1. International Human Resource Management
Presented by
Bharat Kumar Gupta
Naveen Kumar Gupta
Jang Bahadur Rai
Kavita Gangwal
Raman Kumar Morwal
Vaibhav Rajput

2. Human Resource Management (HRM)
Refers to the activities an organization carries out to use its human resources effectively
Four major tasks of HRM
Staffing policy
Management training and development
Performance appraisal
Compensation policy

3. International Human Resource Management
Strategic role: HRM policies should be congruent with the firm’s strategy and its formal and informal structure and controls
Task complicated by profound differences between countries in labour markets, culture, legal, and economic systems

4. International Human Resource Management
As shown in in this figure (which is based on Figure 13.1), people are the linchpin of a firm’s organization architecture. For a firm to outperform its rivals in the global marketplace, it must have the right people in the right postings. Those people must be trained appropriately so that they have the skill sets required to perform their jobs effectively, and so that they behave in a manner that is congruent with the desired culture of the firm. Their compensation packages must create incentives for them to take actions that are consistent with the strategy of the firm, and the performance appraisal system the firm uses must measure the behavior that the firm wants to encourage. As indicated in Figure 18.1, the human resource function, through its staffing, training, compensation, and performance appraisal activities, has a critical impact upon the people, culture, incentive, and control system elements of the firm’s organization architecture (performance appraisal systems are part of the control systems in an enterprise). Thus, human resource professionals have a critically important strategic role.
Figure 18.1, p. 620

5. ようこそ日本へ
Welcome to Japan

6. JAPAN’S General Business environment
Recruitment and Staffing Strategies
Compensation Strategies
Diversity management
Information collected is a collation of cases from different Japanese companies

7. Japan’s work environment
Life time employment model
Long working hours
Unusually strong devotion to one’s company
Slow deliberate decision making process
high context culture
High on collectivism
High respect and valuation given to credentials and experience

8. During the meiji restoration in the period of 1920’s a lot of changes took place
Most prestigious companies retained the talent by offering better benefits and truly life time job security.
Employers are expected to work hard and they prefer benefits like-job security, housing subsidies, good insurance, recreational facilities, bonuses and pensions.

9. Promotions base on seniority and ability
Leadership based on ability to create consensus rather than assertiveness and quick decision making
Individual are motivated to maintain wa(harmony) and participate in group activities, not only on job but after job,nomikai

10. Employement scenario
Difference between temporary and permanent workforce
Unemployment rate low and women participation high.
Permanent-high wages;sectors-finance,real estate,publicservice,petroleum
Temporary-low wages;sectors-textiles,apparel,furniture,leather
In standard model workers receive two large bonuses as well as salary twice an year.

11. Working conditions
On average, employees worked for a 46 hr/week back in 1987.
Large corporations-5day/week+2 sat/month
Small corporations-6days/week
The average Japanese worker is entitled to fifteen days of paid vacation a year but usually take only seven days.

12. Karoshi
Karoshi is a term that refers to death by overworking in the Japanese workplace. It is brought on by high amounts of stress from working 60 hours or more per week

13. Recruitment and Staffing

14. Human Resource Processes
Plateau
Termination
Suboptimal hire
Image or fit problems
Missed opportunity

15. Recruitment - “Is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization. Recruitment is the activity that links the employers and the job seekers” Staffing- “Selecting individuals with requisite skills to do a particular job also as tools for developing and promoting corporate culture”

16. Steps in Recruitment & Selection Process
Employment planning and forecasting
Recruiting builds pool of candidates
Applicants complete application form
Selection tools like tests screen out most applicants
Supervisors and others interview final candidates to make final choice

17. Methods of Recruitment
Advertisements
Temp Agencies
Campus recruitment
Employment Agencies
Recruitment firms/ Placement Agencies
Headhunters/ Executive recruiting “heddo hantas”
Employee referrals
Internships

18. Major groups. REGULAR Male employees
Special employees, including women, part time and temporary recruits.

19. What they believe
“ The Most desirable employee is not a specialist trained in a particular WHAT but a generalist who can fulfill a collective need within a particular WHERE”

20. Recruitment Policy “gakubutsu” Cohorts drive the Japanese system.
Upcoming university graduates and companies begin courting each other (with professors or teachers often acting as go-betweens)
“gakubutsu”
After an employer-employee match occurs begin to exert claims on their incoming cohort by sponsoring group activities, like camping trips, and providing pre-employment training.
All of the firm's new employees usually begin their employment together, consummating the recruiting and entry process.

21. Japanese recruiting criteria's
Commitment towards company for lifetime.
Emphasize personal rather technical attributes.
Personal philosophy compatible with corporate climate “SHUFU”
Ability to work in a group

22. Types of Staffing Policy
Geocentric
Ethnocentric
Polycentric
Seek best
people, regardless
of nationality
Host-country
nationals manage
subsidiaries,
parent company
nationals hold key
Headquarter
positions
Key management
positions filled by
parent-country
nationals

23. Selection Process Flow Chart

24. Compensation Management

25. Base Pay
Base pay should be considered the price you pay for membership to the club
It ensures you that the employee
will show up at work
that you may call them at night or weekends with business questions
that you can send them out of town and disrupt their personal life

26. Incentive Pay
The price you pay to get employees focused on what is important to the company.
Addresses motivation and reward for achieving a pre set goal
Should be related to critical areas that the employee can impact
“line of sight” should be direct
Should consist of no more than 3-5 goals
Simple and measurable is best

27. Long Term Pay Stock options for public companies
Long term incentive plans for public and private companies
Traditionally tied to value of the company, or some long term goal (achieving $X in gross revenues)

28. Pay with what? Direct Financial Money Bonuses Premium pay, shift pay
Ownership
Cash recognition

29. Pay with what? Indirect Financial Benefits Non cash recognition
Perquisites

30. Pay with what? Affiliation Organizational support Work environment
Organization citizenship
Title

31. Pay with what? Work content Variety Challenge Autonomy Meaningfulness
Feedback

32. Pay with what? Career Advancement Personal Growth Training
Employment security

33. Traditional Japanese Pay structure
Under the traditional Japanese system, employee compensation has four forms : base pay, bonuses, benefits, and allowances
Base pay accounts for 60 to 80 percent of employees' monthly pay.
Bonuses are typically paid twice a year (i.e., summer and winter), and the amount is calculated by multiplying employees' monthly base pay by a multiplier.
Social security, unemployment insurance, and workers‘ compensation are legally mandated benefits in Japan.
Firms provide additional benefits such as corporate pension, company housing, and company private banking.

34. National Differences in Compensation
Country
CEO
HR Director
Accountant
Mfg. Employee
Japan
$545,233
$235,536
$59, 107
$51, 994
Canada
742,228
188, 070
44,866
36,289
Germany
421,622
189,785
61,375
36,934
Taiwan
179,486
102,491
30,652
11,924
United Kingdom
719,665
268,302
107,839
28,874
United States
1,403,899
306,181
66,377
44,680
Source --- Study on compensation by Minoru Nakazato, J. Mark Ramseyer & Eric B. Rasmuse

35. Diversity Management

36. Four principles of diversity are:
Diversity is strategy , that utilize diverse human resources
Diversity bring firms growth and individual happiness
Diversity consideration are underpinned by personnel management principle of recognizing different attitude and values.
Top management should implement “offensive strategy” using diversity.

37. Global effects: Incipient association
Diversity concerns calls for coordination of equal opportunities for global firms
International exposure leads to complexity of legal provisions which requires proactive management approach
Japanese firms present a different picture altogether

38. Interesting fact
Japan hosts the headquarters of a large proportion of world global firms but still Japanese labor laws have remain largely unaffected by expansion of anti discrimination legislation.

39. Three key points Equal employment opportunities
Employment stability law for older workers
Amendment of labor standard laws
However the impact of this legislation is questionable…..

40. Japanese firms have retained homogeneous workforce in HQs in Japan
Japanese firms have retained homogeneous workforce in HQs in Japan. Core workers in international Japanese firms are predominantly male and Japanese, contrast to other global firms.

41. Effects of globalization on Japanese firms
Higher level of diversity
increased participation of female workforce
Reduced family size
Foreign nationals joining workforce
Closer ties with international trade organization ( ICFTU, ASIA PACIFIC TRADE UNION ORGANISATION)

42. Regional and National effects
Ministry of health labor and welfare regularly publish reports and disseminate their suggestions.
But, these are merely informative and don’t constitute policy guidelines.
Government policy framework should effectively address diversity management concern.

43. Trade union movement in Japan is weak in Japan, characterized by “ eneterprise unionism” or “firm unionism” .
Neither sectoral unions nor Rengo Japanese trade union confederation and Nippon keidanren (Japan business federation) are actively involved in negotiations with employees. As well as these policy guidelines issued by them are not legally binding.

44. Winds of change
Due to global level alliances social and labor laws moving towards equality and legally binding framework, e.g. ILO pushing for international labor standards.
Sharing of knowledge and best practices shaping management opinion.
Some global car manufacturing companies are setting offices to tackle diversity issues, but more needs to be done at national level.

45. Suggestions More political support . Adopt global standards.
Amendments in equality laws.
Adopting designated “ global ” diversity management.

46. Conclusion Changes in attitude of Japanese firms
More European and American CEO’s in Japanese HQ’s
Meritocracy
Pink Slips e.g. NEC

47. Arigatou Gozaimasu