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Recruiting and SelectingStaff for International
Assignments
Dr Subhash Gupta
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Objectives
We will address the following issues: The myth of the global manager
The debate surrounding expatriate failure
Factors moderating intent to stay or leave theinternational assignment
Selection criteria for international assignments
Dual-career couples
Gender issues
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Why international staffing?
Motives behind international staffing are of two types: Company motives
Fill- positions Management development Organizational development
Individual motives To gain new job experience. Better compensation. Sense of obligation to company. Possibility of advancement upon return. Improved life style abroad.
Exposure to new culture. To shoulder greater professional responsibility. Desire to escape from personal problems at home. Restricted career possibilities within parent company
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International recruitment: Some
issues Stereotypes, ignorance, assumptions and
general lack of cross-cultural competenciescan mean that the right people may not alwaysbe given the opportunities they deserve.
Equipping staff with the skills to be able toidentify and manage cross- cultural differencesin interviews is vital. Cross cultural differencesin areas such as body language,communication, self-presentation, gender, eyecontact, questioning and privacy can influencean intercultural interview
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Cross-cultural factors play a significant role while
recruiting abroad. Hiring the right people is a
tough task, particularly when they are located
thousands of miles away. Selectors need to be
trained in and sensitized to the candidatesculture. The cultural differences must be taken
into account while recruiting an individual.
Otherwise, good candidates may be rejected only
because of an unaware interviewer and hiringmanagers, and lack of effective communication
between the interviewer and interviewee
International recruitment: Some
issues
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Recruitment & Selection US favors open form of recruitments and selection
based on open and public advertisements, hiring isgenerally based on competence and qualifications
More traditional societies rely on social status, familybackground and ties, wealth, education, race,
religion, or connections to military or ruling elite Need to understand these factors
Collectivist societies also place emphasis onbackground factors such as family, school attended
etc. The major rationale is to find someone who will beloyal and fit the organization
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Some Country Examples
Korea backdoor recruitment role of highschool and university
Japan graduates from the two major publicand private universities dominate business andpublic leadership
Malaysia favor Malays over Chinese andIndian population bumiputra policy sons ofthe soil
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Research Evidence for Recruitment
More socialist countries (France, Norway,Spain, Slovenia etc.) when looking for jobs,
people prefer to use methods such as:registering with public agencies, asking friendsor relatives
More capitalist/individualist societies (US,
Australia, Japan) people prefer openadvertisements and applying directly for jobs
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Selection criteria and techniques
Tung (1981) has identified the following criteria that contribute to
success or failure of an expatriate and thus, need to be considered
while selecting them:
Technical competency
Personal attributes
Ability to cope with environmental variables
Family situation
Apart from the above-mentioned criteria, certain other criteria also
need to be considered in selection of expatriates: Country- specific requirements
Company-specific requirement
Language
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Factors in Expatriate Selection
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Mendenhall and Oddous Model
Self-oriented dimension
Perceptual dimension
Others-oriented dimension
Cultural-toughness dimension
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The self-oriented dimension reflects the degree to
which the expatriate expresses an adaptive concern for
self-preservation, self-enjoyment, and mental hygiene.
The perceptual dimension reflects the expertise the
expatriate possesses in accurately understanding why
host nationals behave the way they do.
The others-oriented dimension reflects the degree towhich the expatriate is concerned about host-national
co-workers and desires to affiliate with them.
The cultural-toughness dimension reflects a mediating
variable that recognizes that acculturation is affected by
the degree to which the culture of the host country is
incongruent with that of the home country.
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Using Traits and Personality Tests to
Predict Expatriate Success
Although some tests may be useful in suggestingpotential problems, there may be little correlationbetween 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 ofusage across countries)
Use of personality traits to predict interculturalcompetence is complicated by the fact thatpersonality traits are not defined and evaluated insimilar way in different cultures
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The global manager
Myth 1: There is a universal approach tomanagement.
Myth 2: People can acquire multicultural
adaptability and behaviors.Myth 3: There are common characteristics
shared by successful internationalmanagers.
Myth 4: There are no impediments to mobility.
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Review: Roles & Tasks of
International Management
Top Management Provide direction
Leverage corporate performance
Ensure continual renewal
Global Business Manager Worldwide business strategist
Architect of asset and resource configurationCross border coordinator
Worldwide FunctionalManager
Worldwide intelligence scanner
Cross pollinator of best practices
Champion of transnational innovation
Geographic SubsidiaryManager (Country Manager)
National defender and advocate
Frontline implementer of corporate strategy
Bicultural interpreter
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Skills of a Global Manager
Ability to seize strategic opportunities
Ability to manage highly decentralized
organizations Awareness of global issues
Sensitivity to issues of diversity
Competence in interpersonal relations Skill in building a community
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The Employment Relationship
The nature of the employment relationship Relational: broad, open-ended and long-term
obligations
Transactional: specific short-term monetizedobligations
The condition of the relationship Intact: when employee considers there has
been fair treatment, reciprocal trust
Violated: provoked by belief organization hasnot fulfilled its obligations
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The Dynamics of the Employment
Relationship
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Likelihood of Exit
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Organizational Commitment
Affective component Employees attachment to, identification with
and involvement in, the organization
Continuance component Based on assessed costs associated with
exiting the organization
Normative component Employees feelings of obligation to remain
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Why consider the psychological
contract?
Nature, location and duration of aninternational assignment may provokeintense, 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
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Current Expatriate Profile
Category PCN (42%) HCN (16%) TCN (42%)
Gender
Age (Yrs)
Marital status
Male (82%)
30-49 (60%)
Married (65%)
Female (18%)
20-29 (17%)
Single (26%)
Partner (9%)
Accompanied by
Duration
Location
Primary reasonPrior international experience
Spouse (86%)
1-3 years (52%)
Europe (35%)
Fill a position30%
Children (59%)
Short-term (9%)
Asia-Pacific (24%)
Source: based on data from global Relocation Trends: 2002 Survey Report, GMAC Global Relocation Services,National Foreign Trade Council and SHRM Global Forum, GMAC-GRS 2003.
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Expatriate Failure
Definition: Premature return of an expatriate
Under-performance during an internationalassignment
Retention upon completion
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Definition offailure includes other aspects,e.g. under-performance during an international assignment
Inability to cope with larger responsibility
Lack of technical competence
Lack of motivation for overseas assignment; willingness tomove
Lack of emotional maturity, personality or persons intentions
Failure to adjust to the foreign culture over time; initialrejection may stick
Length of assignment
Psychological contract
Reasons for Expatriate Failure
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Reason for Expatriate Failure
US Firms
Inability of spouse toadjust
Managers inability to
adjust
Other family problems
Managers personal oremotional immaturity
Inability to cope withlarger overseasresponsibilities
US Firms
Inability of spouse toadjust
Managers inability to
adjustOther family problems
Managers personal oremotional immaturity
Inability to cope withlarger overseasresponsibilities
Japanese Firms Inability to cope with
larger overseasresponsibilities
Difficulties with the newenvironment Personal or emotional
problems Lack of technical
competence Inability of spouse to
adjust
Japanese Firms Inability to cope with
larger overseasresponsibilities
Difficulties with the newenvironment Personal or emotional
problems Lack of technical
competence Inability of spouse to
adjust
European Multinationals: Inability of spouse to adjust.
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Reasons for Expatriate Failure
Nine (9) of ten (10) expatriate failures are family-related
Unhappy spouses is a major reason for early return
Inability of spouse / partner to adjust Other family related problems
Dissatisfaction with quality of life overseas
Inadequate cultural and language preparation
Inadequate support for employee and/or family
Company lose a million-dollar corporate-training
investment in the executive
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Costs of Expatriate Failure
Direct costs: Airfares
Associated
relocation expenses Salary and benefits
Training anddevelopment
Averaged $250,000per early return
Costs varyaccording to: Level of position
Country ofdestination
Exchange rates
Whether failed
manager is replacedby anotherexpatriate
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Indirect Cost of Expatriate Failure
Damaged relationships with keystakeholders in the foreign location
Negative effects on local staffPoor labor relationsNegative effects on expatriate
concerned
Family relationships may be affectedLoss of market share
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Expatriate failure:
Expatriates families and spouses face isolation, loneliness and
boredom in the new country and suffer from emotional and physical
problems.
Reward package is not sufficient to survive and maintain life style.
In host countries, expatriates have to face uncertainties, relate with
people with different culture, values and beliefs.
Conflicting goals between the parent company, subsidiary or the
joint venture company result in to role conflict.
Culture shock
Inadequate career support and repatriation plan.
Lack of support from headquarters.
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Causes of Expatriate Assignment Failure
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The Phases of Cultural Adjustment
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Phases of Cultural Adjustment:
Effects of Culture Shock on Adjustment
6
5.5
2.5
2
0
7
0-2 3-4 4-6 6-9 10-12 13-24 25-36 46-48 49+
Time in Months
D
egreeofAdj us
tment
Phase 1:
Tourist /
Honeymoon
Phase 2:
Crisis /
Culture Shock May Exit?
Phase 3:Pulling Up /
Adjustment
Phase 4:
Mastery
See Turnover /See Turnover /Failure Rate:Failure Rate:
Shock effectShock effect??
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Expatriate Adjustment Stages
Source: GMAC Relocation Services, used with permission.
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The Phases of Adjustment
The U-Curve is not normative
The time period involved varies betweenindividuals
The U-Curve does not explain how and whypeople move through the various phases
It may be more cyclical than a U-Curve
Needs to consider repatriation
EXPATRIATES CULTURAL SHOCK
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EXPATRIATES CULTURAL SHOCK
PHYSICALDIFFERENCES
CULTURAL
DIFFERENCESLEVEL OF
DISORIENTATIONSTRESSUNEASE
REACTIONS
FLIGHT ACCEPT GOES NATIVEFIGHT
reject retreat insulate
hostilitydisgustdisaprove
interestedlook for contactslearn about culture
enthusiastadapt local practicefood, dress, style
local companion
THELOCALIZED
EXPAT
THECOSMOPOLITAN
EXPAT
THECOLONIALIST
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Factors Moderating Expatriate
Performance
Inability to adjust to the foreign culture
Length of assignment
Willingness to move Work-related factors
Psychological contract/employmentrelationship
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International Assignments: Factors
Moderating Performance
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Transfer archetypes
Free agents:
41% expatriates fall in this type Allegiance to host country firm is low
Allegiance to parent firm is low Flexible, innovative and adventurous
This type of expatriates can be further divided into two sub-
categories Hired gun free agent
Plateaued-career free agent
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The Dual Allegiance of ExpatriateThe Dual Allegiance of Expatriate
ManagersManagers
Allegianceto local firm
Expatriates who
see themselvesas
Free Agents
Expatriates who
Go Native
Expatriates whosee themselves
as
Dual Citizens
Expatriates who
leave theirHearts at
Home
Allegiance to parent firmLow
Low
High
High
Source: Black & Gregersen (1992). Serving two masters: Managing the dualallegiance of expatriate employees. Sloan Management Review, 34, 61-71.
The Dual Allegiance of Expatriate ManagersThe Dual Allegiance of Expatriate Managers
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Dr Subhash Gupta 40Source: Black & Gregersen (1992). Serving two masters. Sloan Management Review, 34, 61-71.
Requires serious thought and commitmentfrom the company to develop into dual
citizen Are a rare breed and are attractive toother firms who may try to steal themaway
Adjust well and quickly to local culture
Usually effective in local environment
Facilitates the coordination of globalinitiatives
Responsive to directives from head-quarters
Dual Citizen
Adjusts poorly and slowly to local cultureand environment
Likely to inappropriately implementdirectives from the parent organization
Quick to implement directives fromheadquarters
More likely to stay with firm afterrepatriation
Heart at
Home
May fight global initiatives
May be slow to implement directives fromheadquarters
Likely to leave firm after repatriation
Adjust well and quickly to local culture
Usually effective in local environment,including interactions with employees,customers, suppliers, etc.
Go
native
Often leave with little warning
Replacement costs may be significant
May serve self-interests more thancompany interests
Often have superior international capa-bilities (e.g., language, negotiation)
Often somewhat less costly than traditionalexpatriates
Free Agent
ConsProsPattern
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Heart at home 12% expatriates fall in this type Allegiance to host country firm is low
Allegiance to parent firm is high Committed towards the company Determined to achieve the target
Going native 15% expatriates fall in this type Allegiance to host country firm is high Allegiance to parent firm is low Empathetic towards host country culture Willing to communicate and mix with local people
Dual citizens 32% expatriates fall in this type Allegiance to host country firm is high Allegiance to parent firm is high Open-minded and goal-oriented
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The above-mentioned typology clearly indicates the following:
Dual citizens are most effective and committed. They are most
effective in balancing the job demands with role clarity.
An expatriate, over-committed to home organization (heart at
home), will have difficulty to adopt the host country practices and
will not be able to manage host country managers, effectively.
If an expatriate is over-committed to the host country organization
(going native), overall integration, coordination and control
becomes difficult within the MNC.
The largest group of expatriates falls into the category of free
agents, who have low commitment for both the host and home
country organizations.
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Solutions to the Dual-career Challenge
Alternative assignment arrangements Short-term Commuter
Other (e.g. unaccompanied, business travel,virtual assignments)
Family-friendly policies Inter-company networking Job-hunting assistance Intra-company employment On-assignment career support
i l ki
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Barriers to Females Taking
International Assignments
External Barrier Self-established Barriers
HR managers reluctant to
select female candidates
Culturally tough locations or
regions preclude female
expatriates
Those selecting expatriates
have stereotypes in theirminds that influence decisions
Some women have limited
willingness to relocate
The dual-career couple
Women are often a barrier to
their own careers by behaving
according to gender based
role models.
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Summary
Four myths related to the concept of a globalmanager
The debate surrounding the definition and
magnitude of expatriate failure.(cont.)
Key issues affecting recruitment and selection
for international assignments. We have covered:
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Summary(cont.)
Cultural adjustment and other moderating factorsaffecting expatriate intent to stay and performance.
Individual and situational factors to be considered inthe selection decision.
Evaluation of the common criteria used revealed thedifficulty of selecting the right candidate for aninternational assignment and the importance ofincluding family considerations in the selection
process.(cont.)
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Summary(cont.)
Dual-career couples as a barrier to staff mobility,and the techniques that multinationals are utilizingto overcome this constraint.
Female expatriates and whether they face different
issues to their male counterparts.
It is clear that, while our appreciation of the issues surrounding
expatriate recruitment and selection has deepened in the past 20 years,
much remains to be explored.
The field is dominated by US research into predominantly US samplesof expatriates, although there has been an upsurge in interest from
European academics and practitioners.
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Summary
It is also apparent that staff selection remains critical.Finding the right people to fill positions, particularlykey managers whether PCN, TCN or HCN candetermine international expansion.
However, effective recruitment and selection are onlythe first step.
We will explore in the next chapter that maintainingand retaining productive staff are equally important.
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Summary
Corporate philosophy on recruiting and selection
Selection criteria and issues of concern
Local and home countries policies on foreign labor
Variations in national labor law and labor markets Inter-company networking
Intra-company arrangement
Career assistance programs
Training and continuous adaptation
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Summary (cont.)
Will the factors affecting the selection decision be similar for
multinationals emerging from countries such as China and
India?If more multinationals are to encourage subsidiary staff to
consider international assignments as part of an intra-organizational network approach to management, we will need
further understanding of how valid the issues discussed in this
chapter are for all categories of staff from different country
locations.
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