Japanese Multinationals and the Management of Human Resources in United Kingdom Subsidiaries - Essay Example

? Research Proposal: Japanese Multinationals and the Management of Human Resources in United Kingdom Subsidiaries By Candi s FACULTY OFBUSINESS AND MANAGEMENT Abstract This research proposal describes a research project that will attempt to examine human resource policies and practices in subsidiaries of Japanese multinationals located in the United Kingdom. Although Japan and the United Kingdom are culturally very different, Japanese multinationals have invested more in the United Kingdom than in any other nation of Europe. Thus, although Japanese multinationals present well established human resource and management policies and practices with a distinct Japanese flavour, accommodation, compliance with local laws, practical considerations and a need to adapt that which works best locally in the United Kingdom is likely to present something distinctly Japanese for the British in terms of human resource management. The proposed research attempts to examine what human resource management approaches and extent of standardisation in human resource policies and practices are apparent in subsidiaries of Japanese multinationals in the United Kingdom. A multiple case study approach involving semi-structured interviews and a review of relevant literature are suited to the topic of research because the topic of research is information rich and does not lend itself to either survey or quantitative methods. The research project described in this research proposal will appeal to those with an interest in international business and human resource management in an era that will continue to emphasise international business. Contents Introduction 1 Account of the Method 8 Discussion 10 Conclusion 11 Bibliography / References 13 List of Tables Table 1: Japanese national cultural characteristics and management practices 4 Table 2: British national cultural characteristics and management practices 5 (This page intentionally left blank) Introduction In the present day and age, the conduct of business leans increasingly towards international operations and managing human resources is increasingly critical to the success of business (Briscoe, 2009, Pp. 10 – 15) and (Tayeb, 2005, Pp. 3 – 10). However, published research supports the notion that construction of human resource management for a business takes place within strong national boundaries (Sparrow, 204, Pp. 1 – 5). Thus, although information and communication technologies continue to transform organisational structures and business processes, breaking down organisational and geographic boundaries, national human resource management traditions engrained in the culture of a multinational headquartered in a country often intermingle with culture and traditions of the country in which a subsidiary is located. Although multinationals from a host country retain elements of traditional and cultural values, including those from Japan, United States of America and elsewhere, it is difficult for multinational corporations to exhibit core traditions from Japan, America, etc. in subsidiaries located overseas for managing employees. When expanding overseas, a failure to integrate successfully managers and other key personnel from host countries into the management process of foreign subsidiaries is likely to present severe negative outcomes for a parent company (Keeley, 2001, Pp. 1 – 5). After all, foreign multinationals must serve clients in a host nation, comply with its laws and compete effectively in a nation with its own traditions, culture, business values and needs. A multinational must have due regard for national culture and organisational culture in a subsidiary, which must cater to the locals while shaping effectively the collective. Material and spiritual culture in a host country together with aspirations of employees, their preferences and tastes influence the treatment of employees and success of a subsidiary (Keeley, 2001, Pp. 15 – 20). Multinational enterprises must have due regard for local employment laws, industrial relations and ethics when implementing human resource management systems for subsidiaries in foreign countries (Briscoe, 2009, Pp. 148 – 155). Policies and practices in multinational enterprises that imping on welfare of employees and success of a subsidiary include those that influence staffing and global talent management, training and management development, compensation and benefits, international employee performance management and general well-being of the global workforce. According to Tayeb (2005, Pp. 65 – 74), Japan presents a homogeneous culture with few immigrants, a strong sense of group and community, a requirement for hard work, absence of a western-type class structure, company based trade unions and collective decision-making. Larger companies in Japan prefer lifetime employment, and employees regard their companies as families. Job-rotation and job flexibility is a feature of Japanese companies, and Japanese employees present a strong sense of obligation. However, the British are highly individualistic and value their liberty, with trade unions being national unions rather than company unions. Thus, several national unions are likely in the same workplace or office, and an emphasis exists for struggling constantly for better pay and conditions. Power distance in the United Kingdom is relatively small, with an expectation of government involvement in employment relationships. Tables 1 and 2 summarise the major national cultural characteristics and management practices in Japan and the United Kingdom to emphasise that it makes sense to try research how Japanese multinationals in the United Kingdom have approached management of human resources in their United Kingdom subsidiaries. Clearly, it is impossible to transfer the concept of human resource management that evolved in Japan to the United Kingdom or elsewhere without taking into account the legal and cultural environments (Nitsche, 2003, Pp. 1 – 3). Strategic human resource management approaches are preferable for multinational organisations, but it is pertinent to ask how these approaches will fit across various cultures and national systems when applied, and this means that it is pertinent to examine the human resource management systems and policies established by Japanese multinationals in the United Kingdom. Table 1: Japanese national cultural characteristics and management practices, from (Tayeb, 2005, Pp. 66) Table 2: British national cultural characteristics and management practices, from (Tayeb, 2005, Pp. 73) Since the year 2002, the United Kingdom has received a majority share of Japanese Foreign Direct Investment (FDI) in Europe. Thus, a large number of Japanese multinationals ranging from food, textiles, electronics, manufacturing to pharmaceuticals, etc. have established subsidiaries in the United Kingdom (Elger, 2005, Pp. 41 – 45) and (Japanese Chamber of Commerce and Industry in the UK, 2011, “Member Directory”). Because a number of subsidiaries of Japanese multinationals are evident in the United Kingdom, it is possible to examine human resource practices adapted to location, negotiated accommodations, mediations and moderations of Japanese human resource management models, emergent models and any ambiguities prevailing in Japanese multinational subsidiaries in the United Kingdom. Thus, it is likely that a modification of the Universalist paradigm for Japanese multinationals will be evident as a contextual paradigm in Japanese multinational subsidiaries located in the United Kingdom due to changed environmental factors (Nitsche, 2003, Pp. 12 – 15). Home-country-specific-factors, host-country-specific-factors and organisation-specific-factors will present influences on human resource management policies and systems implemented in specific subsidiaries of Japanese multinationals in the United Kingdom. In addition, it is likely that with increasing harmonisation in employment regulation in Europe, Japanese multinationals are likely to make the effort to present standardisation for compensation policies, recruitment and selection, training and development, equal opportunity / diversity, management development, flexible work practices, retrenchment, human-resource management strategy emphasis, etc. Tung (1982, Pp.57 – 70) presents a discussion about selection and training procedures for multinational employees, while Negandhi (1985, Pp. 93 – 104) presents a discussion about management practices in Japanese subsidiaries. Shiraki (2002, Pp. 23 – 35) presents insights about the ways in which Japanese and Western multinationals differ in terms of operations, while Yan (2003, Pp. 487 – 505) presents a discussion about the impact of national origin on human resource management practices in joint ventures. Kabast (2004, Pp. 1 – 16) presents a discussion about expatriation and selective control of human resource management for joint ventures and Kim (2005, Pp. 809 – 825) examines the impact of strategic considerations on international human resource management practices. Edwards (2007, Pp. 201 – 215) examines transfer of employment practices in multinational companies and Brewster (2008, Pp. 320 – 338) discusses differences and similarities in the ways in which multinationals manage their people. Thus, it is clear that a number of considerations impinge on the way in which Japanese multinational subsidiaries in the United Kingdom manage human resources. Thus, it makes sense to examine the following research question, which will add to knowledge and interest international human resource professionals with an interest in multinationals everywhere: What human resource management approaches and extent of standardisation in human resource policies and practices are apparent in subsidiaries of Japanese multinationals in the United Kingdom. Account of the Method Qualitative research and quantitative research paradigms present the two basic philosophies for research that are available to researchers with their relative merits. Qualitative research focuses on elaborate interpretations without depending on numerical measurement to present mental models and insights about a topic of research (Zikmund, 2009, Chapter 7). The focus in qualitative research is on discovering true inner meanings and new insights about a topic without attempts directed towards quantitative measurements, statistical analysis or mathematical modelling. Qualitative research tools are appropriate when the research objective is narrower, and a need exists for understanding the topic of research better to decide about application of quantitative tools. Thus, the emphasis in this research leans towards the qualitative. Although it is possible to perform qualitative research in many ways using various techniques, the research paradigm may lean towards phenomenology, ethnography, grounded theory or case studies originating in psychology and in business research (Denzin, 2005, Pp. 421 – 425 & 529 – 545). However, hermeneutics based on analysis of texts, including texts that describe results of research studies carried out by others on similar topics, helps develop a deeper understanding for a topic of research. Thus, a literature review that attempts to extract important themes related to a topic of research is useful for elucidation of matters for further investigation. In addition to a literature review that presents important themes related to the topic of research, multiple case studies of Japanese multinational owned subsidiaries selected from among members of the Japanese Chamber of Commerce and Industry in the UK serve to present information from the real world (Elger, 2005, Chapter 5). A list of member companies of Japanese Chamber of Commerce in the United Kingdom is available from its website and a number of suitable firms willing to entertain a researcher are selected (Japanese Chamber of Commerce and Industry in the UK, 2011, “Member Directory”). Each case study will involve semi-structured interviews with consenting human resource managers and other workplace gatekeepers as well as a number of staff to decide about the human resource policies and practices together with impact of these policies and practices. In addition, collection of documentary material including human resource policy statements, equal opportunity and affirmative action policy documents etc. will further elucidate the state of human resource management at a subsidiary. Suitably prepared questions based, on insights developed from a literature review, for use in semi-structured interviews each subsidiary will present information which when combined with themes from a literature review will help present reasonable and logical conclusions for the research. Discussion The proposed methodology presented for this topic of research is suitable because the topic of research is information rich and does not lend itself to quantitative approaches. A case study approach is suited because it is unlikely that survey research methods are unlikely to reveal day-to-day realities of management, work, and employment relations at a subsidiary (Elger, 2005, Pp. 81 – 83). It is important to understand that it is impossible to examine human resource management only from the perspective of managers and perceptions of employees are of value. Thus, multiple case studies with semi-structured interviews that present insights from employees and human resource managers are more fitting than survey methods. However, multiple case studies require that researcher devote time and effort to each case study. Conclusion The research project described in this research proposal will present useful insights into human resource management for subsidiaries of a multinational enterprise from a nation that is culturally distant from another. In addition, it is likely that unique insights about Japanese multinationals and management of human resources in Japanese multinationals will emerge from this research. Business is likely to maintain a global emphasis in the future, and this means that this research will benefit all those with an interest in international business and human resource management. 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