International Staffing

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  international staffing 1.   1. Prof. Preeti Bhaskar Symbiosis Centre for Management Studies Noida 2.   2. ã Approaches of staffing ã Recruitment and Selection Procedures of Expatriates ã Expatriate’s Success and failure factors ã Women Expatriate ã Non –  expatriates their roles ã Issues in staff selection  3.   3. International recruitment have 3 important questions - ã From w hat country/ies to recruit (home, host or third)? ã What Techniques to be used when recruitment is planned out side home country? ã Whether to centralized recruitment activities in home country or decentralize in foreign subsidiaries? 4.   4. Different sources of emp loyees ã First, the company can send employees from its , which are referred to as expatriates, expats or home country nationals. ã Second, it can recruit (natives of the host country), ã Third, it can hire who are natives of a country other than the home country or the host country. 5.   5. Challenging aspects ã First, the initial cost of airfare, living expenses and transportation in the host country. ã The second expense incurred with bringing expatriates in to the international operation is the training involved in making sure the people going to the host country are familiar with, laws, rules, culture, languages and expectations in the new country. 6.   6. International employee selection based on four issues in the context of staffing global business: ã Linking staffing plans with the evolution of the MNC. ã Staffing orientation/ approach of staffing ã Managing expatriates ã Female expatriates  7.   7. Linking staffing plans with the evolution of the MNC: Staffing strategies differ based on the life cycle of the MNCs like: ã Setting up the host unit ã Establishing the technology team to begin core operational activities. ã Full blown operations of the host unit with significant role in establishing global objectives and targets, ã Strong operational leadership at the unit level while globally consolidating with parents. 8.   8.  Approaches to staffing ã Ethnocentric policy ã Polycentric policy ã Geocentric policy ã Regiocentric policy 9.   9. Ethnocentric policy “ Home country’s culture is to be imposed on subsidiaries” MNC’s exports its HR Policy from Home cou ntry to foreign location. ã Strategic decisions are made at headquarters ã Key positions in domestic and foreign operations are hold by headquarters’ personnel  10.   10. Three factors are to be considered in the staff: ã Should be able to adjust in family, cultures a nd personality problems to avoid failure. ã To succeed, should enjoy local entertainment, develop local relationships and communicate with locals. ã To achieve success, expatriates to have open attitude and take training towards host  –  country. Under ethno centric, lines of communication are one  –  directional, i.e. advice from headquarters. In fact, home country attitude and culture dominates. 11.   11. Polycentric “MNC’s seeks to adapt to the local cultural needs of subsidiaries ” ã Each subsidiary is a distinct national entity with some decision- making autonomy ã Host - country nationals manage subsidiaries who are seldom promoted to HQ positions ã Parent company nationals hold key headquarter positions 12.   12. Poly  –  centric: Here primary positions are filled by nationals from host country( HCNs)y. Advantages of this are: ã ã  13.   13.  Advantages of Polycentric ã It eliminate the high cost of relocating expatriate manager and families. ã Offer a great degree of autonomy in decision making to subsidiary heads. ã Host country nationals are less expensive than parent country used and Training Host country’s nationals results in low cost ã Better local knowledge ã Reduce personal problems ã Host country managers can protect a MNC from hostile  treatment by host Government. ã Here subsidiary is allowed some autonomy but financial controls are kept. ã Top people are limited to subsidiary and not for corporate position. 14.   14. For example, in international manufacturing and processing facilities in Mexico, companies recruit with a sign announcing job openings outside the facility or by employees introducing family members who are looking for jobs. Another example is Hungary, where government attempts to combat unemployment have led to the requirement that an organization must get permission from the Ministry of Labor before hiring an expatriate 15.   15. Geocentric ã A global approach - worldwide integration ã View that each part of the organization makes a unique contribution ã Nationality is ignored in favor of ability: –  Best person for the job  –  Color of passport does not matter when it comes to rewards, promotion and development. 16.   16. Regiocentric ã Reflects a regional strategy and structure; ã Regional autonomy in decision making; ã Staff move within the designated region, rather than globally.  17.   17. Nationals Advantages Disadvantages PCN Org. control and coordination are maintained & facilitated Promising managers are given international Exp The promotional opportunities of HCNs are limited. Adaptation to host country may take a long time. HCN Language and other barriers are eliminated. Hiring costs are reduced and no work permit is required Control and coordination of HQ may be impeded HCNs have limited career opportunity outside the subsidiary TCN Salary and benefits requirements may be lower than for PCNs. TCNs may be better informed than PCNs about the host country environment. Transfer must consider possible national animosities (e.g. India and Pakistan) The host government may Present hiring of TCNs. 18.   18. Choosing an Approach to IHRM ã Political and legal concerns ã Level of dev elopment in foreign locations ã Technology and the nature of the product ã Organizational life cycle ã Age and history of the subsidiary ã Organizational and national cultural differences  19.   19. Issues in Employee Selection Staffing MNC’s Staffing Orientation (Eth nocentric, Polycentric etc.) Managing Expatriate HCN, TCN, PCN Female Expatriate Linkage between Staffing and growth /lifecycle of MNC 20.   20. Selection criteria for International Staffing International selection is a two way process between the individual and the organization. A prospective candidate may reject the expatriate assignment either for personal reasons, such as family considerations, or for situational factors. However, after an extensive review of literatures on the selection of expats, the researcher identified 18 variables and grouped them into four categories ã Technical Competency ã Relational Skills ã Ability to cope with variables and ã Family Situation 21.   21. Individual Criteria Family Support 22.   22. Exp atriate ã An expatriate is an employee who is working and temporarily residing in a foreign country. ã Expatriate work as an agent between two countries Also known as “International Assignees”  23.   23. Selection techniques of expatriates: ã Interview –  structured in terview ã The monitoring and targeting of disadvantaged group  –   (staffing practices ã are strongly influenced by norms and values that are not covered by the law) ã Psychological Testing - mentally fit for international assignment ã Assessment centre –  Competency assessment 24.   24. Selection Techniques in General, important steps are- : ã Screening the applicant’s background on the basis of work experience with cultures other than one’s own, previous overseas travel, knowledge of foreign language and overall Performance. ã Testing the ca ndidate's ability to adapt to the new culture and environment. ã Testing the ability of the spouse and family members of the candidates to the foreign culture and  environment. ã Predicting the adjustment of the candidate ã Testing the skill of adjustment w ith the host nationals. ã Job duties and responsibilities  25.   25. Therefore expatriate must meet 6 basic criteria: ã They must be willing and motivated to go overseas ã They must be technically able to do the job ã They must be adaptable ã They must have good inter personal skills and able to form relationship ã They must have good communication ability and ã They must have supportive families  26.   26. Expatriate’s Success factors: Rosalie Tung studied the factors that contributed to expatriate success and identify different variables that affect success. She groups them into 4 general categories: 1. Job competence 2. Personality traits 3. Relational abilities 4. Environmental variables and family variables Which are further divided into two heads: general factors and specific ones 27.   27. General Factors Specific Attributes JOB Competence Technical skills: knowledge of HQ and host country operations, general managerial skills, administrative competence and creativity Relational Traits Social Skill: Ability to tolerate ambiguity, Courtesy and tact Respect, kindness and behavioral flexibility Cultural empathy and ethnocentrism Integrity confidence and emotional stability Personality Traits Diplomatic Skill: Believe in the mission Congruence of assignment with career path Interest in overseas experience Willingness to acquire new behavior patterns and attitudes Interest to learn Host country language and practice Adopting attitude of Non  –  verbal communication Ability to interact with business associates Environmental and Family variables Motivational Skill: Willingness of the spouse to live overseas Adaptability and supportiveness of spouse Stability of marriage 28.   28. Expatriate problem Expatriate failure: premature return of the expatriate manager to his/her home country Cost of failure is high: Estimate = 3X the expatriate’s annual salary plus the cost of relocation (impacted by currency exchange rates and assignment location) 29.   29. Reasons for early return 1.Family concerns 2.Accepted new position in the company 3.Completed assignment early 4.Cultural adjustment challenges 5.Security concerns 6.Career concerns 7.Quality of life 8.Remuneration 30.   30. Reducing Expatriate failure ã Reduce expatriate failure rates by improving selection procedures ã An executive’s domestic performance does not (necessarily) equate his/her overseas performance potential ã Employees need to be selected not solely on technical expertise but also on cross-cultural fluency 31.   31. 4 dimensions for successful expatriate selection 1. Self-oriented Expresses adaptive concern for self-preservation, self- enjoyment, 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. 32.   32. Family- friendly policies ã Inter  - company networking ã Job - hunting assistance ã Intra - company employment ã On -assignment career support 33.   33. Adaptability to culture change Adaptability of men expatriate ã Faster adjustment after first year when the age group is 30- 35 and higher level of satisfaction. ã Gradual adjustment after third and forth year when the age group is 25-30 and medium level of satisfaction. Adaptability of women expatriates: ã Slow adjustment after first year when the age group is 30- 35 and lower level of satisfaction . ã Faster adjustment after third and forth year when the age group is 25-30 and medium level of satisfaction 34.   34. Roles of Non- expatriates ã People who travel interna tionally yet are not considered expatriates as they do not relocate to another country  –  Road warriors, globetrotters, frequent fliers ã Much of international business involves visits to foreign locations, e.g. –  Sales staff attending trade fairs  –  Periodic visits to foreign operations  35.   35. Non-expatriates enjoy positives as:  –  A Glamorous life  –  Excitement and thrills of conducting business deals in foreign locations  –  Life style (top hotels, duty-free shopping, business class travel)  –  General exotic nature 36.   36. Female Expatriate ? 37.   37. Barriers to females taking international assignments 38.   38. Causes of low representation of Females Barrier of female expatriate Stereotyping Capabilities Family constraints Male dominant society Sexual harassment Host country attitude 39.   39.  Advantages of Female Expatriate ã Better at Relationship skills   ã Novelty –  foreign clients believe that those who are expatriated are the best. ã Role Models  40.   40. Recent trends in International Staffing Trends Workforce diversity Off- shoring Background check Recruiting sources Dual career couples 41.   41. Current Expatriate profile: 42.   42. Global Staffing Japan China Hire young people out of school Most hired from school, fewer from other companies Slow promotion through the ranks Slow but regular alary increase Performance Appraisal once or twice a year Performance review usually once a year Loyalty to the company Lack of loyalty to both company and profession Appraisal of long term performance 5 years plan; short term target Promotions based on long term performance and other criteria. Promotion based on Performance, Potential ability, and Education but family ties / good relations with top managers are important Training and development considered a long term investment Training program available, state exam administered for managers. Life time employment common in companies Job Security  –  virtually life time employment.
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