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IHRM Rec n Sel

in international context
Recruitment is the process of locating and encouraging potential applicants to
apply for existing or anticipated job openings .
Certain influences, however, restrain a firm while choosing a recruiting source
such as:
Poor image .
Unattractive job .
Conservative internal policies.
Limited budgetary support.
Restrictive policies of government
Situational Factors Impacting Recruitment
The process of recruitment is influenced by a variety of environmental factors.
Economic factors
Social factors
Technological factors
Political factors
Legal factors
The Factories Act
The Apprentices Act
The Employment Exchanges Act
The Child Labour Act
Sources of Recruitment
Recruitment Policies And Procedures
A recruitment policy indicates the organization’s code of conduct in a specific
Recruitment policy statement 
In its recruitment activities, the company will:
Advertise all vacancies internally.
Reply to every job applicant promptly.
Inform job applicants the basic details and job conditions of every job
Process all applications with efficiency and courtesy.
Seek candidates on the basis of their qualifications.
Aim to ensure that every person invited for interview will be given a fair
The company will not:
Discriminate unfairly against potential applicants on the basis of sex, race,
religion, caste, etc.
Knowingly make any false or exaggerated claims in its recruitment literature
or job advertisements.
A recruitment procedure will lay down a clear path to be followed by the HR
department while hiring people. Of course, the procedures have to be framed in
a flexible manner so as to permit the HR department to respond to the requests
made by various departments and by potential candidates quickly.
Recruitment of Trainees: Expectations of Indian companies
As Reebok’s customers are young, the company places emphasis
on youth. The average age at Reebok is 26 years. Employees are expected to
have a passion for the fitness business and reflect the company’s aspirations.
Recruitees should be willing to do all kinds of job operations. The willingness
to get one’s hands dirty is important. They must also have an ability to cope
with informality, a flat organisation and be able to take decisions
independently and perform consistently with their clearly defined goals.
Indian Hotels:
The Taj group expects the job aspirants to stay with the
organisation patiently and rise with the company. Employees must be willing
to say ‘yes sir’ to anybody. Other criteria include: communication skills, the
ability to work long and stressful hours, mobility, attention to personal
appearance and assertiveness without aggression
Globalisation refers to the integration of various economies of the world.
Choosing an Approach to IHRM
General staffing policy on key positions in HQ and subsidiary.
From what country/ies to recruit (home, host or third)?
What Techniques to be used when recruitment is planned outside home
Whether to centralized recruitment activities in home country or decentralize in
foreign subsidiaries?
The ability of organization to attract the right candidate.
The constraints placed by the host government on hiring policies
Choosing an Approach to IHRM
Political and legal concerns
Level of development in foreign locations
Technology and the nature of the product
Organizational life cycle
Age and history of the subsidiary
Organizational and national cultural differences
Legislative changes - candidates should not be discriminated in recruitment and
selection processes
Economic and social changes - different factors led to new trends, from full-time
employment to atypical work conditions, for example, work from home, part-time
contracts, along with outsourcing services and contracting with external
4 Approaches to
IHRM Staffing
1.Ethnocentric orientation -.
Home country’s culture is to be imposed on subsidiaries” MNC’s exports its HR Policy from Home country to foreign location.
Strategic decisions are made at headquarters. They want full control over subsidiaries and ensure that the mother company's
strategy is properly implemented at its subsidiaries
Key positions in domestic and foreign operations are hold by headquarters’ personnel i.e. the staffing of key positions in the MNC
by PCNs.
MOTTO this works in my country, so it must work in all other countries
We use the ethnocentric method when [opening a new branch at a new country, so it’d be easier for our company’s policies and
procedures to be transferred from the parent country to the new branch
Lack of qualified HCNs particularly senior management talent.
A desire to maintain good communication, coordination, tighter control and a unified corporate culture linked with corporate HQ.
A desire to transfer parent firm’s core competencies to a foreign subsidiary more expeditiously
Organizational control and coordination is maintained and facilitated.
Promising managers are given international experience.
Assure that subsidiary will comply with company objectives.
Limits the promotion opportunities of HCNs which may lead to reduced productivity and increased turnover among that group.
The adaptation of expatriate managers to new environment takes time during which these expatriates make poor decisions.
Income packages of expatriates are 4 times (approx.) higher than locals.
2.Polycentric orientation –
subsidiary managers and employees are recruited and selected from the host country.
MOTTO When in Rome, do as the Romans do
For example, if we want to expand our clientele to a specific country, we’d hire a local
professional who knows the market and can coordinate our sales operations
Eliminates language barriers.
Avoids adjustment problems of expatriates and their families and removes the need for cultural
awareness training.
Less expensive.
Gives continuity to the management of foreign subsidiaries, thus reduces turnover.
The gap between HQ and subsidiaries increased which becomes difficult to be managed.
Limited career opportunities for HCN and PCN managers.
3.Geocentric orientation –
This approach utilizes the best people for key jobs through out the organization, regardless of
In the opinion of specialists in human resources this orientation represents the best way to hold
key posts in a multinational organization, not taking into account the nationality of personnel.
Highly competent employees are available not only at HQs but also in subsidiaries.
International experience is a condition for success in top positions.
Managers with high potential are constantly ready to be transferred from one country to
Enables an MNC to develop an international executive team.
Overcome the federation drawback of polycentric approach.
Host govt. pressurizes MNC to employ high number of HCNs.
Expensive to implement because of training and relocation expense.
Time consuming.
Requires more centralized control of staffing.
4. Regiocentric orientation
Refers to the functional rationalization on a more than one country basis. Reflects a regional
strategy and structure. Regional autonomy in decision making
Involves the transfer employees of a multinational organization to certain geographical regions
rather than globally
Regionally oriented approach where an MNC divide its operations into geographical regions and
transfer staff within those regions
The strategic role of human resources department by aligning the processes of recruitment and
selection to the vision and goals of the organization.
For example, we might decide to transfer employees within Scandinavian countries. So if we want
to hire someone in Sweden (a host country) we could transfer one of our employees from
Denmark, a host country in the same region.
Allows interaction between executives transferred to regional HQs.
A step for MNC to move from purely poly or ethnocentric or geocentric approach
It provides federalism at regional basis rather than country basis.
This serves as a barrier in taking a global stance.
Limits career progression opportunities to the regional level.
International recruitment and selection
Decide which staffing approach is most suitable for this particular case. Use this policy to
determine whether the regiocentric, ethnocentric or polycentric approach suits best. Discuss the
budget with finance to make sure you’re able to apply the chosen approach and whether another one
could work equally well with lower costs. If there’s no particular reason to use any of them, then the
[geocentric approach] should prevail.
Determine the recruitment methods that work for this approach. For example, if you decided on
the polycentric approach, then consider local job boards and locally-based recruiters in the host
Allocate your budget. To make sure you can coordinate recruitment activities, look into your budget.
For example, if you’ve chosen the ethnocentric approach, you’ll need to factor in relocation costs for
your new hire. Also, you may decide you need to meet candidates from the host country in-person so
pay attention to travel expenses. Work with [finance/ HR] to determine the available resources.
Evaluate candidates. Each role will demand a different skillset, but to make sure our employees can
work well together, look for people who:
Are self-motivated and can work independently (especially if their manager is remote).
Can communicate well even through cultural and language barriers.
Have a global mindset.
Are tech-savvy
Also, depending on the approach you’ll use, make sure to discuss if a candidate is legally permitted to work in the
country where the open position is. If it’s agreed upon, discuss immigration procedures.
Close the hire and discuss paperwork. Once a candidate accepts a job offer, ask HR how to
proceed with any legal procedures regarding visas, immigration policies or taxes.
International firms, while choosing employees for overseas operations, usually prefer
people with
highly developed technical skills
good language and communication skills
tolerance towards other culture, race, creed, colour, habits, and values
high level of motivation
stress resistance
goal-oriented behaviour
previous overseas experience,
family circumstances and cultural-adaptability level of the candidates aspiring for the
global jobs.
Cultural differences between
countries that influence
recruitment practices
• Erin Meyer in the Harvard Business Review describes
how being confrontational and/or emotionally
expressive resonates with candidates of different
Examples with regard to Meyer’s graph:
 It’s okay to bargain persistently while recruitment in
Germany if done in a calm fashion
 Whereas, in regions like Saudi Arabia, blatant
confrontations are not considered appropriate
• Some countries value verbal contracts over written and vice versa
-For example in the US, all details are included in a contract, whereas in regions like china a lot of
conditions are simple included in a verbal contract
• Some countries are not happy with yes-no questions
-While recruiting candidates, they are usually asked questions like if they content with the salary,
will they be willing to take up work delegation, will they be willing to relocate to a new region
-In Asian countries, it is considered impolite to say a blatant no
• In Germania, average age of graduation superior
economic studies is 25-26 years, compared with Japan
and Romania, where graduates available in the labour
market are from 22 years.
• In Spain the managers of the host country are graduated
in law or economics, in Germany are graduated of
technical higher education or PhD in engineering, and in
the UK the studies are irrelevant because they are not
giving importance in obtaining certificates and diplomas.
• Companies from France, Britain and Italy one of the
most important criteria for selection is language skills. In
Germany are preferred the candidates with a solid
training in the technical field.
• U.S.A gives priority to the relevant experience.
Market, technology and organisational dynamics –
E-recruitment-Now recruitment is on-line and the access of candidates in the selection
process can be done from different geographic areas, based on competence and knowledge
in the field.
Video CV-Video- CV is a revolutionary instrument, designed to support the application of
computer users with their professional profile to appropriate jobs and to create a net
advantage from classical methods
Neural networks-behave as models of computation, flexible, able to analyze and to
capture the complexity of quantitative or qualitative data structures.
Computer testing -is a psychological aided testing and is one of the most used applications
of computers in psychology of recruitment
Testing on the internet-is a computerized testing form that take place on-line and the
control of the examination is transferred to the program.
New methods for recruiting and selection-speed-dating (brief meeting between the
candidate and those responsible for human resources for a brief discussion, no affinity), city
game (games to crack the enigma-targeted candidates), online games (for army, police
force or secret services) etc.
Most common mistakes when hiring
international employees
Prioritizing language skills over core skills
Failure to comply fully with set employment/termination laws
Avoiding uncomfortable conversations with new employees
Ignoring mandatory employee benefits
Hasty hiring
Brunt Hotels, PLC, owns more than 60 hotels throughout the United Kingdom. They recently
acquired a small hotel chain headquartered in France. Brunt’s chief executive decided that
half of the new hotels in France would be retained and rebranded as part of the Brunt Hotels
Group; the other half will be sold.
This will support Brunt’s strategic objective of growing the organization slowly to make sure
that new ventures are well supported and opened on time and on budget. Brunt’s hotels are
considered budget accommodations; they are functional, clean and reasonably priced.
Most guests stay for one to three nights and are a combination of business and leisure
travellers. The hotels are typically situated in downtown locations that are easily accessible
by mass transit. Tourists are attracted to these hotels in popular visitor destinations where
the many local attractions mean that they will not be spending much time in their hotel
The organization has decided to use an ethnocentric approach and send some of their
existing UK-based managers to France to lead the changeover of the new hotels and then
manage them after they re-open. If this new overseas venture is successful, Brunt may decide
to acquire other small hotel groups in other European countries. The organization would like
to own 150 hotels in the next five years. Their 10-year plan is to own 300 hotels across
Europe. This is an ambitious target, so it is important that the organization finds an effective
formula to operate successfully in other countries.
The organization has never owned any hotels outside the UK before, and has
hired a team of independent management consultants to advise them on how
to proceed. They provided the consultants the following information during
their initial meeting:
A majority of their existing managers said they would like a chance to work abroad.
None of their existing managers speak French fluently.
They will allow four weeks to rebrand the hotels. The new hotels must be ready to open
after that time.
They expect to recruit a large number of staff for the new French hotels, because more than
70 percent of the employees from the acquired organization left.
They will require their managers to be fl exible and move between countries if any problems
Based on the information you have to date, what do you think the key
priorities should be?
The hotel management asked you if they should look only at internal
candidates who are parent country nationals (PCNs) or recruit host country
nationals (HCNs) or a combination of both. Analyze strengths and weaknesses
of each
Brunt management decided that because this is their first venture into a country
outside the UK, they want to use PCNs to set up the new hotels and that only
internal candidates should be considered. They think that this is important so they
can incorporate the organization’s values. However, they believe that once the
hotels are up and running, HCNs could be hired. The management vacancies must
be filled as soon as possible.
In their company literature, the organization states that their core values are to:
Provide excellent levels of customer service to all guests.
Provide a clean and comfortable environment for guests and staff.
Recruit and retain excellent staff.
Support and develop staff so they can reach their full potential.
Continuously strive to improve all aspects of the business.
Ensure that all hotel buildings, fixtures and fittings are well-maintained in a proactive
It is important that the management consultants for this project take these
core values into account when making their recommendations.
Write a recruitment advertisement for the new positions which can be sent to
existing managers by e-mail.
Your advertisement should include, at a minimum, the following information:
Main responsibilities of the new job.
The skills you are looking for in the position.
Choose a country you would enjoy working in, and visit that country’s embassy page.
Discuss the requirements to obtain a work visa in that country.