Solving the Labor Dilemma in a Joint Venture in Japan
FDI is seen as a major contributor to global growth and development spreading the benefits of capital, technology, management expertise, jobs, and wealth to just about every corner of the world.” (Daniels, et al, 2009, p.189) It is because of Johnsco’s desire to expand into the international marketplace through investment in a electronics plant in Japan that I have carefully examined the issues John has brought to my attention and report on below relative to critical staffing issues being faced.
While it is a relatively small organization at this point in time, it is none-the-less an organization and as such it appears to have had no HRM (human resource management) plans or strategies in place to address its expansion into Japan. “An HR department is typically created when the number of employees reaches 200-500” (Ivancevich, 2010, p. 14), Johnsco has 300 employees currently and with the expansion into the Japanese marketplace this number will obviously increase. “The HRM strategies must reflect clearly the organization’s strategies regarding people, profit, and overall effectiveness”. (Ivancevich, 2010, p. 8) Johnsco’s staffing problems are a true indication that recruitment has not been a primary focus of the company in this venture and it is also apparent that not enough research had taken place prior to signing the agreement to expand overseas. “ The importance of recruiting, selection, training, developing, rewarding, compensating, and motivating the workforce is recognized and practiced by managers in every unit and functional area of an institution.” (Ivancevich, 2010, p. 9) It is possible that there have been current changes in the environment such as shifts in the composition, education, and attitudes that have caused this critical labor shortage but putting an effective HR department in place will help alleviate these problems in the future for both the Stateside operation as well as the overseas operation. (Ivancevich, 2010, p. 9) Three
While it is a relatively small organization at this point in time, it is none-the-less an organization and as such it appears to have had no HRM (human resource management) plans or strategies in place to address its expansion into Japan. “An HR department is typically created when the number of employees reaches 200-500” (Ivancevich, 2010, p. 14), Johnsco has 300 employees currently and with the expansion into the Japanese marketplace this number will obviously increase. “The HRM strategies must reflect clearly the organization’s strategies regarding people, profit, and overall effectiveness”. (Ivancevich, 2010, p. 8) Johnsco’s staffing problems are a true indication that recruitment has not been a primary focus of the company in this venture and it is also apparent that not enough research had taken place prior to signing the agreement to expand overseas. “ The importance of recruiting, selection, training, developing, rewarding, compensating, and motivating the workforce is recognized and practiced by managers in every unit and functional area of an institution.” (Ivancevich, 2010, p. 9) It is possible that there have been current changes in the environment such as shifts in the composition, education, and attitudes that have caused this critical labor shortage but putting an effective HR department in place will help alleviate these problems in the future for both the Stateside operation as well as the overseas operation. (Ivancevich, 2010, p. 9) Three
References: Daniels, J., Radebaugh, L., & Sullivan, D. (2009) International Business: environments and operations, 12th Edition, New Jersey: Pearson Education Dianah Worman, "Is there a business case for diversity?." Personnel Today (May 17, 2005): 27. General OneFile. Gale. Empire State College SUNY. 5 Feb. 2008 Ivanevich, J., (2010): Human Resource Management 11th ed. McGraw-Hill Companies, NY, NY Japanese Labor Standards Act (1947), page 5