RECRUITING AND SELECTING STAFF FOR INTERNATIONAL ASSIGNMENTS Dony Eko Prasetyo, S.IP.

Recruitment is defined as searching for and obtaining qualified job candidates in sufficient numbers to fill job needs

Selection gathering information for the purposes of evaluating and deciding who should be employed in particular jobs

Major Differences Between Domestic and International Staffing predispositions with regard to who should hold key positions (i.e. ethnocentric, polycentric, regiocentric and geocentric staffing orientations) constraints imposed by host governments (i.e. work visas and prefer local national employment)

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

Global Manager a person who is comfortable operating in diverse countries, cultures, and situations, and can be transferred internationally into different operations

Global ‘Mindset’ implies the ability to see bey ond one’s own national and f unctional boundaries.

Current expatriate profile

Expatriate failure Definition: Premature return of an expatriate Now recognized that under- performance during an international assignment, and retention upon completion, should be included

Expatriate failure What is the magnitude of the phenomenon? –Suggestion of a falling rate compared with early (1980s) studies –Evidence is somewhat inconclusive –Discussion about its magnitude has drawn attention to expatriate failure and prompted considerable research into its causes

Expatriate failure Direct costs of failure: airfares, associated relocation expenses, and salary and training –Varies according to level of position concerned –Country of destination –Exchange rates –Whether ‘failed’ manager is replaced by another expatriate

Expatriate failure Indirect costs (invisible) –Damaged relationships with key stakeholders in the foreign location –Negative effects on local staff –Negative effects on expatriate concerned –Family relationships may be affected

Recall Rate Percent Percent of Companies US Multinationals % 7% % 69 < European Multinationals % 3% < 5 59 Japanese Multinationals % 14% < 5 76 Expatriate Failure Rates

Reason for Expatriate Failure US Firms Inability 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 Firms Inability 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 Firms  Inability to cope with larger overseas responsibilities  Difficulties with the new environment  Personal or emotional problems  Lack of technical competence  Inability of spouse to adjust Japanese Firms  Inability to cope with larger overseas responsibilities  Difficulties with the new environment  Personal or emotional problems  Lack of technical competence  Inability of spouse to adjust European Multinationals: Inability of spouse to adjust.

The cultural shock PCNs on foreign assignments may experience cultural shock.PCNs on foreign assignments may experience cultural shock. Cultural shock is a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation.Cultural shock is a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation. Acculturation is the processes by which a person understands a foreign culture and modifies their behaviour to fit into it.Acculturation is the processes by which a person understands a foreign culture and modifies their behaviour to fit into it. Acculturation typically proceeds through four phases.Acculturation typically proceeds through four phases.

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 ‘failed’ manager is replaced by another expatriate Costs vary according to: –Level of position –Country of destination –Exchange rates –Whether ‘failed’ manager is replaced by another expatriate

Indirect Cost of Expatriate Failure Damaged relationships with key stakeholders in the foreign location Negative effects on local staff Poor labor relations Negative effects on expatriate concerned Family relationships may be affected Loss of market share

Factors moderating expatriate performance Inability to adjust to the foreign culture Length of assignment Willingness to move Work-related factors Psychological contract

International assignments: factors moderating performance

The phases of cultural adjustment

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

The dynamics of the employment relationship

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 organization has not fulfilled its obligations

Likelihood of exit

Organizational commitment Affective component: employee’s attachment to, identification with and involvement in, the organization Continuance component: based on assessed costs associated with exiting the organization Normative component: refers to employee’s feelings of obligation to remain

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

Selection criteria Technical ability Cross-cultural suitability Family requirements Country-cultural requirements MNE requirements Language

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 way 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 way in different cultures

Factors in expatriate selection

Mendenhall and Oddou Model Self-oriented dimension Perceptual dimension Others-oriented dimension Cultural-toughness dimension

Harris and Brewster’s selection typology

Solutions to the dual- career challenge Alternative assignment arrangements –Short-term –Commuter –Other (eg. unaccompanied, virtual) Family-friendly policies –Inter-company networking –Job-hunting assistance –Intra-company employment –On-assignment career support

Barriers to females taking international assignments