Recruiting and Selecting Staff for International Assignments

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Objectives (cont.)

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We will address the following issues: The myth of the global manager The debate surrounding expatriate failure Factors moderating intent to stay or leave

the international assignment Selection criteria for international

assignments Dual-career couples Gender issues for international assignments

We will address the following issues: The myth of the global manager The debate surrounding expatriate failure Factors moderating intent to stay or leave

the international assignment Selection criteria for international

assignments Dual-career couples Gender issues for international assignments

The global manager

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Myth 1: There is a universal approach to management.

Myth 2: People can acquire multicultural adaptability and behaviors.

Myth 3: There are common characteristics shared by successful

international managers.Myth 4: There are no impediments to

mobility.

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Table5-1 Current expatriate profile

Source: based on data from Global Relocation Trends: 2005 Survey Report, GMAC Global Relocation Services, National Foreign Trade Council and SHRM Global Forum, GMAC-GRS 2006, GMAC GRS.

Marital Status

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53% Married male 8% Married female 7% Male with significant other 4% Female with significant other 18% Single male 10% Single female

Expatriate Failure

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Definition: Premature return of an expatriate Under-performance during an international

assignment Retention problem upon completion

Expatriate Failure Rates

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Recall Rate Percent Percent of CompaniesUS Multinationals

20 - 40% 7%10 - 20% 69%

< 10% 24%

European Multinationals

11 - 15% 3%

6 - 10% 38% < 5% 59%

Japanese Multinationals11 - 19% 14%6 – 10% 10%

< 5 76%

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Reason for Expatriate Failure

US FirmsInability of spouse to adjust

Manager’s inability to adjust

Other family problems

Manager’s personal or emotional immaturity

Inability to cope with larger overseas responsibilities

US FirmsInability of spouse to adjust

Manager’s inability to adjust

Other family problems

Manager’s personal or emotional immaturity

Inability to cope with larger overseas responsibilities

Japanese FirmsInability to cope with larger overseas responsibilitiesDifficulties with the new environmentPersonal or emotional problemsLack of technical competenceInability of spouse to adjust

Japanese FirmsInability to cope with larger overseas responsibilitiesDifficulties with the new environmentPersonal or emotional problemsLack of technical competenceInability of spouse to adjust

European Multinationals: Inability of spouse to adjust.European Multinationals: Inability of spouse to adjust.

0%

10%

20%

30%

40%

50%

60%

70%

Familyconcerns

Newposition incompany

Completesassignment

early

Culturaladjustmentchallenges

Securityconcerns

Careerconcerns

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Reasons for Early Return

Direct Costs of Expatriate Failure Direct costs:

Airfares Associated

relocation expenses

Salary and benefits Training and

development Averaged $250,000

per early return

Direct costs: Airfares Associated

relocation expenses

Salary and benefits Training and

development Averaged $250,000

per early return

Costs vary according to: Level of position Country of

destination Exchange rates Whether a ‘failed’

manager is replaced by another expatriate

Costs vary according to: Level of position Country of

destination Exchange rates Whether a ‘failed’

manager is replaced by another expatriate

10

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Indirect Cost of Expatriate Failure

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Damaged relationships with key stakeholders in the foreign location

Negative effects on local staff Poor labor relations Loss of market share Negative effects on expatriate

concerned Family relationships may be affected

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International assignments:factors moderating performance

Figure5-1

Why consider the psychological contract?

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Nature, location and duration of an international assignment may provoke intense, individual reactions to perceived violations

Expatriates tend to have broad, elaborate, employment relationships with greater emphasis on relational nature

Expectations and promises underpin this relationship

The Employment Relationship

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The nature of the employment relationship Relational: broad, open-ended and long-

term obligations Transactional: specific short-term

monetized obligations The condition of the relationship

Intact: when employee considers there has been fair treatment, reciprocal trust

Violated: provoked by belief that the organization has not fulfilled its obligations

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Likelihood of Exit

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The phases of cultural adjustmentFigure5-2

The Phases of Adjustment

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The U-Curve is not normative The time period involved varies

between individuals The U-Curve does not explain how and

why people move through the various phases

It may be more cyclical than a U-Curve Needs to consider repatriation

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Factors in expatriate selectionFigure5-3

Using Traits and Personality Tests to Predict Expatriate Success

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Although some tests may be useful in suggesting potential problems, there may be little correlation between test scores and performance

Most of the tests have been devised in the United States, thus culture-bound

In some countries, there is controversy about the use of psychological tests ( different pattern of usage across countries)

Use of personality traits to predict intercultural competence is complicated by the fact that personality traits are not defined and evaluated in similar ways in different cultures

Although some tests may be useful in suggesting potential problems, there may be little correlation between test scores and performance

Most of the tests have been devised in the United States, thus culture-bound

In some countries, there is controversy about the use of psychological tests ( different pattern of usage across countries)

Use of personality traits to predict intercultural competence is complicated by the fact that personality traits are not defined and evaluated in similar ways in different cultures

Mendenhall and Oddou’s Model

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Self-oriented dimension Perceptual dimension Others-oriented dimension Cultural-toughness dimension

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Table5-2 Harris and Brewster’s selection typology

Solutions to the Dual-career Challenge

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Alternative assignment arrangements Short-term Commuter Other (e.g. unaccompanied, business travel, virtual

assignments) Family-friendly policies

Inter-company networking Job-hunting assistance Intra-company employment On-assignment career support

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Table5-3

Barriers to females taking international assignments

Equal Employment Opportunity Issues

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Cultural Variations Law and enforcement Social values Corporate practices

The United States EEOA within the country International approach

Chapter Summary

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Four myths related to the concept of a global manager

The debate surrounding the definition and magnitude of expatriate failure.

(cont.)

This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:

This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:

Chapter Summary (cont.)

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Cultural adjustment and other moderating factors affecting expatriate intent to stay and performance.

Individual and situational factors to be considered in the selection decision.

Evaluation of the common criteria used revealed the difficulty of selecting the right candidate for an international assignment and the importance of including family considerations in the selection process.

(cont.)

Chapter Summary (cont.)

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Dual-career couples as a barrier to staff mobility, and the techniques that multinationals are utilizing to overcome this constraint.

Female expatriates and whether they face different issues to their male counterparts.

While our appreciation of the issues surrounding expatriate recruitment and selection has deepened in the past 20 years, much remains to be explored.

The field is dominated by US research into predominantly US samples of expatriates, although there has been an upsurge in interest from European academics and practitioners.

While our appreciation of the issues surrounding expatriate recruitment and selection has deepened in the past 20 years, much remains to be explored.

The field is dominated by US research into predominantly US samples of expatriates, although there has been an upsurge in interest from European academics and practitioners.

Chapter Summary

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Staff selection remains critical. Finding the right people to fill positions, particularly key managers – whether PCN, TCN or HCN – can determine international expansion. However, effective recruitment and selection are only the first step. We will explore in the next chapters that maintaining and retaining productive staff are equally important.

Staff selection remains critical. Finding the right people to fill positions, particularly key managers – whether PCN, TCN or HCN – can determine international expansion. However, effective recruitment and selection are only the first step. We will explore in the next chapters that maintaining and retaining productive staff are equally important.

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Chapter Summary

Corporate philosophy on recruiting and selection Selection criteria and issues of concern Local and home countries’ policies on foreign labor Variations in national labor law and labor markets Inter-company networking Intra-company arrangement Career assistance programs Training and continuous adaptation

Corporate philosophy on recruiting and selection Selection criteria and issues of concern Local and home countries’ policies on foreign labor Variations in national labor law and labor markets Inter-company networking Intra-company arrangement Career assistance programs Training and continuous adaptation

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Discussion Questions

30IHRM Chapter 5

1. What is the difference between a global manager and a global mindset?

2. Should multinationals be concerned about expatriate failure? If so, why?

3. What are the most important factors involved in the selection decision?

4. Are female expatriates different?5. Discuss the proposition that most expatriate selection

decisions are made informally, as suggested by the ‘coffee-machine’ solution.