Solving the Labor Dilemma in a Joint Venture in Japan

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In reviewing Case Study #2, Solving the Labor Dilemma in a Joint Venture in Japan, it appears John agreed to this joint venture of opening a manufacturing plant in Tokyo before researching all of his potential obstacles. John viewed this as a growth opportunity and now is faced with understanding the cultural and socioeconomic differences to make this venture a success. A plan can be researched and written, but it will take time working in the global environment to identify and assess cultural and ethical differences. Management will need to remain fluid and flexible in their approaches in addressing these issues. Our text states, “Although an organization that is expanding into international markets is faced with many problems when it decides to become global, the “people challenge” might, in fact, be the most difficult.” (Ivancevich, 2010, P. 95).

Establishing a Global Human Resource Management (GHRM) plan is essential. “Each country in which the international organization operates will have its own laws, business customs and workforce characteristics”(Ivancevich, 2010. P. 95). Some human resource challenges include finding and retaining suitable candidates, environmental adjustment and relocation reluctance, and understanding intercultural differences.

Sourcing of employees on a GHRM scale is typically separated into three categories. Host Country Nationals (HCNs) are employees from within the host country of the organization. Parent Country Nationals (PCNs) are employees from the company’s original headquarter location. Third Country Nationals (TCNs) are from completely separate countries outside where the parent and host companies are set up. Our case study explains Japan’s enforced policies prohibiting foreign labor; which means John is unable to use TCNs for his labor workforce. John needs to focus on using a mixture of HCNs and PCNs while respecting the equal opportunity laws. This will be a difficult task for John; especially...
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