Professional Documents
Culture Documents
Coffee Machine-International Selection
Coffee Machine-International Selection
Introduction
The rapid globalization of business has led to an ever-increasing need to `internationalize managers within organizations. Many large organizations now see international
management experience as a prerequisite for promotion to senior management
positions. International assignments ful l certain key purposes for both the organization
and the individual. For the organization these include control and socialization in the
prevailing culture and transfer of expertise and for the individual they are a major
opportunity for personal development. These assignments do, however, present a
considerable risk to the organization. In terms of cost, sending a manager on an
international assignment can cost three times normal salary and on costs. Failure,
de ned, not just in terms of premature return home, but as under-performance, can be,
in its short- and long-term effect on business in the host country, very expensive.
The extent to which selection practice matches this requirement is, however,
questionable. Examination of the international manager-selection literature reveals a
mismatch between theory and practice, with extensive lists of theoretical criteria
relating to effective international managers, most of which resemble a cross-cultural
`wish list in respect of the vast array of skills and abilities required. Selection processes
are equally depicted as both formal and professional. How much the theory of
international manager selection re ects actual practice has, however, been questioned
(Brewster, 1991).
This article reports the results of a study into international manager selection which
queries the assumption that selection in this area is in practice a rational, objective
process; outlines the implications of actual practice for effective international selecDr Hilary Harris, Cran eld School of Management, Cran eld, Bedford MK40 0AL, UK (tel:
1 44 (0) 1234 751122; fax: 1 44 (0) 1234 751806; e-mail: h.harris@cran eld.ac.uk). Professor Chris Brewster, Cran eld School of Management, Cran eld, Bedford MK40 0AL, UK
(tel: 1 44 (0) 1234 751122; fax: 1 44 (0) 1234 751806; e-mail: c.j.brewster@cran eld.ac.uk).
Copyright Routledge 1999 09585192
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tion; and suggests a new research agenda for exploring the process of international
selection.
Selection of international managers
We have focused discussion in this section on the selection of international managers.
The selection of other types of expatriates technical specialists or short-term assignees
for example will have many aspects of the selection systems in common. However,
each type will have items which are distinct to ensure consistency we are examining
just managerial appointments here; we draw conclusions about selection for other types
of expatriates at the end.
Selection systems
In terms of selection systems, research evidence points to the use within companies of
`pools of existing employees with high potential, from which future international
managers are picked (BIC, 1991; Brewster, 1991). Initial assessment of `high potential
would appear to be undertaken jointly by line managers and personnel specialists and
often takes place at very early stages in an employee s career, sometimes involving
selection of an elite
corps straight from university or graduate business school.
Sophistication of systems and de nition of high-potential employees vary widely
between organizations. However, Business International Corporation s (1991) report
Developing Effective Global Managers for the 1990s observes that assessments of high
potential are usually based on:
1 the rm s needs, as de ned by business lines and strategic goals;
2 external market conditions; and
3 employee identi cation with the value system set by top management.
The report also notes that, among most MNCs surveyed, `high potentials are proposed
by their immediate supervisors and then screened by a committee composed of senior
managers from the country of operation where the person works as well as of
representatives of the parent-company s personnel department. Assessment centres are
commonly used to assess initial potential, followed by annual reviews. Few companies
explicitly tell employees they have been designated as `high potentials . First
international postings for people identi ed in high-potential pools are often not
implemented until the individuals have acquired a certain level of maturity and
management experience within the domestic environment; typically the age range for
rst postings would be late-20s to mid-30s.
Selection criteria: the theory
Research into selection criteria for international assignments shows a split between
theory and practice. In surveys asking for general views on what makes effective
international managers, the criteria mentioned as being critical differ from those
reported as being used in practice. The literature on the criteria used for expatriate
manager selection also has a tendency towards prescription and a heavy North
American bias. There have been several reviews of this literature (Dowling et al., 1994;
Mendenhall and Oddou, 1985).
Phillips (1992) suggests that there is little or no difference between the personal
qualities required for success in managing domestic or international business, but
successful development of international business demands a higher level of skills and
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qualities. This is because managers working abroad will be involved in a wider range
of activities, roles and responsibilities than those required in the home market.
Likewise, it has been suggested that the international manager has many characteristics
of the effective manager operating in a less complex environment. The international
manager, however, needs additional skills to reconcile the cultural problems created by
the international environment. Possessing an awareness of the dif culties is not enough
in this situation.
This confusion may in some ways be related to the fact that the majority of the
studies are not speci c in de ning the type of expatriate to whom such criteria relate
(Tung, 1982). Equally, there is little consideration as to whether criteria will vary
according to country, host-country role and number of expatriates employed (Bjorkman
and Gersten, 1990; Tung, 1982; Torbiorn, 1982). Forster (1996), however, notes that
the many different criteria presented in the literature tend to fall into three broad
categories. These are technical competence at work; personality traits/attributes; and
interpersonal social skills and personal and family situations.
In his review of the literature relating to selection criteria, Brewster (1991) argues
that successive authors have adapted previous categorizations of criteria, or developed
new ones, so comparability between studies is limited. He notes that many of the
American studies originate with the 1970 Business International list of fteen categories
of skills for the international manager:
Experience, adaptability and exibility, technical knowledge of the business, competence, ability and past performance, managerial talent, language skills, potential, interest
in overseas work, appreciation of new management and sensitivity, proper education,
initiative and creativity, independence, good ability to communicate, maturity and
emotional stability.
(Business International, 1970)
A number of researchers have added to the list: for example, Hays (1974) emphasized
the importance of `relational abilities and the `family situation ; Zeira and Banai
(1985) introduced country of origin and `appearance (dress and looks) , the latter also
discussed more recently by Stone (1991) as an unwritten but critical selection factor for
women expatriates.
Ashridge Management Research Centre s study of international managers (not
necessarily expatriate managers) revealed clear agreement among respondents on
attributes which appear desirable whatever the company s strategy. These include
strategic awareness, adaptability in new situations, sensitivity to different cultures,
ability to work in international teams, language skills and understanding international
marketing (Barham and Devine, 1991). The list is signi cant in that four out of the
top six characteristics identi ed represent more `soft skills, underlining the human
relations aspect of international management and an ability to handle unfamiliar
situations.
Several authors have attempted to produce more discrete, wider categories. Rehfuss
(1982), for example, identi es ve groups: `relational or interpersonal abilities;
`cultural empathy (including motivation, language, maturity and an `x factor,
operationally de ned as the ability to live abroad); technical skill; domestic performance; and spouse/family. Torbiorn (1982) identi es eight criteria: adaptability;
language; motivation; level of education; social manners; family adaptability; medical
status; status of the job.
Mendenhall and Oddou (1985) identify three sets of individual cross-cultural skills as
follows:
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Self-ef cacy skills including reinforcement substitution, stress reduction and technical competence.
Relational skills
including relationship development, willingness to communicate,
and language.
Perceptual skills including understanding why host nationals behave and think in
the way they do and making correct inferences as to the motives
behind these behaviours.
A key observation from this literature is the emphasis on interpersonal and crosscultural skills as determinants of success for international assignments. The stress on
`soft skills re ects a more general departure from reliance on traditional `hard skills
for successful management.
Coulson-Thomas (1992) asked senior managers in ninety-one organizations to
identify the qualities for effective international operation that are sought in members of
a senior management team. Fourteen items were revealed. In order of preference, they
were listed as: strategic awareness, customer focus, individual responsibility, communication skills, creativity, perspective, team player, objectivity, self-discipline,
international awareness and perspective, breadth, transnational con dence and effectiveness, European awareness and perspective, language ability. It is interesting to note
that, despite the imminent upgrading of the EU, these managers were still rating
language ability as the least important characteristic of effective international
operation.
As a result of interviews with currently operating international managers, Barham
and Wills (1992) identi ed a deeper, core competence, which is essentially holistic in
nature, which underpins speci c behaviour competencies and skills. The authors
labelled this a `being competence and split it into three interlinking parts: cognitive
complexity, emotional energy and psychological maturity. Cognitive complexity refers
to the ability to perceive several dimensions in a stimulus rather than only one
(differentiation), as well as being able to identify multiple relationships among the
differentiated characteristics (integration). Features of cognitive complexity include
cultural empathy, active listening and a sense of humility. The second `being
competence is emotional energy, which includes emotional self-awareness, emotional
resilience and risk acceptance, together with the emotional support of the family. The
nal `being competence relates to psychological maturity and represents a manager
with a value system which helps them to formulate the dominant goals or themes which
make their lives meaningful. Included in this competence is curiosity to learn, a
`present orientation to time and personal morality.
More recently, Birchall et al. (1995) de ned ten competencies related speci cally to
the international manager s job. These were: global awareness, international strategy,
international negotiation, international marketing, international nance, cultural empathy, addressing ethical dilemmas, building international teams, working with stakeholders and foreign language skills. Birchall et al. asked 102 respondents to rate the
competencies on a scale of 15, with 5 indicating that the behaviour was of vital
importance to successful performance overall. The top ve rated competencies as a
result of this study were: international negotiation, global awareness, international
strategy, international marketing and cultural empathy.
Selection criteria: the practice
Given the emphasis on interpersonal skills in management theory, it is somewhat
surprising to nd evidence in the research into current practices of MNCs of the
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The rst two variations relate to the nature of selection procedures. The expatriatemanagement literature identi es the use of both `open and `closed selection procedures in organizations. An `open system is one in which all vacancies are advertised
and anyone with appropriate quali cations and experience may apply and candidates
are interviewed with greater or lesser degrees of formalized testing. Selection decisions
are taken by consensus among selectors. In contrast, a `closed system is one in which
selectors at corporate headquarters choose, or nominate to line managers, `suitable
candidates. In this situation, there may be only one manager involved in the selection
process at head of ce. The candidate is informed only when agreement about
acceptability has been reached between head-of ce personnel and the line manager. The
selection interview in this process consists of a negotiation about the terms and
conditions of the assignment.
The second two variations of the selection process relate to the existence of formal
and informal systems operating at organizational level. As has been discussed before,
substantial evidence exists of the mediating effects on the formal organizational systems
of informal mechanisms, leading to unintended outcomes with respect to stated
organizational policy. In this way, four distinct categories of selection processes can be
derived.
A closed/informal system re ects a scenario in which individual preferences of
selectors, which may be more or less unclear, will be allowed to determine who is seen
to be acceptable due to the lack of in uence of formal systems, the lack of open debate
about criteria and the lack of accountability engendered by the fact that employees are
unaware that the process is happening. Under this typology, it is argued, the individual
preferences of selectors may be inconsistent and incoherent in relation to identifying
and assessing characteristics of effective international managers.
FORMAL
OPEN
c
c
c
c
c
CLOSED
c
c
c
c
c
INFORMAL
Less de ned criteria
Less de ned measures
Limited training for selectors
No panel discussions
Open advertising of vacancy
Recommendations
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The methodology employed for the second stage of the research consisted of a casestudy approach. Information about international manager-selection processes was
collected from two sources: the rst through semi-structured interviews with HR
personnel and key selectors within the individual organizations; the second via an
examination of organizational literature in the form of policies and administration
forms, etc. A critical part of the research was seen to be the identi cation of personally
held beliefs about the characteristics of effective international managers. To try to
ensure an unbiased summary of the characteristics of effective international managers
(both on the researcher s part and that of the individual selectors), repertory grid
technique was chosen as an integral part of the case-study design. This consisted of
asking individual selectors to compare and contrast up to nine international managers
whom they knew personally, split into categories of highly effective, moderately
effective and not effective. As far as possible, women international managers were
included in the sample.1 The results from the repertory grid interviews yielded a set of
`constructs , or statements concerning effective/non-effective international manager
behaviour which were further analysed using the grid analysis package (GAP)
developed by Slater (1972). An explanation of how to interpret the results from this
package is available from Smith (1986).
In this article we draw on the research data and analysis identi ed in the rst two
procedures.
Findings
Our detailed exploration of the nature of the international manager-selection process
within the three organizations allowed them to be plotted onto the typology of
international management selection systems. Amstar was placed in the closed/informal
quadrant, Cirus was placed in the open/formal quadrant, while Brymay fell across the
quadrants on the typology, with different systems being used for different appointments.
The description of the system was seen to fall almost equally between the open and
closed quadrant, but in terms of degree of formality it was argued that it fell more into
the informal quadrant. This positioning was seen to indicate a very hybrid system in
which there were real tensions between espoused formal policy and current organizational practice.
The degree to which differences in selection processes resulted in the posited
outcomes with respect to the use of selectors individual preferences in selection
decision making was explored via the repertory grid analyses. These aimed to address
the extent to which the type of selection process resulted in the posited outcomes with
respect to clarity and consistency of thinking in relation to effective international
managers and the degree to which the constructs derived from the repertory grid
interviews with selectors matched formal company criteria.
Degree of clarity, consistency and link with formal criteria
Three key analyses were used. These were: the extent to which the grids depicted a
clarity of thinking in relation to the characteristics of effective international managers;
the degree of consistency both within and across individual selectors grids within each
organization; and the degree to which the individual grids re ected formal selection
criteria within the organization.
Clarity of thinking The constructs emanating from the repertory grid analyses
indicated that there was a large degree of difference in terms of sophistication of
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the annual performance and development review revealed very little correlation with the
formal system in relation to competencies, but a greater degree of agreement in relation
to appraisal qualities. In three out of the four grids, more than half of the formal
competencies listed in the annual review of performance were not seen to be linked to
the constructs relating to effective management behaviour, from either an international
or a domestic perspective. More linkages could be detected between the grid constructs
and the appraisal qualities, with all but one of the grids containing constructs which
could be subsumed into the formal list of appraisal qualities. Three main qualities were
seen to be important in all grids, these were: achievement motivation, capacity to
motivate and helicopter vision.
Cirus demonstrated a high degree of coherence with formal selection criteria. The
analysis of the link of constructs to the formal criteria included in the person
speci cation for eld director/programme manager positions showed that by far the
majority of constructs tted within the of cial list of selection criteria. The linkage was
seen to be extremely strong in relation to consultative, team management skills, with
less priority ascribed to the very speci c international aptitudes such as awareness of
the cultural, social and political environment.
An analysis of the extent to which the constructs re ected formal criteria within
Brymay was dif cult to assess due to the variance in usage of any formal job
speci cations. The emphasis on business performance could be seen to relate to the way
in which performance was measured in Brymay, where performance against key result
areas (KRAs) was the main method of determining good or bad performance. The grid
from the head of ce personnel manager showed more agreement of constructs with
formal criteria set out on the of cial interview assessment form used in country
manager selection, although this is hardly surprising given that the manager was
involved in the creation of the form.
Discussion
One of our key ndings is that much of the literature fails to encompass the reality of
expatriate selection. In many organizations the selection of the relevant expatriate falls
under what we came to call the `coffee-machine system . It was this expression, coined
by one cynical expatriate we spoke to, that we adopted to summarize what we found to
be the most frequent approach to expatriate selection.
The coffee-machine system is the most common form of expatriate selection. What
happens is that a senior line manager is standing by the coffee machine when he
(usually a man) is joined by a colleague:
`How s it going?
`Oh, you know, overworked and underpaid.
`Tell me about it. As well as all the usual stuff, Jimmy in Mombai has just fallen ill and
is being own home. I ve got no idea who we can get over there to pick up the pieces
at such short notice. It s driving me crazy.
`Have you met that Simon on the fth oor? He s in the same line of work. Very bright
and looks like going a long way. He was telling me that he and his wife had a great
holiday in Goa a couple of years ago. He seems to like India. Could be worth a
chat.
`Hey, thanks. I ll check him out.
`No problem. They don t seem able to improve this coffee though, do they?
What happens next is that the organization s processes are brought in to play to
legitimize the decision that has, in effect, already been taken. Personnel les will be
498
scrutinized. Simon will probably have an informal discussion with the manager
concerned and, if still interested, will be interviewed, but the interview will be more like
a negotiation about the terms and conditions under which the job will be done, rather
than what an external observer would recognize as a selection interview. There will not
usually be any other candidates. Either just prior to the interview or once an agreement
on Simon s transfer has been reached, the international human resources department
will become involved, dealing with the nancial aspects, the physical transfer
arrangements, the family issues, the ights and so on.
Among the organizations we studied, this pattern is by far the most common form of
selection. This is the reality of the `closed/informal cell in our model. We found a
smaller number of organizations where this kind of selection occurred for some
appointments whereas for others there was a more hybrid system, with an ostensibly
`open/formal system being heavily in uenced by informal practices. We have so far
identi ed only one organization where an `open/formal approach was consistently
followed for all international management appointments.
The implications of these forms of recruitment are very much as predicted in the
model. First, the careful analysis of candidates against some list of ideal-type criteria
sits rather uncomfortably with the reality of the coffee-machine system. These lists may
have some theoretic value in prescribing what should be included, but they bear very
little relationship to the criteria in the selectors minds during this process. Hence, in
part, the fact that repeated research shows that, despite the prevalence of these lists, the
major criterion applied in the practice of expatriate selection continues to be technical
ability or current job performance.
Second, the likelihood of the different selectors having quite different criteria in their
minds is high. Among the three organizations where repertory grid techniques were
applied to the selectors to identify the personal constructs which lay behind their
selection decisions there was a clear gradation depending upon their selection system.
In Amstar, where the coffee-machine system held sway, selectors evidenced not only
very different assumptions about what made for a successful expatriate, but even
individuals tended to have mixed and sometimes contradictory constructs. In Brymay,
there was a greater coherence, but still marked differences in views. In Cirus, where all
expatriate selection was undertaken in a formal and open manner, there was clear
coherence and much greater consistency in thinking about the characteristics of
effective international managers in relation to the speci c needs of that organization.
Third, the manner in which the coffee-machine system acts to restrict the pool of
potential candidates is obvious. Almost by de nition, the pool is limited to those
subordinates well-known to the selector and the other managers with whom they come
into contact. It is likely to involve only the technical specialists in their eld of work,
even where that is irrelevant to the post under consideration. This is seen to be
particularly problematic for women, given the fact that between 85 and 95 per cent of
international managers are currently men. Within a selection context where the nature
of the vacancies re ect a male-typed bias, there appears to be even more need for
selection systems to ensure that potential `prejudice on the part of selectors is
constrained by a process which forces them continually to question their assumptions
about women s suitability and, critically, their acceptability in international management positions. The nature of such a system is also more likely to engender debate
about the extent to which criteria for selection follow equal opportunity principles.
Within such a system, individual preferences of selectors should be more consistent and
coherent as a result of the constant discussion and debate in which the likelihood of
equal opportunity issues being raised is increased. However, our research into selection
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