Professional Documents
Culture Documents
1
Chapter Objectives
In Part I, we demonstrated how people play
a central role in sustaining international
operations. As international assignments are
an important vehicle for staffing, it is critical
that they are managed effectively, and the
expatriates are supported so that
performance outcomes are achieved.
2
Chapter Objectives (cont.)
The focus of this chapter is on recruitment
and selection activities in an international
context. 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
3
The global manager
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.
4
Current Expatriate Profile
Category PCN (42%) HCN (16%) TCN (42%)
Gender Male (82%) Female (18%)
Age (Yrs) 30-49 (60%) 20-29 (17%)
Marital status Married (65%) Single (26%)
Partner (9%)
Accompanied by Spouse (86%) Children (59%)
Duration 1-3 years (52%) Short-term (9%)
Location Europe (35%) Asia-Pacific (24%)
Primary reason Fill a position
Prior international experience 30%
Source: based on data from global Relocation Trends: 2002 Survey Report, GMAC Global Relocation Services,
National Foreign Trade Council and SHRM Global Forum, GMAC-GRS 2003.
5
Expatriate Failure
Definition: Premature return of an expatriate
Under-performance during an international
assignment
Retention upon completion
6
Expatriate Failure Rates
Recall Rate Percent Percent of Companies
US Multinationals
20 - 40% 7%
10 - 20% 69
< 10 24
European Multinationals
11 - 15% 3%
6 - 10 38
<5 59
Japanese Multinationals
11 - 19% 14%
6 - 10 10
<5 76
7
Reason for Expatriate Failure
9
Indirect Cost of Expatriate Failure
Damaged relationships with key
stakeholders in the foreign location
Negative effects on local staff
Poor labor relations
Negative effects on expatriate
concerned
Family relationships may be affected
Loss of market share
10
Factors Moderating Expatriate
Performance
Inability to adjust to the foreign culture
Length of assignment
Willingness to move
Work-related factors
Psychological contract/employment
relationship
11
The Employment Relationship
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 organization has
not fulfilled its obligations
12
The Dynamics of the Employment
Relationship
13
Likelihood of Exit
14
International Assignments: Factors
Moderating Performance
15
The Phases of Cultural Adjustment
16
The Phases of Adjustment
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
17
Organizational Commitment
Affective component
Employee’s attachment to, identification with
and involvement in, the organization
Continuance component
Based on assessed costs associated with
exiting the organization
Normative component
Employee’s feelings of obligation to remain
18
Why consider the psychological
contract?
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
19
Selection Criteria
Technical ability
Cross-cultural suitability
Family requirements
Country-cultural requirements
MNE requirements
Language
20
Using Traits and Personality Tests to
Predict Expatriate Success
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 way in different cultures
21
Factors in Expatriate Selection
22
Mendenhall and Oddou’s Model
Self-oriented dimension
Perceptual dimension
Others-oriented dimension
Cultural-toughness dimension
23
Harris and Brewster’s Selection Typology
Formal Informal
Open
Clearly defined criteria Less defined criteria
Clearly defined measures Less defined measures
Training for selectors Limited training for selectors
Open advertising of vacancy Open advertising of vacancy
(internal/external) Recommendations
Panel discussions No panel discussions
Closed
Clearly defined criteria Selector’s individual preferences
Clearly defined measures determine selection criteria and measures
Training for selectors No panel discussions
Panel discussions Nominations only (networking/reputation)
Nominations only (networking/reputation)
24
Solutions to the Dual-career Challenge
26
Equal Employment Opportunity Issues
Cultural Variations
Law and enforcement
Social values
Corporate practices
The United States
EEOA within the country
International approach
27
Chapter Summary
This chapter has addressed key issues affecting
recruitment and selection for international
assignments. We have covered:
Four myths related to the concept of a global
manager
The debate surrounding the definition and
magnitude of expatriate failure.
(cont.)
28
Chapter Summary (cont.)
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.)
29
Chapter Summary (cont.)
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.
It is clear that, 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.
30
Chapter Summary
It is also apparent that 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 chapter that maintaining
and retaining productive staff are equally important.
31
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
32
Chapter Summary (cont.)
Will the factors affecting the selection decision be similar for
multinationals emerging from countries such as China and India?
If more multinationals are to encourage subsidiary staff to
consider international assignments as part of an intra-organizational
network approach to management, we will need further
understanding of how valid the issues discussed in this chapter are
for all categories of staff from different country locations.
Another area that remains ignored is the selection of non-
expatriates, that is, the international business travelers we discussed
in Chapter 3. In our survey of current literature, there is a paucity
of recognition of this group.
(cont.)
33
Chapter Summary (cont.)
The various consulting firm surveys conducted into
relocation trends in 2002 that we draw on in this
chapter indicate that more multinationals are
resorting to replacing traditional assignments with
business travel as a way of overcoming staff
immobility. Likewise, there is a need for further
work into the performance–selection link
surrounding non-standard assignments, including
commuter and virtual assignments.
34
35
INTERNATIONAL
STAFFING
RECRUITMENT AND
SELECTION
HRP - Concept
Stainer – Human Resource Planning is
the strategy for the acquisition,
utilization, improvement and
preservation of organizations human
resources. It aimed at coordinating the
requirements for and the availability of
different types of employees.
HRP - PROCESS
International HRP
The HRP is closely linked to the
business plans
HRP – The process of forecasting an
international organization's future demand
for and supply of the right type of people in
the right number.
Corporate planning – managerial activities
that set the company's objectives for the
future and determine the appropriate
means for achieving these objectives
International HRP – Key Issues
Identifying top management potential early.
Identifying critical success factors for future
international managers.
Providing developmental opportunities
Tracking and maintaining commitment to
individuals in their international career paths.
Tying strategic business planning to HRP and
vice-versa.
Dealing with multiple business units while
attempting to achieve globally and regionally
focused
strategies.
International Recruitment - Recent
Trends
Some distinct trends observed in international
staffing
Work Force Diversity
Off shoring
Increasing use of background checks
Identifying recruiting sources
Challenges of dual career couples.
International Recruitment - Recent
Trends
Diversity Policy - a global guideline
Need for diversity - why should a company
seek diversity? What will be the benefits to die
company and its customers?
Vision of diversity - what should diversity look
like? What is the ideal form of diversity for this
company?
Commitment to diversity - who all need to be
supportive and involved in making the initiative
real?
Systems and structures for diversity - How to
institutionalize diversity throughout the
management practices?
Sustain it - how to devise action plans for
creating and sustaining diversity?
International Recruitment - Recent
Trends
Out sourcing
HR activities divested from operational to
strategic role
Helps in reducing bureaucracy
Encourage a more responsive culture by
introducing external market forces
Disadvantage
The relevance of HR department is at stake
International Recruitment - Recent
Trends
Background Checks
Educational qualification
Employment record
Address
Professional qualification
Credit and bankruptcy
Database
Probable criminal record
International Recruitment - Recent
Trends
Sources of Recruiting
Job Posting Websites 92 %
Your Company's Website 85 %
Employee Referral Programme 81 %
Recruiters (External) 59 %
Recruiters (internal) 50 %
Ads in Local Media 48 %
Your Company’s Intranet 47 %
College / University Recruiting 45 %
Temporary to Permanent Hiring 42 %
Ads in Professional Association Media 28 %
E-mail lists / Discussion Groups 21 %
Ads in National Media 15 %
Blogs 3%
International Recruitment - Recent
Trends
Dual Career Groups
Turn down the international assignment
Find a job for the traveling spouse
Commuter assignment
Sabbatical
Intra company employment
On assignment career support
International Selection
The following four issues are relevant in the
context of staffing global businesses
Linking staffing plans with the evolution of the
MNC
Staffing orientation
Managing expatriates
Female expatriates
Staffing Orientations
Company’s response to global market opportunities
depend greatly on management’s assumptions or
beliefs
both conscious and unconscious
The world view of a company’s personnel can be
described as
Ethnocentric
Polycentric
Regiocentric
Geocentric
Ethnocentric Orientation
Firms at the early stages of internationalization
Assumptions
Home country is superior
Similarities in markets
Assume the products and practices that succeed in the
home country will be successful every where
domestic companies - the ethnocentric orientation
means that opportunities outside the home country
are ignored
International company - they adhere to the notion that
the products that succeed in the home country are
superior and therefore, can be sold everywhere
without adaptation
Ethnocentric Orientation
Managing international operations - people from the
home country i.e. Parent Country Nationals (PCNs)
fill top management and other key positions
Perceived lack of qualified Host Country Nationals
(HCNs)
need to maintain good communication, coordination,
and control links with corporate headquarters
The firm uses a large group of expatriate mangers
Foreign operations are viewed as being secondary or
subordinate to domestic ones
Operates under the assumption that “tried and true”
headquarters’ knowledge and organisational
capabilities can be applied in other parts of the world.
Polycentric Orientation
Opposite of ethnocentric orientation
Assumption that each country in which a
company does business is unique
Each subsidiary to develop its own unique
business and strategies in order to succeed
the term multinational company is often used
to describe such a structure
This eliminates the language barriers, avoids
adjustment problems for expatriates and
allows an MNC to take a lower profile in
sensitive political situations
Polycentric Orientation
Subsidiaries are managed and staffed by personnel
from the host country
The HCNs are recruited to manage subsidiaries
PCNs occupy the corporate headquarters
Employment of HCNs is less expensive
It has its limitations in terms of
Bridging the gap between the HCN subsidiary managers and
PCN managers at corporate head quarter
language barriers
conflicting national loyalties
a range of cultural differences may isolate the corporate HQ
staff
Regiocentric Orientations
Management views regions as unique and seeks to
develop an integrated regional strategy
It is a regional approach in which the MNC divides its
operations into geographical regions and transfers
staff within these regions
This approach reflects some sensitivity to local
conditions, since local subsidiaries are staffed by
HCNs
This approach to staffing policy will reflect
organisational needs, but there are difficulties in
maintaining a uniform approach to international
staffing
Regiocentric Orientations
Strategies in different countries may require
different staffing approaches
Have a worldview on a regional scale
Selection for staffing is on the basis of a set
of characteristics
SMILE
Specialty (required skill, knowledge)
Management ability (particularly motivational
ability)
International flexibility (adaptability)
Language facility
Endeavor (perseverance in the face of difficulty).
Geocentric Orientations
Views the entire world as a potential market
Strives to develop integrated world business
strategies
Represents a synthesis of ethnocentrism and
polycentrism
a ‘world view’ that sees similarities and differences in
markets and countries and seeks to create a global
strategy that is fully responsive to local needs and
wants.
Nationality is deliberately downplayed
Firm actively searches on a worldwide or regional
basis for the best people to fill key positions
Transactional firms tend to follow this approach.
Geocentric Orientations
Regiocentric or Geocentric orientations are practiced
in global or transnational company
However, some research suggests that many
companies are seeking to strengthen their regional
competitiveness rather than moving directly to
develop global responses to changes in the
competitive environment.
This approach is feasible when highly competent and
mobile managers have an open disposition and high
adaptability to different conditions in their various
assignments and such employees are available at
HQ as also in subsidiaries.
PCNs
Advantages Disadvantages
• Familiarity with the home office • Difficulty in adapting to the foreign
goals. Objectives, policies and language and the socio-economic,
practices political, cultural and legal
• Promising managers are given environment
international exposure. • Excessive cost of selecting,
• PCNs are the best people for training, and maintaining expatriate
international assignments because managers and their families abroad
of special skills and experiences • Promotional opportunities for
HCNs arc limited
• PCNs may impose an
inappropriate HQ style
Compensation for PCNs and HCNs
may differ
• Family adjustment problems,
especially concerning unemployed
spouses
HCNs
• Familiarity with the • Difficulty in exercising effective
socioeconomic. political and legal control over the subsidiary's
environment and with business operations
practices in the host country • Communication difficulties in
• Lower cost incurred in hiring dealing with home-office
them compared to PCNs and TCNs personnel
• Promotional opportunities for • Lack of opportunities for the
locals and consequently, their home country's nationals to gain
motivation and commitment international and cross* cultural
• Languages and other barriers are experience
eliminated • HCNs have limited career
• Continuity of management opportunity outside the subsidiary
improves since HCNs stay longer • Hiring HCNs may encourage a
in positions federation of nationals rather than
• Salary and benefit requirements global units
may be lower than of PCNs
TCNs
•TCNs may be better informed •Host country government may
than PCNs about the countries resent hiring TCNs
of assignment •TCNs may not want to return to
•TCNs arc truly international their own countries after
managers assignment Host country's
sensitivity' with respect to
nationals of specific countries is
missing
•HCNs arc impeded in their
efforts to upgrade their own
ranks and assume responsible
positions in the multinational
subsidiaries HCNs or PCNs
Managing Expatriates
A few guidelines would help identify potential
expatriates.
The willingness and enthusiasm of a person to
work on overseas assignments
Looking at their background - are they
multiculturists themselves?
He should possess appropriate skills for the
positions overseas
The family background of the individual also
needs to be considered
Local laws of host countries often come in the
way of expat postings
Managing Expatriates
The element of 'cost' that drives the decision to staff
with HCN's rather than PCNs.
If expatriation is inevitable, the need lo calculate
Cost-effectiveness differentials
Negotiating competitive compensation packages
Relocation costs
Providing support with relocation with reference to packing
and shipping of belongings
Locating suitable residence are required to be done
Managing Expatriates
Selection Criteria for International Staffing
Technical Competence
Relational Skill
Ability to Cope with Environmental Variables
Family Situation
Managing Expatriates
Mark Mendenhall and Gary Oddou in 1985 identified
four major dimensions that could influence an expat's
selection and adjustment.
Self orientation - self-confidence, self-esteem and mental
hygiene*
Others orientation - develop lasting friendships and close
relationships with them and acculturate more easily in
overseas assignments-
Perceptual dimension - ability to make correct attributions
about the reasons or causes of host-nationals' behaviour
Cultural toughness dimension - the situation rather than to
people.
Managing Expatriates
Specific Individual Criteria
Willingness and motivation
Performance (previous)
Technical abilities
Relational skills
Cross-cultural adaptability
Open-mindedness
Stress adaptation skills
Administrative skill
Communication skill
Leadership traits
Marital status
Managing Expatriates
Specific Family Support
Willingness and motivation lo become a
trailing spouse
Spouse’s adjustability
Give up jobs and career prospects
Marriage stability
Children s education
Managing Expatriates
Job Factors
Technical skills
Familiarity with working in HQ
Basic managerial skills
General administrative capability
Relational Dimensions
Tolerance for ambiguity
Behavioral flexibility
Non-judgementalism
Cultural empathy
Managing Expatriates
Motivational State
Believe in the mission
Congruence with career path
Interest in overseas, specific host country culture
Acquire new patterns of behaviour and attitudes
Family Situation
The spouse's willingness to relocate
Openness, supportiveness
Ability to adapt to a culture different
Stability of the marriage
Language Skills
Host country language
Non-verbal communication
Managing Expatriates
Common Hardship Factors
Housing—availability and quality of expatriate housing,
limitations due to crime or security considerations, reliability
of utilities;
Climate and physical conditions—conditions of excessive
temperature or weather risk of major climatic problems or
natural disasters;
Pollution—severity of atmospheric, water, radiation and
noise pollution:
Diseases and sanitation—health risks, public sanitation,
need for food or water treatment:
Medical facilities—availability and quality of health care
facilities and medical staff; Educational facilities—availability
of quality schools for expatriate children
Managing Expatriates
Common Hardship Factors
Infrastructure—quality and reliability of telecommunication,
mail, utilities, road conditions;
Physical remoteness—geographic isolation, travel systems;
Political violence and repression—risk of violence, terrorist
activities, government repression;
Political and social environment—freedom of expression,
human rights, intolerance, corruption and poverty levels;
Crime—risk to person and property, police force;
Communication—use of major world languages, media
availability and censorship;
Availability of goods and services—availability and quality of
food supplies, clothing and grocery.
Managing Expatriates
Course of Action for MNCs —
Provide culture and language orientation to
make the unfamiliar become a little less
strange.
Authorize pre-assignment visits for the
expatriate and spouse so that they can find
appropriate accommodation
Encourage the family to involve the children in
the discussion on educational options.
Provide local contact information so that the
family will be welcomed on arrival.
Managing Expatriates
Course of Action for MNCs —
Assign home-country mentors who are familiar
with the challenges of expatriation.
Provide EAP(Employee Assistance
Programme)
Provide an explicit job description so that the
employee knows precisely what is expected,
thus minimizing insecurity
Inform the family, prior to their acceptance of
the move, of expected hardship conditions so
that they can prepare themselves beforehand.
Managing Expatriates
Expat Failure
US Organisations
Inability of spouse to adjust
Manager's inability to adjust
Other family reasons
Manager's personal or emotional maturity
Inability to cope with larger international
responsibilities
Japanese Organisations
Inability to cope with larger international
responsibilities
Difficulties with new environment
Personal or emotional problems
Female Expats
Issues
Motivation
Stereotyping
Capabilities – Relational skills, coping with
stress
Organisational Process
Host country attitude
Problems
Role expectations
Patron Male boss
Sexual harassment
Threatened male colleagues
Managing Expatriates
Minimize expat failures:
Design a job that maximizes role clarity,
minimizes role conflict and compensates for
role novelty
Use discerning measures for selection of
international employees and their companions.
Educate native and foreign employees in
intercultural communication competence.
Provide opportunity for language lessons.
Provide a technical assistant to help with the
details of starting life in a different culture.
Provide all information and equipment
pertinent to the role/work of the employee.
Managing Expatriates
Minimize expat failures:
Create open, frequent communication with the home
organisation to dispel feelings of abandonment.
Create opportunities for positive social interactions in order
to communicate and become better acquainted with host
country members.
Mostly, listen to them.
Provide proper organisational support systems, both through
logistical support and support from supervisors and co-
workers in the host counu).
Include spouse in any training and support programmes.
THANK YOU