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Recruitment & Selection

Recruitment & Selection. Definitions. Recruitment : searching for and obtaining potential job candidates in sufficient numbers and quality so that the organization can select the most appropriate people for the positions

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Recruitment & Selection

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  1. Recruitment & Selection

  2. Definitions • Recruitment: searching for and obtaining potential job candidates in sufficient numbers and quality so that the organization can select the most appropriate people for the positions • Selection: process of gathering information for the purpose of evaluating and deciding who should be employed in particular jobs

  3. Difference between Domestic & International Staffing • Firms predisposition towards who should hold key positions in head quarters and subsidiaries(ethnocentric,polycentric,regiocentric,geocentric) • Constraints imposed by host government • Firms ability to attract right talent • Persuading managers to release bestemployees for international assignment

  4. Issues in Staff Selection: The Myth of a Global Manager • There is a universal approach to management (ethnocentric attitude, convergence-divergence – best practices, impact of organizational culture over local culture) • People can acquire multicultural adaptability and appropriate behavior (depends on reaction to particular cultural environment, depends on effectiveness (successful use of managerial and technical skill in a foreign env.) and coping skills (being reasonably comfortable or can atleast survive in a foreign env.) • There are common characteristics shared by global managers ( lang. familiarity, inclusive behavior,linking the foreign assignment with their own career progress) • There are no impediments to global mobility (reality is time, cost, host country requirements curtail the effectiveness of the MNC)

  5. Issues in Staff Selection: Profile of an Expatriate • Profile drawn from the results of 2002 survey of 181 multinational worldwide operating in 130 countries of which 77% were headquartered in USA • Majority males (82%) • Age 30-49 (60%) • Marital status :married (65%),single (26%) • Accompanied by Spouse (86%), with children(59%) • Location: within Europe (35%),Asiapacific (24%) • Primary reason to fill a position • Prior international experience 30%

  6. Issues in Staff Selection: Expatriate Failure • Meaning of Expatriate failure: premature return of an expatriate • Points to selection error compounded with ineffective expat. management policy • Recently this definition questioned. An expat. May be ineffective, poorly adjusted yet not recalled so not considered a failure. • Support for broad defi. of expat. failure came from1997/98 Price Waterhouse study of international assignment policy and practice among European multinationals (including US subsidiaries)

  7. Magnitude of Expat. Failure Phenomenon • Harzing questioned the reported failure rate and said that there is no empirical evidence for the existence of high failure rates • The discussion of expat failure began with Tung’s 1981 article which pointed out the inability of US nationals to handle an international assignment. • Tung concluded that expat. Failure was more of a concern for US firms

  8. Expat failure more a US prob. (24%firms had recall rates below 10%, n=80) compared to Europe (59%24%firms had recall rates below 10%, n=29) or Japan (76% firms had recall rate below 5% ,n=35)

  9. Two Surveys • ORC Worldwide: 300 MNC (46% north American,28% European,9% UK) • Results: 56% did not know the return rate of their expats. • Those who did keep records reported less than 10% of early recall

  10. GMAC-Global Relocation Services (GMAC-GRS) • 39% did not have the figures of expat. Failure • Those who did have information indicated 17% failure rate

  11. Reasons for failure have not been studied in detail • Reasons for failure and definition of failure are often mixed. • Some of the reasons for failure identified are: • Unmet business objectives • Problems at assignment location • Unmet career development

  12. Cost of failure: • direct (airfare, relocation expense, salary & training) • indirect (difficulty with host government official, demand that expat be replaced by HCN thus affecting staffing policy)

  13. Factors Moderating Performance • Inability to adjust to foreign culture (expat, spouse, children) cultural differences US & Japan • Process of adjustment-tourist, crisis, pulling up, adjustment • Length of Assignment • Willingness to move • Work Environment related factors (intent to stay, PCN’s commitment to the local company, adjust with HCN’s and general living conditions, skill utilization, commitment to the organization) • Employment relationships (psychological contract, nature of employment relationship)

  14. Selection Criteria • Technical Ability • Cross cultural suitability • Family requirements • Country cultural requirements (work permit, social charter & EU) • MNE requirements (no. of PCN, TCN, HCN) • Language • Selection tests

  15. Other Issues • Dual Career Couples • Female Expatriates

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