HR Management Distinguishing Features in Japan

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Table of Contents

Introduction
HRM vs. economic performance
Distinctive cultural and institutional features of HRM in Japan
Essential features of working/HRM practices in JAPAN
Multinationals association and government influences on HRM
The role of trade unions
‘Moving towards e-HRM’
Conclusion
References

Introduction

Quality human resources management is a key factor that enables business organizations and economies to gain and sustain competitive advantage. Due to the emerging high global competition, various countries are striving to strengthen their economy and record efficient and effective performance. Dedicated and organized human resource management forms one of the best strategies that most economies apply to enhance their competitive advantage (Beardwell 2004).

In Japan, human resource management is considered as a business system. In this system, the main focus is to manage and control people working in both public and private sectors so that they are able to improve their performance in terms of efficiency and effectiveness. This leads to ultimate contribution to the goals and objectives of the organizations under the economy. The Japanese HRM system is divided into the following four subsystems.

They include systems for managing employment, working conditions, reward management and evaluation of personnel. These systems serve as some of the distinguishing features in the Japanese HRM and they enhance performance thus contributing to the general growth of the economy. As a society, Japan has experienced several HRM changes and economical challenges that have enabled it move from a feudal nation to a more developed and industrialized state with developing economy (Bratton and Gold 1999).

This paper will address how the IHRM relates to the performance of the economy and identify the institutional and cultural features of Japan’s HRM. It will also address the core features of HRM practices in Japan and the multinational associations/ government influences on HRM. Finally, the paper will address the role of trade unions in Japan and the trend towards e-HRM.

HRM vs. economic performance

Human Resource Management has an empirical association and connection with the economic performance of firms and business organizations. “Considering the study that was carried out to determine the effect of human resource management practices on economic performance, it was found that effective Human Resource Management greatly contributes to the economic success of an organization” (Hollinshead 2009, p.51).

The study involved application of the Japanese and the U.S HRM practices on steel production firm to monitor the productivity of workers. In the Japanese system of HRM, human resource practices are carried out based on common grounds.

There are teams for attending to the problems of workers, orientation of workers, training and enhancing the careers of employees. There is also sharing of profits, information and rotation across the jobs. Security of the workers is highly enhanced with good working environment. On the other hand, the U.S HRM practices incorporate only one or two of the mentioned practices. Based on the application of the two systems, different outcomes emerged in terms of performance of workers.

In the Japanese HRM lines of production, high records of productivity were recorded as compared to the lines that were managed by the practices of the U.S HRM (Adler 2002). This study confirms the relation between the economic performance of a business organization and it’s HRM. A better, well organized and effective HRM will contribute to better economic performance of the organization.

This is because provision of favorable working conditions to the workers and employees like training, good payment, team work and good communication channels among other strategies enhances their performance leading to high productivity. Good HRM practices intensify the morale of workers and boost their sense of belonging to the organization thus improving their performance. Improvement in performance leads to improvement in productivity thus improved economic performance (Hollinshead 2009).

Distinctive cultural and institutional features of HRM in Japan

Contextual and cultural factors (Political, economic and technological change)

The HRM in Japan lies under the ministry of international trade and industry. It is the political power that commands this ministry. Japanese elites who have indulged in the political arena have played a very important role in terms of advocating for change in the political control of HRM. The elites have chosen various foreign and local cultural options that suit the needs of the HRM bodies in the country. Such political changes have enabled the country to attain high human resource performances thus contributing the growth of the economy (Brewster 2007).

“In terms of technology, Japan has always appreciated the emerging science and technology and at the same time maintained its unique cultural identity” (Briscoe and Schuler 2004, p.81). Japan has achieved various technological changes through research and innovations in various sectors like automobile industry. With such technological changes, the efficiency and effectiveness of the Japanese HRM has improved leading to economic improvement.

Considering economic changes, the economy of Japan experienced a major decrease in 1990s due to greater global competitions. The Japanese employment, banking and business systems almost collapsed. But following this events, Japanese HRM has been able to apply political and technological strategies to achieve economic change. The Japanese HRM is now one of the leading role models in world today (Edwards and Rees 2006).

Core cultural concepts in Japan

The version of ren is the core cultural concept in Japan. The concept involves heartedness and benevolence as cultural pillars of the organization. Under this concept, a work place is considered as a family where the management is expected to address the welfare of employees while the employees are required to have high commitment to the organization. This is to achieve peace and order at the work place (Hodgetts and Luthans 2003).

Another core concept is collectivism. The concept discourages recognition of individuals as separate entities and encourages togetherness. The workers and employees are required to embrace family spirit in the work setting. HRM emphasizes on team work, information and value sharing (Hodgetts and Luthans 2003).

There is also a cultural concept of harmonization and balancing of Yin and Yang. This concept enables the workers and employees to cope with the work setting in an adaptive and flexible manner. Another core concept is Bing Fa which enhances businesses to form effective business strategies through strategic thinking. The concept on virtues and leadership qualities enhances support from employees and collectivism (Hodgetts and Luthans 2003).

The Japanese business system

The business system of Japan is highly coordinated with high levels of interdependence between the employers and the employees. Each and every enterprise in Japan is required to incorporate qualified work force for quality production. In this case, I will discuss the Japanese business system in relation to HRM. The business system involves the employment system which deals with the HRM.

Under the employment system, the HRM requires that business organizations respect and obey the core Japanese cultural concepts which safeguards the rights of workers and employees and enhances a healthy relation between the employers and the employees.

The system emphasizes on employment procedures that select employees based on competence and qualifications (Tayeb 2005). There is also ‘working conditions’ as one of the core pillars of Japanese business system. Employers in business organizations are required to provide favorable working conditions for their workers and employees.

This is intended to enhance the effectiveness and efficiency of employees. The business system also require employers to give presents and rewards to hard working employees. They are supposed to give recognitions, bonuses and promotions for employees. The personnel evaluation system should also be set to monitor and evaluate the performance of workers and employees for continual improvement.

Finally, the business system of Japan bases on quality of products and services offered. The system requires that all business entities obtain certification of their products and services before delivering them to the customers. All business entities must conform to the standards set by the Japanese authorities. High quality products are meant for the Japanese themselves while other products are exported to other foreign countries (Hodgetts and Luthans 2003).

Essential features of working/HRM practices in JAPAN

The ‘pillars’ of Japanese employment

Recruitment

Firms and business organizations in Japan engages in thorough screening of candidates seeking for employment to ensure that they all conform to the value system and the firm’s corporate culture before being selected. In Japanese style of HRM, firms and business organizations practices job rotation, long term employment as well as team based employee activities. They also engage in implicit evaluation of the performance of employees and intensive training of recruits.

Therefore, the selection of employees is very vital since the expectation is that the recruits will remain in the organization until the time of retirement. Some major Japanese companies select employees directly from educational and technical training institutions and establishments. The only way to ensure that the recruited candidates endorses and adheres to the values of business organizations is by careful screening. Team work activities with extensive induction will be very important to the candidates (Hollinshead and Leat 1995).

Remuneration

Many firms and business organizations in Japan have installed ‘seniority’ based systems of wages. This system gives employees and workers encouragement to stay with companies and business organizations and contribute towards wage cost predictability. The remuneration system also addresses various ranges of other benefits.

Some of the most frequent benefits that are available to core employees include allowances for housing, subsidized rent, homes for holidays, company schools and some sets of shops. The business organizations and companies also offer assistance in incidences of accidents, death and other calamities that may befall workers and employees (Hollinshead and Leat 1995).

Training and development

The Japanese business organizations assume lifetime employment for their employees. This greatly contributes to the positive sentiments of training. There is a positive perception of employees as beneficial (assets) to the business. This improves the willingness of employees to train and develop human resources out of their own willingness.

The companies and business organizations collaborate with schools and training institutions to help offer training to workers and employees. The main aim of training workers and employees in Japan is to obtain all round workers who are capable of handling different kinds of jobs to enhance job transferability. Therefore, ‘multi-skilling’ in one of the core components of job rotation and it is a fundamental ingredient to the Japanese system of work (Hollinshead and Leat 1995).

Multinationals association and government influences on HRM

The human resources management and working practices in Japan have elicited a very significance influence on various organizations and human resources management boards across multi-national borders.

The lean and efficient Japanese production systems, team work organization and efficient human resources management systems have attracted many local and foreign companies. First, the local companies based in Japan bearing foreign identities have been the first ones to emulate the Japanese HRM style. The foreign business organizations have followed by following the same system.

This has created several business links and associations between Japanese HRM and that of other countries like Australia, US and the UK. There has also been considerable attention from the western part of Germany especially from international human resources managers. They have been quoted on several occasions striving to make links with the Japanese HRM (Bean 1994).

The Japanese government has also influenced its HRM in the following ways: It has created rules and regulations that support the activities of the HRM. Such regulations also tend to protect business organizations from extensive competitions from foreign firms. The government also mobilizes resources and funds that enhance the operations of bodies that monitor the activities of human resources.

This is to ensure that the country holds a HRM that is reliable and effective. There are evaluation systems from the government sector that evaluates the activities of the HRM to make it efficient and effective (Hollinshead and Leat 1995).

The role of trade unions

‘Trade union structures and membership’

Trade unions play a very vital role in Japanese HRM. Japan has realized an evolution in its trade unions in terms of enhancing labor relations. In the past, the unions concentrated on negotiating for salary increments for their members. This had drastically changed and the trade unions have taken other new measures.

Apart from advocating for the remuneration of employees, trade unions also advocate for other aspects of employees like job security, safety at work, good working environment and better employment relations. The unions are structured to work and directly relate with three main entities. Trade unions have three arms linking them to working organizations (companies and business organizations), government and their members (workers and employees).

Therefore, trade unions deal with members to ensure that their welfare is well represented and supported. They make negotiations with the government on legislations that will promote employment relations and respect for human rights at work place. They also link with the companies and organization to negotiate for better terms for their members and enhance employment relations (between the employers and the employees).

The trade union laws set in Japan only recognizes unions that support and represent employees at various levels. Although there are other small unions within organizations that support and advocate for the welfare of employees, the Japanese government require all the employees to register with at least one of the national unions that are recognized by law so that their disputes can be legally argued in the court of law (Hollinshead and Leat 1995).

Membership in Japanese trade unions involves presentation of working documents, identification documents/passport and a registration fee that is non-refundable. Other than representing and supporting workers and employees, some trade unions also engage in advising their members to save some money for a better life after retirements. They achieve this by introducing retirement schemes to employees (Harzing and Ruysseveldt 2004).

‘Moving towards e-HRM’

This involves application of IT in terms of networking to support and improve the activities of HRM. Most famous business organizations and companies in Japan are already moving towards e-HRM. They are devolving their functions to involve management as well as employees.

The employees and other forms of management can now access various selected functions of the HRM through the internet and other web technologies. This has allowed the HRM to put more emphasis on human resource strategic functions than operational functions. The employees can now access operation requirements via e-HRM. Although e-HRM has contributed towards lowering work burden and reduction in staffing levels, it has actually created unemployment to some extend (Boyatzis 2009).

Conclusion

Management of workers and employees is the major duty of HRM. Since the success of any economy, business or company depends on individuals involved, the management of these people is very crucial.

There have been extensive activities of HRM in Japan. Enhancement of HRM has led to several revolutions in the human resource sector including political revolution, technological revolution and ‘Cultural Revolution’. Enhancement of Japanese core cultural concepts of human resources management and development has greatly contributed to success in the sector of HRM.

Although the paper has discussed several distinguishing features of the Japanese HRM like lifetime employment of workers, seniority wage based system and collectivism at work, the current upcoming generations are advocating for consideration of individual as well as result based performance rather than the existing team work and group performance. This is likely to be the future topic of discussion on Japanese HRM.

References

Adler, N., 2002. International Dimensions of Organizational Behavior. 4^th ed. London: CIPD.

Bean, R., 1994. Comparative Industrial Relations: An introduction to cross-national perspectives. London: International Thomson Business Press.

Beardwell, L., 2004. Human Resource Management: a contemporary approach. 4^th ed. Financial Times: Prentice Hall.

Boyatzis, R., 2009. The Competent Manager: A model for effective performance. New York: Wiley.

Bratton, J. and Gold, J., 1999. Human Resource Management: Theory and Practice. London: Routledge.

Brewster, G., 2007. International Human Resource Management. 2^nd ed. London: CIPD.

Briscoe, D. and Schuler, R., 2004. International Human Resource Management. 2^nded. London: Routledge.

Edwards, T. and Rees, C., 2006. International Human Resource Management: Globalization, national systems and multinational companies. FT: Prentice Hall.

Harzing, W. and Ruysseveldt, J., 2004. International Human Resource Management. London: Sage publishers.

Hollinshead, G., 2009. International and Comparative Human Resource Management. Basingstoke: McGraw-Hill.

Hollinshead, G. and Leat, M., 1995. Human Resource Management. An International and Comparative Perspective journal, 9(5), pp. 245-263.

Hodgetts, R. and Luthans, F., 2003. International HR Management, Culture, Strategy and Behavior. 5^th ed. London: Sage publishers.

Tayeb, M., 2005. International Human Resource Management: A Multinational Company Perspective. New York: Oxford University Press.

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