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Recruiting and Selecting Staff for International Assignments
Chapter Four Recruiting and Selecting Staff for International Assignments
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Chapter Learning Objectives
After reading this chapter, you should be able to: explain the myth of the global manager discuss the debate surrounding expatriate failure outline the factors moderating intent to stay or leave the international assignment
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Chapter Learning Objectives
list selection criteria for international assignments explain why dual-career couples can represent a barrier to staff mobility answer the question: Are female expatriates different?
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Chapter Vignette Dual Career Couples: Trailing Spouse's Job Needs Start To Get More Company Time Spouse/partner’s career : a barrier to international assignments adaptability and dual career management cause of failed assignments limited career planning
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Terms recruitment selection effectiveness skills coping skills
global manager IA Phases: tourist culture shock pulling up adjustment international assignment (IA) expatriate failure rate (EFR) common corporate language “coffee machine system” direct cost indirect cost
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Recruitment is defined as searching for and obtaining qualified job candidates in sufficient numbers to fill job needs
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Selection gathering information for the purposes of evaluating and deciding who should be employed in particular jobs
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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)
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Global Manager Myths There is a universal approach to management
People can acquire multicultural adaptability and behaviors There are common characteristics shared by successful international managers There are no impediments to mobility
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Global Manager a person who is comfortable operating
in diverse countries, cultures, and situations, and can be transferred internationally into different operations
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Global ‘Mindset’ implies the ability to see beyond one’s own national and functional boundaries.
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Current Expatriate Profile (Table 5-1)
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Three Questions Related to Expatriate Failure
its definition magnitude of the phenomenon costs associated with failure
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Expatriate Failure premature return, under-performance and
retention upon completion of the assignment
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Magnitude of the Phenomenon
high failure rates; 30%-50% and higher foreign assignments increasing
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Costs Associated with Expatriate Failure
Direct costs airfares and associated relocation expenses compensation training
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Costs Associated with Expatriate Failure
Indirect costs difficulties with host‑government officials and clients changes to the multinational’s general staffing approach local employee morale and productivity
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Costs Associated with Expatriate Failure
loss self‑confidence future performance may be impacted family relationships may be threatened.
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International Assignments: Factors Moderating Performance (Figure 5-1)
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Reasons for Early Return
family concerns accepted new position in the company completed assignment early cultural adjustment challenges security concerns career concerns
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Expatriate Relocation Cultural Adjustment
Phase 1 reactions prior to the assignment positive and negative emotions upswing of mood upon arrival homesickness sets in
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Expatriate Relocation Cultural Adjustment
Phase 2 a critical time, individual copes with the psychological adjustment ‘failure as an early recall’ may be triggered at this point Phase 3 person begins to adjust to the new environment. Phase 4 recovery
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The Phases of Cultural Adjustment (Figure 5-2)
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Length of Assignment a longer assignment allows the expatriate more time to adjust and become productive
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Willingness to Move reluctant expatriate or family members interpret events and situations encountered in the new environment negatively
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Work-environment Related Factors
Skill utilization was significantly related to job satisfaction organization commitment intent to finish the international assignment Moderators influencing expatriate turnover job autonomy perceived level of organizational support
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Factors in Expatriate Selection (Figure 5-3)
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Technical Ability technical and managerial skills are essential criterion past performance has little bearing on one's ability to achieve a task in a foreign cultural environment easiest to measure
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Cross-Cultural Suitability
cultural empathy adaptability diplomacy language ability positive attitude emotional stability maturity
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Family Requirements Impact on spouse/partner/family early return
responsible for settling family left career and social supports concern for childrens education care of aging parents single parent
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Country/Cultural Requirements
work permits entry visas hardship postings
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MNE Requirements mode of operation assignment duration and type
amount of knowledge transfer required
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Language speak the local language (fifth highest criteria)
knowledge of countries and cultures common corporate language
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Use of Selection Tests lack of valid and reliable testing and screening devices little correlation between test scores and performance (ability to adjust to another culture)
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4 Dimensions for Successful Expatriate Selection
Self-oriented Expresses adaptive concern for self-preservation, self-enjoyment, mental hygiene. Perceptual Accurately understands why host nationals behave the way they do. Others-oriented Cares about host national co-workers and affiliates with them. Cultural-toughness Able to handle the degree to which the culture of the host country is incongruent with that of the home country.
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Equal Employment Opportunity (EEO) Issues
conflicting national laws on employment ( i.e. mandatory retirement and hiring ages) MNE ensure compliance of the different forms and levels of EEO, human rights and discrimination prevention legislations
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EEO Expressions of Societal Values
Canadian Women Employment Equity Act, Human Rights Code, Pay Equity Middle East, African, Asian and Latin American Women perceived as lower class and not universally employed
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Harris and Brewster’s Selection Typology (Table 5-2)
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Assignment Letters Standard Content employment conditions (dates)
services to be performed location and employer compensation and medical coverage taxation and housing home visits relocation supports ( i.e. maintenance of the existing home, shipping of personal goods and cost of living allowances)
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Assignment Letters Clarifying what happens if an international assignment does not work out employment laws that apply and violation procedures procedures dealing with cases of family illness employment opportunities for expatriates early return non-compete and clawback provisions
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Dual Career Couples emerging constraint on the available pool of candidates, a significant shift in thinking about the role of non-work aspects impinging on work-related matters.
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Alternative Assignment Arrangements
short-term assignments commuter assignments other arrangements (assignments replaced by business travel and virtual assignments)
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Family-Friendly Policies
inter-company networking job-hunting assistance intra-company employment on-assignment career support
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Are Female Expatriates Different?
female expatriates are under represented in international assignments because they face different international assignment issues (than their male counterparts)
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Barriers to Females Taking International Assignments (Table 5-3)
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What Differentiates Female and Male Expatriates
degree to which the moderators affect individual performance (technical ability, cross-cultural suitability and family requirements) value placed on cultural awareness training dual career issues a greater barrier for mobility
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Important Issues in Terms of Performance
assignment location level of organization support spouse/partner satisfaction intercultural experiences
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Discussion Questions 1. What is the difference between a global manager and a global mindset? 2. Should multinationals be concerned about expatriate failure? If so, why?
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Discussion Questions 3. What are the most important factors involved in the selection decision? 4. Are female expatriates different?
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Case: The Reinhart Case
Was it the right decision in the first place for Terramundo to operate in a region that was well known for being controlled by FARC guerrillas, and where kidnapping was a very common way to fund FARC activities? 2. Did Reinhart do the right thing to get involved in the way described above and help his employee? What were Reinhart’s alternatives and options?
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Case: The Reinhart Case
3. What can companies operating in industries such as the mining or oil business do to protect their international assignees? What should be the role of the HRM function?
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Case: The Reinhart Case
4. When sending your employees into remote and dangerous geographic regions – should all employees (home and host country employees) get the same employment support and workplace safety and security support? Is the reality reflecting or in line with your response?
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