staffing policy & expatriate selection

7/31/2019 Staffing Policy & Expatriate Selection

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Staffing Policies & Expatriate Selection


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Staffing & Selection

1.Perlmutters Top Mgmt

Attitude inventory

-H.V.Perlmutter in 1969 presented the attitudeinventory of the top mgmt. that shape IHRM activities

-Distinguishes between 3 types of attitudes1. Ethnocentric: Home country culture shapes the mottoof the entire org.-PCNs are recruited for key posts, performance appraisalsare conducted in the home country etc.-Matsushita & Toyota2.Polycentric: HRM differs in every country & localmarkets can be best reached by local managers-Subsidiaries enjoy a large measure of autonomy withfinancial controls-Career prospects for HCNs are limited to top positionswithin the subsidiary but not HQ-Unilever

3. Geocentric: Collaboration between HQ & subsidiaries-Universal standards of work with local variations-Global allocation of resources & globalization of product &functional lines-Selection of best person for the job-work to be conducted without a national bias-Nestle


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TCNPCN

Tradeoffs of Staffing Using PCNs, HCNs & TCNs

+ +

oSalary, benefits are less thanPCNs

oBetter informed about host countryenvironment

oPromotion for HCNs are limitedoAdaptation to host country

oImpose an improper HQ styleoDifferent Compensation

oTransfers must consider nationalanimosities

oHost Govt. can resent hiring TCNsoTCNs may not want to go back

- -

oOrg. Control & CoordinationoManagers get int. experience

oPossess skills & experienceoControl on subsidiary



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oLanguage barriers are eliminatedoHiring Costs are reduced

oContinuity ImprovesoGovt. Policy may dictate hiringoMorale may improve as they see

career potential

oControl & Coordination by HQ lessoLimited career opportunities outside

SubsidiaryoLimits opportunities for PCNs to gain

Foreign experience

HCN+

-

Tradeoffs of Staffing Using PCNs, HCNs & TCNs



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1. Technical Ability-Persons ability to perform a job

-Past experience has little or no bearing on the technical skills(or lack of it)-Skills are critical but success depends on how individualshandle the situation

2. Cross-Cultural Suitability

-Country of posting & its culture influence the selection of thecandidate-Importance of cultural sensitivity in expat assignments-Difficult to generate formal procedures for assessment-AT&T/Questionnaire to be answered by candidates &spouses

oCan you imagine living without TV?oWhat is your tolerance for waiting for repairs?oHow important is it for you to spend significant amount oftime with people of your own racial, ethnic & nationalbackground?oHow do you feel if your client does not come on time?


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3. Family Requirements-Contributions of the family to expatriate success are

tremendous-Place of family in hardship postings remote areas far awayfrom major cities or major facilities with high physical risks-Reluctance to select women for certain middle east or southeast Asian nations

4. Multinational Requirements-Attitude of the MNE involved (ethnocentric, polycentric,geocentric etc.)-The mode of operation involved (IJVs require a great deal oflocal input)-The duration of the assignment-The amount of knowledge transfer inherent in theexpatriates job in foreign operation


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5. Language

-Language skills are critical for some expatriate positions butlesser in others-Communication skills rather than specific language skills areimportant-A Price Waterhouse survey places language as the third mostimportant selection criterion

-Fast East Countries

6. Country Requirements-Companies require to provide the unavailability of HCNsbefore sending expatriates-Work permits & entry visas

-Spouse as a dependent in the host country creates an issue inexpatriate selection


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o Myth 1: there is a universal approach to management-MNC blunder while introducing home based practices into their foreign

operations

o Myth 2: People can acquire multicultural adaptability andbehaviors

-Some people can adopt culturally appropriate behaviors but that does notapply all the time in all cultural settings

o Myth 3: There are common characteristics shared bysuccessful international managers

-Identification of some predictors of success among expatriates but successlargely depends on an individual & his/her response to a foreign situation

o Myth 4: There are no impediments to mobility-A global mindset has its own limitations-Adoption of virtual assignments indicate the MNC inability to always find

expats


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1. Inability to adjust to a

Foreign Culture

-Spouse/partner dissatisfaction-inability to adapt

-difficulties with family adjustment inthe new location

-difficulties associated with differentmanagement styles

-culture & language difficulties-issues associated with the spouses

career development

2. The process of adjustment


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3. Length of Assignment

-Length of Assignment does contribute toadjustment & performance of expatriates

-Longer duration of assignment allows theexpatriate more time to adjust to theforeign situation

-Company policy to expat adjustment

4. Willingness to Move-Supportive family facilitates

expatriate movement-British are far more internationally

mobile than the US managers

5. Work-Environment Related

Factors

-Job autonomy

-Org. Support for the expatriate-Lack of Challenge at work


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6. The Employment

Relationship

-The nature of the employment relationship1. Relational: broad, open-ended and long-

term obligations2. Transactional: specific short-term

monetized obligations-The condition of the relationship

1. Intact: when employee considers therehas been fair treatment, reciprocal trust

2. Violated: provoked by belief organizationhas not fulfilled its obligations


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6. The Employment

Relationship

Why Consider the Psychological Contract?1. Nature, location and duration of an

international assignment may provoke intense,individual reactions to perceived violations

2. Expatriates tend to have broad, elaborate,employment relationships with greater emphasison relational nature

3. Expectations and promises underpin thisrelationship

-Likelihood of exit


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o Traditional Definition: Premature return of anexpatriate

o Could be defined in terms of

-Poor Quality of Performance in Foreign Assignment-Personal Dissatisfaction with experience (by expatriate or

family)

-Lack of adjustment to local conditions

-No acceptance by local nationals

-Inability to identify/or train a local successor



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o Direct costs of failure: airfares, associated relocationexpenses, and salary and training Varies according to level of position concerned

Country of destination

Exchange rates

Whether failed manager is replaced by another expatriate

o The average cost per failure per American Expatriate to the companyranges from $50,000 to $150,000. May expatriates cost their firmsas much as $350,000 the first year, if they & their spouses aremoved to expensive locales such as Paris, London, Stockholm, Buenos

Aires or Tokyo



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o Indirect costs (invisible)

Damaged relationships with key stakeholders in the foreignlocation

Negative effects on local staff

Negative effects on expatriate concerned

Family relationships may be affected



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-Harris & Brewster argue that actual expatriate is largely an ad hoc

process-Selection of expatriates starts off casually by talking around the coffee

machine-Names of potential expatriates are volunteered informally-The MNCs processes are activated to legitimize the decision that actually

started at the coffee machine

-The Harris & Brewster Selection Typology


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1. Dual Working Couple Challenge

Solutions to the Dual Working Couple Challenge Alternative assignment arrangements

Short-term

Commuter Other (eg. unaccompanied, virtual)

Family-friendly policies

Inter-company networking

Job-hunting assistance

Intra-company employment On-assignment career support



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o Are Female Expatriates any Different?

-Barriers to Women taking up International Assignments

External Barriers Self Imposed Barriers

HR Managers reluctant toselect female candidates

Culturally tough locations orregions preclude femaleexpatriates

Those selecting expatriateshave stereotypes in theirminds that influence decisions

Some women have limitedwillingness to relocate

The dual-career couple

Women are often a barrier totheir own careers by behavingaccording to gender based rolemodels


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staffing policy & expatriate selection

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