IHRM1_1420_CMBA4_ BhawaniSingh

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MBA7008: International Human Resource Management

Part- 1

SEMESTER 2: 2014 – 2015

SUBMITTED TO:

Prof:- DR.GINLIANLAL BUHRIL

SUBMITTED BY: BHAWANI SINGH RATHORE

CARDIFF MET ID: ST20076707

COLLEGE ID: 1420

MBA (CARDIFF METROPOLITAN UNIVERSITY, UK)

UNIVERSAL BUSINESS SCHOOL

KARJAT, MUMBAI, MAHARASHTRA

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Issues in staff selection

Figure:- 1.1-

Source:- http://media2.intoday.in/

Quality is not an act it is a habit”- Aristotle

Nowadays most of the corporations whether they are functional at national or international scale

of business they employ individuals and deploy them to spots where they can perform at their best

potential. These companies also believe in if the industry is a globally branded and reputed as it

will advantage them in longer run to compete in this competitive world

Being globally recognized and functional would not work for a organization, with this international

recognition they need to deploy international executives too as the organizations spread their

business in different continents. “The more organizational volume increases, volume of deploying

new executive goes parallel.”

Soon the company plans to increase their business globally, in this situation they start deploying

their expatriates to various locations and different countries and to make their expansion

successful, organization takes care of their expatriates and their family people till the

organization’s project is not completed.

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Figure:- 1.2- Expatriation Process

“An expatriate (in abbreviated form, expat) is a person temporarily or permanently

residing in a country and culture other than that of person’s upbringing or legal

residence.” - (expatriatefoundation.org)

Figure 1.2 as above illustrates the two different stages of the Expatriation Process. The initial

stage which is selection and training is the only stage which is accountable for the expatriate’s

catastrophe or triumphs at overseas. If the expatriate and his/her partner and households

whosesoever is going with him/her is designated accurately through accurate selection course

and therefore if the organization has given him/her required training to them about the another

SELECTION

Organisation

emphasis on

Selection

Criteria and

Distinctive of

expatriate

TRAINING

Organization

makes the

expatriate for an

International

Project.

ARRIVAL &

SUPPORT

Its the time when

Expatriate efforts

to modify with

other country's

Customs and

Morals.

RETURN

Preparing the

expatriate and

his/her family to

return their

domicile country

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country’s traditional values and their customs then the probabilities of expatriate’s failure is less

and the accomplishment of their transnational project is more.

Whereas selecting an expatriate’s organization should make sure some merits a person should

possess.

Figure: 1.3: Abilities which a company/organization must see in a individual to decide whether

they should send that employee overseas or not.

World-wide Methodology to Organisation

Abilities which a

individual should

possess

Person should be

adjusting and should

possess the quality to

acclimatize with different

countries traditions and

custom

No inhibitions to agility

Collective appearances pooled by Global

Executives

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In figure 1.3- Person can simply perceive that what abilities a person should obey to be a

efficacious expatriate but one erroneous choice by the company can steered to expatriate failure in

which expatriate is not capable to perform appropriately owed to ethnic slit or if that individual is

incompetent to lever the fresh accountabilities in consequence of that untimely departure of

expatriates follows.

Figure 1.4-

With the failure of the expatriates and his/her failure, organization has to abide their cost as well.

The cost can be direct or indirect which take account of air tariffs, transfer expenditures,

remuneration, training & development cost are the direct costs which organization have to endure

but indirect costs are rigid to estimate in relations of money but can substantiate to be more

exclusive than direct cost for the company. For instance, many expatriate situations comprises

dealings with the government representatives and strategic patrons so failure at this level may end

in loss of market stakes and complications with government administrators. In arrears to this that

expatriate will also face the consequences who will be losing his/her self-confidence, assurance

and his/her repute in the organization.

Reasons for failure of an Expatriate

DIRECT INDIRECT

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So, all the organization’s must always bear in mind that the employee which they are deploying as

an expatriate must be flexible i.e; capability to get acclimatized in that tradition and company’s

overseas working system and trends and must be competent to complete his/her given projects on

determined stretch of time to escape the loss of company and to sustain his/her repute in the

company in the distant country as well as in his/her multitude country.

Through the appointment visit at Honda MotoCorp, researcher witnessed that they are also

recruiting executives from abroad as it is forthcoming with the new and multifaceted expertise in

the imminent ranges going from two-wheelers to heavy means of transportation and automobile

mechanisms.

Analysis of the Selection Criteria

Figure: 1.5-

Source:- www.selection-criteria.com.au

Selection of a suitable expatriate is one of the foremost encounters that companies are

fronting nowadays. Being functional global is the essential for every single company in

today’s age but accomplishment of the intercontinental projects is also a hard-hitting duty

for them. For that they requisite to select an expatriate who is adequately skillful to follow

the other nations standards and morals and is sufficiently supple to fit in their ethos as if

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the assortment of an expatriate is not appropriate then it may even steered to expatriate

catastrophe and as result in loss for the organisation.

Figure: 1.6- Factors in Expatriate Selection

Individual

Situation

(Dr. N.Yang, IBUS618)

Cross-Cultural

Suitability

Family requirements Technical Ability

Selection Decision

MNE Requirements

Language

Country/Cultural

Requirements

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These above mentioned are few factors which a boss perceives while opting for an expatriate for

the intercontinental projects from his/her nation state. An employee should be competent enough

to execute procedural as well as professional responsibilities as expertise in his home country and

tools in his domicile country are poles apart. A Manager should also be stretchy to acclimatize its

domicile country’s spirit by having optimistic audacity, knowing the language, should have

demonstrative stability and pleasantness. If an employee is not satisfied in going alone then he/she

can also take his/her family associates or companion for the decent living. These qualities are

adjudicated by the superior or senior boss/manager of the company by observing at the earlier

records of the employee and giving or reassigning him/her to various places first in the company’s

several other divisions and noticing his/her performances in the branch out laboring atmosphere.

These standards are compulsory to avoid expatriate’s catastrophe else reputation of the employee

along with of the organisation will be in exposed.

Figure: 1.7- Different types of Selection Procedures

(Dowling, 2008)

FORMAL

ASSESSMENT TEST

INTERVIEWS

ASSESMENT

CENTERS

SELECTION

PROCESS

CAREER PLANNING

STAFF-SELECTION

RECOMMENDATIONS

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These are the above mentioned types of procedures by which a company select their expatriates

who goes abroad to expand the business in some other country. These procedures judge a employee

on a major scale of judgement and performance that a candidate should possess:-

1. It’s must to have good interactive Expertise.

2. Must be knowing various dialects of different countries.

3. Employee should be self driven, self-motivated to work hard at various locations and

countries.

4. Should be tolerant and calm tempered person to deal with typical daily routine issues and

problems.

5. Employee should be easy-going with work and co-employees at work station.

6. The one should be well coordinated with his/her superiors and the team members working

under his/her supervision and instructions.

7. Should be flexible enough rather than being strict at times.

8. Should possess the qualities to know different traditions and cultures of different cultural

diversities.

9. Should have good Character

10. Must be good leader who leads from front and let his/her team enjoy his/her supervision

and instructions.

Very often companies send their employees to take initiatives to start up a new global career and

experience.

Once the employee is selected to go and work for the company abroad, company starts giving pre-

departure training to accustom the one with trend and culture of the country where the employee

will be flying to work there and to make them aware of the constitution and regulations of

concerned business to deal with in the host country, and if this kind of training is not done it may

results in expatriate’s failure as well as the failure of the company and its international project.

In Honda MotoCorp researcher witnessed that they do balloting method during board of directors

meet to select the employee to whom they want to send overseas for their International Project.

After the balloting method is done selection procedures are been completed with the employees

like interviews and tests. Subsequently the selection of the final employee as an expatriate his/her

pre-departure training is started so that he/she will be able to accomplish and perform well in the

host country and will be able to make sure to complete his/her task effectively.

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Analysis of Dual Career Couples

Figure: 1.8-

Source:- blogs.anl.gov

Nowadays, dealing dual careers is very imperative for any company for its success pillars. As, if

an company is sending an employee’s his/her partner for a long time of period for international

project then probabilities of rejection for that project by the employee is 95% as of his/her partner

employed in the home country only. Therefore, if a company wants a prosperous completion of its

international projects/assignments then a company should upkeep both the dual-careers.

Companies should offer conveniences to both the couples like assisting the partner in finding a

suitable career in the host country because if company will not be able to take care about the

expatriate’s partner then there is a chances of expatriate failure is maximum as the one will not be

able to focus and perform well diligently.

Conferring to an analysis report on project rejections by the selected employees as expatriates;

researcher witnessed that 51% of the companies had experienced project accepting rejections due

to partner employability apprehensions, 22% said this did not accept to work abroad on overseas

projects while remaining 27% said these projects were not meaningful just due to some reasons of

their partner’s employability if the one goes for an international project.

The analysis report is shown in the pie chart graph Figure: 1.9 shown as under:-

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Figure: 1.9-

To sidestep the rejection from the employee to work overseas for the company’s international

project company can create some alternative opportunities/arrangements for employee’s partner

so that the one can happily accept to work abroad and can perform up to his maximum efficiency.

Figure: 1.10- Alternative Assignments by the Company

51%

27%

22%

Organisation

Yes

Do Not Know

No

Short-term Projects

ALTERNATIVE

ASSIGNMENTS

ARRANGEMENT

Family Friendly

Policies

Commuter

Assignments

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There are the three categories of projects which a company do offers to the expatriate’s partner so

that expatriate can accomplish his/her projects fruitfully overseas.

In the Short-term projects, expatriate is deployed overseas for the shorter span of time so that

he/she can complete the projects effectively in favor of the company and come back after

completion of the project.

In travelling projects, the partner stays back domicile and stay connected with his/her partner

through the company by company paying for their phone bills and air tariffs.

In Family-friendly policy, company attempts to find out the appropriate employment for both the

partners with other transnational companies in the host country so that they can live self-possessed

without any expatriate disappointment.

According to the researcher, he found at Honda MotoCorp in the case of dual career pair if they

are commendable then a company should refer the duo together on an international project through

a proper procedure of interviewing them and after that giving them pre-departure training. By this

there will be no chance of expatriate catastrophe and they will also be able to work accurately and

also will be able to provide their projects on time without flop.

In Honda MotoCorp, in case of dual career couple they trail travelling projects for the expatriates

i.e.; expatriate’s partner lives in a domicile country but their affiliation is preserved by the company

like company pay their phone bills, internet bills and also their air tariffs if the spouse goes to meet

his/her companion.

Analysis of Role played by Internal Referees

Figure: 1.11-

Source:-www.recruitingblogs.com

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For a company it is very vital that they should select a right and deserving employee as their

expatriate for their global projects as, if the employee is not that competent enough of going for

the international projects then employee will not be able to complete his/her project overseas on

given deadlines. As it is universal that organization is like a family and in this family some

experience and sincere bosses wants their sincere and well-groomed employee to initiate and grab

the opportunity to work for an international exposure and get the maximum learning experience

out of it. One of the main reason for expatriate failure is this incorrect internal reference to

reference by the referees of the organization.

An organization can do nothing about this as reference constantly comes from the top level

management authorities which middle level management cannot contradict as by contradicting

their job is also at stake.

These internal references can find a suitable employee as well as a underperforming employee for

the position of expatriate as each person has his/her own competences and every individual cannot

regulate and work in the overseas environment.

In Honda MotoCorp they are very precise and firm in relations of selecting an expatriate for their

company. They have openly stated in their guidelines and protocols that no internal reference is

permissible in the company for the expatriate’s designation as company’s brand appearance also

spirits to the host country with the expatriate and if expatriate is found underperforming therefore

then both expatriate’s and company’s image is exposed. If in case any reference hail from for the

expatriate’s designation then also that employee have to clear all the measures from online

examinations merits and then have to clear the interview procedure to get that prospect but at the

end company has the right to cast-off, if the employee is not appropriate for that designation for

the expatriate.

As per to researcher, Honda MotoCorp delights similarly with all its employees and that’s why its

brand image is getting stronger in the national as well as in the global market stake.

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Analysis of Factors Moderating International Performance

Figure: 1.12-

Source:- www.ecoles2commerce.com

Expatriate dedicates his/her time and energy to perform at his best for the project he/she has been

deployed. He/She attempts to show and perform with his/her best professional as well competency

skills rather than thinking about how to work at a new place and new and different project, but

being human sometimes even the best expatriates fails to deliever the pre-determined aims for the

overseas projects of the company just because they were not able to acclimatize with new

atmosphere they have been deployed for the job which can be seen as failure of projects. Nowaday

each and every company is discussing about the expatriate’s failure on the overseas projects, and

to come with some research and result, most of the companies are practically doing lots of surveys

and analysis which determines the performances of expatriates working aborad on their

international projects, As expatriate is always the one who’s having high performance whatever

he/she has been delegated or given, so the multinational companies rely on expatriates and there

therefor they encourage the mobility and taking care of the expatriate in all concern to get the best

results out of him/her working abroad on their international projects.

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Figure: 1.13- Factors Moderating Expatriate’s Performance

(Welch, 2008)

Length of Assignment

Willingness to move

Psychological contract Work-related factors

Inability to adjust in

Foreign Culture

FACTORS MODERATING

PERFORMANCE

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Figure: 1.13- explains the five reasons which are restraining expatriate’s enactment in the overseas

projects. Few of the expatriates are not happy with the host country’s ethos while some are not

happy because of the long term projects and they want to go back to their home as soon as

conceivable. All these referees distresses the expatriate’s routine in the organization abroad which

consequences into expatriate catastrophe.

If a employee is sent abroad by a company then he/she must be having some potential and also

must have being a pre-departure training after the selection as an expatriate. So, he/she should put

his/her effort to adjust himself/herself in that host country and should widespread his/her overseas

projects for the sake of the company brand image because going back of an expatriate without

delivering his/her projects put the company goodwill on stage which may ruin the market stake as

well.

Figure: 1.14- Phases of Cultural Adjustment

Source:- dowlingchapter4-130312143009-phpapp01/95/dowling-chapter-4-16-

638.jpg?cb=1363098680

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This U Curve in adjustment phase illustrates that an expatriate may be very exhilarating and have

constructive sentiments to do labor and consider to halt for a stretched term of period for the

international projects, but there are few expatriates as well who do not get comfortable with

overseas culture at all and make their mind to quit the job overseas and flying back to his/her

domicile country.

Honda MotoCorp India have not encountered any expatriate catastrophe till now as they have faith

in sending those employees whom they think they are proficient abundantly to acclimatize at

different countries and their traditions and beliefs and who have thirst for their work and love and

enjoy whatever they’ve been given or delegated.

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Figure: 1.15- Bibliography

Text Books:

1. Aswathappa, K. (2012), Organisational Behavior, Tenth Edition, Himalaya Publishing House.

2. Bose, Chandra D. (2010), Principles of Management and Administration, Eighth Edition, PHI

Learning Private Limited.

3. Cardy, Robert L., Balkin, David B. and Mejia Gomez, Luis R. (2010), Managing Human

Resources, PHL Learning Private Limited.

4. Carter, Earl MA and McMahon, frank A. (2006), Improving Employee Performance, First

Edition, Kogan Page. McGraw Hill Education Private Limited.

5. Cascio, Wayne F. and Nambudiri, Ranjeet (2010), Managing Human Resources, Eighth Edition,

Tata McGraw Hill Education Private Limited.

6. Gupta, C.B. (2011), Business Organisation and Management, 14th Edition, Sultan Chand and

Sons.

7. Harris, O.Jeff and Hartman, Sandra J. (2006), Organizational Behavior, Fourth Edition, Jaico

Publishing House.

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8. Hersy, Paul, Blanchard, Kenneth H. and Johnson, Dewey E. (2011), Management of

Organizational Behavior, Ninth Edition, PHI learning Private Limited.

9. Khanka, S. S. (2012), Human Resource Management, Eighth Edition, S. Chand and Company

Limited.

10. Koontz, Harold and Weihrish, Heinz (2011), Essentials of Management, Fourth Edition, Tata

McGraw Hill Education Private Limited.

11. Legge, Karen (2006), Human Resource Management, Second Edition, Palgrave Macmillan.

12. Luthans, Fred (2011), Organisational Behavior, Twelth Edition, McGraw Hill International

Edition.

13. Mandal, S. K. (2011), Management Principles and Practice, First edition, Jaico Publishing

House.

14. Massie, Joseph L. (1987), Essentials of Management, PHL Learning Private Limited.

15. McShane, Steven L., Von Glinow, MaryAnn and Sharma, Radha R. (2008), Organisational

Behavior, Fourth Edition, Tata McGraw Hill Publishing Company Limited.

16. Moshal, B.S. (2010), Organisational Theory and Behavior, Second Edition, Ane Books Private

Limited.

17. Newstorm, John W. (2013), Organisational Behavior, Twelth Edition, Tata McGraw Hills

Education Private Limited.

18. Olswal, David L. (2010), Managerial Issues of Enterprise Resource Planning Systems, Eighth

Edition, Tata McGraw Hill Education Private Limited.

19. Pareek, Udai (2007), Understanding Organisational Behavior, Second Edition, Oxford

University Press.

20. Pattnayak, Biswajeet (2005), Human Resource Management, Third Edition, PHI Learning.

21. Punnett, Betty Jane (2004), International Perpectives on Organizational Behavior and Human

Resource Management, First edition, PHI Learning Private Limited.

22. Robbins, Stephen P. and DeCenzo, David A. (2012), Human Resource Management, Tenth

Edition, Wiley-India.

23. Riley, Pippa (2011), Organizations and Behavior, First Edition, Viva Books.

24. Sadri, J., Sadri, S. and Nayak, N. (2011), A Strategic Approach to Human Resource

Management, Second Edition, Jaico Publishing House.

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25. Stoner, James A. F., Freeman, R. Edward and Gilbert, Daniel R. (2009), Management, Pearson.

26. Sullivan Nuala O. (2011), Human Resource Management, First Edition, Hodder Education.

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Journals:

1. Journal of Organization and Human Behavior,Volume: 3,Issue: 1, Date: Jan, 2014

2. A Quarterly Journal of Responsibility Management, Volume: 39, Issue: 1, Date: Feb,

2014

3. International Journal of Business Administration and Management, Volume: 4, Issue:

2, Date: July-Dec, 2014

4. Indian Journal of Training and Development, Volume: 44, Issue: 3, Date: July-Sep,

2014

5. Indian Journal of Management and Human Resource, Volume: 4, Issue: 1, Date: Jan-

June, 2014

6. International Journal of Human Resource Development and Management Review,

Volume: 4, Issue: 2, Date: July-Dec, 2014

7. International Journal of Human Resource Management, Volume: 2, Issue: 3, Date:

1991

Websites:

1. http://expatriatefoundation.org