IILM
International Staffing: HRP, Selection, Linking Staffing
with Evolution..Recent Trends in Staffing...etc
Session 8
Yoginder Kataria
1–2
Basic idea As international assignments are an important As international assignments are an important
vehicle for staffing, it is critical that they are vehicle for staffing, it is critical that they are managed effectively, and the expatriates are managed effectively, and the expatriates are supported so that performance outcomes are supported so that performance outcomes are achieved.achieved.
Multinationals must select and implement practices that meet national context
1–3
The myth of Global Manager
Myth 1Myth 1:: There is a universal approach to There is a universal approach to management.management.
Myth 2Myth 2:: People can acquire multicultural People can acquire multicultural adaptability and behaviors.adaptability and behaviors.
Myth 3Myth 3:: There are common There are common characteristics characteristics shared by successful shared by successful international international managers.managers.
Myth 4Myth 4:: There are no impediments to There are no impediments to mobilitymobility
4
Staffing MNC’sStaffing MNC’sManaging
expatriates
An expatriate is an individual who works anywhere but not in his or her own country of origin.
With increasing globalization more and more employees work overseas and have expats on their payroll.
Recruiting expat success depends on identifying potential expats:
Willingness and passion for working on overseas
assignment
Explore multiculturist, multilinguist, mulitfucntionalist,
background, citizens of the world and not of one country
Possess appropriate (technical/technological)skills for the
position overseas
Family background
Local laws of host country that determine expat posting
Cost differentials vs. benefits of a expat vs. a HCN
1–5
What is an expatriate?
An employee who is working and temporarily residing in a foreign country• Some firms prefer to use the term “international
assignees”• Expatriates are PCNs from the parent country
operations, TCNs transferred to either HQ or another subsidiary, and HCNs transferred into the parent country
Global flow of HR: more complexity in activities and more involvement in employees' lives
1–6
International Assignments Create Expatriates:
7
Selection criteria for international staffingSelection criteria for international staffingManaging
expatriates
1. Technical Competencies : ability to work independently
with minimal dependence on parent company for day to day
activities
2. Relational Skills : ability to interact effectively with peers,
superiors, team members and clients/customers in a third
country with its nationals as well as with the parent
company nationals.
3. Ability to cope with Environmental variables :
awareness and ability to cope with the demands of the
political-legal, cultural, technological and economic factors.
Knowledgeable about the host country nationals attitudes,
beliefs, rules and norms, customs and social as well as
corporate etiquette
4. Family situation : ability of the family to cope with
relocation and living in a new country with its social and
cultural differences
8
HRP is the process of forecasting a MNC’s
future demand and supply of the right type of
people in the right number
The HRP process is linked to the business
plan of the MNC
HRP facilitates the realization of the
organization’s objective
Human Resources PlanningHuman Resources Planning
9
Unique issues in managing International HRPUnique issues in managing International HRP
1. Identify top management talent early 2. Identifying critical success factors for future
international managers3. Providing developmental opportunities4. Tracking and maintaining commitments to
individuals in their international career paths5. Tying strategic business plans to HRP and
vice-versa6. Dealing with multiple business units while
attempting to achieve globally and regionally focused strategies
10
Issues in staffing global businessesIssues in staffing global businesses
Staffing MNC’s
Staffing orientatio
n
Linkage between staffing
and growth of MNC
Managing expatriate
s
Female expatriate
s
11
Staffing MNC’sStaffing MNC’sLinkage between
staffing and growth of
MNCStage in Host Unit’s life cycle
Staffing impetus Staffing challenges
Setting up the host unit (0 to 9-12months)
Usually an ethnocentric or geocentric approach, top and Senior management positions is the foocus, slow, micromanaged closely by the parent company, usually work with a retainer-ship arrangement with a international staffing company, key positions could be outright assigned to parent company personnel
Extremely critical phase in the subsidiary’s evolution, time consuming, multiple interviewing rounds, expensive as it might involve travel to parent country for final interview and discussions
Establish the technology team to begin core operations activities (6months – 1.5 years)
Recruitment activities step up, processes emulated from local market to get access to local talent, selection criteria focus on very high quality technical competency levels ,
Apply stringent hiring techniques, building a preferred employer brand, offering high-end compensation to attract the desired talent, careful screening to ensure top quality hires
Full blown operations (1.5 -3yrs)
Polycentric approach, hiring targets get aggressive, numbers become a critical success determinant for recruitment, quality focus moves to competent people, using global selection tests, fresher hiring
Using multiple sourcing vendors and methods, moderated compensation, creating a branding on vocational campuses
Subsidiary consolidation with global goals
Extremely geocentric approach to staffing, focus is on efficiency and this influences somewhat conservative staffing, inward looking processes, headhunting approach is practiced rampantly
High process focus on recruitment and selection, stringent entry criteria for lateral hires
12
Staffing MNC’sStaffing MNC’sStaffing orientati
on
Orientation Approach Advantages Disadvantages
Ethnocentricism
Parent company/ country national are employed at all senior and key positions.Local employees fill only lower level and supporting jobs
Transfer of parent company goals, objectives and know how /technologyEnsures control and coordination with HQ
Lack of localization of response to host country demands and needsLack of knowledge of local culture and work methods
Polycentricism Host country nationals are employed to staff all positions
Familiarity with business practices, socio-economic, political and legal environmentLower cost of staffingEffective localization of the subsidiary's operations
Communication challenges in dealing with parent country personnelChallenges in effective control and coordination over sub’s operationsLack of parent company nationals to gain international and cross cultural exposure
13
Staffing MNC’sStaffing MNC’sStaffing orientati
on
Orientation Approach Advantages Disadvantages
Geocentricism The multinational runs the subsidiary as a independent entity. Focus building a center of excellence at a global level. Hiring the best person for the job….. could be a third country national
Globally competent personnelExposure to global best practices
Lack of sensitivity to all culturesTendency to run the subsidiary as a independent unit
14
Recent trends in International staffing Recent trends in International staffing
International Staffing
Offshoring
Dual Career Couples
Recruiting
sources
Background Checks
Work Force
Diversity
15
Recent trends in International staffing Recent trends in International staffing
Work Force
Diversity
Diversity is a key metric on which organizations measure themselves
Diversity implies a workforce mix with fair representation of gender, ethnicities and races
Organizations have diversity policies that drive focused hiring to ensure the desired workforce blend
Diversity costs money, cash cost, opportunity cost and a heightened exposure to business risk, however organizations remain committed to it year after year
16
Recent trends in International staffing Recent trends in International staffing Offshoring
Outsourcing of non-core standardized services is the new facet of globalization
The spurt in hiring to staff these new-order companies in the emerging and the developing countries has hugely contributed to the revenue and growth of these countries
On the other hand the outsourcing country, usually in the developed economies, stands to loose jobs to low cost and high skills countries making it ‘outplacement and retrenchment a core activity
17
Recent trends in International staffing Recent trends in International staffing
Background Checks
Background checks are carried out to verify personal, professional and other mandated information related to safe employment of candidates
Priced by quantum/scope of the personal and professional level of check that is being carried out, it is a core responsibility of the staffing team to ensure that the employee being on-boarded is cleared from all sides
18
Recent trends in International staffing Recent trends in International staffing
Recruiting
sources
Increasing demand for resources has driven widespread innovation in sourcing
Job portals and employee referrals are among the newer and more common sources
Focus on hiring at entry level and then grooming employees for growth is a also gaining popularity as another high retention sourcing strategy
19
Recent trends in International staffing Recent trends in International staffing
Dual Career
Couples
Managing dual career couples Find a job for the trailing
spouse Commute/remote
assignments Sabbaticals Intra-company employment On assignment career
support
Thank you...
Y.Kataria
International Recruitment and Selection`
1–22
The Employment Relationship
• The nature of the employment relationshipThe nature of the employment relationship Relational: broad, open-ended and long-term
obligations Transactional: specific short-term monetized
obligations
• The condition of the relationshipThe 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
1–23
Why consider the psychological contract?
• Nature, location and duration of an Nature, location and duration of an international assignment may provoke international assignment may provoke intense, individual reactions to perceived intense, individual reactions to perceived violationsviolations
• Expatriates tend to have broad, elaborate, Expatriates tend to have broad, elaborate, employment relationships with greater employment relationships with greater emphasis on relational natureemphasis on relational nature
• Expectations and promises underpin this Expectations and promises underpin this relationshiprelationship
1–24
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
1–25
International Assignments: Factors Moderating Performance
1–26
The Phases of Cultural Adjustment
1–27
Selection Criteria
• Technical ability
• Cross-cultural suitability
• Family requirements
• Country-cultural requirements
• MNE requirements
• Language
1–28
Using Traits and Personality Tests to Predict Expatriate Success
Although some tests may be useful in suggesting Although some tests may be useful in suggesting potential problems, there may be little correlation potential problems, there may be little correlation between test scores and performancebetween test scores and performanceMost of the tests have been devised in the United Most of the tests have been devised in the United States, thus States, thus culture-boundculture-boundIn some countries, there is controversy about the In some countries, there is controversy about the use of psychological tests (different pattern of use of psychological tests (different pattern of usage across countries)usage across countries)Use of personality traits to predict Use of personality traits to predict intercultural intercultural competencecompetence is complicated by the fact that is complicated by the fact that personality traitspersonality traits are not defined and evaluated in are not defined and evaluated in similar way in different culturessimilar way in different cultures
Although some tests may be useful in suggesting Although some tests may be useful in suggesting potential problems, there may be little correlation potential problems, there may be little correlation between test scores and performancebetween test scores and performanceMost of the tests have been devised in the United Most of the tests have been devised in the United States, thus States, thus culture-boundculture-boundIn some countries, there is controversy about the In some countries, there is controversy about the use of psychological tests (different pattern of use of psychological tests (different pattern of usage across countries)usage across countries)Use of personality traits to predict Use of personality traits to predict intercultural intercultural competencecompetence is complicated by the fact that is complicated by the fact that personality traitspersonality traits are not defined and evaluated in are not defined and evaluated in similar way in different culturessimilar way in different cultures
1–29
Factors in Expatriate Selection
1–30
Harris and Brewster’s Selection Typology
Formal Informal (coffee machine Informal (coffee machine system)system)
Open• Clearly defined criteria• Clearly defined measures• Training for selectors• Open advertising of vacancy (internal/external)• Panel discussions
• Less defined criteria• Less defined measures• Limited training for selectors• Open advertising of vacancy • Recommendations• No panel discussions
Closed• Clearly defined criteria• Clearly defined measures• Training for selectors• Panel discussions• Nominations only (networking/reputation)
• Selector’s individual preferences determine selection criteria and measures• No panel discussions• Nominations only (networking/reputation)
1–31
Solutions to the Dual-career Challenge• Alternative assignment arrangementsAlternative assignment arrangements
Short-termShort-term CommuterCommuter: airline tickets, telephone bills Other (e.g. unaccompanied, more business
travel, virtual assignments)
• Family-friendly policiesFamily-friendly policies Inter-company networkingInter-company networking: suitable job for
the spouse with another MNE Job-hunting assistanceJob-hunting assistance: help to find a job Intra-company employmentIntra-company employment: double
assignments for the couple On-assignment career supportOn-assignment career support: training
1–32
Barriers to Females Taking International Assignments
External Barrier Self-established Barriers
• HR managers reluctant to select female candidates• Culturally tough locations or regions preclude female expatriates• Those selecting expatriates have stereotypes in their minds that influence
decisions
• Some women have limited willingness to relocate• The dual-career couple• Women are often a barrier to their own careers by behaving according to gender based role models.
Learning Objectives
Identify how recruitment and selection practices differ in various contexts
Identify possible host adaptations in recruitment and selection practices
Understand the unique requirements for international managers Understand the issues involved in selecting international managers
Characteristics of the national context that affect recruitment and selection
Education and training of the labour pool
Laws and cultural expectations for selection practices
Types of jobs favored by applicants
Laws and cultural expectations regarding fair wages and promotion criteria
Laws and traditions regarding labour practices
International Recruitment
Organisations are increasingly recruiting beyond their national borders
Not just to staff MNE, but also for domestic purposes
When recruiting internationally organisations need to be aware of:
International labour market
Different types of labour market
Appropriate recruitment sources
Finding a job
Looking for jobs through public vs. private agencies
Individuals in former communist and socialist societies were more likely to rely on public agenciesAdvertising in newspapers and responding to newspaper adsBoth very public forms of recruitmentIndividualistic societies have higher preference for such formsApply directly versus asking friends/relatives for jobIndividualistic and high femininity societies more likely to favour direct application
Apply directly versus asking friends/relatives for job
Individualistic and high femininity societies more likely to favour direct application
Recruitment in the U.S.
U.S. managers tend to see newspapers as one of the most effective recruitment methods.
Fear that recruitment by personal contacts may result in bias against some groups.
U.S. value open and public advertisements as a reflection of individualistic culture.
Recruitment in Korea
Backdoor recruitment: prospective employees are friends or relatives of those already employed
Managers are recruited from prestigious universities
International Recruitment Methods
Headhunting
Cross-national advertising:
Role qualities associated with the job
Desired company qualities
Softer cultural issues, e.g. images reflected in brochures etc.
International Recruitment Methods
What do you think of the internet as a recruitment medium? How would you overcome some of the difficulties?
Cross-cultural issues in selection
Empirical predictive model – the norm in UK/US
Clinical Assessment norm in France
Results in the use of some different selection methods
International selection methods
Interviews
Structured vs. semi-structured
Who is involved (HR or not)?
Cross cultural awareness (silence and Koreans)
Monitoring and targeting of disadvantaged groups
Assessment centres
Psychological testing
43
Are management theories universal?
U.S. management theories may be ethnocentric.
• Participation and individual performance are not emphasized as much in other cultures.
•Not all Japanese management practices can be applied successfully abroad.
• Lifetime employment, job rotation and broad career experience, shared information, collective decision-making, and quality emphasis.
• Keiretsu—long-term alliances for attaining common interests.
Implications of Culture for HRM
Culture may influence:
how subordinates expect leaders to lead, how decisions are handled, and what motivates people.
the appropriateness of HRM practices.
compensation systems.
communication and coordination processes in organizations.
15-5
Comparison of advantages in sources of overseas managers
HOST-COUNTRY HOME-COUNTRY NATIONALS THIRD-COUNTRYNATIONALS (EXPATRIATES) NATIONALS
Less costly Talent available within company Broad experience
Preferred by host-country Greater control International governments
Intimate knowledge of Company experience Multilingualismenvironment and culture
Language facility Mobility
Experience provided to corporateexecutives
Bohlander and Snell, (2007),
INTERNATIONAL ASSIGNMENTS FOR WOMEN "MYTHS"
Myth 1: women do not wish to take international assignments
Myth 2: women will fail in international assignments because of the foreign culture's prejudices against local women
External Barrier Self-established Barriers
• HR managers reluctant to select female candidates• Culturally tough locations or regions preclude female expatriates• Those selecting expatriates have stereotypes in their minds that influence decisions
• Some women have limited willingness to relocate• The dual-career couple• Women are often a barrier to their own careers by behaving according to gender based role models.
Barriers to Females Taking International Assignments
Equal Employment Opportunity Issues
Cultural Variations
Law and enforcement
Social values
Corporate practices
SUCCESSFUL WOMEN EXPATRIATES
Foreign not female
Emphasize nationality not gender
The woman's advantage
Strong in relational skills
A wider range of interaction options
1–50
Chapter Summary
The chapter coveredThe chapter covered• Four myths related to the concept of a global managerFour myths related to the concept of a global manager• The debate surrounding the definition and magnitude of The debate surrounding the definition and magnitude of
expatriate failure.expatriate failure.• Cultural adjustment and other moderating factors affecting Cultural adjustment and other moderating factors affecting
expatriate intent to stay and performance. expatriate intent to stay and performance. • Individual and situational factors to be considered in the Individual and situational factors to be considered in the
selection decision. selection decision. • Evaluation of the common criteria used revealed the Evaluation of the common criteria used revealed the
difficulty of selecting the right candidate for an international difficulty of selecting the right candidate for an international assignment and the importance of including family assignment and the importance of including family considerations in the selection process.considerations in the selection process.
1–51
Chapter Summary
The chapter coveredThe chapter covered• Dual-career couples as a barrier to staff mobility, and the Dual-career couples as a barrier to staff mobility, and the
techniques that multinationals are utilizing to overcome this techniques that multinationals are utilizing to overcome this constraint.constraint.
• Female expatriates and whether they face different issues Female expatriates and whether they face different issues to their male counterpartsto their male counterparts