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Chapter 4 Recruiting and Selecting Staff for International Assignments

Dowling chapter 4

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Page 1: Dowling chapter 4

Chapter 4

Recruiting and Selecting Staff for International

Assignments

Page 2: Dowling chapter 4

Chapter Objectives

In Part I, we demonstrated how people play a central role in sustaining international operations. As international assignments are an important vehicle for staffing, it is critical that they are managed effectively, and the expatriates are supported so that performance outcomes are achieved.

In Part I, we demonstrated how people play a central role in sustaining international operations. As international assignments are an important vehicle for staffing, it is critical that they are managed effectively, and the expatriates are supported so that performance outcomes are achieved.

Page 3: Dowling chapter 4

Chapter Objectives (cont.)

The focus of this chapter is on recruitment and selection activities in an international context. We will address the following issues: The myth of the global manager The debate surrounding expatriate failure Factors moderating intent to stay or leave the

international assignment Selection criteria for international assignments Dual-career couples Gender issues

The focus of this chapter is on recruitment and selection activities in an international context. We will address the following issues: The myth of the global manager The debate surrounding expatriate failure Factors moderating intent to stay or leave the

international assignment Selection criteria for international assignments Dual-career couples Gender issues

Page 4: Dowling chapter 4

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.

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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 reason

Prior international experience

Spouse (86%)

1-3 years (52%)

Europe (35%)

Fill a position

30%

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.

Page 6: Dowling chapter 4

Expatriate Failure Definition: Premature return of an expatriate Under-performance during an international

assignment Retention upon completion

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Recall Rate Percent Percent of CompaniesUS Multinationals

20 - 40% 7%10 - 20% 69

< 10 24

European Multinationals

11 - 15% 3%

6 - 10 38 < 5 59

Japanese Multinationals11 - 19% 14%6 - 10 10

< 5 76

Expatriate Failure Rates

Page 8: Dowling chapter 4

Reason for Expatriate Failure

US FirmsInability 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 FirmsInability 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.European Multinationals: Inability of spouse to adjust.

Page 9: Dowling chapter 4

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

Page 10: Dowling chapter 4

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

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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/employment

relationship

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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 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

Page 13: Dowling chapter 4

The Dynamics of the Employment Relationship

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Likelihood of Exit

Page 15: Dowling chapter 4

International Assignments: Factors Moderating Performance

Page 16: Dowling chapter 4

The Phases of Cultural Adjustment

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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

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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 Employee’s feelings of obligation to remain

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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

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

Page 21: Dowling chapter 4

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

Page 22: Dowling chapter 4

Factors in Expatriate Selection

Page 23: Dowling chapter 4

Mendenhall and Oddou’s Model

Self-oriented dimensionPerceptual dimensionOthers-oriented dimensionCultural-toughness dimension

Page 24: Dowling chapter 4

Harris and Brewster’s Selection Typology

Formal Informal

Open Clearly defined criteria Clearly defined measures Training for selectors Open advertising of vacancy

(internal/external) Panel discussions

Less defined criteria Less defined measures Limited training for selectors Open advertising of vacancy Recommendations No panel discussions

Closed Clearly defined criteria Clearly defined measures Training for selectors Panel discussions Nominations only (networking/reputation)

Selector’s individual preferences

determine selection criteria and measures No panel discussions Nominations only (networking/reputation)

Page 25: Dowling chapter 4

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

Page 26: Dowling chapter 4

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 their

minds 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.

Page 27: Dowling chapter 4

Equal Employment Opportunity Issues

Cultural Variations Law and enforcement Social values Corporate practices

The United States EEOA within the country International approach

Page 28: Dowling chapter 4

Chapter Summary

Four myths related to the concept of a global manager

The debate surrounding the definition and magnitude of expatriate failure.

(cont.)

This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:

This chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:

Page 29: Dowling chapter 4

Chapter Summary (cont.)

Cultural adjustment and other moderating factors affecting expatriate intent to stay and performance.

Individual and situational factors to be considered in the selection decision.

Evaluation of the common criteria used revealed the difficulty of selecting the right candidate for an international assignment and the importance of including family considerations in the selection process.

(cont.)

Page 30: Dowling chapter 4

Chapter Summary (cont.)

Dual-career couples as a barrier to staff mobility, and the techniques that multinationals are utilizing to 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 samples of expatriates, although there has been an upsurge in interest from European academics and practitioners.

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 samples of expatriates, although there has been an upsurge in interest from European academics and practitioners.

Page 31: Dowling chapter 4

Chapter Summary

It is also apparent that staff selection remains critical. Finding the right people to fill positions, particularly key managers – whether PCN, TCN or HCN – can determine international expansion. However, effective recruitment and selection are only the first step. We will explore in the next chapter that maintaining and retaining productive staff are equally important.

It is also apparent that staff selection remains critical. Finding the right people to fill positions, particularly key managers – whether PCN, TCN or HCN – can determine international expansion. However, effective recruitment and selection are only the first step. We will explore in the next chapter that maintaining and retaining productive staff are equally important.

Page 32: Dowling chapter 4

Chapter 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

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

Page 33: Dowling chapter 4

Chapter 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.Another area that remains ignored is the selection of non-expatriates, that is, the international business travelers we discussed in Chapter 3. In our survey of current literature, there is a paucity of recognition of this group. (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.Another area that remains ignored is the selection of non-expatriates, that is, the international business travelers we discussed in Chapter 3. In our survey of current literature, there is a paucity of recognition of this group. (cont.)

Page 34: Dowling chapter 4

Chapter Summary (cont.)

The various consulting firm surveys conducted into relocation trends in 2002 that we draw on in this chapter indicate that more multinationals are resorting to replacing traditional assignments with business travel as a way of overcoming staff immobility. Likewise, there is a need for further work into the performance–selection link surrounding non-standard assignments, including commuter and virtual assignments.

The various consulting firm surveys conducted into relocation trends in 2002 that we draw on in this chapter indicate that more multinationals are resorting to replacing traditional assignments with business travel as a way of overcoming staff immobility. Likewise, there is a need for further work into the performance–selection link surrounding non-standard assignments, including commuter and virtual assignments.