customer trends. While entering into an international market, company needs to make
changes in the existing products or services (Baporikar, 2020). It will affect the working
practices of the employees and further affect their productivity and efficiency.
In effective diversify management: Diversification is important for the growth and
enlargement of business. It facilitates innovation and creativity at work place. Due to the
global expansion, individuals belong from different culture work together. In this situation, it
is imperative to have effective management so that the diversify workforce can be managed
effectively. If the management is not effective, it will be difficult to handle the diversify
workforce. It will create conflicts among workforce. In addition, in-effective diversify
management will also directly affect the productivity and efficiency of the employees.
Internal conflicts: Conflict is the major issue that emerges due to the difference in
opinions, thoughts, perception of individuals. It is analyzed that opinion of individuals is
highly affected with the culture they belong. When people belong from different culture work
together, it can become a reason of conflict Singh, Khamba and Nanda, 2018). Employees are
the crucial part of business and they part in decision making process. For effective decision
making, it is imperative that all the employees participate in decision making process. Hence,
the culture issues have major impact on overall decision making process of the business
entity.
Hofsted Culture dimension: This is a model that is applied in order to assess the cultural
aspects. Main elements of the model are mentioned below:
Power Distance: It is the level upto which people are ready to accept the uneven
distribution of power. Low power distance wherein distribution structure of power of flatter.
Here, power is equally distributed and decisions are democratic.
Individualism Vs Collectivism: Japanese culture is based on collectivism approach
which focuses on creation of stable group and maintains inclusion and diversity in the group.
Here, each and every individual values the opinion of group members. This approach is in
contrast on individualism approach that is followed in the British companies.
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Masculinity Vs Feminity: It context of Japan, it is considered as one of the
masculine societies across the globe (O’Reilly and Tushman, 2021). The people of the
country has competitive sprit which is associated with masculine culture. It is found that in
Japan people feel motivated when they get success after fighting with the team members.
Uncertainty avoidance index: It is the level by which society has the feeling of
threat from future uncertainty. It is identified that Japense people have high rank in terms of
risk avoidance. Here, people tend to do the work in perfect way so that they do not need to
face uncertainties in future period of time. This behavior of people contradict with attitude of
British people.
Long term orientation: In Japan, majority of the people have long term approach.
They take decisions by having long term perspective.
A critical evaluation of HRM issues UK companies need to take into consideration when
locating a call centre operation in Japan
HRM Issues: Human resources are important part of the business. They contribute in
the success of the business entity by performing assigned task effectively. While performing
business at international level, ample of HRM issues can emerged. In the current scenario,
UK companies are opening call center in Japan. Hence, the manager will need to work in an
international environment that will affect their working practices profoundly. In the given
context, different HRM issues are explained below:
Recruiting from other countries: Recruiting talented and capable individuals is not
easy as HR manager have to carry out effective recruitment procedure in other country.
Arranging recruitment drive in over cease country is quiet difficult. For this purpose, HR
managers need to have proper knowledge of norms, policies prevailing in the foreign country.
It is one of the major issues that are being faced by the UK companies which are expanding
in Japan. In this context, it will be challenging for the companies of UK to analyze the
environment of other country and modify the hiring practices accordingly. In addition, they
need to consider the norms, regulations of the country while expanding business. It will help
the entity in taking better and effective decisions.
Maintaining proper communication: In international business environment, it is
quiet difficult to maintain proper communication among different people. Here, people of
different culture work together to attain organizational goals (McCormick, 2019). It is one of
the major HRM issues that is encountered by the majorities of the companies that are
working globally. In the given scenario, the companies of UK is expanding business in Japan.
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Here, they will face issues of communication due to difference in language, culture, value
and more. Absence of proper communication will affect the decision making process of the
organization significantly.
Encouraging Feedback: Geographical differences emerge in terms of less catch ups
and open communication among team members. It also put impact on the relation of HR and
the employees. Due to lack of connectivity, employees are not able to give proper feedback to
the HR managers. Here, managers need to encourage workforce to give true feedback. If the
HR managers do not get true feedback, it will put a major impact of the decision making
process.
Achieving diversity with inclusion: Diversity refers to a condition wherein people of
different culture work together. Globalization has been enhanced diversity in business.
However, diversity is creating issues of coordination and collaboration at work place. People
belong from different culture cannot easily interact with each-other. Therefore, inclusion is
one of the major issues that are faced by the organizations while working in global
environment. Inclusion is required to get the consent of individuals so that the effective
decisions can be taken.
PEST Model:
Political issues: It is associated with change in the political aspects. In current
scenario, the company will face issues of changing in the political conditions of the country.
It will affect the HRM practices and policies of the UK organizations. Hence, it is imperative
for the organization to modify the HRM practices of the entity in an efficient manner.
Economical issues: Economical issues comprises changes in the economical
elements such as demand, supply, inflation, demand, cost etc. While expanding business in
Japan, it is imperative for British companies to analyze the economic conditions of the nation
efficiently.
Social issues: While performing HR activities at international level, managers also
have to face social issues such as change in attitude, perception, thoughts of the individuals
(Brown, Bessant and Jia, 2018). In current context, the HR of British companies will face the
issues of difference in attitude, perception of the employees. It will hamper the business
practices profoundly.
Technological issues: In current time, new and advance techniques are being used by
the business entities to perform different activities efficiently. In context of Japan, the country
is developed and ahead in terms of technological aspects. Here, the British companies also
need to modify their technologies while performing business operations in Japan. For this
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purpose, they need to use suitable HR softwares, tools in order to maintain the data of human
resources efficiently.
Through the above discussion, it is analyzed that for the companies of UK it is
imperative to consider the potential issues of culture and HRM while expanding business at
international level. The companies will face cultural issues such as conflicts, failing to adapt
global business model and more. In addition, the organization will also face HRM issues like
recruitment, developing inclusion, getting feedback and more. These issues will affect the
business practice in significant manner.
Relevance of the Harvard model of IHRM
This model includes the elements such as selection, appraisal, development, rewards
etc. As per this model, different situational factors like workforce, labor availability, the
availability of technology play an integral role in determining suitable IHRM strategy. There
is focus on providing suitable environment to the employees in order to support the employee
excellence which will help in attaining favorable outcomes efficiently. Welfare of employees
is important to ensure organizational success. This further affects the well-being of society in
an efficient manner. Therefore, this model affects the success of British company in the
Japanese market depend on the effective human resource management.
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Conclusion
It is concluded that Cultural issues are related to the difference in culture of the
people. It is identified that in organization people of different culture work together to attain
common goals in an efficient manner. HRM issues are related to hiring, selecting, training
and motivating individuals. To perform the assigned task efficiently, it is imperative to hire t
skilled candidates. However, HR managers are likely to face ample of issues in hiring
potential and capable individuals. Additionally, they also face issues in motivating
individuals at work place. It is summarized that third largest economy globally. It is a crucial
destination to start international business. The above report included brief discussion of the
cultural and HRM issues that are face by the British companies while they will expand in
Japanese market.
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References
Books and Journals
Ali, H., 2020. Mutuality or mutual dependence in the psychological contract: a power
perspective. Employee Relations: The International Journal.
Baporikar, N., 2020. Role and room for knowledge management in small and medium
enterprises. In Handbook of Research on Social and Organizational Dynamics in the
Digital Era (pp. 115-134). IGI Global.
Brannen, M.Y., Mughan, T. and Moore, F., 2020. THE CREATIVE USE OF INSIDER
ETHNOGRAPHY AS A MEANS FOR ORGANIZATIONAL SELF
INVESTIGATION. The Routledge Companion to Anthropology and Business, p.27.
Brown, S., Bessant, J. and Jia, F., 2018. Strategic operations management. Routledge.
Lalwani, A.K., Wang, J.J. and Silvera, D.H., 2020. How does cultural self-construal influence
regulatory mode?. Journal of Business Research, 117, pp.368-377.
McCormick, K., 2019. Japanese engineers, lifetime employment and in-company training:
continuity and change in the management of engineering manpower resources.
In International comparisons of vocational education and training for intermediate
skills (pp. 159-182). Routledge.
O’Reilly III, C.A. and Tushman, M.L., 2021. Lead and disrupt: How to solve the innovator's
dilemma. Stanford University Press.
Singh, D., Khamba, J.S. and Nanda, T., 2018. Problems and prospects of Indian MSMEs: a
literature review. International Journal of Business Excellence, 15(2), pp.129-188.
Vaiman and et. al., 2018. Macro talent management in emerging and emergent markets: A
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