International HRM: Cultural Problems for UK Call Centres in Japan

This report critically examines the international human resource management (IHRM) challenges faced by UK companies when establishing call centre operations in Japan. It begins with an introduction to IHRM and globalization, highlighting the importance of adapting to cultural differences. Th...Read More

INTERNATIONAL HRM

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Cultural problems UK organizations need to consider when locating a call centre operation in
Japan............................................................................................................................................3
Critical evaluation of international human resource management problems UK firms need to
consider when establishing a call centre function in Japan.........................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Biography..................................................................................................................................13

INTRODUCTION
International HRM can characterized as set of activities targeting human resource
management at global level. It strives to meet objectives of an organization and achieve
competitive advantages over business rivals at national as well as international extent.
Globalization is one of external factors that put high pressure on HRM practices and activities at
global level. The current assignment is base on UK companies, which seeks to locating a Call
centre operation in Japan. Call centre is an office or a department in which outgoing and
incoming telephones calls from existing and new consumers are handled or managed by a team
of experienced advisors as agents. This report will critically examine HRM issues UK
organizations will need to take into consideration while locating a call centre operation in Japan.
Furthermore, this study will justify models and concepts that link to current assignment and pros
or cons of these in regard to case.
MAIN BODY
Cultural problems UK organizations need to consider when locating a call centre operation in
Japan
Cultural issues comes from problems arise when teams of people believe another unit is
wrong in their behaviours. There are different types of issues relate to culture, need to focused by
UK companies when they locate a call centre as business operation in Japan.
Communication is low down-
When United firms, locate their call centre into Japan, they need to consider all cultural
issues along this one as well (Ewert, 2019). Lack of communication is one of the majors issues
companies need to consider, which may be impact on success and growth of call centre operation
negatively. The main reason behind this problem, is language differences between UK and
Japan. Organizations must, focus on this factor as cultural issue. Assure sign of an unhealthy
culture is communication that does down more than up and across. Without understanding
Language of Japanese consumers, they are unable to locate specific operation in new country.
Local business practices-
Another form covers under term of cultural issues is understood local business activities.
While locating a call centre in Japan, UK companies must consider this factor which is quite
important for them (Madgerova, Kyurova and Atanasova, 2017). Culture problems or barriers do
not only occur at consumer interface. Global business growth and success also requires an in

depth comprehending of local business customs. In every nation, business practices and
activities are quite different, it can be said that without full consideration of how ventures is done
in a foreign market, including political, cultural influences and economic, UK firm cannot be
entered into Japan.
Stakeholders conflict-
Diversity increases issues, it enhances potential for language and other communication
challenges and it enhances risk of value conflicts, ambiguity and decision-making differences.
UK companies also consider this factor as well when they locate a call centre operation in Japan,
because many people have different perspective on different basis, stereotypes and other types of
bias can impact negatively on business plan as well as exchange of ideas and information
between consumers, workers and other people.
Model or framework that relate to case-
Hofstede's cultural dimensions model is a framework for cross cultural communication.
It was developed by Geert Hofstede and reflects impact of society culture on their members
values and how these values link to behaviour of individual, utilizing a structure derived from
factors analysis (Huang and Crotts, 2019).
This model is related to current case because it helps to identify Cultural followed in
Japan, where UK companies wants to locate a call centre operations. It consists of 6 dimensions,
that are-
Power distance-
It expresses extent to which less powerful members of a community expect and accept
that power is distributed unequally. For example, at an intermediate rate of 54, Japan is
borderline hierarchical community, Japanese are always awake of their hierarchical place in any
social setting, and they act accordingly. It impacts on UK companies businesses strategy as
locating a call centre operation.
Individualism versus collectivism-
High side of this element called individualism, it can be defined as preference for a
loosely knit social framework in which each person are expected to take care of only themselves.
Collectivism is its opposite side, it represents a orientation for tightly-knit concept in society in
which individual can require their relatives to look after them in exchange for unquestioning

trust. It analysed through this model that Japan score 46 on individualism culture, according to it
they are highly focused on own success more than business.
Masculinity versus femininity-
Masculinity side of this component presents a preference in community for heroism,
material rewards for success and other things. Its opposite, femininity stands for a belief for
modesty, cooperation and caring for quality of life. Japan obtain high score 95, it is one of the
most Masculine societies in whole world. According to it, people learn from their earlier stage
how to achieve success by beating other. When UK firm, locate a call centre in Japan, they deal
Illustration 1: Hofstede's Cultural Dimensions
(Source: Hofstede's cultural dimensions Model, 2019)

with those people who are most motivated when they are competing in a winning group against
their rivals.
Uncertainty avoidance index-
It expresses extent to which members of any society feel uncomfortable with ambiguity
and uncertainty. At 92 Japan is uncertainty avoiding nation in the world, it is often attributed to
truth that Japanese constantly threatened by natural disasters from tsunamis and earthquakes.
Under these situations they learned to prepare and prevent themselves for any uncertain
circumstances. It affect positively on call centre operation of UK companies as they can hire
people who are able to handle situations by identifying potential further situations.
Long term orientation versus short term normative orientation-
This dimension categorized how every society has to balance some connections with their
own past while dealing with issues or challenges of current and further. At 88 score, Japan is
most long term orientation oriented economy, where Japanese see their life as quite short
moment in long history of mankind.
Indulgence-
One issue that confronts humanity, present and in the past, is extent to which small child
are socialized. Japan with low score of 42, reflect to have a culture of restraint. People with this
score in this dimension have a tendency to pessimism and cynicism. They do not put many
efforts on leisure time and manage gratification of their feeling.
Advantages and disadvantages of cultural model-
Pro-
It can be said that Hofstede cultural dimensions model is quite effective and useful as it
provided a clear definition of culture and how it can be measured. Its outcome showed that
cultural dimensions matter a lot. It negates that one set of norms is universally applicable by
confirming that there are different ways of structuring companies.
Con-
On the other hand, one of major disadvantages which is associated with this model is that
this is based on inconclusive investigation. It is based on revert from one firm which makes
sample size small, which makes overall investigation have low accuracy and validity levels. It is
one must take into consideration that this concept is utilized to define a culture as whole and is
not intended to be practical towards individuals.

Benefits and any potential issues that can be encountered-
By locating a call centre in Japan, UK organizations obtain many benefits as they can
build strong relationship with this nation and enlarge their consumers base which define cultural
diversity of companies in effective manner. But due to above cultural issues firms faces
difficulties which is not suitable for success of their operation in chosen nation. These problems
affect negatively on plan or tactic of UK firms.
Critical evaluation of international human resource management problems UK firms need to
consider when establishing a call centre function in Japan
International human resource management is accountable for overseeing HRM activities
in host nations (Fee and McGrath-Champ, 2017. Every company has an HRM section to enable
right deployment of workers to maintain quality of culture and satisfy target market in home
nation as well as host country. International HRM face many issues or challenges when UK
companies enter into Japan where they locate a call centre operation.
Managing diverse workforce-
One of the main HRM problems UK firms need to take into consideration while locating
their operation in Japan that is managing workers at workplace from diverse age group or
culture. IHRM face this issue as they hire more applicants to do work effectively in Japan, who
are unable to understand existing worker language, that belong to UK. Human resource
management could not be capable to manage workers performance effectively at workplace
because Japanese employees are unable to communicate in English. It is quite difficult for IHRM
to manage activities of staff due to this reason. To manage employees and their performance,
effective communication is required, that play vital role in increasing growth of companies. But
due to language differences, IHRM cannot able to communicate and guide applicants, can hire
when they locate a call centre in Japan. Without managing diverse workforce, UK companies are
unable to get success in their operation (Sekiguchi, Froese and Iguchi, 2016).
It can be said that communication and language issues are ever present in firms with a
diverse team or group of people. Japanese workers are not able to effectively communicate with
UK companies applicants as they are unable to speak English that create the biggest challenge
for IHRM to manage people at workplace.
Compliances with employment regulations and laws-

Along with above IHRM issue, UK companies during locating call centre in Japan also
consider this international human resource management issue as well, which may be impact on
their operation. Due to differences between UK and Japan employment laws, IHRM can face this
problem as they need to conduct in depth research in context of labour market and policies in
Japan related to employment which make them able to work effectively in the future.
Compliance with new laws and policies is quite difficult for IHRM of UK firms as they need to
spend a lot of time for gather more information about it.
Without developing understanding laws of employment followed in Japan by local and
international companies, IHRM of UK companies would not be able to manage and handle
diverse workforce. It put negative impact on call centre operation and create the biggest issue for
firms link to IHRM. UK companies need to consider this external factor and prepare a plan to
overcome this IHRM issue which is really very essential for them in term of developing brands
image at global level. Laws complying will make them able to hire and retain Japanese people
for longer period of time as consumers and workers.
Workforce training & development-
To work effectively and deliver quality service to consumers, IHRM develop plan for
enhancing skills and knowledge of their workers which is quite essential and beneficial for
business growth. But, when UK companies locate a call centre in Japan IHRM are unable to
understand needs of Japanese employees due to language barrier. It is another International
human resource management issue, faces by IHRM that affect in negative manner upon call
centre operation. Without identifying needs of Japanese workers, IHRM are unable to retain
them for long which is not good for companies. To serve Japanese consumers, it is really very
important to hire local people in Japan who effectively communicate with new clients as they
understand resident individual needs and language as well.
This is the key challenge or issue that relate to IHRM, which need to be considered by
firms of UK when locating office in new nation. This problem definitely occur during this
process and impact on service quality. To prevent UK businesses from this issue, IHRM can
understand common language used in Japan which make them able to sustain for long in market
and allow satisfying new clients efficiently which in return increasing profitability and
productivity more than fast few years or months.
Framework or model about IHRM in a cross border setting-

Michigan model is described as Hard IHRM concept because it emphasizes treating and
managing workers as a mean to reaching company's strategy or aims, as a key resource that is
utilized in a calculative and totally rational manner (De Cieri, 2017). It focuses on hard
International human resource management more than soft HRM does on utilizing as assets and as
means towards competitive achievement of specific business.
According to this model, management to manage performance of their people in cross
border setting need to appraise applicants, by providing rewards and offering development
chances at workplace that is quite beneficial for UK companies when they enter into Japan with
new plan as locating a call centre operation. This model is also known as matching concept or
best fit method to IHRM. In additional, this model requires that international human resource
management tactics have a tight fit to whole strategies of ventures. As such, it limits role of
Human resource to a reactive organizational.
Hard human resource management model assumes that increasing productivity and
performance will continue to be management norms reason for improving IHRM. In context of
cross border setting, IHRM must consider three interconnected problems, that help to achieve
greater success. They need to consider mission and tactic of companies, organizational culture
and structure and personnel requirements of workers which make them able to obtain positive
outcomes.
Pros and cons of model-
Money remains on account only until they are in use, this model optimizes interest cost.
It is paid only for cost and rime for which money is used. It is a useful concept to optimize assets
in current situations. Matching on elements linked to other factors may automatically manage for
confounding role of those components. It observes varied business tactics and related company
structure can lead to contrasting styles of IHRM in activities such as rewards, development and
appraisal. It argues that within IHRM there is HR cycle affecting organizational and individual
performance. This model caters benefits as to understand needs of staff even better and enhance
their performance.
On the other hand, Michigan model is difficult because it is based on organizational
structure, strategic control and systems for managing people. It consists range of methods that
can be impossible for international human resource management to implement at short term
period. After adopting their strategies and planing everything following it, when assets are not

considered on time, it can not be possible to increase productivity of staff. It is one of the best
models and ideal strategies, but it is difficult to implement practically.
CONCLUSION
From above analysis it has been concluded that IHRM and culture issues UK
organizations considering effectively before locating their call centre operation in Japan, which
allow them to take actions accordingly. It has been summarized that by following the principles
and norms of Handy's culture dimension model and Michigan model, international human
resource management enhance the performance of Japanese and their own workers in effective
manner. Furthermore, it has been analysed that by conducting investigation about employment
laws in Japan, IHRM managing diverse workforce effectively which is quite beneficial for them
in term of creating inclusive work culture at workplace.

REFERENCES
Book and Journals
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Theory Building in International HRM Research. In Academy of Management
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Huang, S.S. and Crotts, J., 2019. Relationships between Hofstede's cultural dimensions and
tourist satisfaction: A cross-country cross-sample examination. Tourism management.
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world cultural heritage listing in Bali. International Journal of Heritage Studies. 23(9).
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about cultural environment in international business. MIND Journal. (3). pp.1-12.
Matthews, B and et.al., 2018. Competing paradigms: Status quo and alternative approaches in
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Research (pp. 116-134). Routledge.
Ngwenya, L.M., 2017. A descriptive case study of human resource management in a South
African construction company (Doctoral dissertation, University of Johannesburg).
Sekiguchi, T., Froese, F.J. and Iguchi, C., 2016. International human resource management of
Japanese multinational corporations: Challenges and future directions. Asian Business
& Management. 15(2). pp.83-109.
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Online
Hofstede's cultural dimensions Model. 2019. [Online]. Available through:
<https://geerthofstede.com/culture-geert-hofstede-gert-jan-hofstede/6d-model-of-
national-culture/>

Biography
https://link.springer.com/article/10.1057/abm.2016.5
https://www.tandfonline.com/doi/full/10.1080/09585192.2017.1377866
https://books.google.co.in/books?
hl=en&lr=&id=vAskDwAAQBAJ&oi=fnd&pg=PT8&dq=Workforce+training+
%26+development+as+IHRM+issues+&ots=iMchh8R9xI&sig=vK-
ENhBQ6wu6eKswQvOInTfs_kY&redir_esc=y#v=onepage&q=Workforce%20training
%20%26%20development%20as%20IHRM%20issues&f=false