IntroductionThe idea of human resource management was conceived and created not very long ago; it was in the period between the 1960s and 1970s in the US. However, the development of this idea was facilitated by the increasing competition of industrial production mainly in East Asia, which included Japan. Many branches of economics are geared towards clarification and identification of the factors that contribute or affect economic performances in amongst different countries, organizations, firms etc. this is common and mostly focused on production function conventional analysis. Human resource is a good contributor in functional production within a particular entity and its management is very crucial.
By applying this kind of management organization, create within themselves advantages for competition. The completion is extended to international and global levels. Actually, a few of the management aspects had reference from the Japan practices that were very influential in Japan and Asia generally. The elements which included compactness and togetherness that is loyalty, sharing of information, teamwork etc. were involved in the new management system. This management system was expected to increase competition among organizations as well as the provision of a better welfare for individuals (Brewster, 1995, 1-22).
Therefore, this report is narrowed towards discussing the main factors revolving around effective human resource management (HRM) in Japan and Australia. The Human Resource Practices in Japan In Japan, three pillars were used as foundation for their traditional HRM model. The main pillars include the following: The labor unionsLong-term job employment and Promotions & a payment system based on seniority After the world war, management pattern in Japan was viewed as paternal and organizations viewed as ‘families’ that have harmony, group orientation and hierarchy, and at the same time incorporate Taylorism.
These type of managements have an important cultural reference of Confucianism that stresses a system of properly defined networks that are obligated mutually: the emphasis are on the recognition of the social and economic needs of employees and their families while employees on the other hand are required to be committed and readily accept change. However, its economic state, high global competition and demographic pressures now facilitate the HRM reforms in Japan.
The major reforms include (Benson and Debroux, 2004, 55-75): Introduction of flexible employment systems that tend to adjust labor costs by creating 3 groups of employees i. e. full-time employment, contractors and part-time employees. A continuous shift to economically based rational merit appraisal system for wages and promotions. These reforms were accompanied by very significant levels of human costs. Generally, human resource development is very vital because it develops skills and matches employment with industrial needs. In Japan, HRM is going through transformation and the process is experimentation. The new system is characterized by flexible recruitment, payment systems, working conditions, a system where individual performance determines promotion and remuneration and also improved employment on contract with consequent permanent employment.
The individualism portrayed by the reforms have other effects as employees tend to increase personal performance instead of collective performance which is the most effective and sometime considered in evitable. This shows that management practices should be very clear to avoid clashing with the organizational and national cultures resulting to counter-productivity.