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Selection Criteria For International Assignments Ppt Template

Presentation on theme: "Recruiting and Selecting Staff for International Assignments"— Presentation transcript:

1 Recruiting and Selecting Staff for International Assignments
Chapter 5Recruiting and Selecting Staff for International AssignmentsIBUS 618 Dr. Yang

2 Chapter ObjectivesIn 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.IBUS 618 Dr. Yang

3 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 managerThe debate surrounding expatriate failureFactors moderating intent to stay or leave the international assignmentSelection criteria for international assignmentsDual-career couplesGender issues for international assignmentsIBUS 618 Dr. Yang

4 The global managerMyth 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.IBUS 618 Dr. Yang

5 Current expatriate profile
Table 5-1Current expatriate profileSource: based on data from Global Relocation Trends: 2005 Survey Report, GMAC Global Relocation Services, National Foreign Trade Council and SHRM Global Forum, GMAC-GRS 2006, GMAC GRS.IBUS 618 Dr. Yang5

6 Marital Status 53% Married male 8% Married female
7% Male with significant other4% Female with significant other18% Single male10% Single femaleIBUS 618 Dr. Yang

7 Expatriate Failure Definition: Premature return of an expatriate
Under-performance during an international assignmentRetention problem upon completionIBUS 618 Dr. Yang

8 Expatriate Failure Rates
Recall Rate Percent Percent of CompaniesUS Multinationals% %% %< 10% %European Multinationals% %6 - 10% %< 5% %Japanese Multinationals% %6 – 10% %< %IBUS 618 Dr. Yang

9 European Multinationals: Inability of spouse to adjust.
Reason for Expatriate FailureUS FirmsInability of spouse to adjustManager’s inability to adjustOther family problemsManager’s personal or emotional immaturityInability to cope with larger overseas responsibilitiesJapanese FirmsInability to cope with larger overseas responsibilitiesDifficulties with the new environmentPersonal or emotional problemsLack of technical competenceInability of spouse to adjustEuropean Multinationals: Inability of spouse to adjust.IBUS 618 Dr. Yang

10 Reasons for Early Return
IBUS 618 Dr. Yang

11 Direct Costs of Expatriate Failure
AirfaresAssociated relocation expensesSalary and benefitsTraining and developmentAveraged $250,000 per early returnCosts vary according to:Level of positionCountry of destinationExchange ratesWhether a ‘failed’ manager is replaced by another expatriateIBUS 618 Dr. Yang

12 Indirect Cost of Expatriate Failure
Damaged relationships with key stakeholders in the foreign locationNegative effects on local staffPoor labor relationsLoss of market shareNegative effects on expatriate concernedFamily relationships may be affectedIBUS 618 Dr. Yang

13 International assignments: factors moderating performance
Figure 5-1IBUS 618 Dr. YangIHRM Chapter 513

14 Why consider the psychological contract?
Nature, location and duration of an international assignment may provoke intense, individual reactions to perceived violationsExpatriates tend to have broad, elaborate, employment relationships with greater emphasis on relational natureExpectations and promises underpin this relationshipIBUS 618 Dr. Yang

15 The Employment Relationship
The nature of the employment relationshipRelational: broad, open-ended and long-term obligationsTransactional: specific short-term monetized obligationsThe condition of the relationshipIntact: when employee considers there has been fair treatment, reciprocal trustViolated: provoked by belief that the organization has not fulfilled its obligationsIBUS 618 Dr. Yang

16 Likelihood of ExitIBUS 618 Dr. Yang

17 The phases of cultural adjustment
Figure 5-2The phases of cultural adjustmentIBUS 618 Dr. YangIHRM Chapter 517

18 The Phases of Adjustment
The U-Curve is not normativeThe time period involved varies between individualsThe U-Curve does not explain how and why people move through the various phasesIt may be more cyclical than a U-CurveNeeds to consider repatriationIBUS 618 Dr. Yang

19 Factors in expatriate selection
Figure 5-3Factors in expatriate selectionIBUS 618 Dr. YangIHRM Chapter 519

20 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 performanceMost of the tests have been devised in the United States, thus culture-boundIn 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 ways in different culturesIBUS 618 Dr. Yang

21 Mendenhall and Oddou’s Model
Self-oriented dimensionPerceptual dimensionOthers-oriented dimensionCultural-toughness dimensionIBUS 618 Dr. Yang

22 Harris and Brewster’s selection typology
Table 5-2Harris and Brewster’s selection typologyIBUS 618 Dr. Yang22

23 Solutions to the Dual-career Challenge
Alternative assignment arrangementsShort-termCommuterOther (e.g. unaccompanied, business travel, virtual assignments)Family-friendly policiesInter-company networkingJob-hunting assistanceIntra-company employmentOn-assignment career supportIBUS 618 Dr. Yang

24 Barriers to females taking international assignments
24Table 5-3Barriers to females taking international assignmentsIBUS 618 Dr. Yang

25 Equal Employment Opportunity Issues
Cultural VariationsLaw and enforcementSocial valuesCorporate practicesThe United StatesEEOA within the countryInternational approachIBUS 618 Dr. Yang

26 Chapter SummaryThis chapter has addressed key issues affecting recruitment and selection for international assignments. We have covered:Four myths related to the concept of a global managerThe debate surrounding the definition and magnitude of expatriate failure.(cont.)IBUS 618 Dr. Yang

27 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.)IBUS 618 Dr. Yang

28 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.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.IBUS 618 Dr. Yang

29 Chapter SummaryStaff 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 chapters that maintaining and retaining productive staff are equally important.IBUS 618 Dr. Yang

30 Chapter Summary Corporate philosophy on recruiting and selection
Selection criteria and issues of concernLocal and home countries’ policies on foreign laborVariations in national labor law and labor marketsInter-company networkingIntra-company arrangementCareer assistance programsTraining and continuous adaptationIBUS 618 Dr. Yang

31 Discussion QuestionsWhat is the difference between a global manager and a global mindset?Should multinationals be concerned about expatriate failure? If so, why?What are the most important factors involved in the selection decision?Are female expatriates different?Discuss the proposition that most expatriate selection decisions are made informally, as suggested by the ‘coffee-machine’ solution.IBUS 618 Dr. YangIHRM Chapter 531

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