RECRUITING AND SELECTING STAFF FOR INTERNATIONAL ASSIGNMENTS

1. RECRUITING AND SELECTING STAFF FOR INTERNATIONAL ASSIGNMENTS DonyEkoPrasetyo, S.IP.

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

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

6. 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)

7. 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

8. Global Manager • a person who is comfortable operating   in diverse countries, cultures, and situations,  and can  be transferred internationally  into different operations 

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

10. Current expatriate profile

11. Expatriate failure • Definition: Premature return of an expatriate • Now recognized that under-performance during an international assignment, and retention upon completion, should be included

12. Expatriate failure • What is the magnitude of the phenomenon? • Suggestion of a falling rate compared with early (1980s) studies • Evidence is somewhat inconclusive • Discussion about its magnitude has drawn attention to expatriate failure and prompted considerable research into its causes

13. Expatriate failure • Direct costs of failure: airfares, associated relocation expenses, and salary and training • Varies according to level of position concerned • Country of destination • Exchange rates • Whether ‘failed’ manager is replaced by another expatriate

14. Expatriate failure • Indirect costs (invisible) • Damaged relationships with key stakeholders in the foreign location • Negative effects on local staff • Negative effects on expatriate concerned • Family relationships may be affected

15. Expatriate Failure Rates Recall Rate Percent Percent of Companies US Multinationals 20 - 40% 7% 10 - 20% 69 < 10 24 European Multinationals 11 - 15% 3% 6 - 10 38 < 5 59 Japanese Multinationals 11 - 19% 14% 6 - 10 10 < 5 76

16. Reason for Expatriate Failure • US Firms • Inability 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 European Multinationals: Inability of spouse to adjust.

17. The cultural shock • PCNs on foreign assignments may experience cultural shock. • Cultural shock is a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation. • Acculturation is the processes by which a person understands a foreign culture and modifies their behaviour to fit into it. • Acculturation typically proceeds through four phases.

18. 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 of Expatriate Failure

19. 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

20. Factors moderating expatriate performance • Inability to adjust to the foreign culture • Length of assignment • Willingness to move • Work-related factors • Psychological contract

21. International assignments: factors moderating performance

22. The phases of cultural adjustment

23. 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

24. The dynamics of the employment relationship

25. 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

26. Likelihood of exit

27. 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: refers to employee’s feelings of obligation to remain

28. 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

29. Selection criteria • Technical ability • Cross-cultural suitability • Family requirements • Country-cultural requirements • MNE requirements • Language

30. 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

31. Factors in expatriate selection

32. Mendenhall and Oddou Model • Self-oriented dimension • Perceptual dimension • Others-oriented dimension • Cultural-toughness dimension

33. Harris and Brewster’s selection typology

34. Solutions to the dual-career challenge • Alternative assignment arrangements • Short-term • Commuter • Other (eg. unaccompanied, virtual) • Family-friendly policies • Inter-company networking • Job-hunting assistance • Intra-company employment • On-assignment career support

35. Barriers to females taking international assignments