IHRM: Cultural and HRM Challenges for UK Call Centres in Japan

This report delves into the critical aspects of international human resource management (IHRM) within the Japanese cultural context, specifically focusing on the challenges and considerations for UK-based companies, such as The Contract Company, when establishing a call center in Japan. It highlights the importance of understanding and adhering to Japanese labor laws, including the Labour Standards Act, Health Act, and Employment Security Act, to ensure fair treatment and protection of employees. The report emphasizes the significance of addressing HR issues like discrimination, maternity and family leaves, termination policies, and data protection in compliance with Japanese regulations. Furthermore, it explores cultural nuances related to age, status, business card etiquette, and relationship-building, which significantly impact managerial decisions and business operations. The report underscores the necessity for companies to adapt their HRM practices to align with Japanese culture and legal frameworks, ensuring long-term sustainability and success in the Japanese market.

International HRM

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCE..................................................................................................................................6

INTRODUCTION
International human resource management (IHRM) is basically defined as a procedure that
an organisation undertakes in order to effectively manage its human resource activities at
international marketplace (Baporikar, 2021). Human resource manager of an organisation must
have to be equipped with understanding of international human resource management activities
in order to accomplish goals and achieve profit at international scale. Proper understanding of
this allow them to effectively manager global operations in a smooth and effective manner. It has
been evaluated that international HRM mainly constituted of five functional areas which is
inclusive of training and development, recruitment and selection, remuneration and labour
relations and performance evaluation. International human resource management mainly
differentiate from domestic HRM practices as in this HR manager is required to have efficient
knowledge of managing individuals across national boundaries. It has been underlined that with
the significant increase in globalisation, international human resource management is playing
essential role within an organisation. This allows company to effectively conduct their business
operations into another country while managing their employees in a well define and effective
manner. Primary focus of present report is on human resource management in the Japanese
cultural context. Report is conducted on cultural and HRM issues that UK companies are
required to take into consideration when locating a call centre in Japan. For this report include
discussion on The Contract Company, which is a UK-based outsource customer service facility.
MAIN BODY
Cultural and HRM issues U.K company need to take into consideration
It is essential for organisations of UK to effectively ensures that they take all the essential
labour laws as well as standards into consideration in order to make sure that they conduct their
business operations in a well define and effective manner. Furthermore, it has been evaluated
that there are mainly two principle sources of employment laws that include Labour Standards
Act as well as its Enforcement Ordinance. By abiding both of these companies can effectively
maintain minimum standards for the terms as well as conditions of employment contracts. In
addition to this it has been underlined that there is some other form of employment laws that are
required to be adhere by organisations of UK when locating a call centre in Japan (Doi, 2021).
Some of these laws include Health Act, Industrial Safety Act, the Act on Improvement, the
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employment security Act, Employment Management for Fixed-term as well as Part-Time
Workers and more. Furthermore, it is also essential for organisations to make sure that they
provide Improved Working conditions for workers in order to offer them improved working
environment. In terms with The Contract Company, they are requiring to make sure they in order
to locate a call centre in Japan. In this respective company is required to make sure that
employees are protected and their rights are secured, in relation to this they are required to abide
certain laws that are:
HR issues
Discrimination:
It is one of the most important aspect in which organisations those who are locating their
business operations in other country must subjected to comply with. In context with, The
Contract Company it is important for company human resource management to know that
weather their workforce are protected against discrimination and on what grounds discrimination
is significantly prohibited (Japan: Employment & Labour Laws and Regulations. 2021). In Japan
company is required to make sure that they did not discriminate any employee on terms of social
status, creed and nationality. In addition to this, HR management of company are also required to
ensure that in company workers are protected and each and every employee are subjected to
equal working conditions, wages and working hours. In addition to this, The Contract Company
in order to locate a call centre in Japan must implement principle of equal wages of women and
men. Furthermore, it has been evaluated that, in Japan, The Employment Security Law prohibit
employers from discriminating employees by any reason, family origin, membership of a labour
union, sex, race etc. HR manager of company are not allowed to discriminate in employment and
recruitment, training, allocation of duties and more. It is one of the most important law which is
essential for organisations like The Contract Company to implement when they are looking to
locate call centre in Japan.
Maternity and Family leaves:
In Japan maternity leave lasts 14 weeks in general (six weeks before childbirth, and eight
weeks after childbirth. In addition to this, it has been evaluated that in Japan workers are duly
entitled to take childcare lace for raising a child of less than one year of age (or until the child
turns two years old, if some of the requirements get fulfilled. Along with this within Japan
employment contract a female who gives birth is entitled for having childbirth allowance and
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other benefits. It is essential for The Contract Company to make sure that they do not treat any
female worker in a disadvantageous manner due to maternity leave or childcare leave.
Furthermore, it has been evaluated that a male employee in Japan is also entitled to take
childcare leave (Malik, Pereira and Budhwar, 2021). Thus, according to the above mentioned
analysis it has been determined that The Contract Company is required to make sure that they
abide this law in order to successfully locate their call centre in Japan.
Termination of Employees:
Organisations like The Contract Company, in order to successfully locate their call centre
in Japan are required to provide at least 30 days’ advance notice to a worker. In addition to this,
it is essential for company to only dismiss or terminate employee on the grounds that are
reasonable, objective and justifiable, and any dismissal or termination which are not on these
grounds is deemed an abuse and invalid. Furthermore, this has been stated that Japanese courts
strictly interpret the requirement of an “reasonable, objective and justifiable ground. In addition
to this, it has been underlined that in Japan if a collective labour agreement needs company to get
the consent of a labour union to dismiss worker, a dismissal without such consent will be duly
treated as void and null. In this it is important for The Contract Company to make sure that this
law must be fulfilled in order to perform operations in Japan in an effective manner.
Data Protection and Employee Privacy:
It is one of the most important aspect that are required to be abide by organisations
dealing in call centre or any other industrial segment. In terms with The Contract Company it has
been underlined that this company is looking forward to locate their call centre in Japan, this
segment is sophisticated in which company is required to protect data as well as privacy of
employee. This has been evaluated that data protections rights significantly affects employment
relationship. Along with this, negligence of this also lead company to face penalty from
government and discontinuation of business operations (Masaaki, 2021). In Japan, The Contract
Company must assure that employees data must be duly protected under the Act on the
Protection of Personal Information (the “APPI”) its related guidelines as well as its enforcement
ordinance. In the provinces of Japan companies are effectively obliged to duly comply with the
APPI in order to effectively hand personal information of employees. In relation to this, it is
important for The Contract Company to significantly undertake use of appropriate as well as
necessary measures in order to safeguard personal information of employees. In addition to this,
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company in order to locate a call centre in Japan are required to make sure that they do not
disclose any form of personal information to third party. It is one of the most important law that
are required to be adhere by The Contract Company in order to successfully fulfil its business
objectives.
Response to Covid-19:
It has been evaluated that currently world is facing the outbreak of Covid-19, in this
situation to effectively locate call centre in Japan organisations like The Contract Company are
required to develop temporary special measures in order to effectively support employees. It is
one of the most important measure which is essential for organisation to consider in order to
conduct business operations in Japan in a well define and effective manner.
Cultural issues
It has been evaluated that Japan’s culture is being uniquely shaped by forces as well trends
within as well as outsider of country. Proper understanding of this and the manner in which these
forces shaped Japanese society will allow companies like The Contract Company to locate their
call centre in Japan in a well define and effective manner.
Age and Status:
It has been evaluated that in Japanese culture respect for status and age is very important,
this duly affects hierarchy of all aspects of social interactions. In this it is essential for The
Contract Company to make sure that they respect this cultural issue in order to locate their call
centre in country, as this will allow them to develop future relationship with others.
Business cards:
It is one of the most important element, as exchange of business in most important part of
initial meeting in Japan that duly follows a strict protocol (Japanese business culture and
etiquette. 2021). With the help of this, The Contract Company can effectively determine their
counterpart’s all-essential rank, position and title.
Building relationships:
As per the cultural analysis of Japanese culture it has been evaluated that this country is
comparatively more relationship-oriented than Australia, especially in terms of doing business. It
has been evaluated that Japanese mainly prefers to trust and know someone before they do
business with them (Myllymäki, 2021). In this, relationship is significantly developed via
informal social gatherings. Thus, it has been evaluated that it is essential for The Contract
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Company to make sure that they are significantly well aware with the Japanese culture in order
to conduct their business operations in a well define and effective manner.
These are some of the effective HR as well as cultural issues with the help of which
company can effectively locate a call centre in Japan. These practices are required to be abide by
organisations in order to satisfy employees in a well define and effective manner along with
conducting their business operation under proper legal and ethical manner. Furthermore, it has
been evaluated that these laws and legislations also allow company to significantly ensure its
long term sustainability in respective industrial sector. It has been underlined that organisations
those are operating its business services in call centre industry are required to make sure that they
protect safety and security of employees as to effectively perform their business operations in
Japan.
Impact of culture on managerial decisions in relation to international human resource
management
` Culture is having significant capability to impact upon managerial relation in context
with international human resource management. It has been evaluated that national culture has
powerful influence upon attitudes, system of values and behaviour of individual in a particular
country. International human resource practices like staffing and training which is most
important aspect of managerial decisions get duly impacted by culture. Culture is playing
important role that significantly aid company’s culture to stay relevant. In terms with
international human resource management when a company is performing its business operations
in other geographical place it has been evaluated that in that individuals and culture have unique
expectations and desires. Furthermore, it has been underlined that culture and managerial
decisions are significantly interrelated with each other. It is essential for companies like The
Contract Company to assure success in Japanese market with the help of establishment and
strong association of culture. In term with present report it has been underlined that, company is
looking forward to set up call centre in Japan which is culturally enriched country in terms with
social as well as business manner (Sanders and De Cieri, 2021). There are number of factors in
Japanese culture that are having significant capability to impact upon managerial decision of
company for example, in order to conduct business operations while expecting collaboration and
business partnership with other companies in business environment it is essential for The
Contract Company to make sure that they adhere and emphasise on business relationship factors
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of country. In addition to this, it has been underlined that in business meetings company must
assure that they respect individuals as per their age which is one of the most important aspect of
Japanese culture. As negligence of this may lead managers to face business losses.
In addition to this, managers of The Contract Company are required to make sure that, there
is positive culture prevails within organisational workplace structure as this will allow them to
treat all the employees on equal basis. Managers must also ensure that they respect cultural
practices of the country in which they are operating their business operations. With the help of
this they can conduct their business operations in a well define and effective manner. This has
been evaluated that culture impact upon managerial decisions in term of framing strong policies
through which business conduct its operations. Strong as well as positive culture practices allow
managers to ensure positive brand image of company in market segment.
CONCLUSION
As per the above mentioned report it has been concluded that, international human resource
management is mainly stated as a process which is related to activities like hiring, performance
management, training and relations with employees and more. Main aim behind this is to
effectively fulfil business objectives and strategies. Report states that it is essential for an
organisation to effectively emphasise on laws, regulations, employment relation legislation of
other country in order to effectively manage employees. This effectively lead company towards
creating more job satisfaction without any form of cultural issues. It is recommended to
organisation to effectively engage in the process of procurement, allocation and utilization of
employees in order to manage employees at internal level. This will significantly increase
company capability to ensure long term sustainability and profitability in industry.
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REFERENCE
Books and Journal
Baporikar, N., 2021. International Human Resource Management Strategies for Multicultural
Organizations. In Handbook of Research on International Business and Models for
Global Purpose-Driven Companies (pp. 166-187). IGI Global.
Doi, L., 2021. 8. Amae: A Key Concept for Understanding Japanese Personality Structure.
In Japanese culture and behavior (pp. 121-129). University of Hawaii Press.
Malik, A., Pereira, V. and Budhwar, P., 2021. HRM in the global information technology (IT)
industry: Towards multivergent configurations in strategic business partnerships. Human
Resource Management Review, 31(3), p.100743.
Masaaki, K., 2021. The status and role of the individual in Japanese society. In The Status of the
Individual in East and West (pp. 361-376). University of Hawaii Press.
Myllymäki, D., 2021. Beyond the ‘e-’in e-HRM: integrating a sociomaterial perspective. The
International Journal of Human Resource Management, pp.1-29.
Pelzel, J., 2021. 1. Human Nature in the Japanese Myths (pp. 3-28). University of Hawaii Press.
Sanders, K. and De Cieri, H., 2021. Similarities and differences in international and comparative
human resource management: A review of 60 years of research. Human Resource
Management, 60(1), pp.55-88.
Online
Japan: Employment & Labour Laws and Regulations. 2021. [Online]. Available through<
https://iclg.com/practice-areas/employment-and-labour-laws-and-regulations/japan
Japanese business culture and etiquette. 2021. [Online]. Available through<
https://asialinkbusiness.com.au/japan/conducting-business-in-japan/japanese-business-
culture-and-etiquette?doNothing=1>
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