8. international staffing (1)

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


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


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


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


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

8. international staffing (1)

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