Page 175 - DMGT548_GLOBAL_HRM

Global HRM

Notes comes from steel. Tsuda (1996) describes the extensive programme of human resource
development within the context of changes that are affecting the steel industry.
Japanese views on work are changing. There has been a reduction in the workforce in
manufacturing industries. The upshot of this is that young people do not show as much
interest in manufacturing as they did in the past. The working environment has changed
with the introduction of microelectronics and computers, which have changed models of
operation. Managers have had to comply with improvement in working conditions,
eliminating the three ‘Ks’: kiken (dangerous), kitsui (hard) and kitanai (filthy).
There has also been an increase in the number of ageing employees in the workforce. With
a reduction in the total number on the production lines, this has interfered with the
smooth transition of tasks from skilled technicians to their successors, and has affected the
maintenance of high levels of technical performance. Within Sumitomo, there was therefore
a requirement to meet the needs to develop an adaptable and efficient workforce.
As a result, under the guidance of its philosophy of ‘valuing humanity and technology’ the
company has undertaken long-term, continuous and extensive educational and
development programmes, from top managers down to blue-collar workers. It had already
established, in 1952, an Apprentice School to provide in-company education and training
for junior high school graduates of three years in “moral education and practical affairs”.

Management development programmes are aimed at making the best use of the corporate
organisation ‘4Cs’ abilities: coordination, communication, creation and culture-orientation.
Training programmes are also directed at the ageing workers, to increase their abilities to
perform broader duties. They too are expected to ‘improve morale, revitalising old workers,
and to meet the demand for a reduction of working hours through multiplied skills and
restructured duties’.
Questions

1. How does the concept of ‘valuing humanity’ in the people management policies of
Sumitomo differ from concepts of human resource management as practised in
your organisation, or an organisation with which you are familiar?
2. How could your organisation, or one with which you are familiar in your country,
obtain the type of total commitment obtained in companies like Sumitomo?

Source: International HRM, A Cross-Cultural Approach, Terence Jackson

9.5 International Joint Ventures and HR Practices

The motives for entering into an IJV arrangement are many but a major reason is to spread risks.
Success seems to depend on an ability to balance the desire and need to control the venture on
the one hand and the need to maintain harmonious relations with the partner on the other hand.
The factors attributed to the failure of a joint venture are mostly human-related–poor decisions,
behavioural errors or unanticipated staffing events. So, an IJV presents a major management
challenge, particularly so when a foreign firm has been forced into the IJV by necessity rather
than choice – as is often the case in both China and India. HRM plays an important role in
assisting foreign firms to achieve their goals for their Indian IJVs.
Staffing: In a complex cultural context like India, it may be more advantageous to use local
managers. A major reason for HCN preference is the belief that the right Indian will know more
than what an expatriate manager can learn in years on the job. The success of some foreign firms
in India may be attributed to effective integration of the local IJV managers into the “global
family”.

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