Module 3
Module 3
Module Number: 03
Module Name: International Workforce Planning and Staffing and Managing International
Employees
International HRM
• Syllabus
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 test, interviews for
international selection,
international staffing issues
successful expatriation, role of an expatriate, female expatriation, repatriation
re-entry and career issues; International Training and Development- International Compensation IHRM in the
Host-Country
Standardization and Localisation of HRM Practices- Managing Human Resources in “Offshoring Countries”
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AIM:
•The purpose of this study is to examine the challenges that MNCs confront in international staffing and to
provide alternatives for expatriate assignments.
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Learning Objectives
.
•The purpose of global workforce planning is to identify the MNE's employment requirements and
develop plans to achieve those requirements.
•Describe the problems that MNCs confront when it comes to employee selection and staffing.
•To gain a competitive advantage, describe the most recent training trends
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Learning Outcomes
• Explain the three staffing options for multinational businesses, as well as the benefits and
drawbacks of each.
•Describe the reasons for expatriate failures.
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Table of Contents
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• In this strategy, there are four parts to the recruitment process: self-selection, building a candidate pool,
assessing technical capabilities, and reaching a joint conclusion. The employee decides on his future course
of action in the worldwide arena through self-selection.
• The term "international assignee"
✓ refers to the process of relocating an employee from one country to another for more than a year.Employees
from the home nation or a third country could be among them.
✓ They may also be relocating from a subsidiary to their home country (inpatriates)
✓ An employee of a multinational firm who is from another country but has been relocated from a subsidiary
to the parent company's home country.
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Staffing MNCs
Female Managing
Expatriates Expatriates
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• Head-Hunters
Head-HuntersHead hunting may be a process of recruitment of a prospective employee, who is functioning elsewhere and
who features a relevant work experience for a specific job profile. Head hunting is administered by the HR of a corporation or
is outsourced to workplace or job consultant. Head hunting is one among the foremost effective methods for sourcing &
getting candidates for top positions, who won't necessarily search for employment change.
1. There are certain positions/designations that are empty and no one has applied for them;
2. When they're looking for specific specialty abilities (competencies) and don't want to waste time posting ads that will
3. When they don't want to publish a position on the open market because it's too confidential. For instance, certain strategic
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roles and positions that necessitate tactical decisions.
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1. Direct: This is a means of directly contacting candidates, either by phoning their phone numbers or by
meeting them at their homes or offices. This is done after thorough study has been conducted on the
2. Indirect: Leaving a reference for the individual being headhunted to contact if he is interested.
3. Third-party: This is where executive search firms enter the picture. The headhunting process is outsourced,
and
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For example, if an HR manager discovers that some “star resources” have departed but that certain competencies have not
been lost. After that, I'll look for replacement possibilities on the market. It is possible that the competency set will not be
discovered. In such instance, I'd contact any headhunting agency to see if they could sift through people from other
organisations or other sources to discover a better match. The underlying premise is that the pool of candidates has already
been reduced down to a select few, and we select the best from among them.
There could be ethical difficulties with headhunting, as well as confidential information about the potential employee. It also
relies on how the employer intends to use the information they've gathered. Aside from that, there may be concerns such as the
fact that if a person declines the offer, the entire work and time is wasted.
Overall, headhunting can be misleading and counterproductive in some circumstances, but it should be done professionally.
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• Cross-national advertising
➢ Cross-media advertising is a marketing approach used by business owners to promote their company through
numerous forms of media. When selecting media for a certain business, keep the desired consumer profile in
mind to maximise profitability.
➢ Now that the globe has become a global village, labour migration has become increasingly prevalent and tolerated around
the world as a result of globalisation. When it comes to recruiting senior employees, many organisations are now looking to
go cross-border. According to Brewster et al. (2008), targeted outdoor poster places such as airport lounges, airline
magazines, and commute to work routes are becoming more popular. Simultaneously, international journals such as The
Economist and The Wall Street Journal publish advertisements for senior positions in a variety of organisations around the
world. Although advertising should take into account cultural variations, it is possible that the effective targeting of such
or
advertisements assures that they are viewed by the majority of people. These multi-cultural messages are more familiar to
them, and they are more tolerant of them.
Self
Financial Planner18
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• E-Recruitment
“Selecting Candidates through Internet.”
➢ E-recruitment, often known as online recruiting, is the process of using technology, specifically Web-based resources, to
complete duties such as locating, attracting, assessing, interviewing, and employing new employees. Online recruitment
can reach a bigger pool of candidates and make the hiring process easier.
➢ Main Purpose- The purpose of e-recruitment is to make the processes involved more efficient and effective, as well as
less expensive.
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• Introduction
➢ E-Recruitment encompasses the full process of locating potential applicants, evaluating, interviewing, and
employing them in accordance with the job requirements. Recruitment is more effective and efficient as a
result of this.
➢ The goal of e-recruitment is to make the processes involved more productive and powerful while also making
them more economical. Online registration can reach a larger pool of potential candidates and speed up the
selection process.
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1. Job Aggregators
➢ Indeed Naukri.com CareerBuilder
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➢ HackerRank
➢ Pymetrix
➢ SparkHire
➢ JazzHR
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• Advantages of e-Recruitment
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• Disadvantages of e-Recruitment
Fraudulent Applicants
Large Response Rate 04 Some applications might be fake to get information
Posting online will increase the chan ces about the comp any or hiring officer.
02 of getting hundreds of job applica tions,
many of which will not be relev ant.
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Human Resource Planning, which is defined as the process of anticipating an international organization's future demand and
supply of the right sort of people in the correct amounts, is the first step in staffing. The HRP process is inextricably related to
the MNC's business plan.
➢ Dealing with multiple business units while attempting to achieve globally and regionally focussed (e.g. European or Asian)
strategies.
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➢ Ethnocentric policy
➢ Polycentric policy
➢ Geocentric policy
➢ Regiocentric policy
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• Ethnocentric approach
➢Home country’s culture is to be imposed on subsidiaries” MNC’s exports its HR Policy
from Home country to foreign location.
➢Key positions in domestic and foreign operations are hold by headquarters’ personnel
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• Polycentric
“MNC’s seeks to adapt subsidiaries ”- to the local cultural needs of
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For example, in international manufacturing and processing facilities in Mexico, companies recruit with a
sign announcing job openings outside the facility or by employees introducing family members who are
looking for jobs.
Another example is Hungary, where government attempts to combat unemployment have led to the
requirement that an organization must get permission from the Ministry of Labor before hiring an expatriate
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• Geocentric
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• Regiocentric
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However, following a thorough study of the literature on expat selection, the researcher
identified 18 characteristics and divided them into four groups.
•Technical Competency
•Relational Skills
•Ability to cope with variables and
•Family Situation
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➢ Position filling
Skills gap, launch of new endeavour, technology transfer.
➢ Management development
Training and development purposes, assisting in developing common corporate values.
➢ Organizational development
Need for control, transfer of knowledge, competence, procedures and practices.
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➢ The potential for an executive's foreign performance is not (necessarily) equated by his or her local
performance.
➢ Employees must be chosen not only for their technical skills, but also for their ability to communicate
across cultures.
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• Selection Methods
Open Closed
•Vacancies are advertised •Nominations are made by line mangers and forwarded
•Anyone with appropriate qualification and experience to corporate head-quarters
may apply •On acceptance by head quarter, candidates are
•Interviews (formal/informal) are conducted and informed
selection is done on consensus among selectors. •Selection interview for negotiation of the terms and
conditions of the assignment
Formal Informal
•Vacancies are advertised internally •Criteria are not specified
•Selection criteria based on JD & JS are made explicit •Selectors assume that personality characteristics are
•Psychometric testing is used already known
•Selection done through consensus •Importance to networking, reputation, and team fit
•Individual preferences of selectors can predominate
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➢ Personality traits
➢ Relational abilities
➢ Family situation
➢ International motivation
➢ Language ability
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➢ In the UK it is increasingly common to have a structured interview, and panel interviews are not
uncommon.
➢ In the USA almost all interviews follow a very structured process where all applicants are asked exactly the
same questions.
➢ In Northern Europe it is common for the HR Manager to be one of the interviewers, but this is less likely
in other countries in the world.
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Continue……
➢ There are also cultural differences in the ways in which applicants will react in an interview situation.
➢ For example, in Korea it is a cultural norm, when asked a ‘good question’ to keep silent as a mark of
respect. However, in cultures such as the USA and the UK to remain silent when asked a question would
be seen to be rude or ignorant.
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➢ describe the job and the responsibilities the job holder would need to take on in more detail
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➢ The typical interview's inadequacies as a poor predictor of a candidate's job performance have been
highlighted by research.
➢ The effect of a self-fulfilling prophecy. Interviewers may offer questions to corroborate candidates' first
impressions, which they may have formed prior to or during the interview.
➢ The stereotyping effect is a phenomenon that occurs when people are stereotyped. Interviewers
occasionally make the mistake of assuming that certain features are shared by all members of a specific
group. Decisions made on the basis of sex, colour, handicap, marital status, or ex-offenders are frequently
illegal. The effect, however, can be seen in a variety of social groupings.
➢ The effect of the halo and horns. Interviewers frequently rank candidates as either "good" or "poor" across
the board, resulting in lopsided conclusions.
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Continue……
➢ The contrast effect. Interviewers can allow the experience of interviewing one candidate to affect the way
they interview others who are seen later in the selection process.
➢ The similar-to-me effect. Interviewers sometimes give preference to candidates they perceive as having a
similar background, career history, personality or attitudes to themselves.
➢ The personal liking effect. Interviewers may make decisions on the basis of whether they personally like
or dislike the candidate.
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• Successful Expatriation
➢ Employee expatriation (the transfer of a professional to work in a foreign company's unit for a set period of
time or indefinitely) is a common strategy used by companies with operations in multiple countries to
expand markets, provide international career opportunities for their employees (development), transfer
specific knowledge, fill the needs of specialised workers, and develop leadership.
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• Role of Expatriate
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• Female Expatriation
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• Repatriation
➢ Repatriation generally refers to the termination of the overseas assignment and coming back to the home
country or to the country where the HQ is located or to the home subsidiary from where he/she was
expatriated
➢ Expatriation process also includes repatriation:
-the activity of bringing the expatriate back to the home country
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Honda, the trend setter in handling Expatriates. It defines clearly , the objective of the assignment before it
starts. The objectives can range from development of a new product to improvement in Vendor Relation. The
selected Executive prepares themselves for the assignment by an analysis of their strength & weakness. Well
before the assignment is completed , all the expat is ready to return. Honda identifies a suitable job for him or
her and makes arrangements for a debriefing session to capture the important lesson from the assignment
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➢ Cross-cultural training: increases the relational abilities of future expatriates and their spouses and families
➢ Training rigor: extent of effort by both trainees and trainers required to prepare the trainees for expatriate
positions
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• Continue….
➢ Low rigor training
- Short time period
- Lectures and videos on local cultures
- Briefings on company operations
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✓ They must manage highly complex and turbulent local details, while
✓ Concurrently building and maintaining a unified, strategic pattern of compensation policies, practices and
values.
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Principles
Objectives
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To respect
local
Cultural values
Traditions
Legislation
Government policies
Education systems
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2. Conducting a cost–benefit analysis to oversee compliance of employees and relevant alliance partners
3. Championing the need to train employees and alliance partners in elements of the code of conduct
4. Checking that performance and rewards systems take into consideration compliance to codes of conduct
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• Benefits • Challenges
• 3.1m graduates each year • Low job satisfaction
• 20% population speak English • High turnover rates at 20-80%
• Salaries used to be 80% lower than • Driving salary increase at 10-20%/yr
Western employees • HR policies and practices influenced
• Technological infrastructure, by castes, social relationships and
particularly for information system politics, rather than performance
• Motivation • Low emphasis on training and career
development
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• Self-Assessment Questions
• The following are valid reasons for using an ethnocentric international staffing strategy, except:
a. maintaining a unified corporate culture.
b. maintaining a diverse corporate culture.
c. lack of qualified managers in the host country.
d. maintaining tight control.
Answer: b
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a. polycentric.
b. ethnocentric.
c. geocentric.
d. multicentric.
Answer. b
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• Case Study:
• Questions: Develop a training schedule
• Activity:In the section of this week’s work on staffing, you looked at a number of brief CVs of candidates
to fill the Indian country manager role for Delta Beverages. Assume that the country manager in China was
offered a different role and consequent to that move, Haziq Tengku (currently country manager for
Malaysia) has been selected to take over as Country Manager in China.
• Review Haziq Tengku’s profiles in the case study material: Caligiuri, P. W., & Lane, H. (2016), Selecting a
country manager for Delta Beverages India (Links to an external site.) in 'Readings and cases in
international human resource management: Sixth edition' (pp. 243-248). Taylor and Francis. (Attached)
• You are the HR manager in Boston or Shanghai
• If you were born in an even year (e.g. 1992, 1998) please take the role of the Boston HR manager.
• If you were born in an odd year (e.g. 1991, 1999) please take the role of the Shanghai Human Resources
Manager.
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• Continue……..
• Your task is to develop a training schedule for him, and if you think appropriate, his wife and/or family,
while he is in your region. Take into particular account the material on expatriate training considerations
from page 256 in Vance and Paik (2015). Use the following information about Haziq when developing
the training schedule:
• Haziq has been promoted to country manager in China for Delta Beverages.
• This is seen as part of his career development, with more senior roles likely in the future.
• Delta is headquartered in the Boston area of US.
• The China office is in Shanghai, where Haziq and his family will live, but the country manager needs to
travel extensively throughout China.
• Haziq is excited about the promotion and has already started to study Mandarin via a PKU MOOC. He
will visit Boston and Shanghai over the coming weeks full briefing and familiarisation before taking up
his assignment.
• Develop a series of one line entries into a daily program
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Introduction International HRM
Terminal Questions:
• Identify the key aspects of successful pre-departure training programmes for expatriates
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Summary
*Staffing of the international organisation is probably the most dynamic activity globally.
*The recent trends in staffing are five: diversity, searching for recruiting sources, background checks, dual career
couples, and outsourcing
*Training strategies bridge the gap between the individual hired and the role/responsibilities of the job that he/she
is being hired for.
* The standardization versus localization debate as it relates to subsidiary operations. We identified inter-related
factors:
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• Assignment Questions 1
• What are typical HRM problems in offshoring organizations? How can companies, for
example in India and in China, design their human resource management systems to avoid
these problems?
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• Assignment Questions 2
Carry out research to identify innovation practices in training being followed by organisations:
• How does the industry trend affect the training/development initiative the organisation has adopted/plans
to adopt?
• How would the organisation assess the effectiveness of this initiative?
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• Video Links
Recruiting and Selecting Staff for https://www.youtube.com/watch?v=OGzT_ Analysis about Recruiting and Selecting Staff for
International HRM KfjHlU International HRM
International Training and Development https://www.youtube.com/watch?v=OGzT_ Discuss the International Training and Development
KfjHlU
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• Text Books:
Gupta, S.C., International Human Resource Management, Macmillan Publishers India, 2010.
Tayeb, M., International Human Resource Management, Oxford University Press, 2005
• Reference Books:
K. Aswathappa., Sadhna Dash., International Human Resource Management, Tata McGraw Hill, 3e
Edition, 2020.
Dowling, P.J., Festing, M., and Engle, A.D., International Human Resource Management, 5th Edition,
Cengage Learning, 2012.
Edwards, T., and Rees, C., International Human Resource Management, Pearson, 2007
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