Global HR Strategy (Japan)

Introduction 

International human resource management (IHRM) has recently transformed from a supportive role to other business functions to an essential aspect of how business engage in activities on the international market. Business organizations entering new markets in foreign countries face stiff competition, labor acquisition challenges and the need to establish themselves in the new market. Selection and management of the workforce in the new location is a major determinant of success or failure for the company (Carpenter & Dunung, 2018). The role of IHR managers does not stop at managing labor. They are responsible for building a strong reputation for the company and advising the executive of the culture of the new location and how the difference in culture is efficiently utilized to the company's advantage. Policies on IHRM relate to ethics and social responsibility, culture, labor, and recruitment and employee relations (Society for Human Resource Management, 2017). The policies relating to this issue are drafted and implemented with regard to the location of the business. Favorable IHRM policies result in success for the company. 

Since the company's intention is to expand to Japan, the human resource managers have to be knowledgeable of the differences in culture and ways of doing business in the US and Japan. The most glaring difference between Japan and the US is the population diversity. While the US population is diverse with people from different culture, the Japanese population is mainly native (Kokusai, 2017). Hence, the cultural practices are more pronounced than in the US. Hence, most of the people expect the business to understand the cultural values of the population. Again, formality is more revered in Japan than in the US. Thus, customers expect services to be offered formally as opposed to a friendly approach. Discipline is also given utmost importance due to values instilled from a young age in school. Lateness or slight failure to adhere to instructions are regarded as rude and may become sources of conflict. Human resource managers in the company together with company executives need to be well versed with these difference to lead the company to success. 

Management IA recruitment, selection, and repatriation 

The best practices for recruitment, selection, and repatriation are not based on the policies of the parent company. Since the parent company and the subsidiary operating in Japan are in a different environment, these practices need to be adapted to the specific environment. Thus, recruitment and selection practices are best developed while considering the Japanese market. Recruitment in Japan, especially for a global firm, needs to reflect fairness as well as diversification in the workforce. The type of strategies applied in recruitment, selection, and repatriation determines the type of workforce that the company will have. Workforce composition makes a wholesome contribution the company's productivity hence success. 

Recruitment 

Although recruitment encompasses the whole process of making known to the public of the positions the company seeks to fill up to the when the hiring is done, recruitment is mainly used in reference to the process of advertising for positions and shortlisting candidates to fill these positions. Diversity in the recruitment process is among the most vital best practices (Firkola, 2014). Diversity follows two major paths, workforce diversity, and job diversity. Workforce diversity refers to the composition of skills, background, and professionalism of the company's workers. Successful companies ensure their staff has skills specific to different areas of the company while the same time reflects the image of the company in a manner that rightfully suggests lack of bias in the recruitment process. Achievement of workforce diversification is achieved through circulation of job advertisements in platforms that are frequented by as many potential employees as possible, for example, internet advertising. Job diversification, on the other hand, involves the provision of opportunities for staff to work in different areas of the company according to their skills and competencies. For example, newly hired graduates are allowed work in different departments while their skills and performance are gauged, thus retained in the areas where they are best suited to work. A majority of the Japanese workforce is concerned about career development. Thus job diversification builds a reputation for the company and enables it to attract potential employees with the best skill hence translating to success. 

Additionally, skills and their applicability in real-world situations is essential. The Japanese education system emphasizes tests and examinations (Disco Inc., 2012, p. 3). However, the ability to excel tests also needs a real-world application. Recently, the ability to communicate in English is also given importance. The recruitment process applied by the company needs to ensure that the employees hired can apply their skills in the business environment for the company to excel. Another best practice in the recruitment process is the compensation promised. While experience is an essential measure for determining pay, provision of competitive terms of employment attracts a competent labor force. 

Selection 

Selection of employees among shortlisted companies has a bearing on the productivity of the company. The best staffing policy for Aluminac Metallics to adapt is geocentric staffing where the best-qualified candidates are selected for senior positions regardless of their nationality (Thoo, 2013). This policy ensures that directors with the requisite skills to guide the company to success are not surpassed in favor of the less qualified Japanese nationals. The selected employees need to be well versed in the Japanese culture since a majority of the company's employee, and customers are Japanese. Selection should also ensure that a majority of the workforce is from the host country to save on costs of hiring foreigners and also to enhance the company's reputation as one which supports national development. 

Repatriation 

Repatriation refers to the return of an employee to their home country upon completion of the tasks bestowed upon then in a foreign country. In this case, US-based employees may be sent to Japan to oversee the establishment of the company. These employees are expatriates and are assigned these duties from the headquarters of the company (Thoo, 2013, p. 149). To avoid repatriation failure, the company HQ needs to send employees that have an understanding of the Japanese culture and market. The practices for the company to use in selecting employees for expansion into Japan cultural sensitivity, past international experience, and the possibility for Japanese born staff deployment (Thoo, 2013). The Japanese business market is highly competitive, and for the company to use diversity and cultural difference as leverage against competitors, the chosen employees need to possess enough knowledge of the Japanese culture. Experience is also essential since the employees can draw on previous experience to come up with strategies that can lead the company to success. Japanese-borne staff is also in a better position to understand the cultural diversity of the nation, thus stand a higher chance of leading the organization to success. 

Training and Development 

Training and employee development programs constitute a vital part of the global companies' growth strategies. Global companies have a workforce of people from different culture and backgrounds. The staff also interact with customers or suppliers from diverse cultural backgrounds. The training helped to foster strong working relationships with employees and suppliers and improvement of services offered to customers. Expansion into the Japanese market will require the development of training and development programs that are focused on “orientation, management and operation skills” (Jehanzeb & Bashir, 2013, p. 242). Training and development are not limited to junior employees, managers and executives also need the training to help them interact better with employees and customers from Japanese culture. The success of the company in the new market heavily relies on its customer relations. Thus, knowledge of the cultural diversity and expectations of the customers becomes vital. 

Training and development programs present various benefits to employees and the company. Career development through improvement of technical skills is as a result of training. Continuous training grows the skills of the employees exponentially which is beneficial to the company as well as the employee. Improvement in performance is another benefit of training and development programs. A new business does not operate at a full potential in its early stages. Training helps to unlock this potential providing new avenues for the employees to utilize while doing business for the company. For example, the marketing department may use the knowledge from training to find new channels that will increase sales for the company. 

Training on the cultural needs of the market is also vital for market growth (Jehanzeb & Bashir, 2013). A new business environment for the company has the potential for market growth. Understanding the culture of the people enhances market growth. Through training, the business can stay ahead of competitors by versing its employees with skills necessary for building the company's reputation. Organization performance also improves due to training and development programs which ensure that managers and employees interact with each other with knowledge of each other's cultures. It becomes easier for managers to motivate workers and assist the company to achieve its goals when the manager is knowledgeable of the worker's cultures. Training also attracts other competent workers which in turn contributes to growth. Therefore, investment in training and development programs for growth is necessary for the company’s plans to enter the Japanese market. 

Labor Relations 

Japan is a highly industrialized nation with an employment practice of lifetime employment (International Labour Organization, 2018). Foreign companies operating in Japan are required by law to adhere to the country's guidelines on jobs. Failure to adhere to the regulations results in hefty fines or even revocation of operating licenses in some situations. The country’s lifetime employment policy does not meet the requirement of every employee hence provisions are provided for contractual terms of employment (International Labour Organization, 2018). The terms of the contracts should also be favorable to both parties such that none is disadvantaged. Termination of labor contracts should only be done after a 30-day notice has been issued (International Labour Organization, 2018). 

The normal working hours are eight hours in a day and forty hours a week unless otherwise stated in terms of employment. Employees are also entitled to leave off work for justifiable reasons equal treatment regardless of age, race or religion. Thus, Aluminac Metallics will strictly adhere to these guidelines when operating in Japan. Trade Unions wield considerable influence on a company's operations since unions in Japan are enterprise based. This implies that the unions exist at the company level and employees are entitled to being part of the unions. Labor disputes are solved through negotiations upon request of any of the parties to the dispute (International Labour Organization, 2018). The unions are also entitled to lead their members to boycott of work if the reason is justifiable and leads to better working conditions. For the company to fully operate in Japan, it must comply with these laws. 

Corporate Social Responsibility (CSR) 

CSR contributes to building the company’s positive public image and also enhances reputation. The most common areas of CSR in Japan are the environment, gender issues, human rights and poverty (The Tokyo Foundation, 2014). CSR practices are now a necessity, especially for global organizations. Despite the real purpose of CSR as a philanthropic or positive production process, CSR is part of the marketing strategies and makes a major contribution to the way companies do business. 

Aluminac Metallics, as part of its affirmative production practices, is well suited to engage in environmental conservation CSR practices. Since the company mainly deals in mineral ores that have the adverse effect of leaving behind gaping holes that are both a safety hazard and cause environmental degradation, initiatives to convert these areas in the productive land are desirable. Some of these areas can work as water conservation zones that are then used as sources to serve communities. Additionally, the barren land may be converted to usable land through planting vegetation. The areas may also serve as parks where wildlife is conserved. 

The private sector also has the responsibility of supporting the government in areas of the society where government effort alone is not enough. In this case, the company may support the government in helping disadvantaged communities and low-income families. Companies in Japan do not engage in CSR practices for fighting poverty with the zeal that is expected (The Tokyo Foundation, 2014). Aluminac Metallics may engage in activities that uplift disadvantaged communities through initiating projects that generate income for the community, employ uplift living standards. Through these CSR practices, the company's public image is enhanced which contributes to growth. Furthermore, Japanese culture values philanthropic effort hence the company can establish a good rapport with the public. 

Conclusion 

In conclusion, the importance of IHRM has increased in recent years from a supportive role to an essential aspect of doing business. Aluminac Metalic’s intention to use culture and diversity as leverage over competitors in its expansion to Japan needs the support of human resource functions. Due to the cultural differences between Japan and the US, the company’s management needs to understand this differences and use that to the company's advantage. Recruitment, selection and repatriation practices applied need to reflect a positive image of the company and also provide a competent workforce. Training and development of staff should also ensure the cultural differences are acknowledged and applied to aid in the growth of the company. Since Japan has its unique labor policies, company managers have the responsibility of adhering to these laws. CSR practices chosen by the company’s also work to its advantage. Implementation of these recommendations in the four areas of the organization will contribute the company’s success in Japan. 

References 

The Tokyo Foundation. (2014). Overview of CSR in Japan: Ideals, Intentions, and realities at advanced companies . The Tokyo Foundation. Retrieved on 20 March 2018 from, http://www.tokyofoundation.org/en/articles/2014/overview-of-csr-in-japan. 

Carpenter, M. A., & Dunung, S. P. (2018). The Changing role of strategic human resources management in international business . Flat World Knowledge . Retrieved on 20 March 2018 from, 

https://catalog.flatworldknowledge.com/bookhub/3158?e=fwk-168388-ch12_s01. 

Disco Inc. (2012). Recent recruitment trends in Japan . Retrieved on 20 March 2018, from 

www.disc.co.jp/en/resource/pdf/RecruitmentTrendsJapan.pdf. 

Firkola, P. (2014). Changing recruitment practices in Japanese Companies. Universal Journal of Management 2(8) , 121-124. 

International Labour Organization. (2018). National labour law profile: Japan . International Labour Organization. Retrieved on 20 March 2018, from 

http://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158904/lang--en/index.htm. 

Jehanzeb, K., & Bashir, N. A. (2013). Training and development program and its benefits to employee and organization: A conceptual study. European Journal of Business and Management, 5(2) , 243-252. 

Kokusai. (2017, September 11). Cultural differences between the USA and Japan . Kokusai Express Japan. Retrieved on 20 March 2018, from 

https://ksemoving.com/cultural-differences-usa-japan/ 

Society for Human Resource Management. (2017). Introduction to the global human resources discipline . Society for Human Resource Management. Retrieved on 20 March 2018, from https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/introglobalhr.aspx. 

Thoo, L. (2013). International HR assignment in recruiting and selecting: Challenges, failures and best practices. International Journal of Human Resource Studies, 4(3) , 143-158.