1 Chapter Four Recruiting and Selecting Staff for International Assignments.

1

Chapter Four

Recruiting and Selecting Staff for International Assignments

2

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

3

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?

4

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

5

Terms

recruitment

selection

effectiveness skills

coping skills

global manager

IA Phases: touristculture shockpulling upadjustment

direct costindirect cost

international assignment (IA)expatriate failure rate (EFR)common corporate language“coffee machine system”

6

Recruitment

• is defined as searching for and obtaining qualified job candidates in sufficient numbers to fill job needs

7

Selection

• gathering information for the purposes of evaluating and deciding who should be employed in particular jobs

8

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)

9

Global Manager Myths

1. There is a universal approach to management

2. People can acquire multicultural adaptability and behaviors

3. There are common characteristics shared by successful international managers

4. There are no impediments to mobility

10

Global Manager

• a person who is comfortable operating  

in diverse countries, cultures, and situations, 

and can  be transferred internationally 

into different operations 

11

Global ‘Mindset’

• implies the ability to see beyond one’s own national and functional boundaries.

12

Current Expatriate Profile (Table 5-1)

13

Three Questions Related to Expatriate Failure

• its definition

• magnitude of the phenomenon

• costs associated with failure

14

Expatriate Failure

• premature return, under-performance and

retention upon completion of the assignment

15

Magnitude of the Phenomenon

• high failure rates; 30%-50% and higher

• foreign assignments increasing

16

Costs Associated with Expatriate Failure

Direct costs

• airfares and associated relocation expenses

• compensation

• training

17

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

18

Costs Associated with Expatriate Failure

Expatriate

• loss self‑confidence

• future performance may be impacted

• family relationships may be threatened.

19

International Assignments: Factors

Moderating Performance (Figure 5-1)

20

Reasons for Early Return

1. family concerns2. accepted new position in the company3. completed assignment early4. cultural adjustment challenges5. security concerns6. career concerns

21

Expatriate Relocation Cultural Adjustment

Phase 1 • reactions prior to the assignment

• positive and negative emotions

• upswing of mood upon arrival

• homesickness sets in

22

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

23

The Phases of Cultural Adjustment (Figure 5-2)

24

Length of Assignment

• a longer assignment allows the expatriate more time to adjust and become productive

25

Willingness to Move

• reluctant expatriate or family members interpret events and situations encountered in the new environment negatively

26

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

27

Factors in Expatriate Selection (Figure 5-3)

28

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

29

Cross-Cultural Suitability

• cultural empathy• adaptability• diplomacy• language ability• positive attitude• emotional stability• maturity

30

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

31

Country/Cultural Requirements

• work permits

• entry visas

• hardship postings

32

MNE Requirements

• mode of operation

• assignment duration and type

• amount of knowledge transfer required

33

Language

• speak the local language (fifth highest criteria)

• knowledge of countries and cultures

• common corporate language

34

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)

35

4 Dimensions for Successful Expatriate Selection

1. Self-orientedExpresses adaptive concern for self-preservation, self-enjoyment, mental hygiene.

2. PerceptualAccurately 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.

36

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

37

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

38

Harris and Brewster’s Selection Typology (Table 5-2)

39

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)

40

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

41

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.

42

Alternative Assignment Arrangements

• short-term assignments

• commuter assignments

• other arrangements (assignments replaced by business

travel and virtual assignments)

43

Family-Friendly Policies

• inter-company networking

• job-hunting assistance

• intra-company employment

• on-assignment career support

44

Are Female Expatriates Different?

• female expatriates are under represented in international assignments because they face different international assignment issues (than their male counterparts)

45

Barriers to Females Taking International Assignments

(Table 5-3)

46

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

47

Important Issues in Terms of Performance

• assignment location

• level of organization support

• spouse/partner satisfaction

• intercultural experiences

48

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?

49

Discussion Questions

3. What are the most important factors involved in the selection decision?

4. Are female expatriates different?

50

Case: The Reinhart Case

1. 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?

51

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?

52

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?