BMP6003 International HRM: UK Call Centre Issues in Japan

This report provides a critical evaluation of the cultural and Human Resource Management (HRM) issues that UK companies must consider when establishing call centres in Japan. It begins with an introduction to International HRM, globalization, and the specific context of UK call centres operating in Japan. The main body of the report addresses cultural issues such as adapting to local markets, understanding regional differences, navigating local business practices, and adapting management styles. It then explores the Harvard HRM model, its components, and its relevance to addressing cultural differences, including stakeholder interests and core HRM activities. The report also acknowledges the model's limitations, such as its focus on stakeholders and potential social loafing. The report further discusses specific HRM practices, including employee security, hiring the right people, providing training, and managing people effectively. The report also considers relevant theories like system theory, X&Y theory, and administrative theory. The report concludes with a summary of the key findings and a list of references.

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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Long term consequences :
By following all these give components the businesses is lead to long term positive
affects in foreign markets. Cultural differences can be easily to overcome by following these
components.
This framework for HRM directly does not influence cultural differences in international
business practises however, the framework provides necessary component which can be
followed by the company to overcome cultural differences in international markets (Paauwe and
Farndale, 2017). According to the above framework IHRM with following basic HR practices of
hiring, recruiting and training can hire local individuals in the specific market which is Japan for
their call centre practises. This will lead to many consequences. One of them being that call
centre requires communication between the customers and the employees and a local may find it
easier to communicate with the Japanese customers. This is the best way to adopt a foreign
culture in an organization by making the culture itself a part of the organization.
The following models/ frameworks have advantages relating to IHRM,
Stakeholder Interests :
One of the reason for preferences shown in this model is that it recognizes the interests of
the stakeholders by taking decisions in order to increase to total benefits for the stakeholders.
This model deals with issues relating to stakeholders first.
Importance Variety :
This model shows importance to both owners and employees understanding the explicit
and implicit interests between both of them.
Employee Influence :
This model increases procedures in order to influence the employees of the organisation.
By methods such as rewarding and introducing other activities to keep the employees motivated.
This is even important in the foreign markets as employee lack influencing due to new
environment.
Acknowledgement :
According to this model acknowledgement of every kind of activity in the organisation is
necessary. These activities include management decisions, strategical choices, suggestion of
market and product and other cultural logic suggestions (Cheng and Hackett, 2021).
Emphasizes Strategical choices :
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Strategical choices does not differ in this model if there is a change in environment it
keeps the ongoing process by adjusting in other areas. This is beneficial because the cultural
factors does not make a huge difference according to this model and its components.
Harvard HRM model also has disadvantages in its procedure and components. Those
disadvantages are,
Ignores Hard HRM :
Hard HRM is also called staff management system, due to this model focusing on
stakeholders benefits it often ignores the need of managing the staffs and employees. This leads
to conflicts and errors in the organization (Anbu, 2019).
Social Loafing process :
As this model ignore hard HRM it develops tendency in some people of the team to get
away with making less effort in their duties and work, assuming that others work will
compensate their efforts. This spreads negativity in the organization and damages professional
relationship.
Increase Conflicts :
Due to lack of management by the HRM of its staff members it gives rise to clash of
different ideologies and personalities. These conflicts cause divisions of the organizations staff
into their own respective sides. This situation leads to failure of business and poor productivity
of the organization. Increase in such situations make it impossible for a business to operate in a
foreign market. The company which cannot solve internal issues it will never be able to solve
other issue of the society. HRM issues
HRM practises are being reoffered as the policies and strategies which is necessary for
any company to perform the routing activities like – training and development of employees,
performance management, employee staffing, compensation management and management of
people (Alosani and et.al, 2020).
HRM practises
AS the company, which is locating in the UK, wants to establish its call center in Japan .
So they have to make critical changes in their HRM practises as well. Issues related to HRM
practises.
Security of employees
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As the company wants to operate in Japan so it is the responsibility of the HR to provide
proper job security when they hire employees from Japan. HR has to provide same job security
which is being given to the employee of UK. When the employees feel safe and they will know
that they are not going tom loss their job they can perform their work with full efficiency.
Hiring the right people
This is anther issue of HRM , as they cant bring their skilled employees from UK to
Japan, because it will create disturbance ion their work. So it is the biggest challenge in front of
the HR that they have to hire right candidate who can handle all the work and also helps the
company tom enhance the profitability, as this company is new for Japan so HR has to make sure
that the employees do not have to face any kind if issue while working and HR has to select
highly skilled and well educated people (Anbu, 2019).
Training
As this company is totally new for the people of Japan and also foe the employees so HR
will face another issue that they have to provide proper training to employees like – what will be
their responsibility, how will they do the work, what the company is expecting from them so
that they can work accordingly.
Management of people
People management refers to the procedure of providing training, motivation and
direction to the employees so that they can wo0rk enthusiastically and get promotional growth.
Burt HR can face the issues in people management.
Lack of communication
This is one of the biggest people management issue which the HR has to face as the
language of Japan is totally different from UK (Pääkkö and et.al, 2018). Although the people of
Japan feel comfortable in communicating in their own language rather then the language of UK,
so it is difficult for the HR to manage people and also transfer the views and opinion so of higher
authority as they are not familiar with the Japanese language.
Stress to perform well
Employees who are working in Japan they work under the pressure as they have to
perform well, but they only work well when HR make the understand their job role properly then
only they can work appropriately and can give best.
Positive environment
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Another challenge of people management which HR has to face is to create positive
environment (Zhu and et.al, 2019). It is their duty to reduce the situation of conflict at the
workplace and create a healthy environment so that employees can focus on their work. The
next challenge of people management is HR has to sort out each and every issue of employee so
that they feel, that they are the valuable part of company and they will try to perform well.
Theories
System theory
This theory believes that every organisation has a system and as per the system the
employees of the organisation has to work (Jain and et.al, 2018). A business cant work by
CEO only it needs employee who work for the company and make them achieve all its targets as
this company is operating call center in Japan there also the employees and higher management
so in the cross boarder employees have to maintain a system at the workplace.
X&Y theory
this theory works on the assumption that there two types of workers. First is theory X
which states about those workers who have lack of ambitious and they need boss who can
mentor them on the flip side, theory Y speaks about those workers who are dedicated towards
their job and perform well, so in the Japan company will get both type of workers but it is up-to
to the HR how they handle them. To those employee who are not performing well HR has to
provide them various training and development opportunities and also conduct motivational
sessions for them so that they can work properly.
Administrative theory
This theory states about forecasting, planning, organizing, coordinating and controlling
(Hewett and et.al, 2018). As per this theory, organisation have to work accordingly firstly they
have to forecast the about the profit and loss then they have to make proper planning as the
company is new for the people and employees of Japan so HR has to make them aware about the
planning and strategies of the company then only they can work properly on the other hand HR
and the higher management have to coordinate with the employees and give them feedback on
their work that are they performing well or not what changes they have to make in their daily
work. At the end manager has to control the employees and work so that they can attain the end
goal of the company.
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Relation of theories with the case
All these theories are related to the case because this company is operating in Japan so it
is must that they follow a system their so that employees can work according to the system. X
and Y theory speaks about the type of employees which can be hired by the company so HR has
to make sure that all the employees perform well and those who are doing well management
should appreciate their work which will increase their moral (Mayrhofer and et.al, 2019).
Administrative theory defines the hierarchy of the work which is necessary in the organisation.
Advantages and disadvantages of theories
System theory has its advantages as this help the management and the employee to
manage a system and work as per that which help them to do their work smoothly on the other
hand it has some cons that , may be the work system of Japan is different so the employees can
suffer some issues with system, X&Y theory has pros that it described about those people who
are not performing well and also about those who are dedicated to their work (Conlin, 2019).
Apart from these, administrative theory is concerned with the management and way of working
it state that management should make proper forecasting about the profit and loss then only they
should make planning and strategy then it has to be communicate with the employees so that
they can perform apart from this management should coordinate with the employee and guide
them so this theory has advantages and have positive impact.
Conclusion
After analysing the entire report it can be concluded that, this report is based on cultural
and HRM issues. Various issues which are related to culture is mentioned in this report and how
this impacts the working of the company is mentioned in this report. Apart from this, different
models of cultural issues have been mentioned in this report, and how models linked with the
project is defined in the report. Apart from this positive and negative impact of such theories
has also been defined in this report. On the other hand issues of HRM practises have been
elaborated here, various theories of people management and cross culture mentioned in this
report along with their pros and cons.
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REFERENCES
Books and Journals
Anbu, D., 2019. A review on human resources management (HRM) theories and effective
human resource management models. Asian Journal of Multidimensional Research
(AJMR),8(5), pp.81-93.
Barker, K., and et.al.,, 2017. Global Communication and Cross-Cultural Competence: Twenty-
First Century Micro-Case Studies. Global Advances in Business Communication, 6(1),
p.5.
Boiko, E.I., 2019. Reflection of Cultural Policy in Business on the Example of
Austria. Administrative Consulting.
Cheng, M.M. and Hackett, R.D., 2021. A critical review of algorithms in HRM: definition,
theory, and practice. Human Resource Management Review, 31(1), p.100698.
Ellmer, M. and Reichel, A., 2018. Crowdwork from an HRM perspective–integrating
organizational performance and employee welfare. University of Salzburg: Working
Paper, 1.
Mayrhofer, W., Gooderham, P.N. and Brewster, C., 2019. Context and HRM: theory, evidence,
and proposals.International Studies of Management & Organization, 49(4), pp.355-371.
Odine, M., 2018. Cross-Cultural Communication for Business in Era of Globalization. Studies in
Media and Communication,6(1), pp.53-62.
Paauwe, J. and Farndale, E., 2017. Strategy, HRM, and performance: A contextual approach.
Oxford University Press.
Alosani and et.al, 2020. Investigating the role of HRM practices on service innovation:
empirical evidence from UAE government agencies. Management Research Review.
Anbu, D., 2019Mayrhofer and et.al, 2019. Context and HRM: theory, evidence, and
proposals. International Studies of Management & Organization.49(4). pp.355-371.
Hewett and et.al, 2018. Attribution theories in human resource management research: A review
and research agenda. The International Journal of Human Resource Management.29(1).
pp.87-126.
Jain and et.al, 2018. Green HRM–a study on the perception of Generation Y as prospective
internal customers. International Journal of Business Excellence.15(2).pp.199-208.
Pääkkö and et.al, 2018. HRM as a motivator to share knowledge: The importance of seeing the
whole picture.
Zhu and et.al, 2019. The emergence of human resource management in China: Convergence,
divergence and contextualization. Human Resource Management Review.29(1). pp.87-
97.
Online
Culture plus consulting.,2018,Top 10 cultural risks for global business,. [Online]. Available
through: <https://cultureplusconsulting.com/2015/06/23/top-ten-cultural-risks-global-
business/>.
Conlin., B 2019 Popular Management Theories Decoded [Online]. Available through:
<https://www.business.com/articles/popular-management-theories-decoded/>
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