International Hrm Japan

Japan is located in the continent of Asia and known as the world's third-largest economy (“Japan Country Profile”, 2018). Unlike most countries in the Asian region, Japan has four distinct seasons. The historical background of japan is quite interesting as a country that has been isolated from the outside world since its inception, until the 1500s when missionaries and merchants began to arrive from Europe. Since then, Japan continues to develop and to date has become an economic and technological powerhouse (“Brief History of Japan”, 2018). Japanese people are not too familiar with English since there are just a few immigrants from western countries. This country also has a diverse and interesting culture, where the locals are able to change in line with millennial tred and mode without eroding the old traditions and culture. Harmony is the key value in Japanese society as a guiding philosophy within the scope of business, family and in society as a whole. This system is then applied on their work environment by focusing on group work. The working system is based on good relationships between instruments within an organization. In addition, the workplaces in Japan are more formal and has long working hours compared to other Asian countries that are mostly casual with shorter working hours.

Organizational Design

Before assigning asignee to work in Japan, it is necessary to first understand the cross-cultural communication aspects contained in that country. Refers to the existing of 5 dimensions; power distance, individualism vs. collectivism, masculinity vs femininity, uncertainty avoidance and long term orientation, Japan and Singapore have significant differences. Japan is a borderline hierarchical society, which very conscious of their hierarchical position in a social order. This has an impact on decision making that tends to be slow because all the decisions must be confirmed by each hierarchical layer before reaching the top management (Harada, 2017). Power distance in Japan itself is not so high because Japanese society upholds equality. Japanese society shows collectivistic and masculinity society by embracing a group mentality with a competitive spirit. Japan is one of the most uncertain avoiding countries on earth (Harada, 2017), since natural disasters often occur, and also known has high future orientation. They encourage thrift and efforts in modern education as a way to prepare for the future (Harada, 2017). On the other hand, Singapore has higher power distance. This is because Singapore adheres to the belief in stability of society based on unequal relationships among people. Not much different from Japan in terms of work environment, Singapore society relies on group work as well, although they are value and encourage softer aspects of culture more such as leveling with others, being modest and humble. Singapore also considered as one of the country with the lowest uncertainty avoidance and has long vision for fututre orientation. Based on all dimensions analysis on Singapore and Japan, also aligning the objectives of sending assingnee to work overseas, it can be determined that the most suitable organizational design to be applied at Japan subsidiary is a divisional organization structure which this structure works by dividing divisions on the basis of product, region (geographical), the process or equipment. Each division can operate independently under the direction of a division manager, who is directly responsible to the CEO, so that coordination between functions in each position becomes easier. In a divisional organizational structure, division managers can develop strategies for each division. These divisions can be a good place to train young managers and it is also a good place to develop entrepreneurial intuition and increase a number of initiative centers within a company. This structure also allows the processing of multiple tasks in a parallel way and allows diversification of skills or cross functional skills.

Staffing Process

The staffing process can be seen as a series of activities which carried out continuously, to maintain the personal needs of organizations with the right people in the right positions and at the right time. In staffing policy, there are three approaches that can be used which are ethnocentric approach, polycentric approach, and geocentric approach. In this case, the approach that will be applied is an ethnocentric approach. The ethnocentric approach fills the management position with workers from the country of origin of the company or expatriates. The aim is to maintain competitiveness by carrying out structural standardization and operational control so that the quality of production and performance of the operational units are maintained according to the wishes of the directors as the strategy makers (Tiwari, 2013). This approach could train expatriates in honing their skills in the field of international business, by getting to know and understand various cultural cultures as well as the wishes and expectations of local consumers towards the company.

Recruitment

Recruitment is the first step taken by the company to attract and seek human resources in accordance with the qualifications required by the company. The most suitable recruitment for overseas assignments is internal recruitment. As a company that has an outstanding reputation in Singapore, certainly it takes people who already know the ins and outs of the company and can fully commited to the company. To carry out internal recruitment, there are several activities that can be done including succession plans, open offers for one position (job posting), assistance to workers, groups of temporary workers, promotions and transfers. Internal sources include employees who are currently working and can be nominated to be promoted, transferred or reassigned, and former employees who can be re-employed. Useful tools used for internal recruitment include employee databases that can be used to search for talent internally and support the concept of promotion from within, job announcement procedures and job submissions (Gusdorf, 2008).

Selection

The next stage after recruitment is the selection process. The selection process is a very important stage in human resource management, by choosing and getting the best candidates to fill vacant positions and do the work needed, the organization will get employees who are high-performing and of good quality (Corniuk, 2016). In this case, selection can be done using several supporting tools. The first selection tool is background checks. Background checks cover more than just the search of criminal record, because the company has responsibility for the safety of its employees and customers. Background checks include checking previous work, every award or certification registered and references. The next selection tool is personality inventory. This personality test is very important, with the aim to measure the honesty of prospective employees and their mental stability. The last tool is behavioral analysis. This tool helps the company to provide insight into how employees will think and behave.

Training and Development

Training and development has an important role in determining the effectiveness, efficiency of the company and employee performance. Training and development is more focused on improving the ability and expertise of the expatriate related to the position or function which is the responsibility of expatriate. When an employee has been chosen for an expatriate position, training before departure is considered as an important step to ensure the effectiveness of expatriates and the success of their work abroad. Effective cultural training also allows individuals to adapt to the new cultures faster. Pre-departure training that contributes to the smooth transition to other countries, includes cultural awareness training, initial visits, language instructions, and practical assistance.

Cultural Awareness

Cultural awareness training programs need to be well designed, to foster an appreciation of the host country culture so that expatriates can behave accordingly, or at least imitate and develop appropriate patterns. The component of the cultural awareness program depends on the country of origin, duration and the purpose of the international assignment.

Initial Visits

One technique that is useful in orienting international employees, is to send them on initial journey to the host countries. A well planned trip abroad for expatriate candidates, provides a possible review to assess their suitability in the assignment. The trip serves to introduce expatriate candidates to a business context at the host country and help them to do a proper preparation before their departure to international assignment.

Language Instructions

The ability to speak a foreign language can increase the effectiveness of expatriates and negotiation skills. In this case, it is very important for expatriates to learn Japanese, since Japanese people are not very fluent and familiar with English. expatriates also need to understand the company's general language as a form of standardization of reporting and other control mechanisms, especially normative control.

Practical Assistance

Practical help makes an important contribution towards the adaptation of expatriates and their families to their new environment. This practical assistance will be provided by the personnel department in the host country.

Besides planning pre-departure training, it is also important to consider the repartiation process. The repatriation process can be divided into four related phases:

Preparation, involves developing plans for the future and getting information about new positions. Companies can provide a checklist of things to be considered before returning to their home country (such as closing bank accounts and settling accounts or preparing others for the return of employees and families to the country of origin);

Physical relocation, referring to the transfer of personal influences, breaking ties with colleagues and friends and moving to the next position, usually the country of origin;

Transition, means occupying accommodation where necessary, making arrangements for housing and school and completing other administrative tasks ( such as renewing a driving license, opening a bank account, registering for health insurance); and

Re-adjustment, involves overcoming aspects such as company changes, culture shock, and career needs.

Remuneration and Compensation

In the process of implementing international assignments, it is closely related to remuneration and compensation. Consideration in making and calculating the value of compensation that will be given to foreign workers, depending on various aspects such as legal diversity, living costs, taxes and other factors. Compensation that given to expatriates are varies with key components which are basic salary, foreign service inducement / hardship premium, allowances, and benefits. The application of remuneration and compensation for expatriates who are sent to Japan, is supported by the balance sheet approach. this approach system is designed to equalize the purchasing power of employees at the level of life abroad with positions that can be compared with the country of origin and provide incentives to compensate for qualitative differences between assignment locations. This approach links the basic salary with the relevant state salary structure. In this balance sheet approach, there are four main categories of expenditures imported by expatriates, which are:

1. Goods and services - expenses of the country of origin for things such as food, personal needs, clothing, household equipment, recreation, transportation and health care.
2. Housing - the main costs associated with housing in the host country.
3. Taxes on income tax on the parent country and host country.
4. Contribution to savings, allowances payments, pension contributions, investments, expenses for education, social security taxes, and others.

The cost of living in Japan is not much different from the cost of living in Singapore, since both are known as big and advanced countries. This is also caused by Singapore's exchange rate against Japan for only S$ 0.012. The concept of housing in Japan can be said to be in the same category as Singapore, with a monthly rent payment system ranging from S$2,000 - S$3,000, depending on the area and type of unit. Japan also has transportation facilities as well as Singapore with convenient and regular public transportation facilities. Related to daily needs, this is adjusted to the consumption and needs of each expartite. By looking at important aspects of the cost of living in Japan, it can be determined that each senior executive will receive a total remuneration and compensation package of approximately S$492,000 per year, including a basic salary of around S$15,000 per month along with other benefits and allowances.

Conclusion

In the process of sending employees to do overseas assignments, careful and well-structured planning is needed. Beginning with finding information about the subsidiary state related to social aspects, customs, culture, environment and work style applied there, in this case in Japan. Japan and Singapore have different cultural dimensions. This affects the right organizational structure for divisional organizational structure. This Japanese subsidiary organizational structure works on the division of divisions based on the same product. In its work process, the subsidiary is under the direct control of headquater in Singapore. In the selection of candidates for this foreign assignment, it has been determined that it will be carried out through an ethnocentric and internal recording approach, so that expatriates can be found committed to the company. After going through the staffing process, the next step is to prepare pre departure training which includes cultural awareness training, initial visits, language instructions, and practical assistance. In addition to pre-departure training, it is very important to support the repatriation process which includes financial management, re-entry schock and career management. For the determination of remuneration and compensation for expatriates, this is adjusted to the cost of living in the host country and the needs of each expatriate.