Phase I Phase II Phase III Phase IV
Location of cross-cultural interaction (Adler and Ghadar, 1990: 244)FIGURE 3.1Phases and areas of focus in HRM
Starting from the idea of a link between the phases of internationalization, the
(market) environment and the influence of culture, Adler and Ghadar go on to
sketch the appropriate HRM policies/instruments and the skills required of the
managers involved for the various different phases. Table 3.1 illustrates their
theory. For clarity’s sake, we have added the terms used by Bartlett and Ghoshal
to the table.
Phase I. In this phase we can scarcely speak of international human
resource management in any real sense. There may be incidental brief visits to
foreign agents/sales offices or a short assignment on a project basis, in which
product and technical competence of the manager in question are the most
important factors.
Phase II. International human resource management becomes manifest
in this phase as managers are assigned to posts in foreign markets to provide
general management, technical expertise and financial control. The various
markets require a differentiated approach and adaptation of the product and
business methods to local circumstances. In addition to technical competence,
then, selection criteria such as language skills, cross-cultural adaptability and
sensitivity are also important. Since understanding of local circumstances is a
requirement, host-country nationals are frequently recruited for management
positions in the area of sales, marketing and personnel.
Phase III. As it is highly important that integration and cost advantages are
exploited world wide, the selection in this phase focuses on recruiting the best
managers for international positions, regardless of their country of origin.
Developing a management corps in which all the members share the same
70 International Human Resource Management