What is Global Human Resource - Session 3 -

1. What is Global Human Resource- Session 3 - English PLAZA Presentation Nobuo Sugi Global Teaching Institute, TIU nsugi@tiu.ac.jp

2. Global(review of session 1) Global is a view that the world is one united community on the earth. This is a 3-dimensional view like a globe, not a 2-dimensional view like a paper map. In the global view, we consider the relationships between countries as well as international view. However, no focusing on our own country as the center, but prioritize the whole global optimization.

3. Liberal Arts(review of session 2) Liberal Arts are what human beings have done on the earth in the long history. We learn Liberal Arts to get “a wide range of education”. Liberal Arts teach us that various races, religions, traditions, desires etc. caused the current global imbalance and problems. We learn Liberal Arts to “understand diversity”. Liberal Arts give us courage to tackle the global problems. We learn Liberal Arts to “think with our own mind, feel with our own heart, judge and act on our own initiative”.

4. Outline Session 1 (5/21 16:30 & 5/23 15:00) International vs Global Session 2 (5/28 16:30 & 5/30 15:00) What are Liberal Arts? Session 3 (6/04 16:30 & 6/06 15:00) What are Global Values? Session 4 (6/11 16:30 & 6/13 15:00) What is Global Human Resource?

5. Values (価値観) Sense of Values is a way of thinking about what is important for you, what is the basis for your judging of good, bad, like, dislike etc. Each person's Values are different. Their Values are reflected to their specific actions and often appear as their lifestyle. However, they are not random at all but tend to be biased for each country, region and culture. It can be said that people who share the same Values tend to understand each other, work together and approach closer more easily than those who do not.

6. A short story of Values Imagine that a ship carrying many people is sinking. Men must dive into the sea to save women and children. What do you say to let them dive? For Americans: "You are a hero" For British: "You are a gentleman" For Germans: "This is the rule" For Japanese: "Everyone is diving“ These phrases appeal to each country's Values.

7. Global Values Values tend to be biased for each country, region and culture. • “Rules” North America, England, Northern Europe etc. • “Human relations” Latin America, Southern Europe, Central Africa, Russia, China, Japan, Asian countries etc. • “God's teachings“ Islamic countries • “Mix values” Australia, India, Israel etc. Referred to this book

8. Case study 1: Customer of US company Imagine that you are a customer of a US company. Remember what we learned about the global Values: - US and Japan belong to different Values groups. - “Rules” are centered in the US’s Values. - “Human relations” are centered in the Japan’s Values. The following slides explain how the knowledge of US Values can help you understand the way of US people think and get along with them.

9. Case 1: Contract (契約) US people try to 1) make contracts first to define each other's rules. Then 2) start a business, and 3) build up relationships with the partner gradually. Japanese people prefer to 1) start a business first if possible. Then 2) build up good relationships with the partner in an early phase, and 3) make win-win contracts to keep on the good relationships.

10. Case 2: Customer US people think customers as an equal position with themselves through a contract and give no special treatment for a specific customer. Rather, if a customer violates the contract, countermeasures are taken without hesitation. Japanese people think customers as if they are gods and give special treatments to superior customers. They often close their eyes on customer’s minor violation of the contract so as not to make the customer lose face. These are all about maintaining good relationships with customers.

11. Case 3: Payment US contracts strictly specify the date and method of payment, and if a customer violates that, will be sued. Japanese contracts also specify the detail of payment, but the actual execution is some kind flexible. They have a system called accounts receivable (売掛金, ツケ) and it is quite common to wait for payment for a while considering the customer’s circumstances. They often prioritize relationships with customers over contracts.

12. Knowledge of Global Values frees you from unnecessary frustration If you are an important customer to a US company, you may feel confused and uncomfortable if they treat you the same way as regular customers in their common inflexible business manner. However, if you know the US Values, you can understand that such all their behaviors are not coming from their personal response to you but their common Values that “Rules” are centered. Then you are not getting frustrated and able to consider calmly how to react to them for your benefit.

13. Case study 2: Manager of US subsidiary Imagine that you are working as a manager in a US subsidiary of a Japanese company. Sometimes Japanese managers think like that: “Our products sell well in Japan but not in the US. Why US customers do not understand our great features and quality? It must be because our US subsidiary does not know how to sell the products. I must teach the local employees our superior Japanese business way.“

14. Knowledge of Global Values brings you cooperation and results Forcing Japanese business style to the US subsidiary is not accepted and leads to their antipathy. Because they know their US customers' Values and take pride in their US business style which in line with the US Values. However, if you know the US Values, you can try to adopt Japanese business style to the US local business respecting the US Values and business style. Then good relationships with both the US subsidiary and customers would be established, and good business results are expected.

15. Global Values are common culture of Global Human Resource Even without the knowledge of Global Values, international business of exporting Japanese products to a foreign country might be able to do anyhow. However, in global business, many players with various Values are involved. If their Values are not respected, friction and trouble occur here and there, and it does not become business. To become active as a Global Human Resource, it is necessary to acquire the knowledge of Global Values and make use of them, as well as Liberal Arts.