@article{oai:nagoya.repo.nii.ac.jp:00004690, author = {Chew, Yin Teng}, journal = {国際開発研究フォーラム, Forum of International Development Studies}, month = {Mar}, note = {The purpose of this article is three-fold. First, it explains the reason behind the fading importance of conventional Japanese Human Resource Management Systems (CJHRMS) in Japan and the implementation problems following the adoption of pay-for-performance system (PFPS) by Japanese firms. Secondly, the author tries to identify general HRM practices of Japanese affiliates in Malaysia, in particular, the compensation system and performance appraisal system. Lastly, the third purpose is to obtain a more complete understanding of the issues facing Malaysian employees of Japanese affiliates as well as to find whether or not ethnocentric1 Japanese affiliates are encountering human resources (HR) problems similar to those in Japan as a result of CJHRMS. The research reveals that most of the HRM practices in the Japanese affiliates are ethnocentric. However, a minority of them adopt polycentric orientations on compensation schemes to a varying degree. The HR orientation to attract highly-competent Malaysian workforce is mainly driven by policies and strategies of the parent firm and organizational background of the Japanese affiliate. As a result of CJHRMS, Japanese affiliates with ethnocentric compensation practices are facing structural, operational and motivation problems similar to those of parent firms. Even when Japanese affiliates adopt PFPS in accordance with parent firms’ practices, research reveals that formal policies and actual practices are different. Japanese affiliates should continue modifying their CJHRMS to appeal to Malaysians and fine-tune their retention strategies to secure and motivate highlycompetent Malaysian workforce.}, pages = {55--80}, title = {The changing HRM practices of Japanese firms and the impacts on compensation practices of Japanese affiliates in Malaysia}, volume = {28}, year = {2005} }