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

i
 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

Table of Contents.......................................................................................................iii

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

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

Section 01................................................................................................................. vii

1.0 Introduction..................................................................................................... vii

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

iii
List of Tables

List of Figures

iv
List of Abbreviations

v
Executive Summary

vi
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.

vii
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.

Rational
Approach

Culture Political
Approach Approach

viii
ix
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.