Chapter 4 Recruiting and selecting staff for international

Chapter 4 Recruiting and selecting staff for international assignments www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 1 4/1

Chapter objectives In Part I, we demonstrated how people play a central role in sustaining international operations. As international assignments are an important vehicle for staffing, it is critical that they are managed effectively, and the expatriates are supported so that performance outcomes are achieved. The focus of this chapter, then, is on recruitment and selection activities in an international context. We will address the following issues: • the myth of the global manager • the debate surrounding expatriate failure (cont. ) www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 2 4/2

Chapter objectives (cont. ) • factors moderating intent to stay or leave the international assignment • selection criteria for international assignments • dual-career couples • are female expatriates different? www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 3 4/3

The global manager • Myth 1: there is a universal approach to management • Myth 2: People can acquire multicultural adaptability and behaviors • Myth 3: There are common characteristics shared by successful international managers • Myth 4: There are no impediments to mobility www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 4 4/4

Table 4 -1: Current expatriate profile www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 5 4/5

Expatriate failure • Definition: Premature return of an expatriate • Now recognized that under-performance during an international assignment, and retention upon completion, should be included www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 6 4/6

Expatriate failure • What is the magnitude of the phenomenon? – Suggestion of a falling rate compared with early (1980 s) studies – Evidence is somewhat inconclusive – Discussion about its magnitude has drawn attention to expatriate failure and prompted considerable research into its causes www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 7 4/7

Expatriate failure • Direct costs of failure: airfares, associated relocation expenses, and salary and training – Varies according to level of position concerned – Country of destination – Exchange rates – Whether ‘failed’ manager is replaced by another expatriate www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 8 4/8

Expatriate failure • Indirect costs (invisible) – Damaged relationships with key stakeholders in the foreign location – Negative effects on local staff – Negative effects on expatriate concerned – Family relationships may be affected www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 9 4/9

Factors moderating expatriate performance • • • Inability to adjust to the foreign culture Length of assignment Willingness to move Work-related factors Psychological contract www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 10 4/10

Figure 4 -1: International assignments: factors moderating performance www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 11 4/11

Figure 4 -2: The phases of cultural adjustment www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 12 4/12

The phases of adjustment • The U-Curve is not normative • The time period involved varies between individuals • The U-Curve does not explain how and why people move through the various phases • It may be more cyclical than a U-Curve • Needs to consider repatriation www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 13 4/13

Figure 4 -3: The dynamics of the employment relationship www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 14 4/14

The employment relationship • The nature of the employment relationship – Relational: broad, open-ended and long-term obligations – Transactional: specific short-term monetized obligations • The 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 www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 15 4/15

Figure 4 -4: Likelihood of exit www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 16 4/16

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: refers to employee’s feelings of obligation to remain www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 17 4/17

Why consider the psychological contract? • Nature, location and duration of an international assignment may provoke intense, individual reactions to perceived violations • Expatriates tend to have broad, elaborate, employment relationships with greater emphasis on relational nature • Expectations and promises underpin this relationship www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 18 4/18

Selection criteria • • • Technical ability Cross-cultural suitability Family requirements Country-cultural requirements MNE requirements Language www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 19 4/19

Figure 4 -5: Factors in expatriate selection www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 20 4/20

Mendenhall and Oddou Model • • Self-oriented dimension Perceptual dimension Others-oriented dimension Cultural-toughness dimension www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 21 4/21

Table 4 -2: Harris and Brewster’s selection typology www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 22 4/22

Solutions to the dual-career 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 www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 23 4/23

Table 4 -3: Barriers to females taking international assignments www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 24 4/24

Chapter summary This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered: • Four myths related to the concept of a global manager – that there is a universal approach to management; that people can acquire multicultural adaptability and behaviors; that there are common characteristics successful international managers share; and that there are no impediments to mobility. • The debate surrounding the definition and magnitude of expatriate failure. (cont. ) www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 25 4/25

Chapter summary (cont. ) • Cultural adjustment and other moderating factors affecting expatriate intent to stay and performance. These included duration of the assignment, willingness to move, work-related factors and the employment relationship. • Individual and situational factors to be considered in the selection decision. Evaluation of the common criteria used revealed the difficulty of selecting the right candidate for an international assignment and the importance of including family considerations in the selection process. (cont. ) www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 26 4/26

Chapter summary (cont. ) • Dual-career couples as a barrier to staff mobility, and the techniques that multinationals are utilizing to overcome this constraint. • Female expatriates and whether they face different issues to their male counterparts. It is also clear that, while our appreciation of the issues surrounding expatriate recruitment and selection has deepened in the past 20 years, much remains to be explored. The field is dominated by US research into predominantly US samples of expatriates, although there has been an upsurge in interest from European academics and practitioners. (cont. ) www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 27 4/27

Chapter summary (cont. ) Will the factors affecting the selection decision be similar for multinationals emerging from countries such as China and India? If more multinationals are to encourage subsidiary staff to consider international assignments as part of an intra-organizational network approach to management, we will need further understanding of how valid the issues discussed in this chapter are for all categories of staff from different country locations. Another area that remains ignored is the selection of non-expatriates, that is, the international business travelers we discussed in Chapter 3. In our survey of current literature, there is a paucity of recognition of this group. (cont. ) www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 28 4/28

Chapter summary (cont. ) The various consulting firm surveys conducted into relocation trends in 2002 that we draw on in this chapter indicate that more multinationals are resorting to replacing traditional assignments with business travel as a way of overcoming staff immobility. Likewise, there is a need for further work into the performance–selection link surrounding non-standard assignments, including commuter and virtual assignments. www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 29 4/29

Chapter summary (cont. ) It is apparent, though, that staff selection remains critical. Finding the right people to fill positions, particularly key managers – whether PCN, TCN or HCN – can determine international expansion. However, effective recruitment and selection are only the first step. As we will explore in the next chapter, maintaining and retaining productive staff are equally important. www. Assignment. Point. com Use with International Human Resource Management ISBN 1 -84480013 -X Published by Thomson Learning © Peter Dowling and Denice Welch 30 4/30