Research On The Localization Of Human Resource Management Of Japanese Enterprise In China

This paper mainly studies the localization of human resource management (HRM) in Japanese enterprises in China. With China's accession to the WTO, an increasing number of multinational corporations pay close attention to this emerging market. Meanwhile, a large number of Japanese enterprises come to China to establish branch offices, subsidiaries and joint ventures, and therefore their human resources strategy are being concerned. This paper starts from the relevant theory of HRM localization, elaborating the dialectical relationship between culture and management, as well as cross-cultural management theory and international HRM theory, thus building the framework of this research. Then, the author explores why today's multinational corporations place so much emphasis on HRM localization, and combined with Japan's unique corporate culture and management systems, pointing out that HRM localization is particularly important for Japanese multinational enterprises. Next, the paper put focus on Japanese enterprises in China and shows the status of HRM and the lag of HRM localization through data analysis. The main problems leading to the lag of HRM localization lie in: seniority system makes it difficult to be promoted; there exits a promotion cap called "glass ceiling" for Chinese employees; the level of salaries and benefits is uncompetitive; suppressed cultural differences make employees uncomfortable. In order to retain talents, reduce operating costs, overcome cultural differences and improve staff enthusiasm and creativity, Japanese enterprises must accelerate its HRM localization. Subsequently, the author put forward a series of practical tactics and suggestions for HRM localization. Firstly, hiring local employees and Sino-Japanese employees with cross-cultural background through various channels; secondly, establishing a fair and reasonable performance appraisal system as well as salaries and benefits system; thirdly, improving staff training and career planning; fourthly, regarding HRM localization as a long-term strategy for the promotion of cultural integration. Finally, two cases "NEC China" and "Mitsubishi Electric" are illustrated as successful practices of HRM localization of Japanese enterprises in China, hoping to provide reference for other Japanese enterprises' localization attempts.