Employee Recruitment and Selection

Employee Recruitment and Selection

Human Resource Plan Ongoing General Recruiting Visibility Using Requisition, Manager Notifies HR Unit of Opening HR Recruiter and Manager Review JOB and Needed Qualifications Internal Sources Are Checked (Promotion, Job Posting, etc.) External Sources Used Selection Process Follow-up and Evaluation and Tie Back to HR Plan The Recruiting Process

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?

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

Employment Application Policies Applications are accepted only when there is an opening Only persons filling out application blanks are considered applicants A person’s 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”

Multinational Staffing Policies Four Approaches: • Ethnocentric • Polycentric • Geocentric • Regiocentric

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.

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.

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.

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;

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.

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.)

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.

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.

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

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

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.

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.

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

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.

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

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

Issue of Expatriate Failure Why? • A selection error? • Expatriate‘s Ineffective and poor adjustment? • Spouse and family members’ inability to adjust?

U.S. Firms Inability of spouse to adjust Manager‘s inability to adjust Other family reasons manager‘s personal or emotional maturity Inability to cope with larger international responsibility 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 Reasons for Expatriate Failure (in descending order of importance)

Issue of Expatriate Failure Failure Rate Harzing‘s report: Samples • U.S. multinationals (N=80) • European multinationals (N=29) • Japanese multinationals (N=35) 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%

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

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

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

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)

Selection Criteria • MNE requirements (The mode of operation involved, the duration of the assignment, and the amount of knowledge transfer inherent in the expatriate‘s job in the foreign operation) • Language

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

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

The 21st-Century Expatriate Manager Profile Augmented Skills: Computer literacy Prudent negotiating Skills Ability as a Change Agent Visionary Skills Effective Delegation Skills

Advantages Disadvantages Internal Sources for Recruiting • Morale promotion • Better assessment of abilities • Lower cost for some jobs • Motivator for good performance • Causes a succession of promotions • Have to hire at entry level • Inbreeding • Possible morale problems of those not promoted • “Political” infighting for promotions • Need for management development program Advantages and Disadvantages of Internal Sources

Advantages Disadvantages External Sources for Recruiting • New blood bringing new perspectives” • Cheaper and faster than training professional • No group of political supporters in organization already • May bring industry insights • May not select someone who will “fit”the job or organization • May cause morale problems for internal candidates not selected • Longer “adjustment” or orientation time Advantages and Disadvantages of External Sources

Jobs Opening Job Preview/ Interest Screen Application Form Interview Test Background Investigation Additional Interview(optional) Job Placement Selection Process Flowchart

Clerical Test Applicant Assessment Centers General Aptitude Test Management Skills Test Knowledge Test Dexterity Test Industrial Skills Test Psychological/Personality Test Work Sample Test Mechanical Aptitude Test Honesty Test Possible Tests Used for Selection

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

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 Interviewcomposed of questions about how applicants might handle specific job situations. Behavioral Description Interviewin which applicants give specific examples of how they have performed or handled a problem in the past. Non-directive Interviewthat uses general questions, from which other questions are developed. Stress Interviewdesigned to create anxiety and put pressure on an applicant to see how the person responds. Panel Interviewin which several interviewers interview the candidate at the same time.

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?

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?

Background Investigation Academic reference Prior work reference Financial reference Law enforcement records Personal reference

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

Employee Recruitment and Selection