International Human Resource Management - Essay Example

Topic: International Human Resource Management By Insert Presented to Location Due Introduction Organizational learning has become a major subject of concern in the corporate world notably in most firms’ human resource management. Human resources notably the employees plays an important role in ensuring that firms focuses on effective organizational learning and acting out the learning sprit. Making use of the tacit skills and knowledge is an essential in response to changing environments in the corporate world. Tacit knowledge and skills enhances organization learning development, suitable learning methods and the acquisition of appropriate information which is essential in as far as organizational knowledge development is concerned. According to Greg J Bamber, R. D (2004) he provides that this knowledge facilitates the functioning of key major organizational learning tools (Bamber 2004). Therefore, from this it can be argued that firms that successfully make use of tacit skills and knowledge can develop organizational learning strategy that ensures that knowledge and skills among the employees is spread through the organization. This improves the overall performance needed for firm’s improvement because more experienced workers can share their knowledge and skills with new employees. Therefore Multinational companies incorporate in their workplace systems, structures and processes. This is aimed for the achievement of multinational flexibility, global efficiency and worldwide learning (Bamber 2004). Relationship between tacit knowledge and organizational learning in Japan Japanese firms in the recent years have become of the most performing firms in the world enabling the Japanese economy become third largest economy and second largest developed in the world respectively. It is notable that these firms have realized these achievements attributed to their unique model of organizational learning that is largely adopted in Japan. According to Benson, J. and Debroux, P, (2004) the concept of organizational learning is one of the key major focuses in the Japanese organizational model (Debroux 2004). This focus and emphasis has enabled these firms to effectively make use of the tacit skills and knowledge of employees for their organizational learning purposes compared to other firms in other economies. Tacit knowledge is basically the gained knowledge by employees in organizations through the relevant experience and education that they explicitly not aware of. Tacit knowledge plays a significant role in the overall performance of the firm enhanced by an appropriate organizational learning model. Japanese firms through its organizational models majorly in the human resource have tacit knowledge and skills as a key element of mastery where their experienced workers are empowered to tackle unexpected or new situations in their firms (Wong 1997). According to May M. L. Wong, C. H (1997) their studies provided that Japanese firms derive their competitive advantage majorly through effective use of tacit skills and knowledge for organizational learning. In the context of Japanese firms, organizational learning entails comprehensive hard and soft learning of the employees which involves firms’ techniques and the social contexts in which the underlying techniques are developed (Debroux 2004). The key features of the Japanese management system have enhanced the effective use of tacit knowledge and skills in its firms and the overall economy. Therefore it can be argued that firms in any economy should understand how tacit knowledge and its key competences can contribute to sustenance of employee learning outcomes in various learning environments (Wong 1997). Japanese firms have largely achieved this through extensive personal contact with their employees, effective communication within the organization, emphasis on motivation and trust. HR and employment system in Japanese firms Human resource and employment system in Japan has considerably played a key major role in the good use of tacit knowledge and skills in its firms. It is notable that it applies to 1/3 of the workforce characterized with periphery employees as buffers providing flexibility. Women employees are majorly found at the periphery of this model. This has been considered by many to be discriminatory. The key feature in this system is employment structure characterized with ranking hierarchy and the simultaneous recruitment of new graduates into the job market. This includes lifetime employment for the experiences and expert employees who play significant vital role in mentoring and training new and inexperienced workforce; seniority wages is also adopted ion this human resource management model in Japanese firms (Busch 2008). This system facilitates the junior employees acquire and develop tacit knowledge. This offers employees in these underlying firms to learn broad skills and knowledge through on-the-job training and job rotation (Debroux 2004). Furthermore tacit skills and knowledge which is firm specific is fostered through long-term employment. Japanese firm’s human resource management focuses on changing the attitude of the workers through remarkable motivation (King 2009). This creates an enabling environment where tacit knowledge and skills developed is adopted in organizational learning. This has greatly contributed into Japanese corporate prosperity where employees in all levels develop a strong of sense of identification, trust and loyalty to their employers (Bamber 2004). The effective use of tacit knowledge and skills by Japanese firms in organizational learning can be linked with its personnel management. This has been achieved attributed to the ascribed job security and the wage system where those in senior positions are awarded the highest rewards. This system enhances reduction of workers who change jobs regularly and this enables employees get adequate experience and becoming experts in particular specific field. Therefore it can be argued out that the HR and employment system in Japanese firms creates tacit knowledge and skills which plays key major role in facilitating organization learning in these firms. Corporate governance According to Lam, A (2003) studies shows those Japanese firms’ business traditions and corporate governance is admired other economies in the corporate world (Lam 2003). Community model is basically based on trust; mutual obligation and long-term commitment. This system considers firms as a community of people characterized with effective coordination as opposed to being the property of the shareholders. Those in the top management are regarded as career employees and there is emphasis on the employee’s interest. This is attributed consensus management and organizational business model which enhances effective use of tacit knowledge and skills. This corporate governance model adopted by Japanese firms is considered effective in making use of tacit skills and knowledge acquired by the employees. This is greatly attributed linked trading relationships and shareholding. Japanese firms have notably embraced the underlying higher standards of corporate governance. Although there are critics on this corporate governance model, this has helped greatly in protecting their employees regarding shareholders aspects, hostile takeovers as well as management buy-outs. This has greatly facilitated management stability within Japanese firms enhancing development of tacit skills and knowledge translating into organizational learning (Wong 1997). Inter-firm cooperation in Japanese firms Inter-firm cooperation and relations has notably flourish in the Japanese economy where there is increased connection and transfer of knowledge and skills between the underlying firms. With these increased interconnections firms facilitate their employees in gaining tacit skills and knowledge which enhances organizational learning. Inter-firms cooperation involves offering joint training programs in seminars which enables employees to exchange skills and knowledge (Busch 2008). This further enhances organizational learning as the employees are empowered through exchange of ideas thus improving the performance of these companies. Although there is notable increased competition among Japanese firms, these firms have been able to enhance and increase their firm’s skills and knowledge through inter-firm cooperation (Debroux 2004). According to Busch, P (2008) in his studies asserts that Japanese firms have the tendency of enhancing their organizational learning through business group and inter-firm management. With the ascription to the concept of “Keretsu” and the management methods these firms with the help of management methods they have been able to effectives make use of tacit skills and knowledge in the process of organizational learning. These Japanese management methods are considered unique which include the application of similar joint evaluation system, management of inter-firm relations and utilization of segment information. All of the inter-firms cooperation contributes in the creation and development tacit skills and knowledge for organizational learning. These collaborative activities in the management of these organizations have enabled firms to pursue various scale and economies in the management of these firms (King 2009). This further allows the adoption of firm-specific tacit skills, knowledge as well as complimentary skills and resources. It is notable that the need to acquire these skills and knowledge has contributed greatly to the emergence of various forms or inter-firm cooperation in Japan which forms the foundation of organizational learning. Japanese Organizational learning model in liberal economies Although the Japanese organizational learning model has gained popularity during its first adoption, concerns have been raised over its validity in liberal economies based on capitalism. With the changes in economic developments and structures in the corporate world it is becoming difficult to adopt this organizational learning model in liberal economies without modifications shifting towards US-type capitalism and regulation. Liberal economies are characterized with increasing competitive global business environment and at the same time increasing unemployment rates and low GDP growth in most liberal economies. Therefore these economies are likely to face challenges in the implementation of Japanese organizational models relating to traditions such as lifetime employment and seniority. Liberal economies have opted into embracing merit based organization learning methodologies which fits the current corporate world. With the changing labour market and employee expectations the organizational learning tools adopted by Japanese are considered not to promote equal chances of skills and knowledge development among the employees (Bamber 2004). Organizational learning in Japanese firms is majorly focused on the skills over the long-term whereas in the liberal economies focus is on the short-term evaluation of the employee performance. It is also notable that in liberal economies the major focus is the economization and minimization of labour cost as possible. According to James r. Lincoln, y. n (1997) it might not be possible to adopt Japanese model of organizational model because it tends to be more limited in the context of their transnational organizational learning (Lincoln 1997). Japanese model of organizational learning is characterized with tight incorporation of its traditional business systems within which they are embedded which is not popular in liberal economies (Lincoln 1997). Conclusion Therefore considering the success of Japanese firms in making use of tacit knowledge and skills, this has been mainly attributed to the increased social interaction mode among the employees and the Japanese firms. The tacit knowledge through these interactions is transferred between the employees facilitated by the supportive human resource model which enhances the overall organizational learning of these organizations. In addition Japanese firms have its adopted organizational models facilitating the knowledge creation process at the employee level to the overall organization. This equally enhances organization learning in various environments and the sectors that these firms operate. On the other hand many firms operating in liberal economies are characterized with greater organizational capacity which facilitates global coordination of organizational learning. Japanese organization learning model arguably is not suitable in liberal economy because it lacks capacity of extending both human and organizational systems across the various organizations and institutions in the liberal economies. References Arjan B. Keizer, 2009, ‘Transformations in and outside the internal labour market:  institutional change and continuity in Japanese employment practices’, International Journal of Human Resource Management, 20 (7): 1521–1535. Benson, J. and Debroux, P, 2004, the changing nature of Japanese human resource management’, International Studies of Organization and Management, 34(1): 32-51  Busch, P, 2008, Tacit Knowledge in Organizational Learning, Pennsylvania: Idea Group Inc (IGI). Greg J Bamber, R. D, 2004, International and Comparative Employment Relations, California: SAGE. Hayahsi, M, 2002, A historical review of Japanese Management Theories: the search for a general theory of Japanese management’, Asian Business and Management, 1(2) James r. Lincoln, y. n, 1997, The Transformation of the Japanese Employment System, Work and Occupations February, 33-55. King, W. R, 2009, Knowledge Management and Organizational Learning, New York: Springer. Lam, A, 2003, Organizational Learning in Multinationals: R&D Networks of Japanese and US MNEs in the UK. Journal of Management Studies, 673–703. May M. L. Wong, C. H, 1997, A study of the employment system of Japanese multinational retailers in Hong Kong, The International Journal of Human Resource Management, 629-643. Read More