Question: Discuss the considerations for improving international assignments through

recruitment and selection.

Group members:

Guy Schafrad 659640

Luttah Jordan 658876

Tandzile Dlamini 657715

Fatma Mohamud Muna 661189

Introduction

Globalization has increased the number of multinationals operating internationally.

Expanding global competition and the growing number of international assignees have increased
the need to better understand why some expatriates are more successful than others in their
foreign work assignments. Making an effective selection decision for an overseas assignment can
prove to be a major problem. Typically, this decision is based on international selection criteria,
which are factors used to choose and select international employees, and International
recruitment methods which are described below.

1. Ethnocentric approach

When a company follows the strategy of choosing only the citizens of the parent country
to work in host nations, it is called an ethnocentric approach. Normally, higher-level foreign
positions are filled with expatriate employees from the parent country. The general rationale
behind the ethnocentric approach is that the staff from the parent country would represent the
interests of the headquarters effectively and link well with the parent country. The recruitment
process in this method involves four stages: self-selection, creating a candidate pool, technical
skills assessment, and making a mutual decision. Self-selection involves the decision by the
employee about his future course of action in the international arena. In the next stage, the
employee database is prepared according to the manpower requirement of the company for
international operations. Then the database is analyzed for choosing the best and most suitable
persons for global assignments and this process is called technical skills assessment. Finally, the
best candidate is identified for foreign assignment and sent abroad with his consent.

2. Polycentric approach

When a company adopts the strategy of limiting recruitment to the nationals of the host
country (local people), it is called a polycentric approach. The purpose of adopting this approach
is to reduce the cost of foreign operations gradually. Even those organizations which initially
adopt the ethnocentric approach may eventually switch over to the polycentric approach. The
primary purpose of handing over the management to the local people is to ensure that the
company understands the local market conditions, political scenario, cultural and legal
requirements better. The companies that adopt this method normally have a localized HR
department, which manages the human resources of the company in that country. Many
international companies operating their branches in advanced countries like Britain and Japan
predominantly adopt this approach for recruiting executives lo manage the branches."

3. Geocentric approach

When a company adopts the strategy of recruiting the most suitable people for the
positions available in it, irrespective of their nationalities, it is called a geocentric approach.
Companies that are truly global in nature adopt this approach since it utilizes a globally
integrated business strategy. Since HR operations are constrained by several factors like political
and ethnic factors and government laws, it is difficult to adopt this approach. However, large
international companies generally adopt the geocentric strategy with considerable success.

For international recruitment, especially on foreign soil, organizations generally use manpower
agencies or consultants with international connections and repute to source candidates, in
addition to the conventional sources. For an effective utilization of the internal source of
recruitment, global companies need to develop an internal database of employees and an
effective tracking system to identify the most suitable people for global postings.

4. Regiocentric Approach

The Geocentric approach is one of the methods of international recruitment where the Multi-
National Companies recruit the most suitable employee for the job irrespective of their
Nationality.

The Regiocentric approach uses managers from various countries within the geographic regions
of business. Although the managers operate relatively independently in the region, they are not
normally moved to the company headquarters.

The Regiocentric approach is adaptable to the company and product strategies. When regional
expertise is needed, natives of the region are hired. If product knowledge is crucial, then parent-
country nationals, who have ready access to corporate sources of information, can be brought in.

One shortcoming of the Regiocentric approach is that managers from the region may not
understand the view of the managers at headquarters. Also, corporate headquarters may not
employ enough managers with international experience.
Here are some factors to consider for improving international assignments through
recruitment and selection.

Physical and Emotional Health

Most organizations require that their overseas managers have good physical and emotional
health. For example, an employee with a serious medical condition would be rejected for
overseas assignments, likewise, an individual with an unstable mental health would not be
considered. The psychological ability of individuals to withstand culture shock would also be
considered, as would the current marital status as it affects the individual’s ability to cope in a
foreign environment.

Age, Experience, and Education

Most Multinational companies strive for a balance between age and experience. There is
evidence that younger employees are more eager for international assignments. They tend to be
more culturally sensitive and have a greater appreciation of other cultures than older employees
do. In the same breath, young people often are the least developed in work experience and
technical skills: they lack real world experience. To gain the desired balance, many firms send
both young, seasoned personnel to the same overseas post.

Language Training

Language training should be given sufficient attention because of its importance. A research
conducted by Selvarajah (2004) found that the ability to communicate in the local language was
considered to be the most important factor in successful integration of people of one country into
another one. English is the primary language of international business, and expatriates from all
over the world are expected to converse in English. However, expatriates who only speak
English will be at a disadvantage when doing business in non-English speaking countries. The
more languages an employee is conversant with, the higher the chances of selection.

Motivation for a Foreign Assignment

Although individuals being sent overseas should have a desire to work abroad, this usually is not
sufficient motivation. International management experts contend that the candidate also must
believe in the importance of the job and even have something of an element of idealism or a
sense of mission. Applicants who are unhappy with their current situation at home and are
looking to get away often don’t make effective overseas employees.

Some experts believe that a desire for adventure or a pioneering spirit is an acceptable reason for
wanting to go overseas. Other motivators that often are cited include the desire to increase one’s
chances of promotion and the opportunity to improve one’s economic status.

Work- Family Issues

Spouses and dependents are another important consideration when a person is to be chosen for
an overseas assignment. If the family is not happy, the employee often performs poorly and may
either be terminated or simply decide to leave the organization. Analysis of the problems relating
to the expatriation process reveals that expatriation is negatively affected by the intense
demographic change, increase in the number of double careers, the hesitation of the partners of
the chosen candidates to refuse their career, to change the environment, difficulties of partners
and children to adjust to the new environment (Selmer, 1999).

One popular approach in appraising the family’s suitability for an overseas assignment is called
adaptability screening. This process evaluates how well the family is likely to stand up to the
rigors and stress of overseas life. The company will look for several things in this screening,
including how closely knit the family is, how well it can withstand stress, and how well it can
adjust to a new culture and climate.

Technical Ability

It may seem self-evident, but technical ability - the extent to which a person can carry out a job
successfully - is crucial. Technical, management, and communication abilities are all important
in selecting the right individual.

While this is an obvious selling point for a candidate, you may use it to narrow down the best
applicant for the job. Reiterating the importance of appropriate technical skills can assist in
sorting through candidates and ensuring that the proper people are applying. You don't just want
someone who can fill a vacancy; you also want someone who can improve on the job description
you've established.
Cross-Cultural adjustment

Cross-cultural adjustment is the extent to which expatriates are psychologically comfortable with
living abroad (Black, 1989). Different countries have different cultural settings. These
distinctions could be quite visible or utterly undetectable. However, appropriate consideration of
these factors is still necessary, as cultural contexts can have a significant impact on the success
of an international assignment.
Consider the candidate's attitude toward foreign cultures, ability to relate to others, and overall
demeanor while making a hiring decision. Relationships between entities in the home and host
countries must link between overseas assignment personnel and their immediate environment
will be crucial.

Financial considerations and remuneration package

According to Mazumdar, Moulik (2012), this process is quite an expensive practice to any
international organization due to the international assignment implementation (organization of
training, salaries for the expatriates and other compensation programs for them and their family
members) and frequent failures of expatriates and expenses of the former comeback to the home
country.

When weighing up financial considerations in relation to your assignment, factors other than
salary should be considered, including;

- Cost-of-living allowance
- Accommodation allowance
- Tax reimbursement
- Children’s education allowance
- International healthcare plan
- Pension continuation

Leadership Ability
Another essential consideration in selecting managers for a worldwide assignment is their
capacity to persuade others to act in a certain way—leadership. Leadership is an important
determining factor of success in the marketplace. It permeates all aspects of the organization and
reinforces the strengths in other facets of the organization (Chi and Pan, 2012; Roy, 1977). It
might be difficult to tell whether a person who is an excellent leader in their native nation will be
similarly effective in a foreign context. Many companies look for certain attributes, such as
maturity, emotional stability, the ability to communicate effectively, independence, initiative,
creativity, and good health, when deciding whether an applicant has the needed leadership
potential. MNCs presume that if these attributes are present and the person has been an effective
leader in their home country, the individual will likewise be an effective leader in their new
country.
References

Black, J.S., & Stephens, G.K. (1989). The influence of the spouse on American expatriate
adjustment and interest to stay in Pacific Rim overseas assignments. Journal of
Management, 15, 529-574.

Chi, N. and Pan, S. (2012), “A multilevel investigation of missing links between

transformational leadership and task performance: the mediating roles of perceived person-job fit
and person-organization fit”, Journal of Business Psychology , Vol. 27, pp. 43-56.

Mazumdar, S., Moulik, S.R. (2012), “Expatriate satisfaction in international assignments:

perspectives from Indian IT professionals working in the US”, International Journal of Human
Resource Studies, Vol. 2, No 3, pp.59-79.

Selmer, J. (1999), “Career issues and international adjustment of business expatriates”, Career

Selvarajah, C. (2004), “Expatriation experiences of Chinese immigrants in New Zealand: factors

contributing to adjustment of older immigrants”, Management Research Review,
Vol. 27 Nos 8/9, pp. 26‐45.

Roy, D.A. (1977), “Management education and training in the Arab word: a review of issues and
problems”, International Review of Administrative Sciences , Vol. 43 No. 3, pp.