Human Resource Management Practices of Foreign Manufacturing Companies in Bangladesh: A Comparative Study

Abstract

This study aims to investigate and compare human resource management (HRM) practices among the foreign manufacturing subsidiaries operating in Bangladesh. We interviewed 36 managerial employees from three types of companies based on their country of origin: two Japanese, two British and two American. The findings reveal that a blend of HRM practices has been adopted by the foreign subsidiaries, executed by imitating home and host country practices. Results found that Japanese subsidiaries are heavily influenced by their parent company, which affects the core HRM practices of their companies in Bangladesh. On the other hand, the subsidiaries of the United Kingdom and the United States in Bangladesh have taken a different route. They have adapted and adjusted the HRM practices from the host country and implemented them with their internationalisation stages. This study further suggests that the home and host country debate through the framework of national culture may need to be re-examined. This research fills the knowledge gap in the literature on cross-cultural HRM practices, convergence–divergence debate among MNC firms’ HRM practices and foreign subsidiaries’ relationships by analysing the socio-cultural and institutional influences of the host countries.