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international staffing

1. 1. Prof. Preeti Bhaskar Symbiosis Centre for Management Studies Noida

2. 2. Approaches of staffing Recruitment and Selection Procedures of Expatriates
Expatriates Success and failure factors Women Expatriate Non expatriates their
roles Issues in staff selection
3. 3. International recruitment have 3 important questions - From what country/ies to
recruit (home, host or third)? What Techniques to be used when recruitment is planned
out side home country? Whether to centralized recruitment activities in home country or
decentralize in foreign subsidiaries?
4. 4. Different sources of employees First, the company can send employees from its ,
which are referred to as expatriates, expats or home country nationals. Second, it can
recruit (natives of the host country), Third, it can hire who are natives of a country other
than the home country or the host country.
5. 5. Challenging aspects First, the initial cost of airfare, living expenses and
transportation in the host country. The second expense incurred with bringing
expatriates in to the international operation is the training involved in making sure the
people going to the host country are familiar with, laws, rules, culture, languages and
expectations in the new country.
6. 6. International employee selection based on four issues in the context of staffing global
business: Linking staffing plans with the evolution of the MNC. Staffing orientation/
approach of staffing Managing expatriates Female expatriates
7. 7. Linking staffing plans with the evolution of the MNC: Staffing strategies differ based on
the life cycle of the MNCs like: Setting up the host unit Establishing the technology
team to begin core operational activities. Full blown operations of the host unit with
significant role in establishing global objectives and targets, Strong operational
leadership at the unit level while globally consolidating with parents.
8. 8. Approaches to staffing Ethnocentric policy Polycentric policy Geocentric policy
Regiocentric policy
9. 9. Ethnocentric policy Home countrys culture is to be imposed on subsidiaries MNCs
exports its HR Policy from Home country to foreign location. Strategic decisions are
made at headquarters Key positions in domestic and foreign operations are hold by
headquarters personnel
10. 10. Three factors are to be considered in the staff: Should be able to adjust in family,
cultures and personality problems to avoid failure. To succeed, should enjoy local
entertainment, develop local relationships and communicate with locals. To achieve
success, expatriates to have open attitude and take training towards host country.
Under ethno centric, lines of communication are one directional, i.e. advice from
headquarters. In fact, home country attitude and culture dominates.
11. 11. Polycentric MNCs seeks to adapt to the local cultural needs of subsidiaries Each
subsidiary is a distinct national entity with some decision-making autonomy Host-
country nationals manage subsidiaries who are seldom promoted to HQ positions
Parent company nationals hold key headquarter positions
12. 12. Poly centric: Here primary positions are filled by nationals from host country(
HCNs)y. Advantages of this are:
13. 13. Advantages of Polycentric It eliminate the high cost of relocating expatriate
manager and families. Offer a great degree of autonomy in decision making to
subsidiary heads. Host country nationals are less expensive than parent country used
and Training Host countrys nationals results in low cost Better local knowledge
Reduce personal problems Host country managers can protect a MNC from hostile
treatment by host Government. Here subsidiary is allowed some autonomy but
financial controls are kept. Top people are limited to subsidiary and not for corporate
14. 14. For example, in international manufacturing and processing facilities in Mexico,
companies recruit with a sign announcing job openings outside the facility or by
employees introducing family members who are looking for jobs. Another example is
Hungary, where government attempts to combat unemployment have led to the
requirement that an organization must get permission from the Ministry of Labor before
hiring an expatriate
15. 15. Geocentric A global approach - worldwide integration View that each part of the
organization makes a unique contribution Nationality is ignored in favor of ability:
Best person for the job Color of passport does not matter when it comes to rewards,
promotion and development.
16. 16. Regiocentric Reflects a regional strategy and structure; Regional autonomy in
decision making; Staff move within the designated region, rather than globally.
17. 17. Nationals Advantages Disadvantages PCN Org. control and coordination are
maintained & facilitated Promising managers are given international Exp The
promotional opportunities of HCNs are limited. Adaptation to host country may take a
long time. HCN Language and other barriers are eliminated. Hiring costs are reduced
and no work permit is required Control and coordination of HQ may be impeded HCNs
have limited career opportunity outside the subsidiary TCN Salary and benefits
requirements may be lower than for PCNs. TCNs may be better informed than PCNs
about the host country environment. Transfer must consider possible national
animosities (e.g. India and Pakistan) The host government may Present hiring of TCNs.
18. 18. Choosing an Approach to IHRM Political and legal concerns Level of development
in foreign locations Technology and the nature of the product Organizational life cycle
Age and history of the subsidiary Organizational and national cultural differences
19. 19. Issues in Employee Selection Staffing MNCs Staffing Orientation (Ethnocentric,
Polycentric etc.) Managing Expatriate HCN, TCN, PCN Female Expatriate Linkage
between Staffing and growth /lifecycle of MNC
20. 20. Selection criteria for International Staffing International selection is a two way
process between the individual and the organization. A prospective candidate may reject
the expatriate assignment either for personal reasons, such as family considerations, or
for situational factors. However, after an extensive review of literatures on the selection
of expats, the researcher identified 18 variables and grouped them into four categories
Technical Competency Relational Skills Ability to cope with variables and Family
21. 21. Individual Criteria Family Support
22. 22. Expatriate An expatriate is an employee who is working and temporarily residing in
a foreign country. Expatriate work as an agent between two countries Also known as
International Assignees
23. 23. Selection techniques of expatriates: Interview structured interview The
monitoring and targeting of disadvantaged group (staffing practices are strongly
influenced by norms and values that are not covered by the law) Psychological Testing-
mentally fit for international assignment Assessment centre Competency assessment
24. 24. Selection Techniques in General, important steps are-: Screening the applicants
background on the basis of work experience with cultures other than ones own,
previous overseas travel, knowledge of foreign language and overall Performance.
Testing the candidate's ability to adapt to the new culture and environment. Testing the
ability of the spouse and family members of the candidates to the foreign culture and
environment. Predicting the adjustment of the candidate Testing the skill of
adjustment with the host nationals. Job duties and responsibilities
25. 25. Therefore expatriate must meet 6 basic criteria: They must be willing and motivated
to go overseas They must be technically able to do the job They must be adaptable
They must have good inter personal skills and able to form relationship They must
have good communication ability and They must have supportive families
26. 26. Expatriates Success factors: Rosalie Tung studied the factors that contributed to
expatriate success and identify different variables that affect success. She groups them
into 4 general categories: 1. Job competence 2. Personality traits 3. Relational abilities
4. Environmental variables and family variables Which are further divided into two
heads: general factors and specific ones
27. 27. General Factors Specific Attributes JOB Competence Technical skills: knowledge of
HQ and host country operations, general managerial skills, administrative competence
and creativity Relational Traits Social Skill: Ability to tolerate ambiguity, Courtesy and
tact Respect, kindness and behavioral flexibility Cultural empathy and ethnocentrism
Integrity confidence and emotional stability Personality Traits Diplomatic Skill: Believe in
the mission Congruence of assignment with career path Interest in overseas experience
Willingness to acquire new behavior patterns and attitudes Interest to learn Host country
language and practice Adopting attitude of Non verbal communication Ability to
interact with business associates Environmental and Family variables Motivational Skill:
Willingness of the spouse to live overseas Adaptability and supportiveness of spouse
Stability of marriage
28. 28. Expatriate problem Expatriate failure: premature return of the expatriate manager to
his/her home country Cost of failure is high: Estimate = 3X the expatriates annual salary
plus the cost of relocation (impacted by currency exchange rates and assignment
29. 29. Reasons for early return 1.Family concerns 2.Accepted new position in the company
3.Completed assignment early 4.Cultural adjustment challenges 5.Security concerns
6.Career concerns 7.Quality of life 8.Remuneration
30. 30. Reducing Expatriate failure Reduce expatriate failure rates by improving selection
procedures An executives domestic performance does not (necessarily) equate his/her
overseas performance potential Employees need to be selected not solely on technical
expertise but also on cross-cultural fluency
31. 31. 4 dimensions for successful expatriate selection 1. Self-oriented Expresses adaptive
concern for self-preservation, self- enjoyment, mental hygiene. 2. Perceptual Accurately
understands why host nationals behave the way they do. 3. Others-oriented Cares about
host national co-workers and affiliates with them. 4. Cultural-toughness Able to handle
the degree to which the culture of the host country is incongruent with that of the home
32. 32. Family-friendly policies Inter-company networking Job-hunting assistance Intra-
company employment On-assignment career support
33. 33. Adaptability to culture change Adaptability of men expatriate Faster adjustment
after first year when the age group is 30-35 and higher level of satisfaction. Gradual
adjustment after third and forth year when the age group is 25-30 and medium level of
satisfaction. Adaptability of women expatriates: Slow adjustment after first year when
the age group is 30-35 and lower level of satisfaction . Faster adjustment after third and
forth year when the age group is 25-30 and medium level of satisfaction
34. 34. Roles of Non-expatriates People who travel internationally yet are not considered
expatriates as they do not relocate to another country Road warriors, globetrotters,
frequent fliers Much of international business involves visits to foreign locations, e.g.
Sales staff attending trade fairs Periodic visits to foreign operations
35. 35. Non-expatriates enjoy positives as: A Glamorous life Excitement and thrills of
conducting business deals in foreign locations Life style (top hotels, duty-free
shopping, business class travel) General exotic nature
36. 36. Female Expatriate ?
37. 37. Barriers to females taking international assignments
38. 38. Causes of low representation of Females Barrier of female expatriate Stereotyping
Capabilities Family constraints Male dominant society Sexual harassment Host country
39. 39. Advantages of Female Expatriate Better at Relationship skills Novelty foreign
clients believe that those who are expatriated are the best. Role Models
40. 40. Recent trends in International Staffing Trends Workforce diversity Off- shoring
Background check Recruiting sources Dual career couples
41. 41. Current Expatriate profile:
42. 42. Global Staffing Japan China Hire young people out of school Most hired from school,
fewer from other companies Slow promotion through the ranks Slow but regular alary
increase Performance Appraisal once or twice a year Performance review usually once
a year Loyalty to the company Lack of loyalty to both company and profession Appraisal
of long term performance 5 years plan; short term target Promotions based on long term
performance and other criteria. Promotion based on Performance, Potential ability, and
Education but family ties / good relations with top managers are important Training and
development considered a long term investment Training program available, state exam
administered for managers. Life time employment common in companies Job Security
virtually life time employment.