MODULE – 3

In this module, the following areas will be discussed:

INTERNATIONAL WORKFORCE PLANNING AND STAFFING:

– International labour market

– International Recruitment function;

– Head-hunters, cross-national advertising, e-recruitment;

– International staffing choice,

– Different approaches to multinational staffing decisions,

– Types of international assignments,

– Selection criteria and techniques,

– Use of selection tests,

– Interviews for international selection,

– International staffing issues,

– Successful expatriation,

– Role of an expatriate,

– Female expatriation,

– Repatriation,

– Re-entry
 INTERNATIONAL WORKFORCE PLANNING AND STAFFING

International labour market:

A labor market is the relationship of communication between the suppliers and the demanders so
that they are able to do business together. The global aspect of the labor market refers to the world
and all that contribute within this measure, also known as globalization. Globalization is the
process of integrating regions through societies, political systems, economies, and culture to share
ideas between the countries.

Culturally, this is beneficial because we are learning from other countries and bridging the gap
between countries. All around, globalization is a positive action because we can learn from each
other and better our countries with other ideas and in turn work for the good of the whole world.

International labor standards refer to conventions agreed upon by international actors, resulting
from a series of value judgments, set forth to protect basic worker rights, enhance workers‘ job
security, and improve their terms of employment on a global scale. The intent of such standards,
then, is to establish a worldwide minimum level of protection from inhumane labor practices
through the adoption and implementation of said measures.

From a theoretical standpoint, it has been maintained, on ethical grounds, that there are certain
basic human rights that are universal to humankind. Thus, it is the aim of international labor
standards to ensure the provision of such rights in the workplace, such as against workplace
aggression, bullying, discrimination and gender inequality on the other hands for working
diversity, workplace democracy and empowerment.

Global workforce refers to the international labor pool of workers, including those employed by
multinational companies and connected through a global system of networking and production,
immigrant workers, transient migrant workers, telecommuting workers, those in export-oriented
employment, contingent work or other precarious employment.

International Recruitment function:

The changing nature of mobility worldwide means that the HR function in international
organisations has to meet a series of challenges in resourcing:

• It has to work within globally coordinated systems whilst recognizing and being sensitive
to local needs.
• Practitioners are looking to source talent from increasingly varied places around the world,
so integrating a diverse workforce for maximum organisational and individual performance
is crucial.
• Increasingly the lines between traditional HR functions are blurred, so resourcing
specialists have to focus on management development and reward issues as well as
resourcing ones.
 • Merger and acquisition activity means that HR practitioners are engaged in selection of
employees in a changing environment and looking to harmonize HR practices.
• HR is looking to maximise the learning opportunities given by global networks to share
best practice.
• Rapidly changing business situations in volatile global markets means that HR must often
recruit, deploy, develop and shed people at great speed.

Head-hunters: Headhunting is recruiting the top management executives, who are highly
skilled and resourceful and whose contribution to the organization leads to success or these
employees are the competitive advantage of the organization. eg, those employees who are
competitive advantage of some company is offered the fancy designations and high salary
package and made to join their company this process is called headhunting. Headhunting can
be done via ads, job portals referrals etc. there are three types these are direct, indirect and third
party recruitment.

"Head Hunting" is not necessarily an "HR" (human resources) job but that of a corporate
recruiter. Often referred to as headhunters, corporate recruiters (recruiters) pick up "job orders"
from HR managers of most organizations to help them fill the need of the hiring department.
This helps the HR staff in getting a person to hire much more quickly. The corporate recruiter
will place the advertisement for the job opening; perform a preliminary interview of good
candidates ensuring the resumes of people they have found are the top contenders. This saves
the HR department a lot of time and effort when trying to locate the right person.

Money – its all comes down to - usually, the "Placement Fee" or finder‘s fee is generally 30%
of the annual salary of the person recruited.

Cross-national advertising: Now world is a global village and as part of globalization, labour
migration is more common and accepted all over the world. At present many companies seek
to carry out cross border when they recruiting senior staffs. Brewster et al (2008) mentioned
that the rising apply of advertising such as targeted outdoor poster sites -airport lounges, airline
magazines and journey to work routes. Simultaneously, international, publications like as The
Economist magazines, the wall street journal's regularly represents some advertisement for high
level posts in many organizations all over the world. Although that advertising should consider
cultural differences, it may well be the case that the valuable targeting of such advertisement
ensures that they are seen more or less totally by people. They are more used to, and accepting
of these multi-cultural messages.

E-Recruitment : is the process of personnel recruitment using electronic resources, in particular

the internet. Companies and recruitment agents have moved much of their recruitment process
online so as to improve the speed by which candidates can be matched with live vacancies.
Using database technologies, and online job advertising boards and search engines, employers
 can now fill posts in a fraction of the time previously possible. Using an online e-Recruitment
system may potentially save the employer time as usually they can rate the eCandidate and
several persons in HR independently review e Candidates.

International staffing choice:

One of the major decisions for HRM when a company decides to operate overseas is how
the overseas operation will be staffed. This is the focus of this section.

Types of Staffing choices

There are three main staffing strategies a company strategy uses employees from the home
country to live and work in the country. From an entirely different country from the home
country and host country. ―These individuals are called expatriates. The second staffing
strategy is a host-country national strategy, which means to employ people who were born in
the country in which the business is operating. Finally, a third-country national strategy means
to employee people Advantages and Disadvantages of the Three Staffing Strategies" lists
advantages and disadvantages of each type of staffing strategy. Whichever strategy is chosen,
communication with the home office and strategic alignment with overseas operations need to
occur for a successful venture.

Advantages and Disadvantages of the Three Staffing Strategies

Home-Country Host-Country
Third-Country National
National National

The third-country
national may be better
Greater control of Language
equipped to bring the international
organization barrier is
perspective to the business.
eliminated
Advantages
Possible better Costs associated with hiring such as
Managers gain
understanding of visas may be less expensive than
experience in
local rules and laws
local markets
 Possible greater with home-country nationals
understanding and
implementation of
business strategy
Hiring costs such as
visas are eliminated
Cultural
understanding
Morale builder for
employees of host
country
Adapting to foreign Host-country
manager
environment may be may not understand Must consider
difficult for manager business objectives traditional national
and as
family, and result in well without proper hostilities
less
productivity training

The host government

Disadvantages Expatriate may not and/or local business
have
cultural sensitivity may resent hiring a
third-country national
May create a
perception
of ―usǁ versus
Language barriers ―themǁ
Can affect motivation of
Cost of visa and local workers
hiring
factors

Different approaches to multinational staffing decisions:

1. Ethnocentric approach
2. Polycentric approach
3. Geocentric approach
4. Regiocentric approach
ETHNOCENTRIC APPROACH:

• Parent nation employees fill all key positions in a multinational.

• Common for firms at early stages of internationalization.
• Perceived lack of qualified host nation employees
• Need to maintain good communication, coordination, and control links with corporate
headquarters.

Disadvantages

• Limit promotional opportunities to host country nationals and may lead to lower
productivity, higher labor turnover, loss of competent people.
• Parent company nationals may take more time in understanding local dynamics Salary
differences

POLYCENTRIC APPROACH:

Employing host country nationals in the subsidiary of the MNC operating in that country and
parent country nationals will hold positions in corporate headquarters.

Advantages

• No language barriers
• Easy to understand local dynamics
• Managing local politics and administration will be very easier
• Less expensive

Disadvantages

• Maintaining understanding between the corporate and subsidiary management becomes

difficult.
• Difficult to imbibe original culture of the company
• No opportunity for host country nationals to get exposure and experience outside their
country, which may even reduce growth opportunities

GEOCENTRIC APPROACH:

• Employing the best people in key positions throughout the organization without the
consideration of any nationality.
• Competent people need not be from host or parent country Constraints
• Employment policies of different countries
• Paper work involved in different nationals
• Expensive
 • Compensation needs international benchmarking

Advantages

• International core team

• Best talent

REGIOCENTRIC APPROACH:

• Operation of multinational company on the basis of some geographical regions and

allows transfer of employees within the particular region.
• Europe
• America
• South east Asia

Advantages

• Allows interaction between executives transferred to the regional headquarters from the
subsidiaries and parent country nationals posted to the regional headquarters
• Reflects sensitivity to local conditions
• Highly effective for a MNC to move from a purely ethnocentric to geocentric approach

Disadvantages

• May produce federalism at regional than a country basis

• May improve career opportunities at the national level but moves the barrier only to the
regional level

TYPES OF INTERNATIONAL ASSIGNMENTS:

a). Long-term temporary assignments

Long-term temporary assignments typically span one to three years, though it is not uncommon
for there to be a mechanism to extend them to up to five years or more. Most companies are
focusing on keeping long-term assignments to a five-year maximum as a cost management effort
to align with the maximum period of many tax-related totalization agreements.

b). Short-term temporary assignments

Short-term temporary assignments are typically 3 - 12 months in duration, though the limits may
vary by industry, with the most common variation being a six-month minimum and an 18-month
maximum. These assignments are typically designed to accomplish a specific task or goal, such as
to train local staff in a specific skill or to gain technical proficiency from local staff, to fill a
vacancy until a more permanent solution is put into place or to participate in a designated project.

c). Employee-requested long- and short-term assignments

The key element is the fact that the employee has not been asked to take an assignment but has
requested to do so for his/her own personal and/or professional reasons. The company may wish
to provide support for the employee during the assignment – most companies do – but at a reduced
benefit level.

d). Permanent international transfers

Sometimes called one-way moves or indefinite transfers, international transfers are akin to
domestic relocation, with international-related elements added in. Traditionally, international
transfers have been used when an employee fills a permanent position in the destination country.

e). Commuter assignments

Instead of taking a short- or long-term assignment or even an international transfer, an employee

may commute regularly between their home location and the work site in another country. Because
of the need to commute regularly, these assignments are most frequently used intra- regionally.
Commutation may be weekly or bi-weekly.

f). Developmental assignments

Developmental assignments address strategic needs within a company: to help an employee gain
critical skills. They are often utilized for employees identified as high-potential at any point in
their career, or they may be specific to early-career employees.

g). Assignments in difficult locations

Difficult locations are typically defined by living conditions that are far more challenging than
those the employee experiences in his/her home location. Housing, living standards, remoteness,
transportation options, limited education or medical facilities, and significant cultural differences
are all elements that make this assignment type different from others.

Selection criteria and techniques

a) Technical ability
b) Cross-cultural suitability
c) Family requirements
d) Country-cultural requirements
e) MNE requirements
f) Language
a). Technical Ability

• Person‘s ability to perform the required tasks

• Research has indicated that MNC‘s give highest importance to technical ans managerial
skills
• Candidates past performance is checked

b). Cross-cultural suitability

• Ability to operate in new environment

• Cultural empathy, adaptability, diplomacy, language ability, positive attitude, emotional
stability and maturity are important factors
• Big five model can be used to test personality

c). Family requirements

• It ia accepted that the contribution of family especially the spouse, makes to the success
of overseas assignment
• Settlement of family into new home and environment
• Leaving of friends, relatives and social networks
• Wellbeing of education of children
• Accompanying partner‘s career
• Problems of ageing parents

d). Country / Cultural requirements

• International firms may have to demonstrate that an HCN is not available before the host
government will issue the necessary work permit and entry visa for the desired PCN or
TCN
• Expatriate selection may be needed when host country blocks transfers
• Some countries may give work permit to expatriate only
• Some regions may be considered ― hardship postings

e). MNE Requirement

• Situational factors
• Proportion of expatriates to local staff
• Mode of operation- Joint venture
• Duration and type of assignment
• The amount of knowledge transfers inherent in the expatriate ‘s job in foreign operation
f). Language

• Ability to speak the local language

• Important for non-English speaking countries and jobs where knowledge transfer is
critical
• Common corporate language may be the selection criteria

Use of selection tests

• Measurement of personal characteristics or traits.
• How to measure personal traits accurately and reliably?
• Personality and psychological tests
• Validity of tests
• Varies from country to country
• Subjective nature of tests

Mendenhall and Oddou Model for selection

1. Self-oriented dimension
2. Perceptual dimension
3. Others-oriented dimension
4. Cultural-toughness dimension

Four dimensional model for selection:

1. Self oriented dimension: The degree to which an expatriate expresses an adaptive concern for
self-preservation, self employment, and mental hygiene.

2. The perceptual dimension: The expertise that the expatriate possesses in accurately
understanding why host nationals behave the way they do.

3. The others-oriented dimension: The degree to which the expatriate is concerned about host-
national co-workers and desire to affiliate with them.

4. The cultural-toughness dimension: A mediating 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.
Interviews for international selection

There are two primary types of interviews used by companies: screening interviews, and selection
interviews. Every company‘s hiring process is different. Some companies may require only two
interviews while others may require three or more. It is also not uncommon to see a company
conduct testing (personality, skills based, aptitude, etc.) as an intermediate step in the hiring
process.

Here is an overview of the major types of interviews

Screening Interviews

First interview with a company will often be a screening interview. The purpose of a screening
interview is to ensure that prospective candidates meet the basic qualifications for a given
position. It may take place in person or on the telephone.

Selection Interviews
Selection interviews are typically conducted onsite at the hiring company. The purpose of a
selection interview is to determine whether a candidate will be selected for the position he or she
is interviewing for. A selection interview is typically more rigorous than a screening interview.
At this point, a company is trying to decide whether or not should either be moved to the next
step in the hiring process or an offer is going to be extended, so there will be more scrutiny than
with a screening interview. Selection interviews can come in several forms:

Round-Robin Interview:

A round-robin interview is the interview technique most commonly used by our client companies.
They will interview with multiple interviewers in succession. The key to a round- robin interview
is giving good consistent answers. Interviewers will typically meet after to discuss answers, and
will uncover any inconsistencies.

Panel Interview:

A panel interview is an interview that consists of two or more interviewers. Typically, the
interviewers will both ask questions. The purpose of a panel interview is to gain multiple
perspectives on a prospective candidate. The key to a panel interview is to keep all interviewers
involved. Make eye contact with all interviewers even when answering a question for a specific
individual.

One-on-One Interview:

A one-on-one interview is an interview with a single interviewer. The key to a one-on-one

interview is to build rapport with the interviewer. Smile. Be friendly. Try to match y interviewer‘s
energy level. Typically, will have a short period of time to make an impact. Know the position
and the key attributes the company is seeking, and emphasize those things.
Stress Interview:

A stress interview is designed to test responses in a stressful environment. The interviewer may
try to intimidate, and the purpose is to weed out candidates who don‘t deal well with adversity.
The interviewer will make deliberate attempts to see how to handle one using methods such as
sarcasm, argumentative style questions, or long awkward silences. The key to a stress interview
is to recognize that are in a stress interview. Don‘t take it personally. Stay calm, focused, and
don‘t allow to be rushed. Ask for clarification if needed. Know how to push back. Ask an
interviewer for a couple of problems they are currently facing, and propose solutions.

Alternate Assignment Arrangements:

• Short-term assignment
• Commuter assignment
• Other (eg. unaccompanied, virtual)
• Family-friendly policies
• Inter-company networking
• Job-hunting assistance ,Intra-company employment ,On-assignment career support

International staffing issues

1. The myth of global manager

2. Profile of an expatriate
3. Expatriate failure
4. The global manager

The myth of 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

Expatriate failure

Definition: Premature return of an expatriate

Now recognized that under-performance during an international assignment, and retention upon
completion, should be included
Ø Cost of Expatriate failure

a). 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

b). 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

Ø Factors moderating expatriate performance:

• Inability to adjust to the foreign culture

• Length of assignment
• Willingness to move
• Work-related factors
• Psychological contract
• Inability to adjust to the foreign culture
• Most important and consistent reason for failure
• Possible reasons
• Spouse/partner dissatisfaction

PHASES OF ADJUSTMENT:

Phases of adjustment - I Phase

• Honey moon or tourist phase

• Experience a range of positive and negative emotions such as excitement, anxiety, fear of
the unknown or a sense of adventure
• Novelty wears off with time
• Realities of life come out, may result in homesickness

Phases of adjustment- II Phase

• Most critical phase and may have an impact on outcome of success or failure
• How psychological adjustment takes place
• May result in failure as an early recall
 • If overcomes this phase an individual comes to the terms of demands of new environment

Phases of adjustment- III and IV Phase

• Phase of adjustment to new environment

• Healthy recovery phase
• Leads to IV phase of adjustment

Length of assignment

• May have an impact on adjustment and performance

• More time to adjustment to foreign situation if assignment is for longer duration

Willingness to move

• Reluctant expatriate or accompanied by reluctant family

• Willingness may provide positive outlook
• May also depend on desirability of location

Work environment related factors

• Effective skill utilization

• Organizational commitment
• Intent to finish assignment
• Job autonomy
• Perceived level of organizational support- both from home and host unit

The employment relationship

• The nature of the employment relationship

ü Relational: broad, open-ended and long-term obligations
ü Transactional: specific short-term monetized obligations
• The condition of the relationship
ü Intact: when employee considers there has been fair treatment, reciprocal trust
ü Violated: provoked by belief organization has not fulfilled its obligations

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

Psychological contract

ü Nature, location and duration of an international assignment may provoke intense,

individual reactions to perceived violations
ü Expatriates tend to have broad, elaborate, employment relationships with greater
emphasis on relational nature
ü Expectations and promises underpin this relationship

Successful expatriation

The work on an international assignment usually starts long before the assignee arrives in the host
country, and even before (and after) the training proper. Following is a structured process that
includes six critical stages that can enhance the chances for a successful international assignment
and transformational experience.

1). Pre-program assessment and exploration. This includes An assessment of the expatriate‘s
and family members‘ background and prior international experience, understanding of the host
culture, specific goals/concerns, and personal tendencies should shape a customized expat and
family training session. Use of cultural intelligence tools, such as Culture Wise, enables
expatriates and family members to further assess their personal tendencies against the cultural
tendencies of the host country. Further, exploration of existing online cultural information featured
in such tools provides the trainees a wealth of questions to ask during the training session

2). Expat and family training program. This stage is designed to increase the assignees‘
knowledge about the host country, society, values, business culture, and day-to-day living.
Completing such training should result in significantly reduced risk of cultural misunderstandings
and an enhanced cross-cultural experience.

3). Host manager and team cultural briefing. This next stage is focused on the host country
manager and the team with whom the international assignee will be working, and provides insight
into the cultural values and norms of the assignee. Differences regarding communication and
management style will be identified, as well as different expectations. Ideally, this is an in- person
training program, but when that is not possible, online tools can be helpful.

4). Project alignment meeting. After the expatriate and host organization have received critical
information, it is time for an exchange, either in person or via telephone or videoconference. A
project alignment meeting with the assignee and host manager should be held to discuss cultural
differences that might affect the success of the assignment, tools and techniques to prevent
misunderstandings, and mutual expectations of the assignee and the manager. This meeting
typically includes discussions about timelines, reporting strategies, and setting milestones.

5). In-country coaching. As soon as the expatriate arrives in the host country, new and unknown
situations inevitably occur. Therefore, an assignee should receive face-to-face or telephone
coaching. A coach monitors the assignee‘s process during the assignment and captures
experiences, case studies, and best practices. In some cases, a coach observes the assignee‘s
activities, such as staff meetings, virtual meetings, and other interactions between the assignee and
team members. The number of coaching sessions varies based on the assignment‘s duration and
 participant‘s needs.

6). Knowledge management process. Systematic and ongoing capture (and dissemination) of
relevant documentation and lessons learned from an expatriate assignment is invaluable to the
assignee, future expatriates, and the organization as a whole. Knowledge management enables the
organization to avoid repetitive occurrences of known issues and over time, best practices and
effective case studies are developed.

Role of an expatriate

• Agent of direct control

• Agent of socialization
• Network builder
• Boundary spanner
• Language node
• Transfer of competence and knowledge

EXPATRIATE’S ROLE:

• Agent of Direct Control

EXPATRIATE’S HOME • Agent of Socialisation
LOCATION • Network Builder FOREIGN
• Boundary Spanner LOCATION
• Language Node
• Transfer of competence
& Knowledge

Female expatriation

Working and living abroad is becoming more common and takes on different forms, ranging from
the traditional expat to third-country nationals. Assignments can be long term or short term, self-
initiated or induced by an organization. Look around in your organization and people on your work
teams and you will notice there are many different nationalities in a single geography because
expatriation is not on the horizon, it is here.

Unfortunately, women are highly underrepresented in these important roles. Let us take a closer
look at the need for expatriation, the benefits awarded to organizations who deploy expatriates,
and how to include women in this workforce.
The Need for Women in Global Leadership

Changing demographics are contributing to the increased need for expats worldwide. There is a
startling workforce shortage and skills gap on the horizon. ―To sustain projected growth, the U.S.
alone needs twenty-five million more workers by 2030, Europe will need twenty-four million more
workers,ǁ and by 2020, China will need to double its talent base to sustain projected growth,
according to the World Economic Forum. There are three widely held reasons for the expected
workforce shortage and skills gap at a global level.

Repatriation

Repatriation is the process of returning a person to their place of origin or citizenship. This includes
the process of returning refugees or military personnel to their place of origin following a war.

Steps to reduce the loss of returning assignees

The following steps can assist organisations with the task of easing the repatriation process:
• Acknowledge the value of the returning employee both from a cost perspective as well as
gained insight and experience while abroad that is harder to measure quantitatively
• Recognise that the employee and their family may need assistance in readjusting to their home
culture
• Provide repatriation cultural training to raise awareness and provide tools for the adaptation
process
• Provide assistance for not only the returning employee but also to any partners and children so
their re-entry process is smoother

• Ensure that the employee feels they can continue to make a valuable contribution to the
organisation. Avoid a situation where the employee feels undervalued or marginalised as an
outsider.
• Provide coaching or other professional services so the employee can better integrate into their
'new-old' environment.
• Finally: Listen. Do not underestimate the frustration caused when few people show interest in
the repatriated employee's experiences, knowledge and expertise gained abroad. It may be hard to
quantify the value of sharing new experiences and new ways of looking at things, but the benefits
gained by the organisation as a whole should not be lost. After all, this is part of the reason why
the employee was on an expatriate assignment in the first place
Re-entry and career issues
• Expatriation process also includes repatriation: the activity of bringing the expatriate
back to the home country

• Re-entry presents new challenges

– May experience re-entry shock

– Some exit the company

• Preparation - developing plans for the future; gathering information about the new
position

• Physical relocation

• Transition

• Readjustment - coping with change

• Career anxiety

• No post-assignment guarantees of employment

• Loss of visibility and isolation
• Changes in the home workplace

• Work adjustment

• The employment relationship and career expectation

• Re-entry position
• Devaluing of international experience

• Coping with new role demands

• Loss of status and pay