COMPARATIVE ANALYSIS

OF HUMAN RESOURCE
PRACTICES IN CHINA AND
JAPAN
GROUP 1

INTRODUCTION
OLUBUSOLA ABIDAKUN

Historical perspective of HRM

Practices in China & Japan
Multinationals as Inter-Cultural Agents
One of the most relevant implications of comparative HRM research is to provide
managers, particularly those working in MNCs, with specific guidelines concerning how to
design and implement an effective HRM system when their business operations enter into
different cultural contexts. This notion has generated controversial yet critical topics of
discussion in comparative HRM, such as the debate on localization versus standardization,
and
the process of transferring HRM policies and practices across nations.

Labour Relations

The Chinese system follows the soviet model with the assumption that
there are no fundamental conflicts between the State, management and
workers. Trade unions should therefore act as a bridge or transmission
belt between the party and workers. In fact, trade unions are one type of
mass organizations, which help the communist party mobilize the
populace and ultimately, achieve the realization of a socialist state.
On the other hand, the Japanese system is akin to the Anglo American
model based on the assumption that conflicting interests exist between
capital and labour.

Collective bargaining
The Japanese legislative intent is to promote industrial

autonomy through collective bargaining by elevating the

position of workers. The unions are thus voluntary
organizations of workers, their primary objective being to
advance the economic interests of workers.

Employee Relations
With respect to substantive and procedural provisions, China and Japan

also share important similarities and differences. In China, a distinction

exists between domestic enterprises and foreign funded enterprises;
because congresses of staff and workers are to be established in state
owned and collectively owned enterprises, whereas foreign investment
enterprises are not required to establish such congresses.
Similarly, Japan displays an even clearer demarcation between public
and private sectors, public employees rights being more restricted

Contract procedure
Both China and Japan provide that the terms of an individual

labour contract cannot be inferior to those of a collective

contract. Therefore, the terms of a collective contract become
the minimum labour standards of an enterprise. In addition,
trade unions in China and Japan have the responsibility to
negotiate with management regarding overtime work.

Trade union practices

Despite these similarities, pronounced differences exist

between the two countries. In China, the formation of a trade

union requires the approval of a higher ranking union.
Consequently, organization of workers is subject to the final
command of the ACFTU.
On the other hand, the formation of a trade union in Japan
does not require any external approval.

Trade Union

The Chinese regulatory framework appears to be more administrative and

complicated, because both trade unions and congresses of staff and workers are
legalized institutions, Chinese trade unions are expected to serve as mass
organizations to facilitate the administration of the country and the realization
of socialism. Therefore, trade unions have not effectively protected the interests
of workers and Congresses of staff and workers have not functioned properly.
In Japan, however, only trade unions are legitimized by legislation; labourmanagement councils are regarded as simply voluntary choices of enterprises
and workers, thereby, enabling them to conduct collective bargaining on an
equal footing with employers.

Rights and responsibilities

With respect to rights and responsibilities, Chinese trade

unions are not given the right to strike, although workers can
vacate a work site when physical conditions jeopardize their
lives or health.
On the contrary Japanese workers can engage in acts of
dispute, and strikes are considered a legitimate economic
weapon

Conflict management

The Chinese system follows the soviet model with the assumption that
there are no fundamental conflicts between the State, management and
workers. Trade unions should therefore act as a bridge or transmission
belt between the party and workers. In fact, trade unions are one type of
mass organizations, which help the communist party mobilize the
populace and ultimately, achieve the realization of a socialist state.
On the other hand, the Japanese system is akin to the Anglo American
model based on the assumption that conflicting interests exist between
capital and labour.

COMPARISON OF RECRUITMENT
AND SELECTION BETWEEN
CHINA AND JAPAN
CHINA

JAPAN

The current hiring route is multifaceted and usually

involves advertising for position, word of mouth, use
of labour supply brokers, posting notices on the wall
and internet

Marriage is the traditional metaphor for employment both are supposed

to imply a lifetime commitment.

The most popular means workers used to gain jobs

was through family and friends(28.4 per cent),
applying to the enterprise directly(17.4 per cent),
internal promotion(17.4 per cent), newspaper
advertisements(11.6 per cent) and through some
form of school or university graduate recruitment
programme (11.1 per cent).

Japanese companies prefer to search for employees among new

graduates, more importantly young recruits are easier to train and mould
into obedient and loyal team players.

The largest recruits were the enterprises

Recruitment in large Japanese companies was systematic and based on

a specific yearlong schedule. This early recruitment process is often
referred to as aotagai (buying rice before it is harvested). Students
were recruited far in advance of graduation.

There is legal prohibition against employment

discrimination based on gender. The hiring standard
must be the same for both male and female

Information relating to recruitment tends to be more openly available

from companies and in the media i.e. using company data, newspaper
articles, company surveys, companys web site via the internet and
government related data such as white papers

TRAINING AND DEVELOPMENT

MARIZU MARCEL & NWOKOCHA

LUCY

Comparative Analysis on Training and

Development between China and Japan

This study compares training and development practices

between Japan and China and addresses whether there are
universal training and development practices.

After a brief review of the literature on training and

development for both countries, the study identifies
country-specific and region-specific training and
development practices.
The results are descriptive in nature and discussed as
benchmarks of current and desired levels of training and
development practices within and across both countries.
While the results do not indicate any universal practices
across, they do indicate significant similarities in practices
within country clusters.

Training and Development Practices in

Japan
great importance on the concept
Japanese companies place

of lifetime employment, which creates a unique context for

the skill development and learning opportunities provided to
Japanese workers (McMurrer & Van Buren,1999). Two things
that stand out in Japanese training and development are the
systematic use of on-the-job training and the content of
employee on-the-job learning (Morishima,1995).
Training and development tends to be planned and
executed in a diligent and disciplined manner at every level
in the organization (Brown, Nakata, Reich, & Ulman, 1997).
For instance, at the factory level, general managers
typically review training monthly and formally recognize
individual training accomplishments. Supervisors are
responsible for training employees, enforcing policy, and
guiding employees in development.

Training and Development Practices in

China
tended to place more emphasis
In China, companies have

on corporate values and interpersonal skills than their

Western counterparts (Koch, Nam, & Steers, 1995; Kuo &
Lin, 1990).
In addition, there is a consistently high degree of
governmental involvement in China with respect to the
provision and regulation of training and development for the
workforce (Nyaw,1995).
Every company has been legally obligated to train its
workers to a certain standard before offering them full-time
employment. If a worker does not attain the required
standard, then that worker has to be retrained.
Worker education has typically consisted of two
components: cultural-political courses and scientific subjects
(Luk, 1990).

Comparison on Training and Development

Practices in China and Japan

A Comparison of Training and Development Practices was

based on
Item as a reward for employees
Improve technical abilities
Improve interpersonal abilities
Remedy poor performance
Prepare for future job
Build teamwork
Orientation to work
Help understand business
Provide skills to do different jobs
Teach employees about values

Training and Development

Strategy in Japan
Country

Japan

Managemen
t Style

Business
Structures

Teams

Communic
ation
Styles

Women at
workplace

information
flow from the
bottom to the
top
senior
management
having a largely
supervisory
approach
The key task
for a Japanese
manager is to
provide the
environment in
which the group
can flourish.

The concept
of life-time
employment
is a myth.
Hierarchicall
y organized
companies
Group
orientation
and team
working.
hierarchy is
based on
consensus
and cooperation

grouporiented teams
direct
confrontation
is avoided.
group
members must
be seen to be
modest and
humble.
The group is a
life-defining
set of
relationships.

what one
says does not
will not be
what he
actually
means
body
language is
very minimal
Emotionless
and higly
formal
behaviour.
It is rare for
any reaction
or emotion to

there
remains a
strong
unspoken
discrimination
towards
women in the
workplace.
expected to
perform lower
grade tasks
and to leave
employment
upon
marriage or
the birth of

Training and Development Strategy in

China
Country

China

Managemen
t Style

Business
Structure
s

Teams

Communic
ation
Styles

Women at
workplace

management
style tends
towards the
directive
Manager
Subordinate is a
mutually
beneficial twoway relationship.

highly
hierarchical
operational
structures,
chains of
command,
management
style etc. tend
to be
hierarchical

consensusoriented
individual needs
and desires
being
sublimated to
the greater good
of the whole.

Saying 'no'
causes both
embarrassment
and loss of
face
very limited
amount of
visual body
language

Officially,
women have
the same rights
as men in the
workplace
Women are
found in
reasonably
senior roles in
large Chinese
organizations

COMPENSATION, BENEFITS AND

REWARD STRATEGY IN JAPAN AND
CHINA

AJIBOYE AISHAT & ROSEMARY

ESADA

AIMS OF COMPENSATION
The main objective organization give rewards to the employee is to attract, maintain and retain,
good, efficient, motivated and high performing employees.
Attracting staff benchmark with Labour market to secure the good candidates.
Retaining staff competitive pay package will ensure that effective performers stay with you.
Motivating staff Its a necessary tool used to motivate staff to work.
Driving change higher base-pay, bonuses, and promotion
Corporate reputation Good compensation packages may be perceived as good company in
the eyes of public and industry hence establish positive image.
Affordability Compensation package must suit with companys affordability.

BENEFITS AND REWARD

Benefits are non-financial forms of compensation offered in addition to cash salary to

enrich workers lives. Employee benefits are not performance-based they are
membership-based, i.e. extras to the working conditions that have cash value e.g.
lunch coupon, subsidized meal, staff discounts. It can be classified into quantifiable
(e.g. annual leave, sick leave, company car, further study sponsorship) and nonquantifiable (e.g. recognition for full attendance, long service awards, employee of
the month, retirement benefits). Statutory Benefits.
Reward is a managerial tool used for driving organization performance; it rewards
short-term as well as long-term achievements with the mindset that business must
perform in present to succeed in future. It is concerned with the formulation and
implementation of strategies and policies that are to reward people fairly, equitably
and consistently in accordance with their value in the organization.

Comparison between Japan and

China Compensation System
The Japanese and Chinese compensation system has a lot in common with little or no differences. Comparison of the two countries
compensation system is stated below:
Japan and China both operate a Seniority based system, i.e. compensation is based on the length of time the employee has been with
the firm.
In both countries, Promotion comes with increase in basic salary, based on the length of service of an employee, after assessment by
supervisors.

Both countries operate life-time employment, which is strongly tied to promotion and job security is guaranteed by the
firm
More emphasis is placed on the person rather than the job i.e. performance is not valid in determining total employee
salary.
Social Benefits Scheme is an important element in the compensation system of both countries.

LABOUR RELATIONS
RACHAEL ADASHIO & OLORODE
BISOLA

LABOUR RELATIONS
JAPAN

CHINA

The Japanese system is akin to the Anglo American model

based on the assumption that conflicting interests exist between
capital and labour.

The Chinese system follows the soviet model with the

assumption that there are no fundamental conflicts between the
State, management and workers. Trade unions should therefore
act as a bridge or transmission belt between the party and
workers. In fact, trade unions are one type of mass
organizations, which help the communist party mobilize the
populace and ultimately, achieve the realization of a socialist
state

The Japanese legislative intent promotes industrial autonomy

through collective bargaining by elevating the position of
workers.

In China, a distinction exists between domestic enterprises and

foreign funded enterprises; because congresses of staff and
workers are to be established in state owned and collectively
owned enterprises, whereas foreign investment enterprises are
not required to establish such congresses.

Japanese workers engage in acts of dispute, and strikes are

considered a legitimate economic weapon.

With respect to rights and responsibilities, Chinese trade unions

are not given the right to strike, although workers can vacate a
work site when physical conditions jeopardize their lives or
health.

PERFORMANCE APPRAISAL

OSASUYI PIUS &COLE OLUSEGUN

PERFORMANCE APPRAISAL
JAPAN

CHINA

Japanese systems are frequently a function of seniority,

level group level performance and long term emphasis

Equality has been the predominant policy in China and

base on more work more pay.

In japan, Union members are normally subjected to

performance appraisal.

Performance appraisal is measured by the employees

familiarity with the Chinese culture and environment

The Japanese employ complex performance appraisal

systems, where potential, an individuals personality
and their behavior represent the key criteria, rather
than short-term output

Performance Management System has shifted from

input-to-output to outcome thereby strengthening both
social and economic growth of the Nation through her
workforce

Seniority-based reward systems are typical of most

Japanese firms, Since the Japanese promote employees
on a fairly fixed rate, annual pay increases relative to
seniority

If required to assess performance on a numerical scale,

Chinese managers are likely to select poor rating for
subordinates performances.

CONCLUSION
ODUYE OLUWAFUNMBI

CONCLUSION
In conclusion, as globalization continues, international HRM becomes
increasingly important and can only be accomplished effectively when
managers possess a clear understanding of the role that cultural differences.
The increasing internationalization and globalization of business makes it
more pressing than ever to understand how to establish HRM procedures that
can deal with considerable cultural and national differences.

Managing international human resources enables a business to compete

more successfully in the world and is an essential development tool for its
employees. Scullion & Starkey (2000: 1063) suggest that effective
management of resources in a multinational corporation is a major
determinant of success or failure in international business.

GROUP PICTURE

Thank you