2019.2.19
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HR Management

Points To Consider When Managing Global Companies

(Syda Productions/Shutterstock.com)
(Syda Productions/Shutterstock.com)
Since Japanese people generally make up the majority of employees in Japanese companies, even in management, Japanese culture is considered the standard. However, because global companies hire employees of various races, cultures, and customs, the rules and common sense of Japanese companies do not apply. What are the important points to consider in the management of global companies staffed by global employees?

Sharing a common vision

It is important for employees to share the company’s common vision. There exist differences in ways of thinking even between Japanese people, but this difference is all the more obvious in global companies where many foreign cultures meet. It is, however, possible with a clear common vision from the company to gather the differences in understanding and values of every employee into one.

With a shared common vision, employees can make job-related judgements with the understanding that other employees will make the same judgement. The sense of satisfaction that arises from knowing “I made such a judgement because I am working at this company. The judgement is not wrong.” can be felt in common among employees, regardless of their culture.

In successful global companies, there exists an attractive and convincing vision that grabs the hearts of individual employees.

Visualisation on a local level

The key-word “visualisation” is essential in the management of global companies. Visualisation means “to make visible to the eye”, but in business, the meaning becomes “to make it easy to understand or comprehend”.

If communicating with a fellow Japanese person of the same culture, there are things that are transmitted without visualising and without verbalising. But in global companies, management must take the initiative to make sure that people of all cultures understand. Because of this, there is a need to visualise the company’s vision on a local level in accordance with the specific location.

Furthermore, the visualisation is not limited to the company’s vision alone. It would be good if managers visualise their personalities, and strive for self-disclosure, having shared the culture, customs and understanding of local employees.

Establishing common evaluation points

HR systems are important in the management of global companies and it is essential to establish common evaluation points for HR evaluation. In order to make common evaluation points possible, global companies must set a common duty grade in their headquarters and overseas bases.

If employees can be ranked within a common duty grade, they can clearly understand their own roles and rank, and there is also the fact that it is easier to envision career improvement plans.

In the management of global companies, it is also necessary to discover excellent talent, and educate, train and promote them in the early stages to allow them to develop diverse careers. This is also made possible by establishing common evaluation points.

If the company conducts screenings with a common evaluation point, it can also be useful when a successor must be selected due to an unexpected personnel shift or retirement, or even when the company searches for candidates for a successor in the future.

The introduction of common evaluation points also has an effect on the company’s risk management in the global talent market, where job changes are common and liquidity is high.

Management of global standards is required

Management of global companies naturally requires global standards. The three strategies in the management of global companies are “sharing a common vision”, “visualisation” and “common evaluation”.

With global standards, it is expected that leaders will “show conclusions and decisions clearly”, and it is likely that any “ambiguity” will result in a loss of trust globally. Since the premise of management is the building of trust with employees from a great variety of cultures, not losing trust is extremely important.
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