ASIA PACIFIC INSTITUTE OF INFORMATION TECHNOLOGY IN COLLABORATION WITH STAFFORDSHIRE UNIVERSITY UK

BA (Hons) in Business Administration

Individual Assignment

International Human Resource Management

Module Code & Title

BLB10025-3

Prepared By

Mohamed Rimaz CB003090 GP10C1BA

Date of Submission

30th April 2011

Instructor

Dr. Mahesha Samaratunga

Submitted in partial fulfillment for the

Degree of Bachelor of Arts (Hons) in Business Administration

Word Count

2750

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Acknowledgement

I would like to extend my deepest gratitude to Dr. Mahesha Samaratunga, International Human Resource

Management lecturer of APIIT Lanka for her continuous commitment, assistance and cooperation in

relation to this report and the IHRM module.

I also take this opportunity to thank all my batch mates for their assistance in completion of this report.

Also I would like to extend my gratitude to the Librarian of APIIT Lanka for the assistance provided in

completion of this report.

Finally I wish to thank my parents for being an inspiration and supporting me throughout my life.

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Table of Contents

Acknowledgement....................................................................................................................................... ii

List of Abbreviations...................................................................................................................................v

Executive Summary....................................................................................................................................vi

Section 01....................................................................................................................................................1

1.0 Introduction.......................................................................................................................................1

1.1 Multi-Nationals Companies and Transfer of HRM Practices.............................................................2

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List of Tables

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List of Figures

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List of Abbreviations

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Executive Summary

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Section 01

1.0 Introduction

The main objectives of this report are as follows:

Critically evaluate key theories and concepts that have influenced the strategies of international human resource management.

Differentiate IHRM models and relate these models and concepts to the problems faced by modern Multi nationals.

To advise as an appointed consultant on the desirability and feasibility of transferring HRM practices to new locations

The methodology undertaken for this report consists of secondary research from recommended

text books in IHRM and popular IHRM journal articles.

Section one composes of the basic study and understanding the theoretical framework in relation

to the transfer of HRM practices in Multi National Businesses. Section two comprises an in-

depth analysis of the three given scenarios relating to the IHRM models and concepts. Section

three comprises on the desirability and feasibility of transferring HRM practices to new locations

as per the given scenarios.

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Rational Approach

Political Approach

Culture Approach

1.1 Multi-Nationals Companies and Transfer of HRM Practices

Globalization is becoming more and more important to companies all over the world. A major

component of the globalization of business is the field of human resource management. A trend

over the past few years has been to identify the linkage of human resource management with

strategy not only on the national level but also on the international level. Thus Strategic

International Human Resource Management is a growing field. (Festing, 1997)

Being a Multinational Firm in today’s dynamic business environment is always an advantage as

MNC’s comprises multi ethnic, multi cultural and diverse employees. Whilst this is an advantage

there is a constant dilemma faced by MNC’s as well that is when transferring employees from

Home to Host and vice versa.

As stated by Tayeb (1998) “Multinational companies are a powerful vehicle for transfer of

managerial and technical knowledge, as well as capital and other production functions across

nations. The whole process is part of their overall strategy.”

According to Harzing and Ruysseveldt (2004) there are three catergories to explain the

attractiveness of transfer namely the rational approach, the culturalistic approach and the

political approach.

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References

Festing, M. (1997). International Human Resource Management Strategies in Multinational Corporations: Theoretical Assumptions and empirical evidence from German Firms. Management International Review Vol.37 Special Issue, Gabler Verlag.

Tayeb, M. (1998). Transfer of HRM practices across cultures: An American Company in Scotland. The International Journal of Human Resource Management, 9:2 P.333.

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