The culture difference in influencing human resource management on multinational firm: comparison between China and Japan - Dissertation Example

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Impact of Culture in transferring HRM policies of Japanese MNCs in Chinese subsidiaries ABSTRACT Globalization has broadened the mindsets of executives as they seek to extend the geographical reach of their firms. Liberalization of economies has provided greater opportunities to expand but also posed greater challenges…
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The culture difference in influencing human resource management on multinational firm: comparison between China and Japan
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Download file to see previous pages Besides, the social and political changes also influence the cultural norms in a country which in turn impacts the labour market and policies. China has been the focus of expansion for many MNCs because of its vast geographical area and because of cheap labour. Japan has been operating in China since the mid-1990s but have not been able to transfer its HRM policies in China. With the motivation to evaluate the degree to which Japanese MNCs had to adapt the HR practices in local cultural environment in Chinese subsidiaries, this study was undertaken. Three objectives were set in Chapter and based on a qualitative study the objectives have been achieved. The study finds that factors that impact HR practices across cultures depends upon the push factors (from the home country) and the pull factors (of the host country). An MNC may attempt to control its subsidiaries and impose its own corporate culture, work values and HRM policies but the host country business environment may not be conducive to accept it. MNCs tend to demonstrate COO effect when they desire to transfer their HRM practices overseas but they are not always successful. The Japanese MNCs are known to exercise control and coordination mechanism through the use of expatriates in all its subsidiaries but despite this, they have been compelled to conform to local norms. The employment and training patterns in Japan too have not been emulated in China. The Japanese still believe in lifetime employment but the Chinese employment patterns have changed. The subsidiaries go by merit and do not give credence to the employment tenure or seniority. Another area where Japan has not been able to transfer its HRM policy is in the field of training where organizational behavior and work values are given importance, contrary to the situation prevalent in China. The Japanese MNCs have had to mostly accept the local norms and work values of the Chinese business environment. They have had to conform to local isomorphism. They have not succeeded in transfer of HRM practices through mission charters or through management education. They have been relying on the expat managers for control and coordination but they have not been able to impose their home country HRM policies on their subsidiaries in China. The study highlights the limitations and based on the limitations, areas for further research have been recommended. Table of Contents Chapter I Introduction 1.1 Background – Issues in International HRM 1 1.2 Rationale for the Study 2 1.3 Research Aims and Objectives 4 1.4 Scope of the Study 5 1.5 Structure of the study 5 Chapter II Literature Review 2.1 Chapter Overview 7 2.2 Definitions 7 2.3 Cultural Theories 8 2.4. Comparison of culture – China/Japan 14 2.5 HRM practice and the COO Effect 17 2.6 Role of Culture in shaping HRM practices of MNCs 18 Chapter III Methodology 3.1 Research Philosophy 22 3.2 Topic of the Research and Phenomenon 22 3.3 Choice of Method 23 3.4 Research Strategy 24 3.5 Data Collection 24 3.6 Justification for Secondary Data 24 3.7 Sources of Data 25 3.8 Data Analysis 26 3.9 Reliability and Validity 26 3.10 Ethical concerns 27 Chapter IV Findings and Discussions 4.1 Findings 28 4.2 Discussion 35 Chapter V Conclusion & Recommendations 5.1 Conclusion 40 5.2 Recommendation for MNCs seeking to expand 43 5.3 Limitations of the Study 43 5.4 Recommendation for ...Download file to see next pagesRead More
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