A Comparative Study of HRM Practices between Foreign and Local Garment Companies in Bangladesh

Abstract

The purpose of this research is to explore and compare human resource management (HRM) practices between foreign and local garment companies operating in Bangladesh. This study surveyed 30 human resource, administrative and factory managers of different levels of three garment companies: one US subsidiary, one UK subsidiary and one Bangladesh company. Results show that a blend of HRM practices has been adopted by the foreign companies, ranging between imitating home country practices and host country practices. Results also found that foreign garment companies focus more on home country HRM practices, especially in the area of selection and recruitment, training and development, performance appraisal process and top management appointments. Foreign garment companies are widely adopting host country HRM practices in industrial relations and compensational benefit. However, Bangladeshi local garment company is following traditional HRM practices and showing interest in learning from the foreign company HRM practices. Since this study is based on a limited number of companies, generalization of findings of this study for cross-cultural adaptation/adjustment in other developing countries should be made with caution. Combination of home and host country HRM practices can have a positive influence on transfer of HRM practices in developing nations. It could open a new avenue for further potential research on HRM practices in the South Asian business context, especially in the garment industry.