"○&□-model" Reconsidered : Human Resource Development by Asian Affiliates of Japanese Manufacturing MNEs

Focusing on the localization problem of human resources by Japanese manufacturing MNEs, Ishida (1982) proposed "○&□-model" to discuss the misalliance between "J-system" vs. "L (local)-system". J-system is characterized by "○-model", where "gray areas" (not clearly assigned task areas) are efficiently managed by flexible engagement by each members, which is based on their long term commitment to the firm. In contrast, L-system is characterized by "□-model", where "gray areas" are minimized to match the "sense of well-defined commitment" of local employees in their occupational skills. In this study, based on the interview results to Asian affiliates of Japanese MNEs, a new version of "○&□-model" is proposed. Then, using this framework, the misalliance problem is reconsidered in a following manner. Firstly, the "original efficiency" in J-system is analyzed from three aspects; i. e., (a) "gray areas" management capability by individual members, (b) horizontal & flexible coordination among neighboring members as well as neighboring sections, and (c) mutual learning to improve their capability of "gray areas" management as well as horizontal coordination. Secondly, the misalliance between "J-system" vs. "L-system" is analyzed as the failure in "original efficiency" in all of these three aspects. Thirdly, a series of continual efforts by Asian affiliates to manage this misalliance is stylized as "Stepwise Hybrid attempts" , i. e., (1) 1st step modification: □-model adjustment (e. g., production line is divided into standardized modules), (2) 2nd step & dynamic modification: ○-skill development (e. g., several modules are linked together to achieve "team production" or "cell production" system).