international staffing

1. Prof. Preeti Bhaskar
Symbiosis Centre for Management Studies
Noida

2. • Approaches of staffing
• Recruitment and Selection Procedures of
Expatriates
• Expatriate’s Success and failure factors
• Women Expatriate
• Non – expatriates their roles
• Issues in staff selection

3. International recruitment have 3
important questions -
• From what country/ies to recruit (home,
host or third)?
• What Techniques to be used when
recruitment is planned out side home
country?
• Whether to centralized recruitment
activities in home country or
decentralize in foreign subsidiaries?

4. Different sources of employees
• First, the company can send employees from its
, which are referred to as
expatriates, expats or home country nationals.
• Second, it can recruit
(natives of the host country),
• Third, it can hire who are
natives of a country other than the home country
or the host country.

5. Challenging aspects
• First, the initial cost of airfare, living expenses and
transportation in the host country.
• The second expense incurred with bringing expatriates
in to the international operation is the training involved
in making sure the people going to the host country are
familiar with, laws, rules, culture, languages and
expectations in the new country.

6. International employee selection based on
four issues in the context of staffing global
business:
• Linking staffing plans with the evolution of
the MNC.
• Staffing orientation/ approach of staffing
• Managing expatriates
• Female expatriates

7. Linking staffing plans with the
evolution of the MNC:
Staffing strategies differ based on the life cycle of the
MNCs like:
• Setting up the host unit
• Establishing the technology team to begin core operational
activities.
• Full blown operations of the host unit with significant role in
establishing global objectives and targets,
• Strong operational leadership at the unit level while globally
consolidating with parents.

8. Approaches to staffing
• Ethnocentric policy
• Polycentric policy
• Geocentric policy
• Regiocentric policy

9. Ethnocentric policy
“ Home country’s culture is to be imposed on subsidiaries”
MNC’s exports its HR Policy from Home country to foreign
location.
• Strategic decisions are made at headquarters
• Key positions in domestic and foreign operations are
hold by headquarters’ personnel

10. Three factors are to be
considered in the staff:
• Should be able to adjust in family, cultures and
personality problems to avoid failure.
• To succeed, should enjoy local entertainment,
develop local
relationships and communicate with locals.
• To achieve success, expatriates to have open
attitude and take training towards host – country.
Under ethno centric, lines of communication are one
– directional, i.e. advice from headquarters. In fact,
home country attitude and culture
dominates.

11. Polycentric
“MNC’s seeks to adapt to the local cultural needs of
subsidiaries ”
• Each subsidiary is a distinct national entity with some
decision-making autonomy
• Host-country nationals manage subsidiaries who are
seldom promoted to HQ positions
• Parent company nationals hold key headquarter
positions

12. Poly – centric: Here primary positions are filled
by nationals from host country( HCNs)y.
Advantages of this are:
• •

13. Advantages of Polycentric
• It eliminate the high cost of relocating expatriate manager and
families.
• Offer a great degree of autonomy in decision making to subsidiary
heads.
• Host country nationals are less expensive than parent country used
and Training Host country’s nationals results in low cost
• Better local knowledge
• Reduce personal problems
• Host country managers can protect a MNC from hostile treatment by host
Government.
• Here subsidiary is allowed some autonomy but financial controls are kept.
• Top people are limited to subsidiary and not for corporate position.

14. For example, in international manufacturing and
processing facilities in Mexico, companies recruit
with a sign announcing job openings outside the
facility or by employees introducing family
members who are looking for jobs.
Another example is Hungary, where government
attempts to combat unemployment have led to the
requirement that an organization must get
permission from the Ministry of Labor before hiring
an expatriate

15. Geocentric
• A global approach - worldwide integration
• View that each part of the organization makes a unique
contribution
• Nationality is ignored in favor of ability:
– Best person for the job
– Color of passport does not matter when it comes to rewards,
promotion and development.

16. Regiocentric
• Reflects a regional strategy and structure;
• Regional autonomy in decision making;
• Staff move within the designated region, rather
than globally.

17. Nationals Advantages Disadvantages
PCN Org. control and
coordination are
maintained & facilitated
Promising managers are
given international Exp
The promotional opportunities of
HCNs are limited.
Adaptation to host country may
take a long time.
HCN Language and other
barriers are eliminated.
Hiring costs are
reduced and no work
permit is required
Control and coordination of HQ
may be
impeded
HCNs have limited career
opportunity
outside the subsidiary
TCN Salary and benefits
requirements may be
lower than for PCNs.
TCNs may be better
informed than PCNs
about the host country
environment.
Transfer must consider possible
national animosities (e.g. India
and Pakistan) The host
government may Present hiring
of TCNs.

18. Choosing an Approach to IHRM
• Political and legal concerns
• Level of development in foreign locations
• Technology and the nature of the product
• Organizational life cycle
• Age and history of the subsidiary
• Organizational and national cultural
differences

19. Issues in Employee Selection
Staffing
MNC’s
Staffing
Orientation
(Ethnocentric,
Polycentric etc.)
Managing
Expatriate
HCN, TCN, PCN
Female
Expatriate
Linkage between
Staffing and
growth /lifecycle
of MNC

20. Selection criteria for
International Staffing
International selection is a two way process between the individual and the
organization. A prospective candidate may reject the expatriate assignment
either for personal reasons, such as family considerations, or for situational
factors.
However, after an extensive review of literatures on the selection of expats,
the researcher identified 18 variables and grouped them into four categories
• Technical Competency
• Relational Skills
• Ability to cope with variables and
• Family Situation

21. Individual Criteria Family Support

22. Expatriate
• An expatriate is an employee who is
working and temporarily residing in a
foreign country.
• Expatriate work as an agent between
two countries
Also known as
“International Assignees”

23. Selection techniques of
expatriates:
• Interview – structured interview
• The monitoring and targeting of
disadvantaged group – (staffing practices
• are strongly influenced by norms and
values that are not covered by the law)
• Psychological Testing- mentally fit for
international assignment
• Assessment centre – Competency
assessment

24. Selection Techniques in General, important
steps are-:
• Screening the applicant’s background on the basis of work
experience with cultures other than one’s own,
previous overseas travel, knowledge of foreign
language and overall Performance.
• Testing the candidate's ability to adapt to the new culture
and environment.
• Testing the ability of the spouse and family members of the
candidates to the foreign culture and environment.
• Predicting the adjustment of the candidate
• Testing the skill of adjustment with the host nationals.
• Job duties and responsibilities

25. Therefore expatriate must meet 6
basic criteria:
• They must be willing and motivated to go
overseas
• They must be technically able to do the job
• They must be adaptable
• They must have good inter personal skills and
able to form relationship
• They must have good communication ability
and
• They must have supportive families

26. Expatriate’s Success factors:
Rosalie Tung studied the factors that contributed to expatriate
success and
identify different variables that affect success. She groups them
into 4 general
categories:
1. Job competence
2. Personality traits
3. Relational abilities
4. Environmental variables and family variables
Which are further divided into two heads: general factors and
specific ones

27. General Factors Specific Attributes
JOB Competence Technical skills: knowledge of HQ and host country
operations, general managerial skills, administrative
competence and creativity
Relational Traits Social Skill: Ability to tolerate ambiguity, Courtesy
and tact
Respect, kindness and behavioral flexibility
Cultural empathy and ethnocentrism
Integrity confidence and emotional stability
Personality Traits Diplomatic Skill: Believe in the mission
Congruence of assignment with career path
Interest in overseas experience
Willingness to acquire new behavior patterns and
attitudes
Interest to learn Host country language and practice
Adopting attitude of Non – verbal communication
Ability to interact with business associates
Environmental and
Family variables
Motivational Skill: Willingness of the spouse to live
overseas
Adaptability and supportiveness of spouse
Stability of marriage

28. Expatriate problem
Expatriate failure: premature return of the
expatriate manager to his/her home country
Cost of failure is high:
Estimate = 3X the expatriate’s annual salary plus
the cost of relocation (impacted by currency
exchange rates and assignment location)

29. Reasons for early return
1.Family concerns
2.Accepted new position in the company
3.Completed assignment early
4.Cultural adjustment challenges
5.Security concerns
6.Career concerns
7.Quality of life
8.Remuneration

30. Reducing Expatriate failure
• Reduce expatriate failure rates by improving
selection procedures
• An executive’s domestic performance does not
(necessarily) equate his/her overseas
performance potential
• Employees need to be selected not solely on
technical expertise but also on cross-cultural
fluency

31. 4 dimensions for successful expatriate
selection
1. Self-oriented
Expresses adaptive concern for self-preservation, self-
enjoyment, mental hygiene.
2. Perceptual
Accurately understands why host nationals behave the
way they do.
3. Others-oriented
Cares about host national co-workers and affiliates
with them.
4. Cultural-toughness
Able to handle the degree to which the culture of the
host country is incongruent with that of the home
country.

32. Family-friendly policies
• Inter-company networking
• Job-hunting assistance
• Intra-company employment
• On-assignment career support

33. Adaptability to culture change
Adaptability of men
expatriate
• Faster adjustment after
first year when the age
group is 30-35 and higher
level of satisfaction.
• Gradual adjustment after
third and forth year when
the age group is 25-30
and medium level of
satisfaction.
Adaptability of women
expatriates:
• Slow adjustment after first
year when the age group
is 30-35 and lower level
of satisfaction .
• Faster adjustment after
third and forth year when
the age group is 25-30
and medium level of
satisfaction

34. Roles of Non-expatriates
• People who travel internationally yet are not
considered expatriates as they do not relocate to
another country
– Road warriors, globetrotters, frequent fliers
• Much of international business involves visits to
foreign locations, e.g.
– Sales staff attending trade fairs
– Periodic visits to foreign operations

35. Non-expatriates enjoy positives as:
– A Glamorous life
– Excitement and thrills of conducting business
deals in foreign locations
– Life style (top hotels, duty-free shopping,
business class travel)
– General exotic nature

36. Female Expatriate
?

37. Barriers to females taking international
assignments

38. Causes of low representation of
Females
Barrier of
female
expatriate
Stereotyping
Capabilities
Family
constraints
Male dominant
society
Sexual
harassment
Host country
attitude

39. Advantages of Female Expatriate
• Better at Relationship skills
• Novelty – foreign clients believe that those
who are expatriated are the best.
• Role Models

40. Recent trends in International
Staffing
Trends
Workforce
diversity
Off- shoring
Background
check
Recruiting
sources
Dual career
couples

41. Current Expatriate profile:

42. Global Staffing
Japan China
Hire young people out of school Most hired from school, fewer from other
companies
Slow promotion through the ranks Slow but regular alary increase
Performance Appraisal once or
twice a year
Performance review usually once a year
Loyalty to the company Lack of loyalty to both company and
profession
Appraisal of long term performance 5 years plan; short term target
Promotions based on long term
performance and other criteria.
Promotion based on Performance,
Potential ability, and Education but
family ties / good relations with top
managers are important
Training and development
considered a long term investment
Training program available, state exam
administered for managers.
Life time employment common in
companies
Job Security – virtually life time
employment.