International human resource management (IHRM) basically focuses on covering the large or wider aspect of the human resource management function. It basically focuses on managing the challenges faced by the manpower in the international marketplace. Along with this, IHRM also manages the certain external factors related with rules and regulations of the government of foreign country (Hendry, 2012). The present report basically focuses on measuring the different culture among the different nations that is JAPAN TOKYO and AUSTRALIA with the help of using hofstede cultural model. Along with this, it also focuses on the gaining insight knowledge regarding the IHRM challenges that is faced within the region.
In order to manage the international human resource management Hofstede cultural dimension must be applicable within the organization. With the help of using this framework it focuses on describing different cultural and values existing within the society. Along with this it would also focuses on influencing the activities and behavior with the change in different cultural values (Harzing and Pinnington, 2010). The theory is widely used in the different field such as international management, cross cultural communication etc. there are different dimensions of national cultures that mainly include Power distance index, Individualism vs. Collectivism, Uncertainty avoidance index, Masculinity vs. Femininity, Long term orientation vs. Short term orientation and the last dimension is Indulgence vs. restraint. All the dimensions are contrasting with each other that is the foremost dimension is power distance index that clearly showcase the high power and low power. The high power indicates that there is clear hierarchy established in society (CHUANG and Liao, 2010). On the contrary to this, lower power indicates that there is less authority. Another dimension is Individualism vs. Collectivism that mainly emphasis on the aspect of I vs. we. Another dimension is Uncertainty avoidance index that showcase that if society score high then it indicates that there are high level of grounded rule and regulations within the society. On the other hand, low score indicates that there is high acceptance of the differing thoughts within the society. Another include Masculinity vs. Femininity under masculinity society accept for the heroism and assertiveness (Alfes, Shantz, Truss and Soane, 2013). On the other hand, in Femininity it focuses on the feminism society that is caring view as they perceived women are more emphatic. Another dimension includes Long term orientation vs. Short term orientation under this there is low level of index that ensure traditional aspects are taken into the consideration. On the other hand, there is high level it indicates new problem solving method is used.
This cultural theory mainly focuses on measuring the different culture values of two nations that are distinct from each other that is JAPAN (TOKYO) AND AUSTRALIA. With the help of this cultural model it has been assessed that as compare to Australia Japan Tokyo has high ratio within the power distance index that clearly showcase that in Japan has more power than the other country (Wright and McMahan, 2011). On the other hand, it has been clearly indicated that Australia has high individualism that is they prefer to be alone or individual as compare we being in the group. Australia score 90 while the Japan scores 46 in the score that ensure collective society in which the individually effectively expressed their opinion and thoughts. On the contrary to this, another dimension within the model is masculinity that indicate Japan has score 95 that indicate masculinity society within the world. On the other hand, Australia scores 61 within the model that indicates less masculine society that clearly indicates working in the group as compare to the individual (Lengnick-Hall, Beck and Lengnick-Hall, 2011). Another dimension within the model is uncertainty avoidance that is how the society would deals with assessing the culture it has been assessed that Japanese is consider as the most uncertain nation that scores 92 that is lower than the Australia. Along with this it is assessed that Japanese market has high risk of uncertainty avoidance that is consider as one of the vital reason that do not engage in any sort of change activities within the region.
If the organizations operating their business in JAPAN (TOKYO) AND AUSTRALIA where culture of both the nations have different in nature then they will get various opportunities. Explanations of these benefits for the companies are as follows:
Compliance with international regulations is referred to be a foremost challenge in both chosen nations of Japan and Australia where HRM is considered to play the most strategic role in an organization. It is where they are hereby referred as a direct accountable bodythat are required to handle the appointed staff members of the organization along with dealing with their other related issues and conflicts, etc. Compliance management comes under their functionalset of responsibility into which they are required to frame certain strategic policies for the organization as a way of handling the people and their work (Bratton and Gold, 2012). This section is however in consideration to maintain and adhere by the international policies of different nation where todays trade activities are continually extendingtheir business. It is with a need base consideration of surviving in todays contemporary set of business that is depicting a rising state of globalization. This in turn has led to intensify the contending sense of operation in the established business organizations with a need base concern of expanding it to a larger extent.
This in turn has made a direct impact on the deputation procedure of recruitment and selection (R&S) that is mainly governed by the HRM bodies in the enterprises of both designated countries named Tokyo and Australia. This is for instance to state a factual illustration of such hiring where an Australian business is apparent to enlarge their business in Tokyo (Guest, 2011).It is with a similar consideration of Japanese companies where they are also apparent to extend their businesses in Australia as a mean of raising their profits with an expanded set of market. In context to which, deputing employees who is are nonresident to Australia and Japan, then the HRs are hereby required to follow a through procedure of documentation. This is basically to transcribe the passport and visa of those candidates. This is basically to be well informed about the legal proceedings of the nation to fulfill the requisite clauses of business operations and alleviate the complexity. Additionally, the HR personnels are together required to adopt newer set of labor laws along with different taxation policies, etc., that is evident to impact upon their adopted policies of wages as well.
Another vital challenge in this particular field of HRM is in context to specify a prime maintenance of a diversified workforce where the HRM personnels of both the countries are hereby evident to employ different set of workers from the preceding challenge. It hereby necessitates the HR personnels of their respective organizations to make diversified hiring of individuals who belongs from different cultural and topographical backgrounds (Mathis and Jackson, 2011). This often tends to create a disputed context among such diversified workforce where they are often not contented with one others distinct set of views. It is therefore depicted to be another spectacular issue in the forum of international business where a prime interpretation of varied culture is important for the HR personnels of the organization. It is with a fundamental sense of maintaining the diversified culture of the establishment where they can also edify their employees about the same.
Operating with individuals who belongs to different ethnic background necessitates them to adopt different work style that matches with the ongoing perception of their markets as a mean of corresponding to the some newer ideas and ways of communication. It is along with another prime measure of referring to suchunfamiliar practices that areprevailing in the newer marketplace and depicts their diversified socio- cultural norms (Jiang, Lepak, Hu and Baer, 2012). This is for instance to specify a factual illustration of hiring employees in Japan who belong to Australian ethnicity might have distinct view about the work handling procedures that are being adopted by the HR in their state. It is therefore important for the HR personnels of Japan to carry an open mind set about adapting newer style of work.
Another foremost challenge for HRM is in context to handle the backbone of todays modernized business environment where they are hereby required to carry such policies of benefits and compensations that carries a plentiful outlook for the employees.This is basically to focus upon the work life balance of the employees who are belonging to diversified locations and may carry a distinct perception than the authorized officials of the organization(Ulrich, 2013).A pertinent indication of benefits and compensations is to give a developmentalscope to the employees where they are also required to arrange timely sessions of training and development for them.
This report has illustrated a precise context of international human resource management wherein it is segregated in three vital parts. The foremost section has depicted a leading culture of global organizations named as Hofsted culture. Another section of this report has defined distinct opportunities that can be acquired by the organizations of both elected states named Japan and Australia when they can interchangeably operate in one others diversified structure. Lastly, it has also represented some leading challenges that are being faced by the organizations while operating with a diversified workforce of both these nations.
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