Hexaplex's IHRM: Staffing, Control & Localization in Japan

This report analyzes the international human resource management (IHRM) strategies Hexaplex, an Australian paint manufacturer, should adopt for establishing a manufacturing plant and operational unit in Japan. Drawing on IHRM theories, including cross-cultural theory, the report recommends a geocentric staffing approach, prioritizing ability over nationality, and emphasizes the importance of understanding Japanese culture. It suggests hiring individuals with experience in the Japanese market to gain insights into customer needs. For control mechanisms, a mix of centralization and decentralization is proposed, with centralized decision-making initially to maintain consistency, followed by decentralization to foster employee trust and flexibility. The report also addresses factors driving standardization and localization, highlighting the influence of cultural and institutional environments. It emphasizes the need for proper research and development to align with Japanese cultural norms, focusing on relationship-building and collectivist tendencies. The report also underscores the importance of adapting reward and recognition initiatives to the local culture. Furthermore, the report extends the discussion by incorporating additional IHRM theories, such as Hofstede's cultural dimensions, to provide a more comprehensive understanding of the cultural nuances that Hexaplex must consider. The report concludes by re-emphasizing the need for a localized approach to HRM practices in Japan, including staffing, control mechanisms, and the balance between standardization and localization to ensure the success of Hexaplex's expansion in the Japanese market. This includes a more in-depth consideration of Japanese work culture, including the importance of teamwork, consensus-building, and long-term relationships. The report also stresses the significance of training and development programs tailored to the Japanese context, incorporating elements of both formal and informal learning to facilitate cultural integration and enhance employee performance.

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HRM

International HRM: staffing approach, control mechanism, and localization and
standardization
IHRM is said to be the set of activities that target human resource management at
international level. It mainly strives for meeting the organisational goals and achieving
competitive advantage at the international and national level (Farndale et al, 2016). It is seen
that Japanese manufacturers have links all across the world by giving emphasis on their
manufacturing quality.
When Hexaplex will move to the international boundaries named Japan, it is required to
ensure the effective staffing by hiring the international manager (Qin, Zhen and Zhu, 2016).
These managers might be expatriates, local as well as home country nationals. In order to
ensure the success of staffing, HR department is required to recruit as well as select those
candidates who will be able to fulfil the domestic position. While moving to Japan, Hexaplex
should adopt HRM strategies that will help it in developing its internal labour market. It
should hire people with some experience of working in Japanese culture. This will help it in
getting the knowledge regarding Japan customer’s perspectives and their needs. For staffing,
it is suggested to use the geocentric global approach of staffing by recognising that each part
named headquarters and subsidiaries are making unique contribution with their unique
competency. At the time of selecting candidates, it is suggested to remove the barrier in
female recruitment. This will help it in adopting the diversified approach while staffing
(Block and Walter, 2017).
It is seen that standardization and localization is affected by different factors such as cultural
environment and different approaches of different culture. Culture is the mix of shared
norms, beliefs and values that guide the working of group. In order to work effectively in
Japan, it is suggested to ensure proper research and development. For meeting the Japanese
culture, it can also visit the manufacturing units in order to know how working is done in the
manufacturing plants. In a report, it is found that Japan has highly advanced manufacturing
sector that has high reputation for durability and sophistication (Asialink Business, 2015).
Therefore, it can hire those people who find suitable for keeping the quality standards,
innovative product design and best manufacturing experience to remain competitive. It is
because Japan does not reply on the lower cost of labour. According to Hofstede, culture is
divided into different dimensions at the global level including masculinity, power distance,

femininity, short term versus long term orientation and individual collectivism. In order to
ensure the best sue of culture, it is necessary for Hexaplex to give some emphasis on
relationship rather than task only. In Japan, it is therefore suggested to use the collectivist
tendency by ensuring the strong bind between employees and companies by socialisation. It
is found that supervisors and even workers from the Japanese plant assist the start up if any
foreign plant (Keeley 2001). Moreover, Hexaplex has strong corporate culture which will
help it in complying with the cultural environment while moving to other countries. In
addition to this, different culture have different approaches related to extrinsic and intrinsic
motivators. Therefore, rewards and recognition at national culture will require the local
adaptation (Cooke et al, 2019).
For ensuring the proper control over organisational activities, it is suggested to sue mix of
centralisation and decentralisation. The major activities and policies of the organisation is
suggested to centralisation in order to ensure that decision remain consistent with the goals of
the organisation. For example: role distribution authority must have with upper authority so
that duplication of activities can be avoided. Decentralisation of some activities is also
necessary in order to motivate employees. At the same time, decentralisation will also bring
flexibility. In the context of Japan it is suggested to use the centralisation of its decisions in
starting of the manufacturing plant because the newly employed right use the information of
the company for their personal gain. After a period of time, it is suggested to de centralise its
decision-making so that trust can be built for the employees who stayed in the organisation
for more than 6 months at least.

References
Asialink Business. 2015. Asia link business. [online] Available from:
https://asialinkbusiness.com.au/japan/business-practicalities-in-japan/manufacturing-in-
japan?doNothing=1
Block, J.H. and Walter, S.G., 2017. Hofstede’s cultural dimensions and modes of entry into
entrepreneurship. In Exploring the Entrepreneurial Society. Edward Elgar Publishing.
Cooke, F.L., Wood, G., Wang, M. and Veen, A., 2019. How far has international HRM
travelled? A systematic review of literature on multinational corporations (2000–
2014). Human Resource Management Review, 29(1), pp.59-75.
Farndale, E., Raghuram, S., Gully, S., Liu, X., Phillips, J.M. and Vidović, M., 2017. A vision
of international HRM research. The International Journal of Human Resource
Management, 28(12), pp.1625-1639.
Keeley, T. 2001. Internal Human resource management in Japanese firms. Palgrave
Macmillan.
Qin, X., Zhen, F. and Zhu, S.J., 2016. Centralisation or decentralisation? Impacts of
information channels on residential mobility in the information era. Habitat International, 53,
pp.360-368.