Japan’s Global HR Functions

Motivation, Training, and Development of Foreign Labor Force

Team 6February 15th, 2016

IntroductionCompany focus: btrax, Inc.• Founded in 2004• Assisting in various factors to understand how to conduct

business in Japan• Evaluation of Japan’s 6 key country factors

1. Economic2. Political 3. Legal4. Social5. Cultural6. Ethical

• Proposal to motivate, train, and develop the foreign labor force• Recommendation and implementation

Economic Factors • Economic and Financial Conditions• Export based Economy• Third Largest Economy

• Currency Value• Japan’s currency is the YenGraph Source: https://www.google.com/search?q=Yen+currency+value&sourceid=ie7&rls=com.microsoft:en-US:IE-Address&ie=&oe=&gws_rd=ssl

• Major Economic Sectors of Employment• Automotive Industry• Electronics Industry

• Population Characteristics• Low birth rate• Aging population

Economic Factors cont.• Labor Force skills and availability• Decline in labor skills and availability

• Quality of labor• Cut back of full time employees

• Labor Productivity• Stalled productivity

• Infrastructure• Advanced Infrastructure

• Technology• Leading technological player

• Training and Development needs• Continuously trained employees

• Benefits and Risk

Political Factors • Political Factors and Risks• Constitutional monarchy • Bureaucrats vs. Politicians

• Government Policies on foreign Investment• Welcomes foreign investment• Lower restrictions

• Taxation• Progressive taxation for employees• Lower corporate taxation

• Preferences• Doing business face to face

• Restrictions• Language challenge• Resistance to mergers and acquisitions

• Incentives for Business• Tax breaks

Legal Factors

• Legal System and Conditions• Adopted the Japanese Constitution after WWII; heavily

influenced by Western culture

• Labor Laws• The Japanese Labor Laws were constructed between 1945

and 1955; ensure workplace standards

• Employment Regulations on Hiring and Firing Local Workers• LTER

• Labor Unions• Company based long term relationship with all employeesKanagy, R. (2004). Living abroad in Japan. Emeryville, CA: Avalon Travel.

Tsuneki, A., & Matsunaka, M. (2011). Labor relations and labor laws in Japan. Pacific Rim Law & Policy Journal Association, 20(3), 529-561.

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Legal Factors

• Mandatory Benefits• Vacation and Health Insurance Regulations• Japan's health system; National Health Insurance System

• Workplace Safety Laws• Industrial Safety and Health Act

• Environmental Safety Regulations • Basic Environment Law

• Laws on Foreign Business Investors• Foreign Exchange and Foreign Trade Act

• Minimum Wage LawsILO/ARPLA Regional Seminar on Administration of Minimum Wages/Laws, & Asian and Pacific Regional Centre for Labour Administration. (1990). Minimum wage laws and administration: The widening gap . Bangkok: International Labour Organization, Asian and Pacific Regional Centre for Labour Administration.Kanagy, R. (2004). Living abroad in Japan. Emeryville, CA: Avalon Travel.Ray, R., Sanes, M., & Schmitt, J. (2013). No-vacation nation revisited.Center for Economic and Policy Research .Tatara, K., & Okamoto, E. (2009). Japan. Health system review. Health Systems in Transition,11(5), xvii-164. United States. Government Accountability Office. (2008). Foreign investment: Laws and policies regulating foreign investment in 10 countries: report to the Honorable Richard Shelby, Ranking Member, Committee on Banking, Housing, and Urban Affairs, U.S. Senate . Washington, DC: United States Government Accountability Office.United States. Government Accountability Office. (2008). Foreign investment: Laws and policies regulating foreign investment in 10 countries: report to the Honorable Richard Shelby, Ranking Member, Committee on Banking, Housing, and Urban Affairs, U.S. Senate . Washington, DC: United States Government Accountability Office.

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Social Factors• Class Structure• 90% consider themselves middleclass citizens• 4 tiers of work class structure

• Religious/Ethnic traditions• Confucianism

• Long term verse short term orientation• No direct effect on business or workplace

• Shinto- respect to nature• Buddhism/Zen

• Social Conflicts• Social differences

• Discrimination in employment, education, and marriage

Social Factors cont.• Distribution of workers in four mega sectors

Cultural Factors• Cultural Traditions• “Genki” • “Gambatte”• Nonverbal behavior/cues

• Workplace Behavior• Punctuality • After work functions

• Performance management• Collectivist culture• Group performance appraisals• Bonuses/raises based on how the business is doing as a whole

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Cultural Factors cont.Where does Japan fall under Hofstede's Cultural Dimensions? • Large Power Distance

• “mechanical culture”• Managers give detailed instructions to employees • Concentrated power at the top (regulated by few)

• Collectivist Culture• Less freedom for employees to think creatively in the workplace• Reluctance to diversity and variety• “tight culture”• Highly loyal to company

• High Uncertainty Avoidance• Follows company rules and regulations • Security is the motivator

• Highly Masculine• Performance driven • Takes risks to achieve goals

Ethical Factors

• Ethical Values, Norms, and Practices in Conducting Business in the Host Country Related to:• Negotiating Contracts• Building Supplier and Client Networks • Business cards

• Working with Government Agencies • Managing Labor and Employee Relations

• Developing and Expediting Business Transactions• Long-lasting relationships• Face to faceAsian Productivity Organization. (2014). Manual on labor-management relations: Japanese experiences and best practices. Tokyo, Japan:

Author.Hahn, E. J. (1983). An overview of the Japanese legal system. Northwestern Journal of International Law & Business, 5(3), 517-539. Sakurambo. (2006, November 26). Meishi-example. Retrieved February 12, 2016, from https://en.wikipedia.org/wiki/File:Meishi-example.svg

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Figure 1. Meishi (Wikipedia)

Training and Development Proposal

Tier-Based Training• Specific and targeted; develops desired leadership skills at pre-determined

intervals or in conjunction with promotions• Upon hire

• Impart knowledge of corporate culture through team-building with experienced employees; encourage the formation of mentor/mentee relationships

• Self-management skills - goal setting, time management, and stress management• Six months

• Begin building the foundation for leadership through the development of presentation skills, meeting management, and project management

• One year • Reinforce previous training and tailor new training to the employee’s role; introduce concepts such as

delegation and giving feedback from a leadership perspective• Three years

• Encourage the utilization of aforementioned leadership and teamwork skills while maintaining a mentor/mentee relationship with more experienced employees; offer opportunities to take on a mentor role with new hires

• Five years • Prepare the employee to assume a formal leadership role within the organization.

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Training and Development Proposal

• Modeled after actual universities• Employees attend lectures and complete homework assignments• Courses culminate with the submission of a graduation thesis• Employer and employee initially share the cost of the courses, with the agreement that

the employee will be reimbursed upon completion

• Elective courses go beyond the improvement of individual specialty and management skills• Directed toward overall corporate goals and capabilities• Improves skills that impact the entire value chain• Creates an environment in which shared purpose and a sense of community can thrive• Provides a forum for the exchange of knowledge and information among peers

Corporate University

MotivatorsKey elements that drive the Japanese workforce

• Intrinsic• Company growth

prospects• Job advancement • Amount of responsibility• Challenging work• Sense of achievement• Company brand• Work/job recognition• Self-growth

• Extrinsic• Interpersonal

relationships• Quality of supervision

and leadership• Employee empowerment• Job security• Salary• Working conditions• Fair evaluation

Motivation ProposalProven tactics to motivate a Japanese workforce

• Employee Engagement – Demonstrate how each position ties to the company’s goals

• Respect the individual – Design rewards based on personal preferences

• Recognition – Ensure that rewards are specific and timely • Empowerment – Trust employees to act in the best interest of

the company• Communication – Utilize meetings and newsletters to

distribute information about the direction of the company• Learning – Provide opportunities for employees to increase

knowledge and abilities • Socialization – Encourage team bonding through various

‘extracurricular’ activities

References• BBC. (2015). Concern as Japan’s 2014 birth rate falls to record low. Retrieved from: http://

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• Focus Economics. (2016). Population in Japan. Retrieved from: http://www.focus-economics.com/country-indicator/japan/population

• Globis Group. (1998). GLOBIS to Launch Full-Fledged Corporate University Business – Design and Operation of Corporate University Signals Move Toward Genuine Organizational Reform. [Press Release]. Retrieved from: http://www.globis.co.jp/en/news/release/19980825_gol.html

• Gov.uk. (n. d.). Overseas Business Risk – Japan. Retrieved from: https://www.gov.uk/government/publications/overseas-business-risk-japan/overseas-business-risk-japan

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Business, 5(3), 517-539. Retrieved from: http://scholarlycommons.law.northwestern.edu/cgi/viewcontent.cgi?article=1151&context=njilb

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http://www.transitionsabroad.com/listings/work/articles/working-in-japan-the-japanese-workplace.shtml• Kanagy, R. (2004). Living abroad in Japan. Emeryville, CA: Avalon Travel.• Khaosan, V. (November 18, 2015). Global Economic Outlook: Japan, US Dollar. Retrieved from:

https://www.cryptocoinsnews.com/global-economic-outlook-japan-us-dollar/• Kopp, Michelle. (2011, October 17). Motivating Japanese Subordinates. Japan Intercultural Consulting. Retrieved

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• Ray, R., Sanes, M., & Schmitt, J. (2013). No-vacation nation revisited.Center for Economic and Policy Research. Retrieved from: http://archive.digtriad.com/assetpool/documents/130524021601_US-No-Vacation-Nation.pdf

• Sakurambo. (2006, November 26). Meishi-example. Retrieved February 12, 2016, from: https://en.wikipedia.org/wiki/File:Meishi-example.svg

• Sonoda, Nobuhisa. (2014, June 27). How Japan’s Innovative Training Could Increase Your Employee’s Skills. Retrieved from: http://its-innovative.com/blog/japans-innovation-training-could-increase-your-employees-skills/

• South China Morning Post. (5/24/2015). Japan offers infrastructure aid while its own house is in complete shambles. Retrieved from: http://www.scmp.com/comment/insight-opinion/article/1807841/japan-offers-infrastructure-aid-while-its-own-house-complete?page=all

• Stevens, C. R.. (1972). Japanese law and the Japanese legal system: Perspectives for the American business lawyer. The Business Lawyer, 27(4), 1259–1273. Retrieved from: http://www.jstor.org.proxy.lib.wayne.edu/stable/40685002

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164. Retrieved from: http://www.euro.who.int/__data/assets/pdf_file/0011/85466/E92927.pdf• The Japan Times. (6/5/2015). Job numbers up, but not quality. Retrieved from:

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Journal Association, 20(3), 529-561.• Twomey, B. (January 11, 2010). Tankan Survey Provides Clues to Japanese Economy. Retrieved from:

http://www.investopedia.com/articles/economics/10/tankan-survey.asp• United States. Government Accountability Office. (2008). Foreign investment: Laws and policies

regulating foreign investment in 10 countries: report to the Honorable Richard Shelby, Ranking Member, Committee on Banking, Housing, and Urban Affairs, U.S. Senate. Washington, DC: United States Government Accountability Office. Retrieved from: http://www.gao.gov/new.items/d08320.pdf

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• Worthley, R., MacNab, B., Brislin, R., Ito, K., Rose, E. (2009). Workforce motivation in Japan: an examination of gender differences and management perceptions. International Journal of Human Resource Management. 20(7), 1503-1520. doi 10.1080/09585190902983421

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