INTERNATIONAL RECRUITING & SELECTION, TRAINING AND DEVELOPMENT PROF. R. D. JOSHI

INTERNATIONAL RECRUITING & SELECTION General staffing policy on key positions in Headquarters & Subsidiaries (ethnocentrism, polycentrism, geocentrism and regiocentrism) Ability to attract the right candidate Constraints placed by the host government on hiring policies Factors influencing staffing in international firms

ETHNOCENTRIC APPROACH All key positions filled by Parent Country Nationals (PCN s ) Reasons: ° Perceived lack of qualified Host Country Nationals (HCN s ) ° Need to maintain good communication, coordination and control with corporate Headquarters. Approach normally in initial stages Contd…

ETHNOCENTRIC APPROACH Disadvantages: ° Limited promotion opportunity for HCN s ° reduced productivity & increased turnover ° Long time for adaptation of expatriate managers ° Income gap between PCN s & HCN s ° Expatriates very expensive

POLYCENTRIC APPROACH Policy in which HCN s recruited to positions in subsidiaries and PCN s at corporate level Advantages: ° Avoids adjustment problems of expatriates ° HCN s less expensive ° Continuity to the management of foreign subsidiaries Contd…

Disadvantages: ° Federated structure ° Isolation between corporate headquarter staff and foreign subsidiaries ° Career paths of HCN s restricted POLYCENTRIC APPROACH

GEOCENTRIC APPROACH Utilizes the best people for the key jobs throughout the organisation, regardless of nationality. Assumptions: ° Availability of highly competent people of headquarters & subsidiaries ° International experience ° Readiness of managers for transfers ° High adaptability of managers Contd…

GEOCENTRIC APPROACH Constraints: ° Immigration policies ° Expensive – increased training & relocation costs ° Need to have standardised international compensation structure

THE REGIOCENTRIC APPROACH Division of international operations info geographic regions (e.g. Europe, Asia-Pacific etc.) Advantages: ° Allows interactions between executives transferred to regional headquarters from subsidiaries in the region and PCN s posted at regional headquarters ° Sensitivity to local conditions Contd…

THE REGIOCENTRIC APPROACH Disadvantages: ° May develop regional federalism restricting global approach ° Career prospects only upto regional level

CONTEXT New Business Model : Collaborative Global Enterprise Key Drivers : Knowledge Technology People Key Issue : People Key Skills : Engagement & Development of Personnel to give their best

SELECTION Key Attributes of International Managers: Technical & Managerial Skills Family Adjustments Language Intercultural Competence Relational Abilities

TRAINING Predeparture Training Social Learning International Training

DEVELOPMENT Foreign Assignments International Job Rotation International Meetings