The regionally hired top executives manage the major overseas subsidiaries with the help and support of a Japanese resident officer working as a second-in-command in the company. There are subsidiaries of the company that are managed by the Japanese top management officers. In various subsidiaries, the regional executives are trained and the top positions are offered to them. The major role of the Japanese officers is to promote Japanese management style, skill set and technology to the employees working overseas. The trained managers are expected to act as bridges of human resources for connecting regional and overseas subsidiaries with Japan.
The human resource practices and labour management relations are quite different in China in comparison to other nations because of the socio-cultural background and economic and political systems prevalent in China (Child, 1994). In Chinese manufacturing organizations, due to the deepening economic reforms and establishment of a new market economy the changes in the human resource practices and labour management relations are observed (Warner and Goodall, 2010). The complaint of the southern manufacturing firms of China does not be able to recruit reasonable workers for manual and factory work despite of China having a large pool of unskilled labour (Brown and Porter, 1996). For skilled labour, the market entry is quite tough. With the higher emphasis on the higher value-added work, the companies find it difficult to attract and retain efficient staff with higher skill set because the supply of skilled workforce supply is outstripped by the demand. This situation of demand and supply of labour in China has resulted in higher operating costs for the firms functioning in China.
The most important task of Chinese forms in present scenario is retention, recruitment and localization of staff in organizations. According to the L’Oreal head of China, Paolo Gasparrini, the people of China are very good in administration and technical aspects but it is difficult to find people who are good in marketing, which is a critical discipline for the success of the company (Child and Lu, 1996). There is a shortage of people with such skills as they have less experience and almost everybody is competing for the same.