{"id":2437,"date":"2021-05-24T08:03:04","date_gmt":"2021-05-24T06:03:04","guid":{"rendered":"https:\/\/career-management.de\/en\/?p=2437"},"modified":"2024-03-06T10:08:36","modified_gmt":"2024-03-06T09:08:36","slug":"local-hr-development-strategies","status":"publish","type":"post","link":"https:\/\/career-management.de\/en\/blog\/local-hr-development-strategies\/","title":{"rendered":"Local HR Development Strategies of Japanese Companies in Germany"},"content":{"rendered":"<p><span style=\"font-weight: 400\">When the Japanese economy swept over the world market and many Japanese companies expanded overseas, plenty of papers addressed the topic of Japanese management policies &#8211; many favorably. However, among these, some critical opinions were also expressed, one such regarding the topic of the development of host-country nationals (HCN) in Japanese multinational companies.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">In\u00a0 &#8220;New challenges for Japanese multinationals&#8221;, Bartlett and Yoshihara, professors at Harvard and Kobe University respectively, point out that the weakness of Japanese multinational companies is that the management of the overseas branches lies on people from the home country (i.e., Japan). This method which neglects HCNs is not sustainable (Bartlett and Yoshihara, 1988).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Today, thirty years have passed since Bartlett\u2019s and Yoshihara\u2019s warning, the Heisei era (1989-2019) has come to an end, and we have entered the Reiwa era (from May 2019). How has the aforementioned issue of the multinational companies\u2019 development of host-country nationals progressed? This text will explain the present situation of Japanese multinational companies\u2019 strategies to promote HCNs with those situated in Germany as an example &#8211; where more than 1500 Japanese companies have emerged.<\/span><\/p>\n<h2>Trends in the development of host-country nationals and initiatives by multinational companies<\/h2>\n<p>As the phrase \u201cthe war for talent\u201d suggests, multinational companies are engaged in a fierce battle for capable human resources; a rivalry for talent that has recently crossed national borders.<\/p>\n<p>Multinational companies have abandoned the style they\u2019ve been employing thus far, i.e. the traditional headhunting, and have begun to acquire and develop excellent personnel with the long-term promotion of internal capable human resources as a foundation of their HR strategy.<\/p>\n<p>Such a long-term human resources development policy is called \u201ctalent management\u201d, and when it applies not only to employees in the home country but also to human resources at local branch offices, it is called \u201cglobal talent management\u201d.<\/p>\n<p><span style=\"font-weight: 400\">The objective of talent management is to secure key future talent &#8211; particularly executives and leader candidates. To be able to achieve this, the initiatives listed below are generally employed:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Recruitment, staffing, and succession planning (HCN recruitment strategy)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Training and development (HCN development strategy)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Retention management (countermeasures against HCN turnover)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">These strategies go hand in hand. For example, an attractive talent development program can directly reduce staff turnover and encourage new hires.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Most corporations with headquarters in the US focus on these initiatives and are recognized for their internal leadership development programs, but other multinational companies such as Samsung and Toyota (and those listed below) can also be mentioned.\u00a0<\/span><\/p>\n<figure id=\"attachment_2438\" aria-describedby=\"caption-attachment-2438\" style=\"width: 568px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2438\" src=\"https:\/\/career-management.de\/en\/wp-content\/uploads\/sites\/14\/2021\/05\/dddd.png\" alt=\"\" width=\"568\" height=\"316\" \/><figcaption id=\"caption-attachment-2438\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/www.consultancy.uk\/news\/1028\/hay-group-the-20-best-global-companies-for-leadership\">20 Best global Companies for Leadership<\/a>\uff08Hay Group, 2014\uff09<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400\"><br \/>\nThis kind of strategy for training<\/span> <span style=\"font-weight: 400\">future managers already begins at the hiring stage, and similar to the diagram below, can be described as a human resources supply chain route (of sorts): hiring leads to the identification of executive candidates, followed by development and training, and lastly career planning.<\/span><\/p>\n<figure id=\"attachment_2439\" aria-describedby=\"caption-attachment-2439\" style=\"width: 708px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2439 size-full\" src=\"https:\/\/career-management.de\/en\/wp-content\/uploads\/sites\/14\/2021\/05\/cccc.png\" alt=\"\" width=\"708\" height=\"463\" \/><figcaption id=\"caption-attachment-2439\" class=\"wp-caption-text\">(DIagram, Grove 2007)<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400\"><br \/>\nSpecific host-country national development methods include initiatives like the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Temporary transfer to the head office, secondment, and training programs<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Leadership training<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">360-degree feedback<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Job rotation to branches in different countries<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Explanation of career development opportunities and clear programs<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Mentoring system<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Of course, the type of internal human resource development plan differs depending on the company, destination country, and the characteristics of the host-country nationals.<\/span><\/p>\n<h3>Current status of the development of host-country nationals and career advancement in Japanese companies in Germany<\/h3>\n<p><span style=\"font-weight: 400\">Although the development of host-country nationals and their career paths is starting to become a global trend, the situation is slightly different in the case of Japanese companies. <\/span><\/p>\n<p><span style=\"font-weight: 400\">In fact, such practical plans for HCN development are seldom carried out by Japanese companies. For example, according to data from 2010, only 25% of the managers in branches of multinational Japanese companies globally are locals. This can be compared to 80% of the managers of such British companies.<\/span><\/p>\n<p><span style=\"font-weight: 400\">As previously stated, a weakness of Japanese companies is the development of host-country nationals. This is often a reminder from the (post-world war II) Showa era (1926-1989).<br \/>\nParticularly, the <\/span><i><span style=\"font-weight: 400\">management of the local branch office by Japanese expatriates <\/span><\/i><span style=\"font-weight: 400\">has become one of the main hindrances to the acquisition and development of local human resources in Japanese companies, this is accompanied by <\/span><i><span style=\"font-weight: 400\">barriers to career advancement<\/span><\/i><span style=\"font-weight: 400\"> for these HCNs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">As will be explored later, for various reasons, there are many cases where Japanese companies have to rely on expatriates for management of local branch offices, which obstructs the development of host-country nationals.<br \/>\nThis barrier which doesn\u2019t allow (or makes it difficult for) non-Japanese to be promoted to managerial positions affects the motivation of HCNs negatively and is also a hindrance to the head office\u2019s HR\u2019s future plans for local human resource development. So, why do we have to rely on Japanese expatriates, and is there a solution to this problem?<\/span><\/p>\n<h3><b>Factors hindering localization of Japanese companies\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Firstly, one of the reasons why Japanese companies in Germany must rely on a system that emphasizes the presence of Japanese personnel is the actual cultural difference between the two countries in question; the magnitude of the cultural differences renders management of branch offices difficult. When control goes awry, confusion occurs, morale declines and may lead to the tragedy of the commons, and because of the loss of the unique culture and strengths of the headquarters, the leadership may strive to make the branch office\u2019s culture match that of the parent countries. The easiest way to mitigate these cultural differences is to dispatch expatriates and have them govern the branch.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">While this approach is easy, it often fails to dynamically develop and promote host-country nationals. Hence, a branch office often remains a mere &#8220;garrison of expatriates&#8221;, without<\/span> <span style=\"font-weight: 400\">any<\/span> <span style=\"font-weight: 400\">self-governing capabilities. <\/span><\/p>\n<p><span style=\"font-weight: 400\">As a result, although the head office would like to promote localization, the reality is that the risk of the head office\u2019s initiative failing makes it difficult for a drastic localization and promotion of the host-country nationals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Additionally, even if a German were to be appointed as manager of a branch office, the concern that communication with the head office would be problematic still remains. There are yet many cases where important internal resolutions and documents etc., are made and\/or written only in Japanese, which leaves little room in such situations for HCNs who do not understand Japanese.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2440\" src=\"https:\/\/career-management.de\/en\/wp-content\/uploads\/sites\/14\/2021\/05\/eeeee.png\" alt=\"\" width=\"571\" height=\"361\" \/><\/p>\n<h3>Japanese companies&#8217; initiatives to develop host-country nationals in Germany<\/h3>\n<p><span style=\"font-weight: 400\">There are some Japanese companies that have successfully overcome these barriers to host-country national development in Germany and that have been able to appoint local managers, and so forth, without any trouble.<\/span><\/p>\n<p><span style=\"font-weight: 400\">One such successful approach is the use of the \u201ctraining at the headquarters-method\u201d often used by American companies; among the locally employed personnel, particularly talented ones are transferred to the headquarters for a period of two to three years, in order to (as candidates for executive positions) learn the systems and methods of the headquarters. In the future, when they are at the top of the branch office, these employees can bridge the gap between the branch and the head office. <\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2441\" src=\"https:\/\/career-management.de\/en\/wp-content\/uploads\/sites\/14\/2021\/05\/eeaea.png\" alt=\"\" width=\"753\" height=\"390\" \/><\/p>\n<p><span style=\"font-weight: 400\">Additional cases also exist; there are for example various attempts to reduce the communication barriers between the head office and locally hired managers, such as having especially outstanding employees learn Japanese, or hiring people with a Japanese background (who have studied in Japan) as candidates for executive positions, etcetera.<\/span><\/p>\n<p><span style=\"font-weight: 400\">While some companies let their local managers learn the style of the head office in that way, more and more Japanese companies are also actively sending young Japanese to work overseas to get them<\/span> <span style=\"font-weight: 400\">used to the foreign way of doing things.\u3000<\/span><\/p>\n<p><span style=\"font-weight: 400\">Companies that have achieved a good balance between host-country national development and local management are characterized by a mutual approach; locally hired employees learn the head office style and Japanese employees learn the local style.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When the Japanese economy swept over the world market and many Japanese companies expanded overseas, plenty of papers addressed the [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/career-management.de\/en\/blog\/local-hr-development-strategies\/\">Read More&#8230;<span class=\"screen-reader-text\"> from Local HR Development Strategies of Japanese Companies in Germany<\/span><\/a><\/p>\n","protected":false},"author":20,"featured_media":6623,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[8],"class_list":["post-2437","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-hr-management"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/posts\/2437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/comments?post=2437"}],"version-history":[{"count":1,"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/posts\/2437\/revisions"}],"predecessor-version":[{"id":6624,"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/posts\/2437\/revisions\/6624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/media\/6623"}],"wp:attachment":[{"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/media?parent=2437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/categories?post=2437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/career-management.de\/en\/wp-json\/wp\/v2\/tags?post=2437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}