Impact of Cultural Variations On International Recruitment and Selection Methods

(with prospective of financial organizations)

Presenters and Task Assigned

Umair Bajwa (Cultural Variations)Salman Farooq (International Recruitment and

Selection)Ene Onyinyechukwu (Key Challenges and Action

Plan)Aleksandrs Golubev (Implementation and Strategic

Planning)

Cultural Variations

" Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster." Prof. Geert Hofstede, Emeritus Professor, Maastricht University.

Example for cultural variations When negotiating in

Western countries, the objective is to work toward a target of mutual understanding and agreement and 'shake-hands' when that agreement is reached - a cultural signal of the end of negotiations and the start of 'working together'.

In Middle Eastern countries much negotiation takes place leading into the 'agreement', signified by shaking hands. However, the deal is not complete in the Middle Eastern culture. In fact, it is a cultural sign that 'serious' negotiations are just beginning.

Five Cultural Dimensions by Hofstede

Power Distance Index(PDI) : Inequality of

power distribution

Individualism (IDV):

Independent approach

Masculinity (MAS): Role

distribution on basis of gender

Uncertainty Avoidance Index (UAI): society’s

tolerance for uncertainty.

Long-Term Orientation

(LTO): thrift and perseverance

Statistical Data

Recruitment and Selection Methods The overall aim of the recruitment and selection process

should be to obtain at minimum cost the number and quality of employees required to satisfy the human resource needs of the company. The three stages of recruitment and selection are:

1. Defining requirements- preparing job description and specifications; deciding terms and conditions of employment;

2. Attracting candidates- reviewing and evaluating alternative sources of applicants inside and outside the company, advertising, using agencies and consultants;

3. Selecting candidates- shifting applications, interviewing, testing, assessing candidates, assessment centre's, offering employment, obtaining references; preparing contracts of employment.

Comparative Study Of Recruitment and Selection Methods

Western financial company prospective

Job Analysis

Job Descripti

on

Sources

Advertisement

Leading towards Selection

Assessments'

Interviews

Personality Tests

References and Relevant Experience

Comparative Study Of Recruitment and Selection Methods

Eastern financial company prospective

Job Analysis

Job Description

Sources / Print

Media

Advertisement

Leading toward

Selection

Referrals

Interviews

Discriminatory

Elements

Assessment and Testing

Comparative Study Of Recruitment and Selection Methods

Example In Pakistan

Comparative Study Of Recruitment and Selection Methods

Example In United kingdom

Key Challenges in Global Recruitment and selection

Cost1. Advertising cost2. External recruiting agencies3. Hiring cost 4. Cost of labour turn overTime factor5. Improper job evaluation6. Incomplete job description7. Improper person specification

Key Challenges in Global Recruitment and selection

DiscriminationGenderEthnicity and ReligionAge Technology

HRM Strategy & ImplementationRecruitment and Selection process success depends on company ability to adjust to local conditions or particular region.

HRM practices in Egypt: the influence of national context investigate problem of culture influence.Adoption of practices consistent with the traditions ofthe socio-cultural context should be implemented. (Leat, EL-Kot, 2008).

HRM Strategy & ImplementationExternal forces and pressures can influence

selection & recruitment process

Candidate Recruitment and Selection in Latin America (Siavelis, Morgetstern, 2008) demonstrates developing economies governments often have its stake of interest, therefore, may apply pressure by enforcing strict rules.

HRM Strategy & Implementation

Government rules may require foreign company to recruit

and select from local candidate pool which lacks relevant skills.

On the other hand, recruiting and selecting from local labour assists in positioning foreign company as local and helps to build trust among community.

Moreover, recruitment patterns in the republic of Korea indicate foreign businesses tend to recruit workers who possess local context knowledge. ( Lovell, Lee, Hui Sok, 2007).

HRM Strategy & Implementation

Recruitment approaches differ geographically

E-recruitment, website recruitment is less effective in developing countries because people less experienced at dealing with technology.

However e-recruitment, professional agencies and associations approaches tend to dominate within the developed economies.

HRM Strategy & Implementation Techniques for Financial Organisation which

assist in creating valid and reliable assessment

Ability Test ( general IQ, computer knowledge)Valid and reliable assessment can be achieved

through open interviews. Perform credit check, criminal record check if

possible

References Armstrong M. (2003) Handbook of Human Resource Management

Practice. 9th Edition. Published by Kogan Page.

Brantton J. & Gold J. (2003) Human Resource Management Theory and Practice. 3rd Edition. Published by Palgrave Macmillan.

Leat M. & El-Kot G. (2007) HRM practices in Egypt: the influence of national context? International Journal of Human Resource Management

18:1 January 2007 147–158. Business Source Premier [Online] Available at: http://library.beds.ac.uk (Accessed: 14th November 2009).

Lovell, John P.; Mun Hui Sok; Young Ho Lee.(2007) . Recruitment Patterns in republic of Korea. Journal of Comparative Administration, Feb70, Vol. 1 Issue 4, p428, 27p. Business Source Premier [Online] Available at: http://library.beds.ac.uk (Accessed: 14th November 2009).

Siavelis, Peter M.; Morgenstern, Scott. (2008). Candidate Recruitment and Selection in Latin America: A Framework for Analysis. Latin American Politics & Society, Winter2008, Vol. 50 Issue 4, p27-58, 32p. Business Source Premier [Online] Available at: http://library.beds.ac.uk (Accessed: 14th November 2009).