1. INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Week 3
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

2. International Recruitment and Selection
Recruitment – Defined as searching for and
obtaining potential job candidates in sufficient
numbers for and quality so that the organization
can select the most appropriate persons for its job
needs
Selection – Defined as the process of gathering
information for the purposes of evaluating and
deciding whom should be employed in particular
jobs
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

3. Pros and Cons of the Four International Staffing Approaches (1)
Advantages of the Ethnocentric Approach
Perceived lack of qualified host country nationals (HCNs)
The necessity to maintain and consolidate good communication, coordination and control links with the organization’s headquarters
The assurance that the foreign subsidiary or unit will comply with corporate objectives, policies, standards etc.
PCNs may be most suitable because they have the requisite skills and experience
Promising managers are given the opportunity of international experience
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

4. Pros and Cons of the Four International Staffing Approaches (2)
Disadvantages of the Ethnocentric Approach
It limits the promotional opportunities of HCNs
PCN expatriate managers may experience adjustment problems
PCN expatriate managers may attempt to impose styles which are appropriate at the organization’s headquarters but which may be deemed inappropriate in the host country
The compensation packages of PCN expatriate managers may be at a level considered unjustified by the HCNs
PCN expatriate managers are expensive
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

5. Pros and Cons of the Four International Staffing Approaches (3)
Advantages of the Polycentric Approach
It eliminates language barriers, avoids adjustment problems of expatriate managers and their families, and removes the need for expensive cultural awareness training programmes
Hiring costs are reduced
No work permit required
Motivation effect because HCNs see a career potential
Lower organizational profile in sensitive political situations
Continuity of management improves because the HCNs stay longer in the organization
Local responsiveness and sensitivity, host government policy
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

6. Pros and Cons of the Four International Staffing Approaches (4)
Disadvantages of the Polycentric Approach
More difficulty in bridging the gap (objectives, policies, standards, communication, coordination, control, culture and attitudes etc.) between the HCN unit and the organization’s parent headquarters
Tends to encourage too much decentralization
HCN managers have limited career opportunities outside the subsidiary or unit
Limits opportunities for PCN expatriate managers to gain foreign experience, adversely effecting their insight and hence strategic decision-making and resource allocation
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

7. Pros and Cons of the Four International Staffing Approaches (5a)
Advantages of the Geocentric Approach
Facilitates the development of an international team
Overcomes the decentralization effect of the polycentric approach
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

8. Pros and Cons of the Four International Staffing Approaches (5b)
For the geocentric approach to be successful, 5 assumptions must be
met:
Highly competent employees are available at headquarters and subsidiaries
(2) International experience is a condition for success in top positions
(3) Managers with high potential and ambition for promotion are constantly ready to be transferred from one country to another
(4) Open disposition and high adaptability on the part of competent and mobile managers to different assignment conditions
(5) Open disposition and high adaptability can be learned with more foreign experience
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

9. Pros and Cons of the Four International Staffing Approaches (5c)
Disadvantages of the Geocentric Approach
Immigration controls and work permits for the foreign manager and his family
Provision of extensive, time-consuming (and sometimes) expensive information and documentation for foreign nationals
Large numbers of PCNs, HCNs and TCNs must be sent to foreign locations in order to create a successful geocentric staffing policy
High Training and relocation cost
Devising an appropriate compensation structure
More centralized control over staffing and loss of autonomy by the subsidiary in HRM issues
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

10. Pros and Cons of the Four International Staffing Approaches (6)
Advantages of the Regiocentric Approach
It allows interaction between managers of an organization’s subsidiaries transferred to their organization’s regional headquarters, and managers from the organization’s headquarters posted to the regional headquarters
More sensitivity to local conditions as subsidiaries are staffed mostly by HCNs
TCNs from the region may be better informed about the host country environment than PCNs
Lower salary and benefit requirements for TCNs
Paves the way for adoption of a geocentric approach
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

11. Pros and Cons of the Four International Staffing Approaches (6)
Disadvantages of the Regiocentric Approach
It can prevent the organization from taking a global stance
Improves career opportunities at the regional, but not international level
Factors such as political animosity between regional countries and work permit requirements must be taken into consideration
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

12. Selecting Staff for International Assignments
Selecting staff for international assignments is a complex
undertaking for several reasons, including:
Identifying a suitable person for the assignment
Predicting his or her performance in a new, culturally potentially very different environment
Dealing with personal and family-related issues and problems
Devising an appropriate compensation package
Complying with host country regulations
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

13. The Problem of “Expatriate Failure”
Expatriate failure means the premature return of an expatriate manager before the completion of his or her international assignment due to the person’s failure to attain the expected performance levels and due to the persons continuing inability to adjust to the new work and cultural environment in the host country
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

14. The Cost of “Expatriate Failure”
Expatriate failure has two cost components:
Direct Costs – Can be easily measured in monetary terms (e.g.: air fare, relocation expenses, salary and training) and varies according to the level of the position in question, the country of destination, the exchange rates and whether a new PCN takes over the assignment of the “failed” colleague
Indirect Costs – Cannot be measured easily in monetary terms but may be significantly higher than the direct costs. Examples include loss of the organization’s reputation and market share, loss of morale and productivity in the local work force, complications with the host government, discreditation of the expatriate at the organization’s headquarters and a future performance impact
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

15. The Reasons for “Expatriate Failure”
Lack of technical
competence
Personal or emotional
problems
Difficulties with the
new environment
Manager’s Personal or
Emotional Maturity
Inability to Cope With
Larger International
Responsibility
Spouse’s Inability
to Adjust
Manager’s Inability
to Adjust
Other Family Reasons
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

16. Criteria for Selecting Staff for International Assignments
Cross-Cultural
Suitability
Technical Ability
Family Requirements
SELECTION DECISION
Organization-Specific
Requirements
Country-Cultural
Requirements
Language
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

17. The Staff Selection Criteria (Technical Ability)
Technical and managerial competencies of the person to perform the required tasks
Research studies indicate that technical ability are the most important selection criteria for organizations
Usually easy to evaluate on the basis of past performance
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

18. The Staff Selection Criteria (Cross-Cultural Suitability)
Certain individual traits and characteristics can have an impact on the success or failure of an international assignment – cultural empathy, adaptability, diplomacy, language ability, positive attitude, emotional stability, and maturity
Ability to implement technical and managerial skills and feel reasonably comfortable in a in a foreign environment
Sometimes difficult to determine
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

19. The Staff Selection Criteria (Family Requirements)
Spouse may not adjust to a foreign environment
Adjustment level of spouse depends on several factors, such as the adjustment of the expatriate and the spouse’s own opinion of the international assignment
A higher level of organizational support in the early stages of expatriation usually correlates with a higher level of adjustment by the spouse
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

20. The Staff Selection Criteria (Country-Cultural Requirements)
“Hardship Postings” (Remoteness of job location, social upheavals, safety risks, very low standard of living and lack of recreational opportunities etc.)
Pressure of living in repressive cultures and countries (e.g. China, Saudi Arabia and other totalitarian Islamic states in the Middle East)
Denial of work permits to female expatriates
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

21. The Staff Selection Criteria (Organization-Specific Requirements)
Situational Factors influence staff selection. Examples:
Organization’s staffing approach may require sending more expatriates to work in certain regions and locations than otherwise
Partner organizations may be involved in the selection of expatriate staff, for example, on international joint ventures
Certain specific skills, for example, training, may be used as a selection criteria
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

22. The Staff Selection Criteria (Language)
Important situational factor. Knowledge of the host country’s language is considered critical for many senior-level positions along with the ability to communicate effectively
Knowledge of the host country’s language helps expatriates and their families feel more comfortable in the new environment
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

23. The Staff Selection Criteria (Other Considerations 1)
Time – Unexpected international vacancies may arise for which positions have to be quickly filled by expatriates and which may preclude the use of screening tests
Family - A potential expatriate may refuse the international assignment due to family considerations (children’s welfare and education, parental care, single parents)
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

24. The Staff Selection Criteria (Other Considerations 2)
Dual-Career Couples – Research studies undertaken reveal that many potential expatriates are reluctant or unwilling to take on international assignments because of the career implications for their spouses, e.g. loss of jobs and career opportunities, difficulty in finding new employment in the expatriate’s host country
Some companies are now offering assistance programmes for the benefit of their expatriates’ spouses (employment hunting, networking, intra-company employment, commuter marriages and on-assignment career support)
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

25. The Staff Selection Criteria (Other Considerations 3)
Female Managers – Studies reveal that female expatriates make up a very small proportion (< 10% percent) of the total expatriate population. Possible reasons are:
Females are less desirous than males of international assignments
Females are less likely to be offered international assignments
There are a comparatively smaller number of females with the requisite skills to be sent on international assignments
Many repressive cultures discourage the sending of female expatriates, and
In many repressive cultures males do not like reporting to females
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

26. IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan
Selection Tests
Selection Tests entails the use of certain personal
and other related criteria with a view to determining
whether a person is suitable or not for an inter-
national expatriate assignment
Problems with such tests relate to their:
Reliability
Culture-boundedness
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan

27. Alternative Model of Expatriate Selection
Mendenhall and Oddou propose a four-dimensional approach
linking specific behavoioural tendencies to probable inter-
national performance:
Self-Orientedness – adaptive concern for self-preservation, self-enjoyment and mental hygiene
Perceptual – expertise in accurately understanding the behavour of host country nationals
Others-Orientedness – Degree of concern about the host country nationals and the expoatriate‘s desire to affiliate with them
Cultural Toughness – Difference between the expatriate‘s country and the host country‘s cultural, social, political, economic etc. environment and ist implication for the expatriate
21 September 2018
IHRM (MBA III) Course Instructor: Dr. Aurangzeb Z. Khan