RECRUITING AND SELECTING STAFF FOR

INTERNATIONAL ASSIGNMENTS

Dony Eko Prasetyo, S.IP.

Recruitment

• is defined as searching for and obtaining qualified job candidates in sufficient numbers to fill job needs

Selection

• gathering information for the purposes of evaluating and deciding who should be employed in particular jobs

Major Differences Between Domestic and International Staffing

• predispositions with regard to who should hold key positions (i.e. ethnocentric, polycentric, regiocentric and geocentric staffing orientations)

• constraints imposed by host governments (i.e. work visas and prefer local national employment)

The 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

Global Manager

• a person who is comfortable operating  

in diverse countries, cultures, and situations,  and can  be transferred internationally  into different operations 

Global ‘Mindset’

• implies the ability to see beyond one’s own national and functional boundaries.

Current expatriate profile

Expatriate failure

• Definition: Premature return of an expatriate

• Now recognized that under-performance during an international assignment, and retention upon completion, should be included

Expatriate failure

• What is the magnitude of the phenomenon?– Suggestion of a falling rate

compared with early (1980s) studies

– Evidence is somewhat inconclusive

– Discussion about its magnitude has drawn attention to expatriate failure and prompted considerable research into its causes

Expatriate failure

• 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

Expatriate failure

• 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

Recall Rate Percent Percent of CompaniesUS Multinationals

20 - 40% 7%10 - 20% 69

< 10 24European Multinationals

11 - 15% 3%6 - 10 38 < 5 59

Japanese Multinationals11 - 19% 14%6 - 10 10

< 5 76

Expatriate Failure Rates

Reason for Expatriate Failure

US FirmsInability of spouse to adjustManager’s inability to adjustOther family problemsManager’s personal or emotional immaturityInability to cope with larger overseas responsibilities

Japanese Firms Inability to cope with

larger overseas responsibilities

Difficulties with the new environment

Personal or emotional problems

Lack of technical competence

Inability of spouse to adjust

European Multinationals: Inability of spouse to adjust.

The cultural shock• PCNs on foreign assignments may

experience cultural shock.• Cultural shock is a psychological

phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation.

• Acculturation is the processes by which a person understands a foreign culture and modifies their behaviour to fit into it.

• Acculturation typically proceeds through four phases.

Costs of Expatriate Failure

• Direct costs:– Airfares– Associated

relocation expenses

– Salary and benefits

– Training and development

• Averaged $250,000 per early return

• Costs vary according to:– Level of position – Country of

destination– Exchange rates– Whether ‘failed’

manager is replaced by another expatriate

Indirect Cost of Expatriate Failure

• Damaged relationships with key stakeholders in the foreign location

• Negative effects on local staff • Poor labor relations • Negative effects on expatriate

concerned• Family relationships may be

affected• Loss of market share

Factors moderating expatriate performance• Inability to adjust to the foreign

culture• Length of assignment• Willingness to move• Work-related factors• Psychological contract

International assignments: factors moderating performance

The phases of cultural adjustment

The phases of adjustment

• The U-Curve is not normative• The time period involved varies

between individuals• The U-Curve does not explain

how and why people move through the various phases

• It may be more cyclical than a U-Curve

• Needs to consider repatriation

The dynamics of the employment relationship

The employment relationship

• The nature of the employment relationship– Relational: broad, open-ended and

long-term obligations– Transactional: specific short-term

monetized obligations• The condition of the relationship

– Intact: when employee considers there has been fair treatment, reciprocal trust

– Violated: provoked by belief organization has not fulfilled its obligations

Likelihood of exit

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

Why consider the psychological contract?• Nature, location and duration of an

international assignment may provoke intense, individual reactions to perceived violations

• Expatriates tend to have broad, elaborate, employment relationships with greater emphasis on relational nature

• Expectations and promises underpin this relationship

Selection criteria

• Technical ability• Cross-cultural suitability• Family requirements• Country-cultural requirements• MNE requirements• Language

Using Traits and Personality Tests to Predict

Expatriate Success• Although some tests may be useful in

suggesting potential problems, there may be little correlation between test scores and performance

• Most of the tests have been devised in the United States, thus culture-bound

• In some countries, there is controversy about the use of psychological tests ( different pattern of usage across countries)

• Use of personality traits to predict intercultural competence is complicated by the fact that personality traits are not defined and evaluated in similar way in different cultures

Factors in expatriate selection

Mendenhall and Oddou Model

• Self-oriented dimension• Perceptual dimension• Others-oriented dimension• Cultural-toughness dimension

Harris and Brewster’s selection typology

Solutions to the dual-career challenge

• Alternative assignment arrangements– Short-term– Commuter– Other (eg. unaccompanied, virtual)

• Family-friendly policies– Inter-company networking– Job-hunting assistance– Intra-company employment– On-assignment career support

Barriers to females taking international

assignments