Managing organizational culture in a Japanese organization in Hong Kong

One of the central questions for managing overseas employees is how multinational corporations (MNC) manage the organizational culture in their overseas subsidiaries. A study explores how a Japanese MNC in Hong Kong manages its organizational culture across cultures. The results imply that a company will not be effective if it uses artifacts only, such as ceremonies to convey the desired culture to the local employees. The more important mechanism is the human resource management system (HRMS) which is considered as the statement of the company's values, beliefs and assumptions. Since the case company uses a dual HRMS and a dual control practice for the Japanese and local employees, these practices send out mixed messages to the local employees who cannot project the desired state culture. Because local employees bring along with them their values derived from national culture, they tend to adhere to these values rather than those of the company.