Managing organizational culture in a Japanese organization in Hong Kong

The issue of how MNCs manage the organizational culture in their overseas subsidiaries is one of the central questions for managing overseas employees. The 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 which is considered as the statement of the company's values, beliefs and assumptions. Since the case company uses a dual human resource management system and a dual control practice for the Japanese and local employees, these practices send out mixed messages and signals to the local employees who cannot project the desired state culture. Furthermore, 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.