A Comparison of Human Resource Strategies between the Manufacturing and the Service Sector of Japanese Companies in China

Abstract

An investigation into how Japanese multinational corporations (MNCs) manage their overseas HRM practices affiliates and an exploration of the underlying factors affecting each practice could contribute to enhancing business knowledge and practice. This is especially important when taking into consideration the dramatic change in industry structure and business environment in China. This study adopted a quantitative survey method and analyzed 180 responses from employees of Japanese companies in China (JCCs); 113 from Mainland China and 67 from Hong Kong. Performance appraisal was rated the most important concern of the five human resource management (HRM) practices. Corporate policy and the complexity of the business were the main factors affecting decision for expatriation from the viewpoint of headquarters and locals, respectively. Minor differences were observed in HRM practices in the manufacturing and the service sector, and location, age, and size of the companies.