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Cultural Clash-a Labor Relation Epidemic at Shiowa Industries

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Cultural Clash-a Labor Relation Epidemic at Shiowa Industries
CASE STUDY TOPIC
Cultural Clash– A labor Relation Epidemic At Shiowa Industries

CASE STUDY QUESTION 1. Drawing on the typologies of cultural differences discussed in the tutorials, discuss why Showa Industries has experienced HR difficulties at its Hamburg plant. Why might managers have assumed Germany to have been a good “fit” for the company?

In the case of Shiowa Industries, HR difficulties stems mainly from the assumption that the similarities are without cultural differences, and believed that Shiowa 's organizational culture can override national cultural differences, and that Shiowa 's HR Practice, deployed in other South-East Asian countries, like China, where Shiowa has presence in, can be duplicated.
Shiowa 's management believed that the high levels of productivity which Shiowa achieves, particularly with its Western competitors, is partly a question of culture which reflects the inculcation of traditional Japanese values in its workers. This assumption resulted in the full export of their Japanese work values into the highly efficient German work culture (German unions, work councils and co-determination regulations[1]) without due consideration of what the differences might be, much less planning ahead to address them.
Upon examining both countries’ cultural differences, the following factor differences were identified:-

1 Communication

English is the only common language used between the Japanese and the Germans, as it is not common practise to acquire the German language in Japan or vice versa. While the senior management might not have faced challenges communicating in the English language, the same can 't be said about middle managers and production supervisors, whose English if often mediocre at best. In most cases, the Japanese will become nervous and withdraw from a conversation to avoid being embarrassed further[2]. This pose a serious problem in technology/knowledge transfer, understanding of rules and regulations,



References: Bean, R. (1994). Comparative Industrial Relations: An Introduction to Cross-national Perspective, 2nd edition. Cooke, W. N. (2003). Multinational Companies and Global Human Resource Strategies. Dore, R. P. (1973). British factory, Japanese factory: The origins of national diversity in industrial relations. Greg J Bamber, R. D. (2011). International & Comparative Employment Relations, Globalization and change. James R. Lincoln, H. R. (2010). Japanese Companies in Germany: A Case Study in Cross-Cultural Management. John T. addison, C. S. (1995). German Industrial Relations: An Elusive Exemplar**. Kathleen Thelen, I. K. (2001). The Future of Nationally Embedded Capitalism: Industrial Relations in Germany & Japan . Knezevich, S. J. (1973). Management by objective and results: a guidebook for today 's school executive. P. N. Singh, N. K. (2011). Employee Relations Management. Peter Vink, E. A. (1998). Human Factors in Organizational Design and Management VI. Richard M. Steers, C. J. (2010). Management Across Cultures: Challenges and Strategies. Ronald J. Gilson, M. J. (1997). Lifetime Employment: Labor peace and the evolution of Japanese corporate governance. Rüdiger Pieper, d. G. (1990). Human Resource Management: An international comparison. Thomas B. Lifson, H. T. (1981). Mitsubitshi Corporation. [11] Codetermination in Germany is regulated by the Co-operative Management Law (1951), amended in 1976, and the Workers’ Committee Law (1952), amended in 1972. (Wikipedia) [12] In Germany works council are restricted by “peace obligation”

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