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Global HRM: Recruitment and Selection
Lecture 8
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International HRM
Definition: “…the planning, selection, training, employment and
evaluation of employees for international assignments”
In 2010, Siemens employed
more than 360,000 in some 190 countries: 205,000 (Europe), 83,000 (North and South America), 61,000 in Asia-Pacific, 11,000 (Africa, Middle east and Russia).
Cavusgil, et al. (2014) p.524
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Types of Labor
Parent country (HQ location) nationals (citizenship)
Host
country nationals
Third country nationals
Expatriates (both PCNs and TCNs)
Expatriate –
employee assigned to work and reside in a foreign country for an extended period (over 1 year). VS transpatriate VS inpatriate (e.g. Coca-Cola, Nestle)
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Approaches to Staffing
Ethnocentric – key managerial positions filled
with people from headquarters – parent-country nationals (PCNs). (e.g.
GE vs P&G)
Polycentric – host-country nationals (HCNs) are hired for key positions in own country. (e.g. Tata Consultancy Services)
Geocentric/global – best managers recruited regardless of nationality (PCN/HCN/TCN). Third-country nationals (TCNs) used by European MNCs. (e.g. IBM, Philips, Unilever, IBM)
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Selection Criteria
Technical ability
Adaptability to cultural change
Family requirements
(spouses and dependents)
Language
Country/cultural requirements
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Culture and Local HRM Practices: Examples
Individualism vs. collectivism
Femininity
vs. masculinity
Status: achieved vs. ascribed (Trompenaars)
Context: association vs. contract
Qualifications
vs. nepotism
Equal employment vs. women roles
Hiring emphasis: skills, knowledge and talent vs. age, gender, personal relations, family background
Labor relationship based on: sense of trust and mutual obligation vs. formal written contract
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Searching Local Labor Markets
Recruiting good local managers requires
techniques that are appropriate in the local culture:
Apply appropriate
search techniques
Apply appropriate selection techniques
Apply complete criteria
Offer salaries and rewards competitive with those offered by local firms
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Types of International Assignments
Short term
Up to 3
months
Extended
Up to 1 year
Long term
Varies from 1 to 5
years
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Which factors are more important for success of
international assignment?
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Success Factors by Assignment Characteristics
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Harris and Brewster Selection Typology
Harris & Brewster, 1999,
cited in Dowling, 2013, p. 127
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Roles of an expat
Agent of direct control
Agent of
socialization
Network builder
Boundary spanner
Language node
Transfer of competence and knowledge
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A glamorous life?
International business travellers cite the positives
as:
Excitement and thrills of conducting business deals in foreign
locations
Life style (top hotels, duty-free shopping, business class travel)
General exotic nature
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But a high level of stress!
Home and family
issues – frequent absences
Travel logistics – waiting in
airports, etc.
Health concerns – poor diet, lack of sleep, etc.
Host culture issues – limited cultural training
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Factors moderating performance
Dowling, 2013
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Global Mindset
Global mindset (characterized by cognitive complexity
and a cosmopolitan outlook) is essential to the success
of global managers.
Yet, few firms consider this when selecting expatriate managers, and instead focus on technical expertise
