Abstract
This study investigates the transformation of Human Resource management (HRM) system from Japanese headquarter to its subsidiary in China through a case study. From the interview results to the parent company and its brunch company, it is found that rationality of the whole HRM system is lost during transformation. Although the HRM system is logical as a whole in the parent company, it is lack of reasonability in the brunch company, because some of the HRM policies such as longtime (lifetime) employment are not practiced, wage determination and promotion standard are changed. The lack of rationality is considered to be a cause of problem in HRM in Japanese subsidiaries in China.
