Employee Recruitment and Selection

1
Employee Recruitment and Selection
2
The Recruiting Process
3
Strategic Approach to Recruiting

• How many people does the organization need?
• What labor markets will be tapped?
• Should the organization have its own staff or use
  other sources such as flexible staffing?
• To what extent should recruiting be forced
  internally vs.externally?
• What special skills and experience are really
  necessary?
• What legal considerations affect recruiting?
• How can diversity and affirmative action concerns
  be addressed when recruiting?
• How will the organization spread its message of
  opening?
• How effective are the recruiting efforts?

4
Recruiting Evaluation

• Quantity of applicants
• EEO goals met
• Quality of applicants
• Cost per applicant hired
• Time required to fill openings

5
Employment Application Policies

• Applications are accepted only when there is an
  opening
• Only persons filling out application blanks are
  considered applicants
• A persons application ceases to be effective
  after a certain date
• Only a certain number of applications will be
  accepted
• People must apply for a specific job, not any
  job

6
Multinational Staffing Policies

• Four Approaches
• Ethnocentric
• Polycentric
• Geocentric
• Regiocentric

7
Multinational Staffing Policies

• The Ethnocentric Approach All key positions are
  filled by parent-country nationals.
• Some Advantages
• Parent-country nationals (PCNs) can ensure the
  subsidiary complies with overall corporate
  objectives and policies
• PCNs can maintain good communication,
  coordination, and control links with corporate
  headquarters.

8
Multinational Staffing Policies

• Some disadvantages
• This policy Limits the promotion opportunities of
  HCNs, may leads to reduced productivity and
  increased turnover.
• The adaptation of expatriates to host country
  often take a long time.
• Income-gap in favor of PCNs is viewed by HCNs as
  unjustified.
• Expatriates are also very expensive to maintain
  in international locations.

9
Multinational Staffing Policies

• The Polycentric Approach HCNs are recruited to
  manage subsidiaries in their own country and PCNs
  occupy positions at corporate headquarters.
• Main advantages
• Employing HCNs eliminates language barriers,
  avoid adjustment problems, removes the needs of
  expensive cultural training programs.
• Allowing MNEs to take a lower profile in
  sensitive political situations.
• Spending less money to attract high-quality
  applicants.
• Giving continuity to the management of foreign
  subsidiaries.

10
Multinational Staffing Policies

• Geocentric utilizing the best people for the
  key jobs throughout the organization, regardless
  of nationality.
• Some Advantages
• Highly competent employees are available not only
  at headquarters, but also in the subsidiaries
• International experience is a condition for
  success in top positions

11
Multinational Staffing Policies

• Some Advantages (continued)
• Managers with high potential and ambition for
  promotion are constantly ready to be transferred
  from one country to another and
• Competent and mobile managers have an open
  disposition and high adaptability to different
  conditions in their various assignments.

12
Multinational Staffing Policies

• The Regiocentric Approach defining as
  functional rationalization on a more-than-one
  country basis, one way is to divide its
  operations into geographical regions and transfer
  staff within these regions.
• A U.S.-based firm could create three regions
• Asia-pacific
• America
• Europe
• (say a Singaporean to China, a Taiwanese to
  Japan, and a Korean to Malaysia.)

13
Multinational Staffing Policies

• Some Advantages
• Allowing interaction between executives
  transferred to regional headquarters from
  subsidiaries in the region and PCNs posted to the
  regional headquarters.
• Moving from a purely ethnocentric or polycentric
  approach to a geocentric approach.

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Multinational Staffing Policies

• Based on top-management attitudes, a
  multinational can pursue one of several
  approaches to international staffing. It may
  even proceed on an ad hoc basis, rather than
  systematically selecting one of the four
  approaches.

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Recruitment Currently Used Recruitment Methods

• 1. Job Fairs
• 2. Ads on the Internet
• 3. Ads in Trade or
• Professional Journals
• 4. Professional Recruiters
• 5. Unsolicited Applications
• 6. College Placement Offices
• 7. Employment/Temporary
• Agencies
• 8. Word-of Month/
• Networking
• 9. Internal postings
• 10. Employee Referrals
• 11. newspaper Classified
• Advertisements

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Recruitment and Selection

• Three different types of employees
• Parent-country nationals (PCNs)
• Host-country nationals (HCNs)
• Third-country nationals (TCNs)

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Recruitment and Selection

• Parent-country nationals (PCNs)
• Advantages
• Organizational control and coordination is
  maintained and facilitated
• Promising managers are given international
  experience
• PCNs may be the best people for the job because
  of special skills and experiences
• There is assurance that subsidiary will comply
  with company objectives, policies, and so on.

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Recruitment and Selection

• Parent-country nationals (PCNs)
• Disadvantages
• The promotional opportunities of HCNs are limited
• Adaptation to host country may take a long time
• PCNs may impose an inappropriate HQ style
• Compensation for PCNs and HCNs may differ.

19
Recruitment and Selection

• Host-country nationals (HCNs)
• Advantages
• Language and other barriers are limited
• Hiring costs are reduced, and no work permit is
  required
• Continuity of management improves, since HCNs
  stay longer in positions
• Government policy may dictate hiring of HCNs
• Morale among HCNs may improves as they see career
  potential

20
Recruitment and Selection

• Host-country nationals (HCNs)
• Disadvantages
• Control and coordination of HQ may be limited
• HCNs have limited career opportunity outside the
  subsidiary
• Hiring HCNs limits opportunities for PCNs to gain
  foreign experience
• hiring HCNs could encourage a federation of
  national rather than global units.

21
Recruitment and Selection

• Third-country nationals (TCNs)
• Advantages
• Salary and benefit requirements may be lower than
  for PCNs
• TCNs may be better informed than PCNs about
  host-country environment
• Disadvantages
• Transfer must consider possible national
  animosities (e.g.., India and Pakistan)
• The host government may resent hiring TCNs
• TCNs may not want to return to their own
  countries after assignment

22
Expatriate Selection

• Predicting future performance potential when
  hiring or promoting staff is challenging at the
  best of times, but operating in foreign
  environments certainly adds another level of
  uncertainty.
• Issue of Expatriate Failure
• What? A return home before the period of
• assignment is completed

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Issue of Expatriate Failure

• Why?
• A selection error?
• Expatriates Ineffective and poor adjustment?
• Spouse and family members inability to adjust?

24
Reasons for Expatriate Failure (in descending
order of importance)

• Japanese Firms
• Inability to cope with larger international
  responsibility
• Difficulties with new environment
• Personal or emotional problems
• Lack of technical competence
• inability of spouse adjust

• U.S. Firms
• Inability of spouse to adjust
• Managers inability to adjust
• Other family reasons
• managers personal or emotional maturity
• Inability to cope with larger international
  responsibility

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Issue of Expatriate Failure

• Failure Rate
• Harzings report Samples
• U.S. multinationals (N80)
• European multinationals (N29)
• Japanese multinationals (N35)
• 24 of the U.S. firms had recall rates below 10
• 59 of the West European, less than 5
• 76 of the Japanese firms, less than 5

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Issue of Expatriate Failure

• Costs Associated with Expatriate Failure
• Direct Cost
• airfare
• relocation expenses
• salary
• training

27
Issue of Expatriate Failure

• Costs Associated with Expatriate Failure
• Indirect Costs
• loss of market share
• difficulties with host-government officials
• productivity suffer
• expatriates lose self-esteem, self-confidence,
  and prestige among peers, decreased motivation,
  lack of promotional opportunities
• threatened expatriates family relationships

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Selection Criteria

• Predicting success factors and developing
  appropriate selection criteria for international
  operators has become a critical GHRM issue.

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Selection Criteria

• Technical ability (technical and managerial
  skills)
• Cross-cultural suitability (cross-cultural
  management skills)
• Family requirements (spouse adjustment to foreign
  environment)
• Country/cultural requirements (remote area, no
  females for certain Middle East or South East
  Asian regions)

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Selection Criteria

• MNE requirements (The mode of operation involved,
  the duration of the assignment, and the amount of
  knowledge transfer inherent in the expatriates
  job in the foreign operation)
• Language

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Successful Expatriate Experience

• Analysis of Job Requirements
• Analysis of Country of Assignment
• Evaluation of Candidate
• Preparation of Candidate/Family
• Adequate Length of Assignment
• Repatriation Preparation
• Successful Expatriate Experience

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The 21st-Century Expatriate Manager Profile

• Core Skills
• Multidimensional Perspective
• proficiency in line Management
• Prudent Decision-Making Skills
• Resourcefulness
• Cultural Adaptability
• Cultural Sensitivity
• Ability as a Team Builder
• Physical Fitness and Mental Maturity

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The 21st-Century Expatriate Manager Profile

• Augmented Skills
• Computer literacy
• Prudent negotiating Skills
• Ability as a Change Agent
• Visionary Skills
• Effective Delegation Skills

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Advantages and Disadvantages of Internal Sources
35
Advantages and Disadvantages of External Sources
36
Selection Process Flowchart
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Possible Tests Used for Selection
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Possible Tests Used for Selection

• Ability Tests Tests that assess learned skills.
• Aptitude Tests Tests that measure general
  ability to learn or acquire a skill.
• Work Sample Tests Tests that require an
  applicant to perform a simulated job task.
• Mental Ability Tests Test that measure reasoning
  capabilities.
• General Aptitude Test
  Clerical Test
• Management Skill Test
  Knowledge Test
• Dexterity Test
  Industrial Skills Test
• Assessment Centers
  Honesty Test
• mechanical Aptitude Test
  Work Sample Test
• psychological personality Test

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Selection Interview

• A Selection interview is designed to assess
  job-related knowledge, skill, and abilities
  (KSAs) and clarify information from other
  sources. There are six types of selection
  interviews
• Structured Interview uses a set of standard
  questions asked of all job applicants.
• Situational Interview composed of questions about
  how applicants might handle specific job
  situations.
• Behavioral Description Interview in which
  applicants give specific examples of how they
  have performed or handled a problem in the past.
• Non-directive Interview that uses general
  questions, from which other questions are
  developed.
• Stress Interview designed to create anxiety and
  put pressure on an applicant to see how the
  person responds.
• Panel Interview in which several interviewers
  interview the candidate at the same time.

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Structured Interview

• Tell me how you trained workers for their jobs
• How do you decide the amount of work you and the
  maintenance crew will have to do during a day?
• How does the production schedule of the plant
  affect what a mechanic ought to repair first?
• How do you know what the needs of the plants are
  at any given time and what mechanics ought to be
  doing?
• How did you or would you go about planning a
  preventive maintenance program in the plant?

41
Behavioral Description Interview

• How did you handle a situation in which there no
  rules or guidelines on employee discipline?
• Why did you choose that approach?
• How did you supervisor react?
• How was the issue finally resolved?

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Background Investigation

• Academic reference
• Prior work reference
• Financial reference
• Law enforcement records
• Personal reference

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Discussion

• To what extent should we recruit people
  internally or externally?
• What labor markets will be tapped?