HUMAN RESOURCE SELECTION

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HUMAN RESOURCE SELECTION DEVELOPMENT
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BARRACANIA
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DIVIDE INTO GROUPS ROAD TO HELL

• What mistake did John Baker make? Why did he not
  realize this mistake when it occurred?
• What would you recommend that Baker do now?
  Should the managing director step in? Explain.
• What does this case illustrate about human
  resource management in the international
  environment?

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A BIT OF THEORY
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MULTIDOMESTIC STRATEGY

• Need few expatriates one key one important
• Decentralized operating decisions
• Horizontal differentiation worldwide area
  structure
• Need for coordination low
• Integrating mechanisms none
• Performance ambiguity low
• Need for cultural controls - low

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INTERNATIONAL STRATEGY

• Do not need a high number of expatriates
• Core competency centralized rest decentralized
• Worldwide product division
• Moderate need for coordination
• Few integrating mechanisms
• Moderate performance ambiguity
• Moderate need for cultural controls

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GLOBAL STRATEGY

• Global strategy need people from home country
• Some centralized operating decisions
• Worldwide product division
• High need for coordination
• Many integrating mechanisms
• High performance ambiguity
• High need for cultural controls

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TRANSNATIONAL STRATEGY

• Need mix of people host, home, 3rd country
  plus inpatriates in home country
• Mixed centralized decentralized
• Informal matrix
• Very high need for coordination
• Very many integrating mechanisms
• Very high performance ambiguity
• Very high need for cultural controls

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CONTINGENCY FRAMEWORK TO SELECTION TRAINING

• Identify clearly task that has to be performed,
  the environment, the psychological
  characteristics of the individual under
  consideration

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TASK THAT NEEDS TO BE PERFORMED

• How much interaction with local community is
  called for?
• CEO head of functional area?
• Financial officer?

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ENVIRONMENTAL VARIABLES

• Extent of difference between political, legal,
  socioeconomic, cultural systems of home country
  vis-a-via host country - assess rank order

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PSYCHOLOGICAL CHARACTERISTICS OF THE INDIVIDUAL

• Does he or she want to serve abroad?
• If no, end things since no training program is
  capable of changing this basic attitude
• If yes, to what extent is individual tolerant of
  cultural differences how well can he/she work
  toward intercultural cooperation

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CONSTRUCT TYPE OF FLOW CHART

• First Can the job be filled by a local national?
• If not, determine how much individual will need
  to interact with local community.
• If extensively, relational abilities
  environmental variables critical.
• Training program varies according to needed
  degree of rigor

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WHO TO HIRE?
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PROCEDURE TIMING

• Divide into groups discuss the applicants rank
  them in order of group preference (do not vote)
• Rank candidates from 1-5 enter group rankings
  on ranking sheet briefly list the reasons for
  each of the groups rankings (any influence of
  the cultures in the group?) 20 minutes for
  entire group discussion
• Report rankings to class discuss areas of
  differences that emerged in reaching consensus

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ASSIGNMENT FOR 29/3/2007

• Group Case 6 GTI in Russia
• QUESTIONS TO THINK ABOUT
• What do you think are the three key lessons that
  Granum has learned to date about human resources
  management (HRM) in Russia?
• From Granums perspective, what questions still
  require resolution?
• What are the main points Granum should make to
  the board regarding his plans for training,
  hiring and compensation in Russia?