Human resource management is A strategic approach to acquiring, utilizing and managing an organization's key resource-its People. HRM regards the creation of an environment, the continuous development, stakeholders' interests, and the management of change or the fact to provide supporting services. Activities must be aligned to releasing and developing human capacity, recruiting and training people, managing a diverse workforce and employee relations or managing a reward and performance system. In the international companies, the sensitivity and the concern of the HRM mainly deal with diversity of cultures and the differences of perspectives. We chose Denmark and Japan to identify key aspects of the employment relations system and then in second parts to compare and contrast these two countries. SMEs, especially in the manufacturing industries, constitute the dominant part of the Danish firm structure. When we look at the Danish labor market, a general model of consensus has developed. This means that whenever relevant legislation concerning the labor market is proposed, the labor market parties are always involved at a national level.
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