"Weaving strength from differences"
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Case Study – NKK North America Jerry works for a U.S. subsidiary of a Japanese multinational, Nippon Kokusai Kigyo (NKK). NKK has been operating in the U.S. for about twenty years. It has major headquarters on both the East and West coasts, and sales and service offices located throughout the U.S. Most of the several thousand employees are American, though top management is 80% Japanese. The American workforce is quite representative of the diverse cultural mix of the U.S. population. The Japanese managers rotate through the U.S. on five year assignments. Most of them do not speak English well when they first arrive, but seem to be corporate high-flyers who will some day assume executive positions in Japan. Thus, they are valuable links to home office influence. Jerry is the Vice President for Human Resources in the West coast operation. Though he doesn't speak any Japanese (which his employers seem to prefer), he lived in Japan years ago when he was in the service, and has worked for his employer now for well over ten years. He feels he is well-respected within the organization both for his ability to get along well with all kinds of people and his competence and experience with H.R. issues. He has achieved several major accomplishments since assuming the V.P. position five years ago, most significant of which is the implementation of a systematic and strategically-based human resources development plan. Securing agreement to and funding for the implementation of this plan was far from easy. The presentations Jerry made seemed never-ending, and the reports he submitted to top management innumerable. He gathered extensive and very persuasive data, but the stone wall of resistance he encountered tested both his patience and perseverance. In the end though, it paid off, and Jerry was very proud of his accomplishments. Key components of the plan include new hire training, exempt and non-exempt career pathing, new manager skill development, and, most notably, a new performance appraisal and coaching system. Jerry still can't believe the resistance he met with regarding his new plan. The workforce very much rallied behind it, which in the end was what carried the plan through. It seemed that Japanese management hesitated to invest in HRD because it perceived its American workforce as composed of job-hoppers who were not worth the long-term investment. He also encountered resistance to locally-developed H.R. programs, like the two-way performance appraisal system, if such programs were perceived to be significantly different from those used at home office or if they demanded significant up-front or on-going investment. The entire process was accompanied by rumors that top management was upset with Jerry's “heavy” and “pushy” tactics. Jerry knew he'd been neither, and lacking an avenue for confirming or disproving the rumors, chose to ignore them. The strategic H.R. plan is now well under way, and, after a short respite, Jerry is refocusing his energies on enhancing the organizational effectiveness of NKK by improving the management of its human resources. He feels especially concerned about the fact that many of the Japanese companies in the U.S. have been served with E.E.O. and sexual harassment suits. Given the current tough economic situation of NKK U.S., it seems paramount to Jerry that he assist the organization to avoid any negative publicity and unnecessary legal bills. Jerry feels confident that the organization has only to benefit from some type of diversity program, but he does not perceive any top management support for an affirmative action or diversity program, and is unsure how to proceed. A second concern of Jerry's is the high turnover of middle management staff at the corporation. This reality serves to perpetuate the stereotype that all Americans are “job-hoppers”, and he'd like to turn the statistic around. Through exit interviews he has learned that the reasons for resigning are quite varied, but seem to revolve around managerial style and decision-making. A sales manager, for example, complained that his boss refused to get him a cellular car phone. While not the only reason for his resignation, he felt that this example was indicative of the petty and illogical managerial style of NKK. He said that his manager told him that a cellular phone was a status symbol and “not necessary”, while he himself felt that the phone was crucial if he was to remain accessible to clients. Evidently the more he tried to persuade his manager, a Japanese, the more adamantly and impatiently the manager disagreed with him. Other exit interviews yielded such unlikely examples as “NKK executives don't care about our employees, because many of them don't even bother to say hello to us in the morning,” and, “All important decisions in this organization are made after quitting time. They wait till everyone is gone and then speak only in Japanese or on the phone to Tokyo and never even bother to inform us of changes until it's too late.” In all honesty, Jerry admits to himself that he, too, sometimes feels this way. His own manager seems aloof, and Jerry is frequently confused about how to approach him for support or explanation. He has heard that the Japanese managers socialize frequently, and has seen them on the weekend at the golf course and even once at the local bar. While he would resent giving up his free time to “butter-up” the bosses, never being invited does cause him to feel isolated. ©1989-2000 Nipporica Associates. www.nipporica.com May be reproduced, used and/or modified if copyright and url appear on product. Cultural and Organizational Detective – NKK North America Case Study 1. In reading through this case, what do you feel are some of the key human resource development issues with which NKK U.S. is faced? Do you agree with Jerry? Why or why not? 2. For each of the key issues you cited in your answer to question #1, describe the cultural aspects of the issue which you feel any solution will have to address. 3. What steps do you feel need to be taken to resolve the key issues you specified in question #1? What are the major constraints or obstacles to your approach, and how might you overcome them? What assets do you have to facilitate accomplishment of your goals? 4. Do you believe that Jerry has the skills needed to accomplish his objectives? What does he need to be conscious of as he proceeds with his plans? What steps might he take to improve his chances of success? ©1989-2000 Nipporica Associates. www.nipporica.com May be reproduced, used and/or modified if copyright and url appear on product. |
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