HUMAN RESOURCE SELECTION AND DEVELOPMENT

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CHAPTER 14

• HUMAN RESOURCE SELECTION AND DEVELOPMENT

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Sources of Human Resources
MNCs can use four basic sources for filling
overseas positions
Home-country Nationals (Expatriates)
Host-country Nationals
Third-country Nationals
Inpatriates
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SELECTION CRITERIA FOR INTERNATIONAL ASSIGNMENTS
Spouses and Dependents
Independence and Self-Reliance
Adaptability to cultural change
Language Training
Leadership Ability
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Selection Criteria for International Assignments
Other Considerations
Phase I

• Focus on self-evaluation and general awareness
  include the following questions
• Is an international assignment really for me?
• Does my spouse and family support the decision
  to go international?

• Conduct a technical skills assessment
• Do I have the technical skills required for the
  job?
• Start learning the language, customs, and
  etiquette of the region you will be posted
• Develop an awareness of the culture and value
  systems of the geographic area

Phase II

• Attend training sessions provided by the company
• Confer with colleagues who have had experience in
  the assigned region

Phase III
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International Human ResourceSelection Procedures

• Anticipatory Adjustment
• Training
• Previous experience
• In-country Adjustment
• Individuals ability to adjust effectively
• Ability to maintain a positive outlook, interact
  well with host nationals, and to perceive and
  evaluate the host countrys cultural values and
  norms correctly
• Clarity of expatriates role in the host
  management team
• Expatriates adjustment to the organizational
  culture
• Nonwork matters

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International Human Resource Selection Procedures

• Testing Procedures
• Not extremely popular because
• Testing is expensive
• Lack of good measures of job performance in
  overseas jobs
• Testing did not do as good a job of selecting as
  other selection procedures
• Interviewing Procedures
• Popular screening method for international
  assignments
• May require both expatriate and local interviewers

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The Relocation Transition Curve
7. Integration of new skills and
behavior. Accept- ance of the new
environment
2. Fantasia The feeling of enchantment
and excitement in the new environment
3. Interest A deeper exploration of the
environment and a realization that it
is fundamentally different from home
6. Search for meaning. Understanding reasons
for success and failure. New
models/personal theories created
5. Experimentation and testing of new
approaches. Practice phase, trying to do
things differently. Feedback of results,
success and failure
1. Unreality The feeling of that the
relocation is a dream
4. Acceptance of reality Letting go of past
comfortable attitudes. The realization that
you are a stranger in a strange land
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Satisfaction
Time of Arrival Level of Satisfaction First
arrive High Few months Lower After 2
years Higher than previous -Similar Language
and religion are important factors for
satisfaction -People over 35 yrs - higher
level of satisfaction after 1st year -Men
adjust faster to overseas assignments than
women
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The Compensation Issue
The major reason for the decline in the of
expatriates in recent years is because of the
large expenses involved
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Expatriate Compensation Package

• Base salary
• Amount of money that an expatriate normally
  receives in the home country
• Benefits
• Substantial portion of expatriate compensation
• Allowances
• Expensive feature of expatriate packages
• Cost of living, relocation, housing, education
• Tax equalization
• Expatriates get two tax bills

Allowances
Taxes
COMPENSATION PACKAGE
Base Salary
Benefits
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Relative Cost of Living in Selected Cities
Tokyo Oslo Zurich Hong Kong Copenhagen Paris
London New York Singapore Stockholm Seoul
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Major Motivational Differences
Individual Achievement
Anglo cluster
Security
French cluster
Fringe Benefits
South American cluster
Advancement and Earnings
German cluster
Northern European cluster
Job Accomplishment
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Quality of Life in Select Major Metropolises, 2002
Zurich Vancouver Vienna Sydney Copenhagen Frankfu
rt Stockholm Amsterdam Brussels San
Francisco Tokyo Paris Singapore
New York 100
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Repatriation Of Expatriates
Reasons for Returning
--gtDuty is finished overseas --gtWant children
educated in a home-country school --gtNot happy
with the overseas assignment --gtSpouse or
children do not want to stay --gtFail to do a
good job at the task assigned
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Repatriate Concerns
The longer the duration of an offshore
assignment, the more problem the expatriate has
being reabsorbed into the home office.

• The out of sight, out of mind syndrome
• Organizational changes made during the time the
  individual was abroad may make ones position
  redundant
• Technological advances in the parent headquarters
  may render ones existing skills and knowledge
  obsolete
• Feel international experience not valued by
  company no specific job to return to
• Current jobs have less responsibility/ boring
• Make less money now that back in US

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Effectiveness of Returning Expatriates
6 Years
5 Years
4 Years
3 Years
2 Years
1 Year
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Transition Strategies
Repatriation Agreements The firm tells the

individual how

long he or she
will be
overseas
and
promises to

give the individual,

on return, a job

that is mutually

acceptable
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Training in International Management
Four basic philosophic positions
Ethnocentric MNC
Polycentric MNC
Regiocentric MNC
Geocentric MNC
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Development of Multinational Managers Model
Overall objective
Increasing effectiveness of expatriate and
repatriated executives
Feedback
Problem recognition
Development objectives
Feedback
Assessment of development needs
How much development?
Feedback
Development method
Feedback
Intermediate result
Feedback
Evaluation
Effectiveness of the expatriate executives
Desired result
Re-entry training
Development method
Feedback
Desired result
Evaluation
Effectiveness of the repatriated executives
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Cross Cultural Training Programs
Environmental Briefings
Cultural Orientation
Cultural Assimilators
Language Training
Sensitivity Training
Field Experience
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Cross-Cultural Training Approach
Immersion Approach
Affective Approach
LOW Level of Rigor HIGH
Information Giving Approach
LOW MODERATE HIGH Degree of Integration