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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.).

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Presentation Transcript
the recruiting process

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

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

Recruiting Evaluation

Quantity of applicants

EEO goals met

Quality of applicants

Cost per applicant hired

Time required to fill openings

employment application policies

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
Multinational Staffing Policies

Four Approaches:

  • Ethnocentric
  • Polycentric
  • Geocentric
  • Regiocentric
multinational staffing policies7
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 policies8
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 policies9
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 policies10
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 policies11
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 policies12
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 policies13
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 policies14
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
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
Recruitment and Selection

Three different types of employees:

  • Parent-country nationals (PCNs)
  • Host-country nationals (HCNs)
  • Third-country nationals (TCNs)
recruitment and selection17
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 selection18
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 selection19
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 selection20
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 selection21
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
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
Issue of Expatriate Failure

Why?

  • A selection error?
  • Expatriate‘s Ineffective and poor adjustment?
  • Spouse and family members’ inability to adjust?
reasons for expatriate failure in descending order of importance
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 failure25
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 failure26
Issue of Expatriate Failure

Costs Associated with Expatriate Failure

Direct Cost:

  • airfare
  • relocation expenses
  • salary
  • training
issue of expatriate failure27
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
Selection Criteria

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

selection criteria29
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 criteria30
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
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
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 profile33

The 21st-Century Expatriate Manager Profile

Augmented Skills:

Computer literacy

Prudent negotiating Skills

Ability as a Change Agent

Visionary Skills

Effective Delegation Skills

advantages and disadvantages of internal sources

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 and disadvantages of external 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

selection process flowchart

Jobs Opening

Job Preview/ Interest Screen

Application Form

Interview

Test

Background Investigation

Additional Interview(optional)

Job Placement

Selection Process Flowchart

possible tests used for selection

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 selection38
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
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

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

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

Background Investigation

Academic reference

Prior work reference

Financial reference

Law enforcement records

Personal reference

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