IHRM-Recruitment & Selection

8/14/2019 IHRM-Recruitment & Selection

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June 11, 2008 1

INTERNATIONAL HUMAN

RESOURCE MANAGEMENT

Recruitment & Selection


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June 11, 2008 2

International Recruitment and Selection

Recruitment Defined as searching for andobtaining potential job candidates in sufficientnumbers for and quality so that the organization

can select the most appropriate persons for its jobneeds

Selection Defined as the process of gathering

information for the purposes of evaluating anddeciding whom should be employed in particular

jobs


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June 11, 2008 3

Pros and Cons of the Four InternationalStaffing Approaches (1)

Advantages of the Ethnocentric Approach

Perceived lack of qualified host country nationals (HCNs)The necessity to maintain and consolidate good

communication, coordination and control links with theorganizations headquartersThe assurance that the foreign subsidiary or unit willcomply with corporate objectives, policies, standards etc.PCNs may be most suitable because they have therequisite skills and experiencePromising managers are given the opportunity of international experience


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June 11, 2008 4


Disadvantages of the Ethnocentric Approach

It limits the promotional opportunities of HCNs PCN expatriate managers may experience adjustment

problems PCN expatriate managers may attempt to impose styleswhich are appropriate at the organizations headquartersbut which may be deemed inappropriate in the hostcountry

The compensation packages of PCN expatriatemanagers may be at a level considered unjustified by theHCNs

PCN expatriate managers are expensive


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June 11, 2008 5


Advantages of the Polycentric Approach

It eliminates language barriers, avoids adjustment problemsof expatriate managers and their families, and removes theneed for expensive cultural awareness training programmes

Hiring costs are reduced No work permit required Motivation effect because HCNs see a career potential Lower organizational profile in sensitive political situations Continuity of management improves because the HCNs

stay longer in the organization Local responsiveness and sensitivity, host government

policy


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June 11, 2008 6


Disadvantages of the Polycentric Approach

More difficulty in bridging the gap (objectives, policies,standards, communication, coordination, control, cultureand attitudes etc.) between the HCN unit and theorganizations parent headquarters

Tends to encourage too much decentralization HCN managers have limited career opportunities outside

the subsidiary or unit Limits opportunities for PCN expatriate managers to gain

foreign experience, adversely effecting their insight andhence strategic decision-making and resource allocation


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June 11, 2008 7

Pros and Cons of the Four InternationalStaffing Approaches (5a)

Advantages of the Geocentric Approach

Facilitates the development of an international team

Overcomes the decentralization effect of the polycentricapproach


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June 11, 2008 8

Pros and Cons of the Four InternationalStaffing Approaches (5b)

For the geocentric approach to be successful, 5 assumptions must bemet:

(4) Highly competent employees are available at headquarters and

subsidiaries(2) International experience is a condition for success in top positions

(3) Managers with high potential and ambition for promotion areconstantly ready to be transferred from one country to another

(4) Open disposition and high adaptability on the part of competent andmobile managers to different assignment conditions

(5) Open disposition and high adaptability can be learned with moreforeign experience


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June 11, 2008 9

Disadvantages of the Geocentric Approach

Immigration controls and work permits for the foreignmanager and his family

Provision of extensive, time-consuming (and sometimes)expensive information and documentation for foreignnationals

Large numbers of PCNs, HCNs and TCNs must be sentto foreign locations in order to create a successfulgeocentric staffing policy

High Training and relocation cost Devising an appropriate compensation structure More centralized control over staffing and loss of

autonomy by the subsidiary in HRM issues

Pros and Cons of the Four InternationalStaffing Approaches (5c)


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June 11, 2008 10

Advantages of the Regiocentric Approach

It allows interaction between managers of an organizationssubsidiaries transferred to their organizations regional

headquarters, and managers from the organizationsheadquarters posted to the regional headquarters More sensitivity to local conditions as subsidiaries are

staffed mostly by HCNs

TCNs from the region may be better informed about thehost country environment than PCNs

Lower salary and benefit requirements for TCNs Paves the way for adoption of a geocentric approach



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June 11, 2008 11

Disadvantages of the Regiocentric Approach

It can prevent the organization from taking a global stance

Improves career opportunities at the regional, but notinternational level

Factors such as political animosity between regionalcountries and work permit requirements must be taken into

consideration



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June 11, 2008 12

Selecting Staff for InternationalAssignments

Selecting staff for international assignments is a complexundertaking for several reasons, including:

Identifying a suitable person for the assignment Predicting his or her performance in a new, culturally

potentially very different environment Dealing with personal and family-related issues and

problems Devising an appropriate compensation package Complying with host country regulations


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June 11, 2008 13

The Problem of Expatriate Failure

Expatriate failure means the prematurereturn of an expatriate manager before the

completion of his or her internationalassignment due to the persons failure toattain the expected performance levels

and due to the persons continuing inability

to adjust to the new work and culturalenvironment in the host country


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June 11, 2008 14

The Cost of Expatriate FailureExpatriate failure has two cost components:

Direct Costs Can be easily measured in monetaryterms (e.g.: air fare, relocation expenses, salary andtraining) and varies according to the level of the position inquestion, the country of destination, the exchange rates

and whether a new PCN takes over the assignment of thefailed colleague

Indirect Costs Cannot be measured easily in monetaryterms but may be significantly higher than the direct costs.

Examples include loss of the organizations reputation andmarket share, loss of morale and productivity in the localwork force, complications with the host government,discreditation of the expatriate at the organizationsheadquarters and a future performance impact


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June 11, 2008 15

The Reasons for Expatriate Failure

Inability to Cope WithLarger International

Responsibility

Managers Personal or Emotional Maturity

Managers Inabilityto Adjust Other Family Reasons

Spouses Inabilityto Adjust

Difficulties with thenew environment

Personal or emotionalproblems

Lack of technicalcompetence


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June 11, 2008 16

Criteria for Selecting Staff for International Assignments

SELECTION DECISION

Technical Ability

Cross-CulturalSuitability

Family Requirements

Country-CulturalRequirements

Language

Organization-SpecificRequirements


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June 11, 2008 17

The Staff Selection Criteria(Technical Ability)

Technical and managerial competencies of theperson to perform the required tasks

Research studies indicate that technical abilityare the most important selection criteria for organizations

Usually easy to evaluate on the basis of pastperformance


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June 11, 2008 18

The Staff Selection Criteria(Cross-Cultural Suitability)

Certain individual traits and characteristics can have animpact on the success or failure of an internationalassignment cultural empathy, adaptability, diplomacy,language ability, positive attitude, emotional stability, andmaturity

Ability to implement technical and managerial skills and

feel reasonably comfortable in a in a foreign environment Sometimes difficult to determine


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June 11, 2008 19

The Staff Selection Criteria(Family Requirements)

Spouse may not adjust to a foreign environment

Adjustment level of spouse depends on several factors,such as the adjustment of the expatriate and thespouses own opinion of the international assignment

A higher level of organizational support in the earlystages of expatriation usually correlates with a higher level of adjustment by the spouse


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June 11, 2008 20

The Staff Selection Criteria(Country-Cultural Requirements)

Hardship Postings (Remoteness of job location, socialupheavals, safety risks, very low standard of living andlack of recreational opportunities etc.)

Pressure of living in repressive cultures and countries(e.g. China, Saudi Arabia and other totalitarian Islamic

states in the Middle East)

Denial of work permits to female expatriates


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June 11, 2008 21

The Staff Selection Criteria(Organization-Specific Requirements)

Situational Factors influence staff selection. Examples:

Organizations staffing approach may requiresending more expatriates to work in certain regionsand locations than otherwise

Partner organizations may be involved in theselection of expatriate staff, for example, on

international joint ventures Certain specific skills, for example, training, may be

used as a selection criteria


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June 11, 2008 22

The Staff Selection Criteria(Language)

Important situational factor. Knowledge of the hostcountrys language is considered critical for many senior-level positions along with the ability to communicate

effectively

Knowledge of the host countrys language helps

expatriates and their families feel more comfortable inthe new environment


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June 11, 2008 23

The Staff Selection Criteria(Other Considerations 1)

Time Unexpected international vacancies may arisefor which positions have to be quickly filled byexpatriates and which may preclude the use of

screening tests

Family - A potential expatriate may refuse the

international assignment due to family considerations(childrens welfare and education, parental care,single parents)


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June 11, 2008 24


Dual-Career Couples Research studies undertaken revealthat many potential expatriates are reluctant or unwilling totake on international assignments because of the career implications for their spouses, e.g. loss of jobs and career opportunities, difficulty in finding new employment in theexpatriates host country

Some companies are now offering assistance programmesfor the benefit of their expatriates spouses (employmenthunting, networking, intra-company employment, commuter marriages and on-assignment career support)


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June 11, 2008 25


Female Managers Studies reveal that female expatriatesmake up a very small proportion (< 10% percent) of the totalexpatriate population. Possible reasons are:

Females are less desirous than males of internationalassignmentsFemales are less likely to be offered internationalassignmentsThere are a comparatively smaller number of females withthe requisite skills to be sent on international assignmentsMany repressive cultures discourage the sending of femaleexpatriates, andIn many repressive cultures males do not like reporting tofemales


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June 11, 2008 27

Alternative Model of Expatriate Selection

Mendenhall and Oddou propose a four-dimensional approachlinking specific behavoioural tendencies to probable inter-national performance:

Self-Orientedness adaptive concern for self-preservation, self-enjoyment and mental hygienePerceptual expertise in accurately understanding thebehavour of host country nationalsOthers-Orientedness Degree of concern about the hostcountry nationals and the expoatriates desire to affiliatewith themCultural Toughness Difference between the expatriatescountry and the host countrys cultural, social, political,economic etc. environment and ist implication for theexpatriate

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