Module 4v1 Ami

7/29/2019 Module 4v1 Ami

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Amity School of Business

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Module IV

International Recruitment, Selection &Training

Approaches to Recruiting (ethnocentric,

polycentric, regiocentric and geocentric) Factors in expatriate selection,

Role of expatriate training,

Pre Departure Training, Developing staff through international

assignments.


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Recruitment Recruitment is the process of identifying and attracting

potential candidates from within and outside anorganisation to begin evaluating them for future

employment. Once candidates are identified, an organisation can

begin the selection process. This includes collecting,measuring and evaluating information about thecandidates qualifications for specified positions.

Organisations use these processes to increase thelikelihood of hiring individuals who possess the rightskills and abilities to be successful in their jobs.


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International Recruitment Recruitment, selection and staffing in

international context are not only crucial for an

MNCs success, but it is also an importantpersonal decision taken by the individual,

assigned for international assignment.

Therefore, a thorough job analysis is required todetermine the level of skills, technical abilities,

competencies and personal attributes, required

flexibility of the employee needed, etc.


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A judicious mix in terms of providing

healthy and competitive career paths to

existing employees at home, along with

giving host country nationals a chance(

having due regard to the legal

requirements as well as their career

mobility) to excel in their assignments isneeded.


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INTERNATIONAL

MANAGERS/

EXPATRIATES

PCNs HCNs TCNs


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Parent Country NationalsPCNsAdvantages:

1. Maintenance and facilitation of org.control and coordination.

2. Possess necessary skills and expertise.

3. Talented and committed managers aregiven international experience.

4. There is assurance that subsidiary willcomply with org. objectives and

policies,etc.


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Parent Country Nationals

PCNsDisadvantages:

1. Promotional opportunities to HCNs willbe limited.

2. Adaptation to host country may take a

long time.

3. Tendency of PCNs to impose HQ style.

4. Differing compensation for PCNs and

HCNs.


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Third Country Nationals

TCNsAdvantages:

1. Salary and benefit requirements may be lowerthan for PCNs.

2. TCNs may be better informed about the hostcountry environment than PCNs.

Disavantages:

1. Transfers must consider possible nationalanimosities.

2. The host govt. may resent hiring of TCNs.

3. TCNs may not want to return to their countryafter assignment.


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Host Country Nationals

HCNsAdvantages:

1. Elimination of language and other barriers.

2. Reduction in hiring costs and elimination of

work permit requirements.

3. Continuity of management improves, since

HCNs stay longer in positions.4. Policy dictation by host govt. in hiring HCNs.

5. Better morale as they see future career

potential in assignment.


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Host Country Nationals

HCNsDisadvantages:

1. HQs control and coordination may be

impeded.

2. Outside the subsidiary they have limited

career opportunity.

3. PCNs may be at disadvantage to gain

foreign exposure due to hiring of HCNs.


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If a Japanese multinational wishes toappoint a new marketing director for its US

subsidiary, it may decide to fill the position

by selecting from

marketing staff available in its parent

operations( i.e. PCN),

Or to recruit locally( an HCN)

Or seek a suitable candidate from one of

its other subsidiaries( a TCN)


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The decision is determined by factors

such as:

1. Its general staffing policy on key

positions in HQs and subsidiaries.

2. The constraints placed by the host

government on hiring policies.

3. Staff availability.


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Staffing approaches The IHRM literature uses four terms to

describe MNCs approaches to managing

and staffing their subsidiaries. Theseterms are taken from the seminal work ofH.V. Perlmutter. These are:

1. Ethnocentric

2. Polycentric

3. Geocentric

4. Regiocentric


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Ethnocentric Approach All key management positions in domestic and foreign operations

are filled by parent company nationals. Subsidiaries are managedby the staff from the home country. May believe the host country lacks qualified individuals.

May see this as the best way to maintain a unified corporate culture. May believe it is the best way to send PCNs to a foreign operation as

you can place a degree of interest in them and which can moderate theperceived high risk involved in foreign activities.

Disadvantages Limits advancement opportunities for host-country nationals ->

resentment, lower productivity & increased turnover Can lead to cultural myopia failure to understand host country

cultural differences that require different approaches to management &marketing.

A US study found that 50 percent of responding firms estimated that theaverage cost of expatriates was three to four times that of normalsalary, and 18 percent indicated more than four times the salary.


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Polycentric Approach Each subsidiary is treated as a distinct national identity with some decision-

making autonomy. Subsidiaries are usually managed by localnationals(HCNs), who are seldom promoted to positions at headquarters,and PCNs are rarely transferred to foreign subsidiary operations.

It eliminates language barriers, avoids the adjustment problems of expatriate andtheir families and removes the need for expensive cultural awareness trainingprograms.

Lesser compensation packages as compared to PCNs.

Gives continuity to the management.

Disadvantages Host country nationals have limited opportunities to gain experience outside their

own country & cant progress to senior positions. Gap can form between host country managers & parent country isolating HQ

staff from various foreign subsidiaries.

Lack of management transfers can lead to lack of integration -> a federation oflargely independent national units with only nominal links to HQ.

Difficult to transfer core competencies or realize experience curve & locationeconomies.


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Geocentric Approach It seeks the best people for the job throughout the company,

regardless of nationality.

Enables firm to make the best use of its human resources.

Enables the firm to build a cadre of international executives whoare at home working in a number of cultures.

Reduce cultural myopia & enhance local responsiveness.

It overcomes the federation drawback of the polycentricapproach.

Disadvantages

Immigration laws can require the employment of host-countrynationals.

Expensive to implement training & relocation costs.

Need a compensation structure with a standardized internationalbase pay level higher than national levels in most countries.


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Regiocentric Approach It seeks to reflect the geographic strategy and structure

of the multinational.

Staff may move outside their countries but only within

the particular geographic region. Regional mangers maynot be promoted to HQs positions but enjoy a degree ofregional autonomy in decisionmaking.

For eg. A US-based firm could create three regions:Europe, America and Asia-Pacific. European staff wouldbe transferred throughout the European region( like aFrench national to Belgium and a German national toSpain). Staff transfers to Asia-pacific region from Europewould be rare, as would transfers from the regions toHQs in the US.


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Recruitment Methods1. Using head hunters: in international recruitment,

especially for the top management positions,headhunters need to offer an integrated service with no

international obstacles to cross-border cooperation. Indoing so, proper coordination between the internationalHR manager and the head-hunters is important.

Recent trend is that of a partnership between head-hunters and the executive search firms.

A number of firms use supplier relationship includingAmerican Express, Philips, Pepsi Cola, Motorola and soon.

It allows a wider search in terms of wider geographicallocation and number of candidates. The highest growthareas include China, Malaysia, Korea and India.


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2. Cross-national Advertising: there is a shift

away from press advertising to creative

alternatives, such as, outdoor poster sites,

airport lounges, airline magazine. Knowledge about the best suitable recruitment

media, national custom, culture and values are

important while developing the themes, pictures,

design and language of the advertisements.


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E-recruitment

Internet recruitment has become one of

the most popular and effective recruitment

methods today, especially to the

internationally mobile managers, and smallcompanies seeking specialists from

another country.


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International Graduate Program

Students are managed and trained in amanner which helps to develop an

international management career.


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Country AContextual variables

Legal system

Cultural distance

Country B

Country C

Firm-specific variables

Situation Variables

IHRM activities

Approach to staffing

etc

Determinants of IHRM

approaches and activities


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Individuals motives forinternational assignment1. To gain new job experience.

2. Better compensation.3. Sense of obligation to the company.

4. Possibility of advancement upon return.

5. Improved lifestyle abroad.6. Exposure to new culture.

7. Restricted career possibilities within

parent company.


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Reasons for international

assignments Position filling; the most common reason is

to fill a skill gap, followed by the launch of

a new endeavour and technology transfer. Management development; assist in

development of common corporate values.

Organisation development; greater staffmobility supports the global corporateculture and assists in cross-fertilisation ofideas and practices.


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Types of international

assignments Depends on the purpose of transfer and the

nature of the task to be performed. Companies

tend to classify types according to the length orduration of the assignment:

1. Short-term(


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Within these three broad categories,some non-standard assignments are

also there:

1. Commuter assignment,

2. Rotational assignments,

3. Contractual assignments,

4. Virtual assignments.


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International assignments:

moderating factors

ModeratorsInability to adjust to foreign Culture

Length of assignmentWillingness to move

Work-related factors

Psychological contract

Performance

Intention to stay or leave


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The phases of cultural adjustment


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Culture Shock Exposure to a foreign culture can produce a

predictable series of reactions:

A period of fascination. Culture shock.

Adaptation.

Dealing with culture shock involves:

Preparation.

Language skills.

Preparing the host country personnel who will work

with the expatriate.


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The Expatriate Manager in the

MNC 80 percent of all middle- to large-size

companies use expatriates

Many companies are not effectively selecting andpreparing employees for overseas assignments.

American expatriates fail more often than their

Japanese and European counterparts.

Only 57 percent of companies provide cross-culturaltraining.


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Expatriate failure

Definition: Premature return of anexpatriate

Now recognized that under-performance

during an international assignment, andretention upon completion, should be

included.


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Expatriate failure

Indirect costs (invisible)

Damaged relationships with key stakeholders

in the foreign location.

Negative effects on local staff.

Negative effects on expatriate concerned.

Family relationships may be affected.


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Factors associated with expatriate failure:

Uncertain technical competency

Weak language skills

Unsure about going overseas Family problems

Low spouse support

Behavioral rigidity

Inability to adapt

Poor relational ability

Weak stress management skills


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Factors associated with expatriate success:

Good technical and language skills

Strong desire to work overseas

Specific knowledge of overseas culture

Well-adjusted family situation Complete support of spouse

Behavioral flexibility

Adaptability and open-mindedness

Good relational ability Good stress management skills


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Selecting the Expatriate Manager

Success in domestic operations may have

little to do with success overseas

Many expatriates believe too little attention is paid toother critical factors during the selection process

Expatriate selection should focus on the

managers:

Self-image

Normal way of interacting

with others

Perceptual orientation


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Role of an Expatriate

Expats home

locationForeign

location

Expats Roles

Agent of direct control

Agent of socialisation

Network Builder

Boundary spanner

Language nodeTransfer of competence and

knowledge


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Assumptions in staff selection There is a universal approach to

management.

People can aquire multiculturaladaptability and behaviours.

There are common characteristics shared

by successful international managers. There are no impediments to mobility.


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Expatriate Selection1. Technical competency; 90% of companies

base international selections on technical

expertise, downplaying other areas.2. Personal attributes

3. Ability to cope with environmental variables

4. Family situation5. Country-specific requirements

6. Company-specific requirements

7. Language


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Factors in expatriate selection


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Only 10% of 50 Fortune 500 firms tested for importanttraits such as cultural sensitivity, interpersonal skills,adaptability & flexibility.

4 dimensions predict success in a foreign posting(Mendenhall & Oddou) Self-orientation self-esteem, self-confidence, & mental well

being.

Others-orientation ability to interact effectively with hostcountry nationals (relationship development & willingness tocommunicate).

Perceptual ability ability to understand why people in othercountries behave the way they do.

Cultural toughness relationship between country ofassignment & how well an expatriate adjusts to a particularposting.


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Expatriate Training From the organisational point of view

there are two beliefs-

1. Pre-departure training really does nothelp, since all this practically has to belearnt at the location of posting byexperiencing that particular environment.

2. Such training is costly and adds a littlevalue and is also a time consumingaffair.


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The key people who are in need of training areexpatriates, spouses, children.

There are two main requirements for theexpatriates to be successful in their

international assignments:1. The general knowledge of the new countrys

demographics, history, politics, businesspractices, education system, etc. and socio-cultural norms.

2. The understanding of the difference in culturalvalues, and how it affects perceptions, valuesand communication.


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Objectives of expatriate trianing1. To maximise the cultural sensitivity of

relocating employees, in preparing them toconduct business with colleagues from other

cultures.2. To learn how to avoid misunderstanding based

on cultural differences.

3. To learn how to communicate verbally and non-

verbally with colleagues in other cultures.4. To understand the role of learning andcommunication styles in work, everyday livingand how to work effectively with people havingdiffering styles.


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5.To learn to anticipate the factors leading to

culture shock and how to manage it, for

oneself and ones family.

6.Role- based training inputs for ensuring

due performance of the jobs and

achievement of business goals in line with

the companys expectations.


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Necessity of training The problem which may arise due to lack of

effective preparation before taking up a foreignassignment could be many. Some of them are:

1. The manager may be incompetent to shoulderthe responsibilities of the assignment.

2. The unwillingness to work abroad.

3. The personality and the emotional maturity of

the manager may prove inadequate.4. The manager may find it very difficult to adapt

to the new environment.

5. There can be family-related issues.


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Researches have revealed more than 80attributes which could be possessed by anexpatriate to become effective and successful.The six most significant among these are:

1. Leadership skills

2. Initiative

3. Emotional stability

4. Motivation5. Ability to handle relationships

6. Cultural sensitivity

Expatriate training cycle


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Selecting the manager

for foreign postingIdentification

of country specific

training needs and

identification of individual

training needs

Resume for

the job at

Parent country

Support and

Monitoring fromParent country

Training

Orientation in the host

country

Expatriate training cycle


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Levels of training1st level: Learning about the host country-their culture,

language, politics, business, geography, religious valuesand history. This can be done through seminars, videos,

meeting with citizens of the country before assignmentbegins.

2nd level: Understanding the requirements of theassignment-technical skills, managerial knowledge.

3rd level: Preparation for the new job: at the new location.

4th level: Providing assistance-to adjust and adapt to thenew environment.

5th level: Re-entry- contact with family, visit to home duringvacations.


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Pre-departure training The essential components of pre-

departure training programs that

contribute to a smooth transition to aforeign location include:

1. Cultural awareness programs.

2. Preliminary visits.3. Language instruction

4. Practical assistance with day-to daymatters.


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Effective Pre-departure Training: acontingency framework1. The level of expected interaction between

the expatriate and the HCNs: High or low;need of cultural coping is lower if this level

is low; so focus on technical skills.

2. The degree of dissimilarity between theindividuals native culture and the host

culture: high or low; need of more cross-

cultural development if this degree is high.


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Developing Staff throughInternational Assignments

Organizational Development Accumulating a stock of knowledge, skills and

abilities: fostering innovation and proficiency.

Developing a global mindset: fostering a sense of

corporate identity despite cultural diversity. Expatriates as agents of direct control and

socialization in the transfer of knowledge and

competence.


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International Cadre: Another Choice

Separate group of expatriate managers

who specialize in a career of internationalassignments

Have permanent international assignments.

Move from international assignments to

international assignments.

Recruited from any country.

Sent to worldwide locations to develop cross-

cultural skills.


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How international teams benefitthe multinational Fosters innovation, organizational learning

and transfer of knowledge. Assists breaking down of functional and

national boundaries.

Encourages diverse inputs. Assists in developing broader

perspectives.

Develops shared values.

Developing International Teams through


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Developing International Teams through

International Assignments

Module 4v1 Ami

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