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Presented By:

Ruhi Beri

Roll No. 24

Recruitment and Selection of HR for Global Assignments

INTRODUCTION

International management encounters many problems above those faced by a domestic organization.

Geographic distance and a lack of close, day-to-day relationships with headquarters represent a major challenge to multinationals.

"It is essential, therefore, that special attention is given to the staffing practices in overseas assignments"

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Contd…

Many challenges exist when staffing a business that functions globally.  

Differences in cultures provide many opportunities for establishing a diverse workforce.   If the parent company is located in the U.S and separate offices are being established in other areas of the world, the HR Manager will be responsible for making sure that the goals and timeline to reach those goals are met.

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Contd…

Depending on the type of business, the HR Manager will need to establish a way for the policies and philosophy of the company to be consistent in all branches, regardless of location.  

The easiest, but probably the most costly, solution is for the HR Manager to place home-country employees in the foreign locations in an effort to establish a program to meet the needs of the parent company.   

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Contd…

Geographic differences will present issues for communication, time zone differences, language difference and more.

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Reasons For International Assignments

Position filling Skills gap, launch of new endeavor, technology transfer.

Management developmentTraining and development purposes, assisting in developing common corporate values.

Organizational developmentNeed for control, transfer of knowledge, competence, procedures and practices.

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Types of International Assignments

Short term: up to 3 monthsTroubleshootingProject supervisionA stopgap until a permanent arrangement is found

Extended: up to 1 yearMay involve similar activities as short-term assignments

Long term: varies from 1 to 5 yearsThe traditional expatriate assignment

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Strategic Role of Expatriate Assignments

Helps managers acquire international skills

Helps coordinate and control operations dispersed activities

Communication of local needs/strategic information to headquarters

In-depth knowledge of local markets

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STAFFING

“ Staffing is the process of acquiring , deploying and retaining a workforce of sufficient quantity and quality to create positive impacts on the organization's effectiveness ”

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Factors Affecting Staffing

General staffing policy on key positions at headquarters and subsidiaries

Constraints placed by host government

Staff availability

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PIGORS - 3 DIFFERENT SOURCES OF EMPLOYEES

First, the company can send employees from its home country, which are referred to as expatriates, expats or home country nationals.

Second, it can recruit host country nationals (natives of the host country)

Third, it can hire third country nationals who are natives of a country other than the home country or the host country.

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CRITERIA TO BE CONSIDERED

1. Cost2. Knowledge of the organization (products, organizational culture)3. Cultural proximity4. Knowledge of the local environment5. Attitude of the foreign government6. Promotability of local employees.

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Case Study—Part One

Activity BThe hotel management asked you if they should look only at internal candidates who are parent country nationals (PCNs) or recruit host country nationals (HCNs). Each group should prepare an argument based on the following:Group 1 believes that only PCNs should be hired.Group 2 believes that only HCNs should be hired.Group 3 believes that a combination of PCNs and HCNs should be hired.Present the advantages of the approach your group was allocated.

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IN GENERAL (PCN)…

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Advantages• Familiarity with the home office's goals, 

objectives, policies and practices• Technical and managerial competence• Effective liaison and communication 

with home-office personnel•  Easier exercise of control over the 

subsidiary's operations

Disadvantages• Difficulties in adapting to the foreign 

language and the socioeconomic, political, cultural and legal environment

• Excessive cost of selecting, training and maintaining expatriate managers and their families abroad

• The host countries' insistence on localizing operations and on promoting local nationals in top positions at foreign subsidiaries

• Family adjustment problems, especially concerning the unemployed partners of managers

IN GENERAL (HCN)…

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Advantages

• Familiarity with the socioeconomic, political and legal environment and with business practices in the host country

• Lower cost incurred in hiring them as compared to PCN and TCN

• Provides opportunities for advancement and promotion to local nationals and, consequently, increases their commitment and motivation

•  Responds effectively to the host country's demands for localization of the subsidiary's operation

Disadvantages

• Difficulties in exercising effective control over the subsidiary's operation

• Communication difficulties in dealing with home-office personnel

•  Lack of opportunities for the home country's nationals to gain international and cross-cultural  experience

IN GENERAL (TCN)…

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Advantages

• Perhaps the best compromise between securing needed technical and managerial expertise and adapting to a foreign socioeconomic and cultural environment

•  TCN are usually career international business managers

• TCN are usually less expensive to maintain than PCN

•  TCN may be better informed about the host environment than PCN

Disadvantages

• Host country's sensitivity with respect to nationals of specific countries

• Local nationals are impeded in their efforts to upgrade their own ranks and assume responsible positions in the multinational subsidiaries

EXPATRIATE RECRUITMENT

The main objectives of international recruitment are:

(1) elaborating ways and techniques which will allow the organization to attract a sufficient number of motivated and qualified international candidates (2) identifying candidates susceptible to filling foreign positions at the lowest possible cost (3) increasing the pool of international candidates at the lowest possible cost, anticipating for the organization’s future needs in personnel.

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RECRUITMENT SOURCES

Sources

Internal External

Based on strategic value of International Assignments

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When are expatriates selected???

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RECRUITMENT METHODS

• Job Posting• Utilization of internal databases-

(data on potential candidates, their work experience, performance, skills, availability, and their preferences regarding a potential international assignment: where he or she would be interested in working, in what capacity, and on what sort of projects.)

Internal

• Internet• Campaigns in international

media• International head-hunters• Relationships with learning

institutions

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Necessary Skills and Abilities for International Managers

Skills and AbilitiesNecessary to DoThe Job

•Technical•Functional•Managerial

Skills and AbilitiesNecessary to WorkIn a Foreign Location

•Adaptability•Location-specific skills•Personal characteristics

Improved Chances of Succeeding inAn International Job Assignment

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EXPATRIATE SELECTION

Reduce expatriate failure rates by improving selection procedures

An executive’s 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

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SELECTION METHODS

Open•Vacancies are advertised•Anyone with appropriate qualification and experience may apply•Interviews (formal/informal) are conducted and selection is done on consensus among selectors.

Closed•Nominations are made by line mangers and forwarded to corporate head-quarters•On acceptance by head quarter, candidates are informed•Selection interview for negotiation of the terms and conditions of the assignment

Formal•Vacancies are advertised internally•Selection criteria based on JD & JS are made explicit•Psychometric testing is used•Selection done through consensus

Informal•Criteria are not specified•Selectors assume that personality characteristics are already known•Importance to networking, reputation, and team fit•Individual preferences of selectors can predominate

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SELECTION CRITERIA FOR EXPATRIATES

Key Success Factors for Expatriate Assignments:

Technical and managerial skillsPersonality traitsRelational abilitiesFamily situationInternational motivationLanguage ability

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Priority of Success Factors

Assignment length-Technical and professionals skills are key for short assignments

Cultural similarity

Required interaction with local people

Job complexity and responsibility

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Contd…

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FOUR ATTRIBUTES THAT PREDICT SUCCESS

Self-OrientationPossessing high self-esteem, self-confidence and mental well-being

Others-Orientation-Ability to develop relationships with host-country nationals-Willingness to communicate

Perceptual Ability-The ability to understand why people of other countries behave the way they do-Being nonjudgmental and being flexible in management style

Cultural ToughnessRelationship between country of assignment and the expatriate’s adjustment to it

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THANK YOU!!!