Exhibit -1 International Chapt er

I. 2. 3. 4.

Chapter-3 Recruitment

and Selection

Outline

Introduction Meaning of international recruitment and selection Advantages and disadvantages of using peNs, TeNs and HeNs Selection of peN for subsidiary (expatriates) a. Meaning of expatriates and the reasons for its use b. Causes and costs of expatriates failure c. Selection criteria d. Interrelatedness of criteria c. Other factors r . The selection process and the usc of various tests in it 5. Selection of TeN for subsidiary (expatriates) and for headquarters (inpatriates) a. Starting the subsidiary (expatriates) b. Selecting TeN for headquarters (inpatriates) 6. Selection of HeN for local subsidiary and for headquarters
(inpatriatcs) .

a. Starting the local subsidiary b. Selecting HeN for transfer to headquarters (inpatrites) 7. Equal employment opportunity issue

Source: International

Human Resource Management

Bv " Peter Dowling (Chapter 3)

Chapter 3 Exhibit IA 1ntroduction

Hiring and placing people in positions they can perform effectively is a goal of most organizations, whether domestic or international . One must appreciate that there are staffing issues that international_do firms confront that are either not present in a domestic environment or are complicated by the international context in which these activities take place. Thus an American multinational enterprise looking for a suitable candidate for a higher position for its subsidiary in India is caught by the dilemma to choose either a PCN ( American) or HeN ( Indian) or TCN ( from any other country) . However, now how the multinational will respond will be partly dominated by factors such as ; a. Its general staffing policy on key positions in headquarters and subsidiaries ( i.e ethnocentrism rply ~ cntfjSfTl geoccntrism and rQ~io~~nlTism) b.lts ability to attract the right candi~flte ; and c. The constraints placed by the host government on hiring policies

Chapter 3 Meaning of International Recruitment and Selection

Recruitment is defined as searching for and obtaining of potential job candidates in sufficient numbers and quality so that organization can select the most appropriate to fill its needs, while, selection is the process of choosing from amongst potentially good candidates the most right person for the right kind of job (through the process of elimination) both for long and short term positions.
In international management / international business,

Exhibit 2

by recruitment and selection we mean the above activities for multinational enterprise. It should however, be noted that in international management! international business, the process of recruitment and selection basically means recruitment and selection of employees for the subsidiary and very marginally relate to recruitment and selection for the headquarter

Chapter-3 Exh bit -3 The Advantages and Disadvantages of Using PCNs ..TCNs and HeNs

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Chapter-3 Exhibit -4 Meaning of Expatriates

Expatriates are citizens who arc working in another COW1 try . 111U1econtext of multinational management , expatriates a,re fhe citizens ofPCN and TCN working in foreign subsidiary ( host country ) . Further , multinationals following ethnocentric and geocentric staffing policies, rely mostly on expatriates man(\~ers.

Reasons for Using Expatriates

According to Black ct al expatriates play three main strategic roles in corporate internationalization; 1. Control and coordination of operations ( management function) 2. Transfer of skills and knowledge; and 3. Management development

Chapte r-3 Exhibit -5 Causes of Expatriate Failure

1. 2. 3. 4. inability to adjust with foreign culture Long length of assignment Less opportunity to travel Poor work environment

Chapter-3 Exhibit -6 Costs of Expatriate Failures A. Direct Costs I. Airfare 2. Relocation expenses 3. Training

4. Salary
B. Indirect Costs
1. Loss of market share 2. Difficulties with host government 3. Negative effect on local staff 4. Loss of self esteem, self confidence, and prestige among peers

5. Family relations may be threatened

Chaptcr-3 Exhibit -7

Basic Factors in Expatriate Selection

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Chaptcr-3 Exhibit -8 Other Factors of Expatriate Selection

1. Dual Career Couples a.Finding employment in the same company b.Inter company networking c.Job hunting assistance d.Support for commuter marriages e. On assignment career assistance 2. Family Considerations a. Children education b.Children marriage c. The problems of single parent 3. Work permit refusals (particularly for other

members of the family)

Chapter -3
Exhibit -9
The Itccolitmcm and Sclcotion Process,

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I. 2. 3. 4.

Do employment planning and forecasting to determine the duties of the position to be filled. Build a pool of candidates for these jobs by recruiting internal or external candidates. . Have the application forms and perhaps undergo an initial screening interview. Utilize various selection techniques such as tests. background investigations, and physical exams to identify viable job candidates.

S.
G.

Send one or more viable job candidates to the supervisor responsible for the job. Have the candidates(s) go through one or more selection interviews with the supervisor and other relevant parties for the purpose of finally determining to which candidates(s) an offer should be made.

Chapter-3
E xhi bit -9A
The Recruitment and Selection Process
Stage I

Finding OUI vacancy either replacement or new creation Job analysis leads to the writing ofajob description and a person specification Altracling a field applicant's choice of appropriate field Short listing sorting out candidates by comparing applications with requirements Selection by interview and! orby tests

Stage 2

Stagc 3

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Stage 4

Stage 5

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Stagc 6

a contract of employment given to

the successful candidate Stage 7 Induction of the new recruit into thc organization

Off er and acceptance

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Chaptcr'-3

Exhibit -9B

A Typical Procedure of Personnel Selection ill the USA and in Bangladesh

Typical Personnel Selection (in Bangladesh) Typical Personnel Selection (in the USA)

Collection. of CV

..

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Application Screening Employment Test Initial interview Interview

..

Med i cal Examination Hiring Decision

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..

Employment tests (personality and psychology) Reference checks Preliminary select or reject

..

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Final interviews (usually with supervis ing manage

rs) Hiring decision

..

Chapte r-3

Exhibit -10 The Use of Selection Tests

Although there is a consensus among scholars and practitioners that personal characteristics are important, there is a considerable debate about how such personal characteristics can b(j!eliably and accurately measured. Personality and psychological testShave been used in the selection process, but the effectiveness of such tests as predictors of cultural adjustment is questioned. Thus a special type of tests (4 dimensional) has been recommended by Mendenhall and Oddou which May be seen in the following exhibit ( Exhibit 11 A) The popular personality and psye~ieal testes are; I. Cognitive test: It is the test to measure the ability (verbal, numerical, spacial etc) of a person to transform information into knowledge. 2. Psychomotor tests: Test to measure the ability to coordinate physical ability with mental alertness. 3. Personality tests: It is basically a test to judge the sense of proportion of a person. It refers to the unique blend of characteristics that define his or her pattern of interactions with society. 4. Interest inventories test: Interest inventories assess preferences for different types of work and work situations. 5. Achievement tests: Achievement tests predict an applicant's performance on the basis of what he or she knows.

Chapter-3 Exhibit -lOA Various Dimensions of Tests that Attempts to Link Specific Behavioral Tendencies to Probabk International Performance
I. The self - oriented dimension 2. The-perceptual dimension 3. The others - oriented dimension 4. The cultural toughness dimension 1. The self-oriented dimension reflects the degree to which the expatriate expresses an adaptive concern for self preservation, self enjoyment and mental hygiene. These could be measured through certain psychomotor tests. 2. The perceptual dimension reflects the expertise the expatriate possesses in accurately understanding why host nationals behave the way they do. Psychomotor test with established validity could assess the flexibility of an individual's perceptual and eval uative .tendencies 3. The others - oriented dimension reflects the degree to which expatriate is' concerned about host - national co-workers and desires to affiliate with them. This could be evaluated through similar techniques for perceptual dimension 4. The cultural-toughness dimension reflects a moderating variable that recognizes that acculturation is affected by the degree to which the culture of the host country is incongruent with that of the home country. This could be assessed by comparing the host country's political, legal, socioeconomic and business systems to those in the parent country.

Chapter-3
Exhibit -11 Selection of TeN
TCN is selected basically for the subsidiary. But TeN may also work in the horne country of the multinational. TCN becomes expatriates when works in the subsidiary but known as ineatriates when he / she works in the home country. Surprisingly there is little literature regarding the selection process for this group of international employees. It is safe to assume however, that much of what we have covered in our treatment ofPCNs working in the subsidiary i.e expatriate selection, applies to TCNs as well. Similarly in the event TeN working in the PCN i.e the inpatriates selection, applies equally as it applies to HCN working in PCN .

..

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Chapter-3 Exhihit-12 Considerations in Hiring HCN for Local Subsidiary

1. Host country's legal requirements and social customs 2. Standardization vs. localization (ofHR practices) issue 3. Mode of Entry (green field vs. acquisition or merger)

.'

Chapter-3 Exhibit -13

Arguments for HeN Transfer to Headqua rter (Inpatriates)*

1. Breaking down the uniculture of the multinational

2. Facilitating subsidiary learning and integration 3. Developing staff by exposing HeN to the way of
doing business in the home country.

Inpatriates is a subset of expatriates. Inpatriates are citizens of HCN or TCN but working in the

peN (multinational's home country)

Chapter-3 Exhibit -14 Equal Employment Issues

In the recruitment and selection process, multinationals must address the issue of equal employment opportunity (EEO) for employees in all employment locations. The legal definition and coverage of relevant laws are immediate problems since the multinational must take into account the increasingly conflicting national laws on employment. For example, mandatory retirement and hiring ages are illegal in the United States and some other countries, but remain a legal requirement in other countries. Equal employment opportunity laws are expressions of social values with regard to employment and reflect the values of a society or country. In parts of the Middle East, Africa and Latin America, women have tended to have a lower social status and are not universally employed. On the other hand, with the increasing rate of female entry into the work force, many Western countries have introduced legislation to cover sex discrimination. Multinational must be aware of legislation and ensure subsidiary compliance where appropriate. The selection procedures must be defended against illegality .

. . ...