IBUS 618 Dr. Yang1 Chapter 4 Staffing International Operations for Sustained Global Growth.
IBUS 618 Dr. Yang1 Chapter 5 Recruiting and Selecting Staff for International Assignments.
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Transcript of IBUS 618 Dr. Yang1 Chapter 5 Recruiting and Selecting Staff for International Assignments.
IBUS 618 Dr. Yang 1
Chapter 5
Recruiting and Selecting Staff for International
Assignments
IBUS 618 Dr. Yang 2
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.
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.
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Chapter Objectives (cont.)
The focus of this chapter 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 Factors moderating intent to stay or leave the
international assignment Selection criteria for international assignments Dual-career couples Gender issues for international assignments
The focus of this chapter 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 Factors moderating intent to stay or leave the
international assignment Selection criteria for international assignments Dual-career couples Gender issues for international assignments
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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.
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5
Table5-1 Current expatriate profile
Source: based on data from Global Relocation Trends: 2005 Survey Report, GMAC Global Relocation Services, National Foreign Trade Council and SHRM Global Forum, GMAC-GRS 2006, GMAC GRS.
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Marital Status
53% Married male 8% Married female 7% Male with significant other 4% Female with significant other 18% Single male 10% Single female
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Expatriate Failure Definition: Premature return of an expatriate Under-performance during an international
assignment Retention problem upon completion
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Recall Rate Percent Percent of CompaniesUS Multinationals
20 - 40% 7%10 - 20% 69%
< 10% 24%
European Multinationals
11 - 15% 3%
6 - 10% 38% < 5% 59%
Japanese Multinationals11 - 19% 14%6 – 10% 10%
< 5 76%
Expatriate Failure Rates
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Reason for Expatriate Failure
US FirmsInability of spouse to adjust
Manager’s inability to adjust
Other family problems
Manager’s personal or emotional immaturity
Inability to cope with larger overseas responsibilities
US FirmsInability of spouse to adjust
Manager’s inability to adjust
Other family problems
Manager’s personal or emotional immaturity
Inability to cope with larger overseas responsibilities
Japanese FirmsInability to cope with larger overseas responsibilitiesDifficulties with the new environmentPersonal or emotional problemsLack of technical competenceInability of spouse to adjust
Japanese FirmsInability to cope with larger overseas responsibilitiesDifficulties with the new environmentPersonal or emotional problemsLack of technical competenceInability of spouse to adjust
European Multinationals: Inability of spouse to adjust.European Multinationals: Inability of spouse to adjust.
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0%
10%
20%
30%
40%
50%
60%
70%
Familyconcerns
Newposition incompany
Completesassignment
early
Culturaladjustmentchallenges
Securityconcerns
Careerconcerns
Reasons for Early Return
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Direct Costs of Expatriate Failure
Direct costs: Airfares Associated relocation
expenses Salary and benefits Training and
development Averaged $250,000 per
early return
Direct costs: Airfares Associated relocation
expenses Salary and benefits Training and
development Averaged $250,000 per
early return
Costs vary according to: Level of position Country of destination Exchange rates Whether a ‘failed’
manager is replaced by another expatriate
Costs vary according to: Level of position Country of destination Exchange rates Whether a ‘failed’
manager is replaced by another expatriate
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Indirect Cost of Expatriate Failure
Damaged relationships with key stakeholders in the foreign location
Negative effects on local staff Poor labor relations Loss of market share Negative effects on expatriate concerned Family relationships may be affected
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13IHRM Chapter 5
International assignments:factors moderating performance
Figure5-1
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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
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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 that the organization has not fulfilled its obligations
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Likelihood of Exit
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17IHRM Chapter 5
The phases of cultural adjustmentFigure5-2
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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
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19IHRM Chapter 5
Factors in expatriate selectionFigure5-3
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Using Traits and Personality Tests to Predict Expatriate Success
Although some tests may be useful in suggesting potential problems, there may be little correlation between test scores and performance
Most of the tests have been devised in the United States, thus culture-bound
In some countries, there is controversy about the use of psychological tests ( different pattern of usage across countries)
Use of personality traits to predict intercultural competence is complicated by the fact that personality traits are not defined and evaluated in similar ways in different cultures
Although some tests may be useful in suggesting potential problems, there may be little correlation between test scores and performance
Most of the tests have been devised in the United States, thus culture-bound
In some countries, there is controversy about the use of psychological tests ( different pattern of usage across countries)
Use of personality traits to predict intercultural competence is complicated by the fact that personality traits are not defined and evaluated in similar ways in different cultures
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Mendenhall and Oddou’s Model
Self-oriented dimension Perceptual dimension Others-oriented dimension Cultural-toughness dimension
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22
Table5-2 Harris and Brewster’s selection typology
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Solutions to the Dual-career Challenge
Alternative assignment arrangements Short-term Commuter Other (e.g. unaccompanied, business travel, virtual
assignments)
Family-friendly policies Inter-company networking Job-hunting assistance Intra-company employment On-assignment career support
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24
Table5-3
Barriers to females taking international assignments
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Equal Employment Opportunity Issues
Cultural Variations Law and enforcement Social values Corporate practices
The United States EEOA within the country International approach
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Chapter Summary
Four myths related to the concept of a global manager
The debate surrounding the definition and magnitude of expatriate failure.
(cont.)
This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:
This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:
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Chapter Summary (cont.)
Cultural adjustment and other moderating factors affecting expatriate intent to stay and performance.
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.)
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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.
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.
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.
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Chapter Summary
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. We will explore in the next chapters that maintaining and retaining productive staff are equally important.
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. We will explore in the next chapters that maintaining and retaining productive staff are equally important.
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Chapter Summary
Corporate philosophy on recruiting and selection Selection criteria and issues of concern Local and home countries’ policies on foreign labor Variations in national labor law and labor markets Inter-company networking Intra-company arrangement Career assistance programs Training and continuous adaptation
Corporate philosophy on recruiting and selection Selection criteria and issues of concern Local and home countries’ policies on foreign labor Variations in national labor law and labor markets Inter-company networking Intra-company arrangement Career assistance programs Training and continuous adaptation
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Discussion Questions
31IHRM Chapter 5
1. What is the difference between a global manager and a global mindset?
2. Should multinationals be concerned about expatriate failure? If so, why?
3. What are the most important factors involved in the selection decision?
4. Are female expatriates different?5. Discuss the proposition that most expatriate selection
decisions are made informally, as suggested by the ‘coffee-machine’ solution.