IHRM Chapter 4 International Human Resource Management Recruiting

IHRM Chapter 4 International Human Resource Management Recruiting and selecting staff for international assignments Managing people in a multinational context

Chapter Objectives We address the following: • The myth of the global manager • The debate surrounding expatriate failure • Factors moderating intent to stay in or leave the international assignment • Selection criteria for international assignments • Dual career couples • Are female expatriates different? v 2

Terms recruitment selection effectiveness skills coping skills global manager direct cost indirect cost v IA Phases: tourist culture shock pulling up adjustment international assignment (IA) expatriate failure rate (EFR) common corporate language “coffee machine system” 3

Recruitment & Selection Recruitment • Defined as searching for and obtaining potential job candidates in sufficient numbers and quality so that the organization can select the most appropriate people to fill its job needs. Selection • Is the process of gathering info for the purposes of evaluating & deciding who should be employed in particular jobs. v 4

Issues in staff selection (myths) 1. There is a universal approach to management. • Many multinationals continue to transfer home- based practices into their foreign operations without adequate consideration as to whether this is an appropriate action. 2. People can acquire multicultural adaptability and behaviors. • Some people can adopt culturally appropriate behaviors but that does not apply all the time in all culture settings. • On individual reaction to a particular cultural environment, as it is not always easy to put into practices what you know is the right way to behave & some individuals have much better effectiveness & coping skills than others. v 5

Issues in staff selection (myths) 3. There are common characteristics shared by successful international managers. • A person who has certain characteristics, traits & experience is more likely to perform effectively in foreign environments than a person who does not share this profile. • However, not just in selection process, but also in the way person responds to the foreign location. 4. There are no impediments to mobility. • Large multinationals are endeavoring to develop & exploit an internal labour mkt. from the international manager. v 6

Issues in staff selection (myths) Firm may have become more global in their operations but their people have not. Some MNEs are experimenting with alternatives such as the virtual assignment is indicative of this constraints. • • v 7

Table 5 -1 v Current expatriate profile 8

Expatriate Failure means the premature return of an expatriate manager before the completion of his or her international assignment due to the person’s failure to attain the expected performance levels. • and due to the persons continuing inability to adjust to the new work and cultural environment in the host country • v 9

The Reasons for “Expatriate Failure” Lack of technical competence Personal or emotional problems Difficulties with the new environment Manager’s Personal or Emotional Maturity Inability to Cope With Larger International Responsibility Spouse’s Inability to Adjust Manager’s Inability to Adjust Other Family Reasons v 10

Cost of Failure 1. Direct cost • Include airfares and any relocation expenses, T&D cost and salary. • Amount varies according to the level of the position, country of destination and exchange rate. 2. Indirect cost • Difficult to quantify in money terms but can be prove to be more expensive for the company. • Expatriate position will involve contact with host government officials & key clients. Failure at this level will loss of mkt. share, demands & etc. v 11

Figure 5 -1 v International assignments: factors moderating performance 12

Factors moderating performance 1. Inability to adjust the foreign culture. • Consistent reason given for expatriate failure. • E. g US firm ranked ‘inability of the spouse to adjust’ as the most important rather than Japanese firm. v 13

Figure 5 -2 v The phases of cultural adjustment 14

Factors moderating performance 2. Length of assignment. • Length of assignment does contribute to the adjustment & performance. • A longer assignment allows the expatriate more time to adjust to the foreign situation & become productive. • E. g Japanese firm often do not expect the expatriate to perform up to full capacity until 3 rd year, 1 st year of the foreign assignment is seen mainly as a period of adjustment to the foreign environment. v 15

Factors moderating performance 3. Willingness to move. • Employees is a reluctant expatriate or accompanied by reluctant family members, it is more likely that they may interpreted negatively events and situation uncounted in the new environment. • Manager who are most ready for international relocations are those whose spouses are also supportive of that move. v 16

Factors moderating performance 4. Work environment related factors. • It is include skill utilization & commitment to the organization. • Effective skill utilization was significantly related to job satisfaction, organization commitment and intent to finish the international assignment. v 17

Figure 5 -3 v Factors in expatriate selection 18

Factors selection criteria 1. Technical Ability. • Person ability to perform the required tasks is an important consideration. • Technical & managerial skills are essential criterion. • Multinational place heavy reliance on relevant technical skills during the expatriate selection process. 2. Cross-cultural suitability. • Cultural environment in which expatriates operate is an important factor in determining successful performance. v 19

Factors selection criteria • Expatriate required cross cultural abilities enable the person to operate in a new environment. • Desirable attributes should include cultural empathy, adaptability, diplomacy, language ability and etc. 4. Family Requirement • The family particularly the spouse makes to the success of the overseas assignment. • Accompanying partner's career, there are family considerations that can cause a potential expatriate to decline the international assignament. v 20

Factors selection criteria 5. Country/Culture requirements • International firms are usually required to demonstrate that HCN is not available before host government will issue the necessary work permit and entry visa for desired PCN or TCN. • Sometime there is a transfer blocked by the host government. • Generally work permit is granted to the expatriate only but not to the spouse. 6. MNE requirement • MNE may considered the proportion of expatriates to local staff when making selection decision mainly as outcome of its staffing philosophy. v 21

Factors selection criteria Operation in particular countries may require the use of more PCNs and TCNs. • Other situational factors in MNE requirement such as mode of operation involved, duration & type of the assignment & amount of knowledge transfer. 6. Language • The ability to speak the local language is an aspect often linked with cross cultural ability. • Language skill is critical importance for some expatriate position. • v 22

4 dimensions for successful expatriate selection 1. Self-oriented Expresses adaptive concern for self-preservation, selfenjoyment, mental hygiene. 2. Perceptual Accurately understands why host nationals behave the way they do. 3. Others-oriented Cares about host national co-workers and affiliates with them. 4. Cultural-toughness Able to handle the degree to which the culture of the host country is incongruent with that of the home country. v 23

Family-friendly policies 1. Inter-company networking The multinational attempts to place the accompanying spouse or partner in a suitable job with another multinational sometime in a reciprocal arrangement. 2. Job-hunting assistance • The multinational provides spouse/partner assistance with the employment search in the host country. 3. Intra-company employment • Sending the couple to the same facility, perhaps the same department • But not all multinational are comfortable spouse working together in the same department. • v 24

Family-friendly policies 4. On-Assignment career support • A multinational may assist spouse to maintain and even improve career skills through Dual-Career Policy e. g. Motorola. • This consist of a lump sum payment for education expenses, professional association fees, seminar attendance, language training & etc. v 25

Table 5 -3 v Barriers to females taking international assignments 26