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Ihrm Assignment

This document is an assignment submitted by Md. Shagor ahamed (ID: 15305018) to Ashraful Alam on the topic of the International Human Resource Management Model. It summarizes Adler and Ghadar's phases of internationalization and the De Cieri and Dowling integrative framework of strategic HRM in multinational corporations. It also discusses the influence of culture on international business strategies and proposes a framework of strategic international human resource management.

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Shagor Ahamed
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233 views5 pages

Ihrm Assignment

This document is an assignment submitted by Md. Shagor ahamed (ID: 15305018) to Ashraful Alam on the topic of the International Human Resource Management Model. It summarizes Adler and Ghadar's phases of internationalization and the De Cieri and Dowling integrative framework of strategic HRM in multinational corporations. It also discusses the influence of culture on international business strategies and proposes a framework of strategic international human resource management.

Uploaded by

Shagor Ahamed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Assignment

On
International Human Resource Management Model
Course HRM-503

Submitted to
Ashraful Alam
Assistant professor
Department of Human Resource Management
University of Chittagong

Submitted by
Md. Shagor ahamed
ID: 15305018
Session: 2018-2019(MBA)
Department of Human Resource Management
University of Chittagong
STRATEGY AND INTERNATIONAL HRM

Adler and Ghadar’s phases of internationalization and the De Cieri and Dowling integrative
framework of strategic HRM in MNCs. Adler and Ghadar’s phases of internationalization Adler
and Ghadar’s model (1990) is based on Vernon’s life cycle theory (1966). Vernon distinguishes
three phases in the international product life cycle. The first phase (‘high tech’) focuses on the
product, research and development (R&D) playing an important role as a functional area. The
second phase (‘growth and internationalization’) concentrates on developing and penetrating
markets, not only at home but also abroad. The focus therefore shifts from R&D to marketing
and management control. In the third and final phase (‘maturity’),
intense efforts are made to lower prices by implementing cost control measures.
According to Adler and Ghadar (1990: 239), the average length of the product
life cycle shortly after the Second World War was 15–20 years. Nowadays this
is 3–5 years; for some products it is as short as 5 months. An important
implication is that the various areas of emphasis in Vernon’s life cycle must
increasingly. Be dealt with simultaneously. Adler and Ghadar saw this as
sufficient reason to suggest a fourth phase (incidentally following in the footsteps
of Prahalad and Doz and Bartlett and Ghoshal as discussed in Chapter 2), in which
the company must achieve differentiation (as a way to develop and penetrate
markets) and integration (as a way to achieve cost control). Having introduced a
fourth phase, the authors then proceed to develop a model in which cultural
aspects and human resource management form the main focus of attention. In
short, they link Vernon’s phases, which concentrate largely on strategic and
structural issues, to culture and human resource management.

The influence of culture

According to Adler and Ghadar (1990), the impact of the cultural


background of a country or region differs from one phase to the next. They
identify these phases as:
• domestic: focus on home market and export;
• international: focus on local responsiveness and transfer of learning;
• multinational: focus on global strategy, low cost and price competition;
• global: focus on both local responsiveness and global integration.

(Please note that Adler and Ghadar use the same terms as Bartlett and Ghoshal, but attach them
to different phases, which could be confusing.) The cultural component hardly plays a role in the
first phase (domestic).

Management operates from an ethnocentric perspective and can afford to ignore the influence of
foreign cultures. The attitude towards foreign buyers – which is a somewhat arrogant one – is he
following: ‘We allow you to buy our product’ (Adler and Ghadar, 1990: 242). By contrast, in
the second phase (international) the cultural differences of each foreign market are highly
important hen entering into external relations. From the polycentric perspective, product design,
marketing and production will concentrate on finding a good match between the product and the
preferences and style of the relevant foreign market segment. That is why production is often
transferred to the relevant country and/or region.

-procurement
-utilize

-Home country nationals


-Host country nationals
-Third country nationals

-Home country
-Host country
-Third country
STRATEGIC MODEL
The globalization of business is making it more important than ever to understand how
multinational enterprises (MNEs) can operate more effectively. A major component of this
understanding appears to be the field of human resource management and, in particular, the field
of international human resource management (Brewster, 1991; Hendry, 1992; Desatnick and
Bennett, 1978; Dowling, 1986; Dowling and Schuler, 1990; Evans, 1986; Evans, 1989; Laurent,
1986; Tung, 1984). The trend over the past few years has been to identify the linkage of human
resource management with strategy and offer an understanding of how single country or
domestic human resource management can facilitate organizational understanding and
effectiveness (Wright and McMahan, 1992). In this article we attempt to extend this line of work
into the international arena. We do this by offering a framework of strategic international human
resource management (SIHRM). Anchoring SIHRM in the strategic components of MNEs,
namely their interknit linkages and internal operations, strategic aspects of international human
resource management are described. Using several theoretical bases, numerous propositions are
offered. These propositions reflect the single and multiple influences of the strategic components
of MNEs and several exogenous and endogenous factors on SIHRM. The intention is to offer a
framework that can serve both academics and practitioners in furthering our understanding of
strategic international human resource management.
A framework of strategic HRM in Multinational Enterprises:

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