Costco Essay

2456 Words 10 Pages
Case Study
Costco: the Culture fit in Japan

CONTENT 1 Introduction 1 2 Costco’s Human Resources Policies and Practices in United States 1 2.1 Recruitment 1 2.2 Compensation and Benefits 2 2.3 Career development 3 3 Culture differences between US and Japan 3 4 Costco’s human resource policies and practices in Japan 6 4.1 Costco in Japan 6 4.2 Costco’s human resource policies and practices in Japan 7 4.2.1 Recruitment 7 Student Program 7 Job Posting System 8 4.2.2 Compensation and Benefits 9 4.2.3 Career development 9 5 Conclusion 10

1 Introduction
Costco Wholesale Corporation operates an international chain of membership warehouses, which carries quality, brand name
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Employees rarely leave: The company turnover rate is 5 percent among employees who have been there over a year, and less than 1 percent among the executive ranks. 3 Culture differences between US and Japan
In exhibit 1, the Geert Hofstede analysis describes the overall culture differences between US and Japan in six dimensions.

Exhibit1:Culture Comparison between United States and Japan
Power Distance: Power distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. At a score of 40, United States is a society that emphasizes equal rights and mostly hierarchy is established for convenience within organizations. On the other hand, at an intermediate score of 54, Japan is a borderline hierarchical society and Japanese are always conscious of their hierarchical position in any social setting and act accordingly, which could lead to the slow decision making process. However, Japan has always been a meritocratic society and there is a strong notion in the Japanese education system that everybody is born equal and anyone can get ahead and become anything if he works hard enough.
Individualism: individualism describes the degree of interdependence a society maintains among its members. In Individualist societies people are only supposed to look after themselves and their

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