Step V- Once all the four components are well defined in the job specification, it is necessary to verify the job specification with the help of people working the domain. Generally the reporting manager of the profile approves the drafted job specification. Step VI- Once the job specification is approved it is circulated among the HR department to add it in the official documents. Note: During the preparation of the job specification it is important to avoid the discriminatory terms. Once should not cover the personal aspects of the candidate such as race, sexual orientation or civil partnership as a criteria in the job specification. Job specification or Job Spec Example Here is a sample job specification for Marketing Manager in Service Industry. The sample provided here is only for understanding purpose, different companies can make changes in the job specification based on the need of the organization. The sample job specification is just an outline for the job specification which need practical verification before implementing the corporate world. 8.6 FACTORS CONSIDERED IN THE JOB ANALYSIS PROCESS Most expatriates are managers or highly-trained technical experts. They have the necessary technical and managerial skills, enhanced communication between parent company and foreign subsidiary. They are more familiar with corporate culture, enhancing parent- subsidiary relations. Assigning expatriates to foreign posts is an essential ingredient of their management development programme and their progress toward becoming an international manager. Despite these advantages of using the expatriates for the international assignments, there are a number of factors that contribute to expatriate success or failure. There has been considerable research that has attempted to identify factors that may moderate performance and affect the decision to stay or leave the international assignment. The primary intention has been to link reasons for early recall to predictors of success and thereby generate selection criteria that may assist multinationals in their staffing decisions. 201 CU IDOL SELF LEARNING MATERIAL (SLM)
Table 8.6.1: Job Factors considered for International Assignment While the focus has predominately been on cross-cultural adjustment, other factors have also been identified, as depicted in the figure above. The importance of family considerations in cultural acculturation is also important factor determining the success of the expatriate Factors can be broadly grouped under two heads affecting the success of expatriates, such as; general factors and specific attributes. General factors deals with the job-related factor while specific attributes refers to the technical skills and attributes. Inability to adjust to the foreign culture: This factor has been a consistent reason given for expatriate failure and has been the subject of considerable interest to researchers. The ‘inability of the spouse to adjust’ to foreign environment has also been recognised as a significant reason. Let us understand the model described below. Expatriation Adjustment Model: In recent years international human resource scholars have developed theoretical models that help explain the factors involved in effectively adjusting to overseas assignments. 202 CU IDOL SELF LEARNING MATERIAL (SLM)
There are two major types of adjustments that an expatriate must make when going on an overseas assignment. One is the anticipatory adjustment which is carried out before the expatriate leaves for the assignment. The other is the in-country adjustment which takes place on-site. Anticipatory adjustment is influenced by several important factors. One individual factor is the pre-departure training that is provided. Other is the previous experience the expatriate may have had with the assigned country or similar cultures. These two factors help determine the accuracy of the expatriate’s expectations. Once on-site, there are a number of factors that will influence ability to adjust effectively. These include: 1. The ability to maintain a positive outlook in the face of high pressure, to interact with host nationals, and to correctly perceive and evaluate the host countries values a norm. 2. The job factor itself as reflected by the role the expatriate plays in managing the host country’s management team, the authority he/she has to make the decisions, the new ambience of work-related challenges and the amount of role-conflict that exists. 3. Organisational culture and how easily the expatriate can adjust to it. 4. The non-work factors such as the toughness with which the expatriate can adjust to the rigours of the new cultural experience and how well his or her family can adjust to the rigours of the new assignment. 5. Effective socialization tactics, to know ‘what is what’ and ‘who is who’ in the host’s organisation. These anticipatory and in-country factors will influence the expatriate’s mode and degree of adjustment to an overseas assignment. T his explains why effective selection is so important and difficult. Length of assignment: There is some evidence that length of assignment does contribute to adjustment and performance. A longer assignment allows the expatriate more time to adjust to the foreign situation and become productive. Example: Japanese firms often do not expect the expatriate to perform up to full capacity until the third year; the first year of the foreign assignment is seen mainly as a period of adjustment to the foreign environment. 203 CU IDOL SELF LEARNING MATERIAL (SLM)
Willingness to move: In a situation where an employee is a reluctant expatriate or accompanied by reluctant family members, it is more likely that they may interpret negatively events and situations encountered in the new environment. A study says that managers who are most ready for international relocations are those whose spouses are also supportive of that move – a not surprising finding. Other studies support the importance of a positive outlook. Example: The reasons for lower British expatriate failure rates were that British managers were more internationally mobile than US managers, and that perhaps British companies had developed more effective expatriate policies. Work environment-related factors: Adjustment to the work role itself was negatively associated with ‘intent to stay’. Support for these factors as moderators has come from a study by Shaffer et al. of expatriates working in ten US multinationals. Job autonomy is also a powerful factor influencing expatriate turnover. Another moderator is the perceived level of organisational support – from home as well as from the host unit. Further, once the expatriate has mastered, or nearly completed, the assigned work, other factors may surface and assume relative importance. For instance, if the work becomes less demanding and no longer so time-consuming, the expatriate may have time to pay more attention to negative cross-cultural experiences that the family is encountering. These negative experiences can become distorted when combined with lack of challenge at work and thus sow seeds for early recall, or under-performance. 8.7 SUMMARY Job Analysis is a systematic exploration, study and recording the responsibilities, duties, skills, accountabilities, work environment and ability requirements of a specific job. The features of job analysis as follows: Job analysis is a process of gathering relevant information about various aspects of a job and identifying tasks. It approaches systematically defining the role, context, conditions, human behavior, performance standards, and responsibilities of a job. It helps in establishing the job’s worth to an organization. It establishes job-relatedness. 204 CU IDOL SELF LEARNING MATERIAL (SLM)
Purpose of Job Analysis o Recruitment and Selection: o Performance Analysis: o Training and Development: o Compensation Management: o Job Designing and Redesigning: Job Analysis Process o Identification of Job Analysis Purpose: o Who Will Conduct Job Analysis: o How to Conduct the Process: o Strategic Decision Making: o Training of Job Analyst: o Preparation of Job Analysis Process: o Data Collection: o Documentation, Verification and Review o Developing Job Description and Job Specification An organization uses different methods to collect information and conduct job analysis o Observation method o Job performance o Work sampling o Individual interview o Structured questionnaire o Critical incident method o Diary method Job description provides the necessary information which is used for job posting and attracting applicants to apply for the same. The job description summary: 205 o Contains 1-3 paragraphs CU IDOL SELF LEARNING MATERIAL (SLM)
o Summarizes the main points of the job description, which may include key responsibilities, functions, and duties; education and experience requirements; and any other pertinent information (i.e., scheduling requirements, travel, etc.) o It is used in job postings A job specification is a written statement that provides all the necessary details of educational qualifications, specific qualities, level of experience, physical, emotional, technical and communication skills required to perform a job, responsibilities involved in a job and other unusual sensory demands. 8.8 KEYWORDS Exploration - an act or instance of exploring or investigating; examination. Performance measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization. A log record is a book in which employee records /writes all the activities performed by him on the job. An inability refers to lacking the capacity to do something An assignment is a task or piece of work that you are given to do, especially as part of your job or studies. 8.9 LEARNING ACTIVITY 1. Differentiate between Job Description and Job Specification __________________________________________________________________________ __________________________________________________________________________ 2. Justify the significance of the components of Job Specification with respect to International Business Operations __________________________________________________________________________ __________________________________________________________________________ 8.10 UNIT END QUESTIONS 206 A. Descriptive Questions: Short Answers: CU IDOL SELF LEARNING MATERIAL (SLM)
1. Define the Job Analysis and state its features. 2. Write a note on Work Sampling 3. Compare the Merits and Demerits of Individual Interview and Critical Incident Method. 4. Explain the concept of Job Specification 5. State and explain the factors that affect the adjustment ability of the Expatriate. Long Answers 1. Explain the purpose of Job Analysis Process 2. Describe the process of Job Analysis. 3. Discuss any 4 methods of Data Collection in Job Analysis Process. 4. State and explain the components of Job Description 5. Enumerate the role of different job factors in the International Assignment B. Multiple Choice Questions: 1. What is directly linked with the job title, duties and responsibilities? a. Compensation b. Group Insurance c. Commutation facilities d. Check in and Check out system 2. Which method of Job Analysis is based on effective or ineffective behavior? a. Observation b. Critical Incident Method c. Diary d. Interview 3. What appropriately describes both the level of responsibility and role of the job? a. Job Duties b. KRAs c. Working Title d. Performance Standards 207 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Which sentences provides additional information about the tasks associated with Key Accountability? a. Duty Statements b. Job Duties c. Comparable Positions d. Position Details 5. Which job factor specifies congruence of assignment with career path? a. Language Skills b. Motivational State c. Family Situations d. Relational Traits Answers 1 – a; 2 – b; 3 - c; 4 – a; 5 -b ; 8.11 REFERENCE Text Book: Wilhelm Schmeisser, Dieter Krimphove, Rebecca Popp, International Human Resource Management and International Labour Law, De Gruyter Oldenbourg, Peter J. Dowling, Marion Festing and Allen D. Engle, Sr., International Human Resource Management, Cengage Learning EMEA By Veronica Velo, Cross-Cultural Management, Business Expert Press Srinivas R. Kandula International Human Resource Management , SAGE Publications Pvt. Ltd Pravin Durai, Human Resource Management, Pearson India Reference Book K Aswathappa , Sadhna Dash, International Human Resource Management, McGraw Hill Gary Dessler, Fundamentals of Human Resource Management, Pearson Ekta Sharma, Strategic Human Resource Management and Development, Pearson India Parissa Haghirian, Successful Cross-Cultural Management, Business Expert Press 208 CU IDOL SELF LEARNING MATERIAL (SLM)
Open Sources: https://www.Shrm.org/ https://www.ncbi.nlm.nih.gov/ https://www.futurelearn.com/ International Journal of Human Resource Studies changingminds.org assignmentpoint.com interculturalmanagement.fandom.com diva-portal.org cvs.edu.in strategy-business.com www.mbaknol.com (Integrity-Asia & ispatguru) publications.anveshanaindia.com smallbusiness.chron.com resources.workable.com whatishumanresource.com resources.workable.com jigsawacademy.com www.personio.com 209 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT 9: CROSS CULTURAL HR PLANNING STRUCTURE 9.0 Learning Objective 9.1 Introduction 9.2 Human resource planning 9.2.1 Definition And Meaning: 9.2.2 Characteristics Of Human Resource Planning: 9.2.3 Significance Of Human Resource Planning: 9.2.4 Human Resource Planning Process: 9.3 Factors that affect Human Resource Planning 9.3.1 Factors that affect Human Resource Planning 9.3.2 Global Factors That Affect Human Resource Planning 9.3.3 Barriers to Human Resource Planning 9.4 Summary 9.5 Keywords 9.6 Learning Activity 9.7 Unit End Questions 9.8 References 9.0 LEARNING OBJECTIVE After studying this unit, you will be able to: Explain the Concept and significance of Human Resource Planning Describe the factors that affects the Human Resource Planning Comprehend the Human Resource Planning Process 9.1 INTRODUCTION Human Resource Planning (HRP) is the process of predicting an organization's future need for and supply of the right people in the correct amounts. HRP is more important in international businesses where effective human resource management is required to achieve strategic worldwide goals. Identifying top management potential early, identifying critical 210 CU IDOL SELF LEARNING MATERIAL (SLM)
success factors for future international managers, providing developmental opportunities, tracking and maintaining commitments to individuals in international career paths, attempting strategic business planning to HR planning and vice versa, and dealing with multiple business units are all issues that need to be addressed in international HR planning. Understanding what motivates people from different societies and how it is reflected in the structure of multinational assignments are all important aspects of a global HR view. Special insurance should cover emergency evacuations for significant health problems in China, for example, and telephone communication may be required in Russia. As a result, the cultural, political, legal, and economic variations between countries and their people add to the difficulty of doing HR activities abroad. HRM focuses on both local responsiveness and global integration in the global phase of human resource management. How to meet the criteria for global integration and national responsiveness is a fundamental issue for global human resource management. There is a great deal of cultural variety, and HRM focuses on providing opportunities for bright managers to grow and gain experience so that an environment of continuous learning may be created throughout the firm. 9.2 HUMAN RESOURCE PLANNING 9.2.1 DEFINITION AND MEANING: Human Resource Planning (HRP) is the process of forecasting an organization’s future demand for and supply of, the right type of people in the right numbers. HRP assumes greater relevance in international businesses where efficient use of human resources is necessary to realize strategic global objectives. The key issues in international HR planning are identifying top management potential early, identifying critical success factors for future international managers, providing developmental opportunities, tracking and maintaining commitments to individuals in international career paths, trying strategic business planning to HR planning and vice versa and dealing with multiple business units while attempting to achieve globally and regionally. Dale S. Beach has defined it as “a process of determining and assuring that the organisation will have an adequate number of qualified persons available at the proper times, performing 211 CU IDOL SELF LEARNING MATERIAL (SLM)
jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved.” In the words of Leon C. Megginson, human resource planning is “an integration approach to performing the planning aspects of the personnel function in order to have a sufficient supply of adequately developed and motivated people to perform the duties and tasks required to meet organisational objectives and satisfy the individual’s needs and goals of organisational members.” On the analysis of above definitions, human resource planning may be viewed as foreseeing the human resource requirements of an organisation and the future supply of human resources and making necessary adjustments between these two and organisation plans, and foreseeing the possibility of developing the supply of human resources in order to match it with requirements by introducing necessary changes in the functions of human resource management. Global HR outlook need appreciative of different cultures, understanding what motivates people from different societies, and how that is reflected in the structure of international assignments. In China, for instance, special insurance should cover emergency evacuations for serious health problems; telephone communication can be a necessity in Russia. So, the challenge of conducting HR activities abroad comes also from the cultural, political, legal, and economic differences among countries and their peoples. In the global phase of human resource management, HRM focuses on both local responsiveness and global integration. The major issue for global human resource management is how to satisfy the requirements for global integration and national responsiveness. There exists large measure of cultural diversity and HRM focuses on offering promising managers the opportunity to grow and gain experience so that an environment for continuous learning will be created throughout the entire organization. 9.2.2 CHARACTERISTICS OF HUMAN RESOURCE PLANNING: Characteristics of effective human resource planning are as follows: Future-Oriented:Human resource planning is prepared to assess the future requirement of the workforce in the organization. It helps identify the size and composition of resources for future purposes 212 CU IDOL SELF LEARNING MATERIAL (SLM)
Continuous Process:Human resource planning is a continuous process. The human resource planning prepared today may not be applicable for the future due to the ever- changing external forces of the environment. Hence, to address such changing factors, human resource planning needs to be revised and updated continuously. Optimum Utilization of Human Resources:Human resource planning focuses on optimum utilization of resources in the organization. It checks how employees are utilized productively. It also identifies employees’ existing capabilities and future potentialities to perform the work. Right Kinds and Numbers:Human resource planning determines the right number and kind of people at the right time and right place who can perform the required jobs. It also assesses the future requirement of human resources for the organizational objective. Determination of Demand and Supply:Human resource planning is determining the demand for and supply of human resources in the organization. Then a match between demand and supply estimates the optimum level of human resources. Environmental Influence:Environmental changes influence human resource planning; hence, it is updated as per the change occupied in the external environment. Related to Corporate Plan:Human resource planning is an integral part of the overall corporate plan of the organization. It can be formulated at strategic, tactical, and operational levels. A Part of the Human Resource Management System:As a part of the total human resource management system, human resource planning is regarded as a component or element of HRM concerned with the acquisition and assessment of the workforce. It serves as a foundation for the management of human resources effectively and efficiently. 9.2.3 SIGNIFICANCE OR IMPORTANCE OF HUMAN RESOURCE PLANNING Human resource planning aims at fulfilling the objectives of the human resources requirement. It helps to mobilize the recruited resources for productive activities. Human resource planning is an important process aiming to link business strategy and its operation. The importance of human resource planning is as follows: 1. Human resource planning determines the future needs of human resources in terms of number and kind. 213 CU IDOL SELF LEARNING MATERIAL (SLM)
2. Human resource planning is important to cope with the change associated with external environmental factors such as technological, political, socio-cultural, and economic forces. 3. Another purpose of HR planning is to recruit and select the most suitable personnel to fill job vacancies. 4. Human resource planning/human resources planning helps find out the surplus/ shortage of human resources. 5. It is helpful in employee development through various training and development campaigns to impart the required skill and ability in employees to perform the task efficiently and effectively. 6. It focuses on the optimum utilization of human resources to minimize the overall cost of production. 7. Another importance of human resource planning is that it reduces labor costs substantially by maintaining a balance between the demand for and supply of human resources. 8. An effective human resource plan provides multiple gains to the employee through promotions, increases in salary, and other fringe benefits. This boosts employee morale. 9. It is useful in finding out the deficiencies in the existing workforce and providing corrective training. 10. Another importance of human resource planning is the safety of health. It provides for the welfare, health, and safety of its employees, leading to an increase in employee productivity in the long run. In a word, Human resource planning is helpful in the overall planning process of the organization. It is essential for businesses because of the reasons shown above that have been elaborated very effectively. 9.2.4 HUMAN RESOURCE PLANNING PROCESS: Following are the major steps involved in human resource planning: 214 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 9.2.1 Human Resource Planning Process Integration of HR planning with corporate planning The HR planning process begins with considering organizational objectives and strategies. The first stage of HR planning is to integrate it with corporate planning. All staffing planning stems from business plans with a corporate strategy. Assessment of environmental factors The second stage in HR planning is to forecast or assess the internal and external environmental factors that affect the demand and supply of labor. Some of the most significant environmental factors are government influences, economic environment, geographic and competitive conditions, technological factors, workforce composition, management philosophy, and work patterns. There are several techniques now available for doing HR forecasts. The most important techniques, among others, are the Delphi technique, Brain Storming, Nominal technique, Committee Board, Expert opinion, Consultancy, Trend analysis, Regression, and Correlation Analysis. Assessment of human resources The assessment of HR begins with environmental analysis, under which the external and internal (objectives, resources, and structure are analyzed to assess the currently available HR inventory level. 215 CU IDOL SELF LEARNING MATERIAL (SLM)
After the analysis of the external and internal forces of the organization, it will be easier for an HR manager to find out the internal strengths and weaknesses of the organization on the one hand and opportunities and threats on the other. Moreover, it includes an inventory of the workers and skills already available within the organization. Demand forecasting HR forecasting is the process of estimating the demand for and supply of HR in an organization. Demand forecasting is a process of determining future needs for HR in terms of quantity and quality. It is done to meet the future personnel requirements of the organization to achieve the desired level of output. Future human resource needs can be estimated with the help of the organization’s current human resource situation and analysis of organizational plans and procedures. It will be necessary to perform a year-by-year analysis for every significant level and type. Forecasts of demand may be either judgmental or mathematical. The HR forecast is concerned with anticipating the number of replacements required due to resignations, retirements, death, dismissals, transfer and promotions, and technological changes resulting in increased productivity. This highlights shortage and overstaffs positions. Supply forecasting Supply is another side of human resource assessment. It is concerned with estimating the supply of workforce given the analysis of current resources and future availability of the human resource in the organization. It estimates the future sources of HR that are likely to be available from within and outside the organization. The internal source includes promotion, transfer, job enlargement, and enrichment, whereas the external source includes recruiting fresh candidates capable of performing well in the organization. Matching demand and supply It is another step of human resource planning. It is concerned with bringing the forecast of future demand and supply of HR. 216 CU IDOL SELF LEARNING MATERIAL (SLM)
The matching process refers to bring demand and supply in an equilibrium position so that shortages and overstaffing positions will be solved. In case of shortages, an organization has to hire the more required number of employees. Conversely, in the case of overstaffing, it has to reduce the level of existing employment. Hence, it is concluded that this matching process gives knowledge about requirements and sources of HR. Action plan It is the last phase of human resource planning, which is concerned with a surplus and shortages of human resources. Under it, the HR plan is executed by designing different HR activities. The major activities required to execute the HR plan are recruitment, selection, placement, training, development, socialization, etc. Finally, this step is followed by control and evaluation of the performance of HR to check whether the HR planning matches the HR objectives and policies. This action plan should be updated according to change in time and condition. HRP is concerned with the allocation of human resources within an organization over time 9.2.5: PLANNING IN INTERNATIONAL HUMAN RESOURCE MANAGEMENT Important aspects need to be considered in HRP for International Business operation and these steps are: • Collection and analysis of data to forecast the demand and supply of human resources for the expected future business planners • Develop Human Resources planning purposes • Design and implement programs that can facilitate the achievement of the company in Human Resources planning purposes • Supervision and Evaluate programs that are running. The fourth stage can be implemented for the achievement of short-term goals < 1 year, 2-3 years medium, and long term > 3 years. In International Human Resource planning there is requirement of an external labour market analysis for finalizing the decision for selecting PCN, HCN, TCN, etc. This analysis is necessary to determine the needs or in the provision of 217 CU IDOL SELF LEARNING MATERIAL (SLM)
labour associated with the skills and expertise required in international business. In the framework of this plan need to consider several aspects, Including: • Determination as well as the identification of potential or criteria that must be met at each level of the management. • Process of identifying crucial factors in International business • Formulation of steps that must be done to Strength then the commitment to the development of an international career. • Linking Human Resources planning by strengthening the skills required by the executive using strategic business planning. • Expansion of opportunities for self- development workers. • Distribution of units in the business held by focusing efforts on international business goal achievement. 9.3 FACTORS THAT AFFECT HUMAN RESOURCE PLANNING 9.3.1 Factors that affect Human Resource Planning Type and Strategy of Organization The type of organization is an important consideration because it determines the production processes involved, number and type of staff needed, and the supervisory and managerial personnel required. Manufacturing organizations are more complex in this respect than those that render services. The strategic plan of the organization defines the organization’s HR needs. For example, a strategy of organic growth means that additional employees must be hired. Acquisitions or mergers, on the other hand, probably mean that the organization will need to plan for layoffs, since mergers tend to create, duplicate or overlapping positions that can be handled more efficiently with fewer employees. Primarily, the organization decides either to be proactive or reactive in human resource planning. It can either decide to carefully anticipate the needs and systematically plan them to fill them far in advance, or it can simply react to needs as they arise. Of course, careful planning to fill HR needs better helps ensure that the organization obtains the right number of HR people with proper skills and competencies when they are needed. 218 CU IDOL SELF LEARNING MATERIAL (SLM)
Similarly, the organization must determine the breadth of the plan. Essentially, the organization can choose a narrow focus by planning in only one or two HR areas, such as recruitment or selection, or it can choose a broad focus by planning in all areas including training, remuneration and so on. The organization must also decide upon the formality of the plan. It can decide to have an informal plan that lies mostly in the minds of the managers and personnel staff. Alternatively, the organization can have a formalized plan which is clearly spell out in writing, backed by documentation and data. Finally, the organization must make a decision on flexibility- the ability of the HR plan to anticipate and deal with contingencies. No organization likes high levels of uncertainty. Organizations seek to reduce uncertainty by planning, which includes forecasting and predicting possible future conditions and events. Human resource planning can contain many contingencies, which reflect different scenarios thereby assuring that the plan is flexible and adaptable. Organizational Growth Cycles and Planning The stage of an organization’s growth can have considerable influence on human resource planning. Small organizations in the embryonic stage may not have personnel planning. Need for planning is felt when the organization enters the growth stage. HR forecasting becomes essential. Internal development of people also begins to receive attention in order to keep up with the growth. A mature organization experiences less flexibility and variability. Growth slows down. The workforce becomes old as few younger people are hired. Planning becomes more fonnalised and less flexible and innovative. Issues like retirement and possible retrenchment dominate planning. Finally, in the declining stage, human resource planning takes a different focus. Planning is done for layoff, retrenchment and retirement. Since decisions are often made after serious financial and sales shocks are experienced by the organization, planning is often reactive in nature. Environmental Uncertainties HR managers rarely have the privilege of operating in a stable and predictable environment. Political, social and economic changes affect all organizations. Personnel planners deal with 219 CU IDOL SELF LEARNING MATERIAL (SLM)
environmental uncertainties by carefully formulating recruitment, selection, and training and development policies and programmes. Balancing mechanisms are built into the HRM programme through succession planning, promotion channels, layoffs, flexitime, job sharing, retirement, VRS and other personnel related arrangements. Time Horizons Yet another major factor affecting personnel planning is the time horizon. A plan cannot be for too long on a time horizon as the operating environment itself may undergo charges. On one hand, there are short-term plans spanning six months to one year. On the other hand, there are long-term plans -which spread over three to twenty years. The exact time span, however, depends on the degree of uncertainty prevailing in an organization’s environment. Plans for companies operating in an unstable environment, computers for example, must be for a short period. Plans for others where environment is fairly stable, for example a university plan, may be long-term. In general, the greater the uncertainty, the shorter the plan’s time horizon and vice-versa. Type and Quality of Information The information used to forecast personnel needs originates from a multitude of sources. A major issue in personnel planning is the type of information which should be used in making forecasts. Closely related to the type of information is the quality of data used. The quality and accuracy of information depend upon the clarity with which the organizational decision makers have defined their strategy, organizational structure, budgets, production schedules and so forth. In addition, the HR department must maintain well-developed job-analysis information and HR information systems (HRIS) that provide accurate and timely data. Generally speaking, organizations operating in stable environments are in a better position to obtain comprehensive, timely and accurate information because of longer planning horizons, clearer definition of strategy and objectives, and fewer disruptions. 9.3.2 GLOBAL FACTORS THAT AFFECT HUMAN RESOURCE PLANNING Global Talent Environment: Challenges include working with an ever-increasing mobile workforce with trade and visa restrictions generally making it easier for employees to move from country to country. HR 220 CU IDOL SELF LEARNING MATERIAL (SLM)
professionals must understand the various forms and methods of visas and the employer responsibilities to effectively promote and manage talent across borders, including employee taxation issues. Technology advances have also increased the ability of remote access, telecommunications, managing employees on a 24/7 basis and project transfer to “follow the sun” as operations move from one geographic region to another during the workday in other regions. Different generations in the workplace, combined with country and cultural differences impact all aspects of talent management including recruitment, selection, onboarding, coaching, training, performance management, compensation, and retirement issues. A “one size fits all” approach is not effective so a balancing act between globalization and localization is critical. Among the talent issues to be addressed: Dealing with 24/7 global operations Millennial / generational differences regarding values and workplace expectations Intellectual capital and knowledge transfer Mobility issues Market skill shortages and competition for talent Phased and early retirement issues Technology and Privacy Issues Global technology, data collection, and privacy regulations must be understood and followed. Identify theft, hacking, privacy notification, and data security factors must be taken into consideration. HRMS tools must be configured to determined appropriate system design accounting for tracking personal data, currency conversion, language, pay rates and frequency methods combined with data encryption. Global Economy New competitors, changing labor markets, labor force availability, currency and inflation factors, tariffs, customs and import laws, grease payments and corporate social responsibility within global markets must be considered including: New and emerging labor markets Inflation and corporate/employee taxation New skills sets 221 CU IDOL SELF LEARNING MATERIAL (SLM)
Unemployment levels Understanding Cultural Diversity A key trait of effective human resource management is to understand and reconcile cultural differences within the organization and harmonize these relationships. Different cultural norms and nuances, color and numerology issues, gestures, societal norms, power/distance relationships, recruiting efforts and performance management must be clearly understood on a country by country basis. Agility with Reward Systems On a country by country basis, total reward systems (base compensation, variable pay and benefits) must be effectively applied. A total reward philosophy statement may provide guidance to assist in developing global systems based on what is provided by the home country, normative practices, taxation levels and employee expectations. For example, in some countries the government provides comprehensive health care, life insurance, disability and retirement plans. In other countries, minimum health care may be provided by the government with a common practice to have the employer provide supplemental health insurance. Managing Global Leadership Effective global leaders have several key characteristics, many of which are similar to any leadership role such as integrity, trust, interpersonal communication skills, people development, vision, problem solving and strategic planning. Some of the key differences are greater flexibility and agility to adapt, appreciation for subtle and not so subtle cultural nuances, diversity and inclusion awareness, influencing skills, international business experience along with the ability to travel internationally. Managing International Assignments Most organizations do not handle expatriation and repatriation well. In general, there is a lack of assignee assessment and preparation including family interviews, broader cultural and language training, ongoing feedback and discussion, visa requirements, knowledge of local customs and laws, tax reconciliation and identification of the repatriation process. 222 CU IDOL SELF LEARNING MATERIAL (SLM)
International assignments typically cost three times the individuals base salary and roughly 60% repatriations result in the assignee leaving within six months after return. Awareness of culture shock and reverse culture shock will assist in managing assignments. Having additional resources to assist with managing travel, emergency evacuations, language and cultural training along with balance sheet evaluation of appropriate compensation and living expenses, tax equalization and lodging assistance are invaluable. Communication Skills Proficiency in multiple language skills are a huge plus. French, Spanish, German and Flemish are preferred in addition to English. But beyond language skills, understanding cultural nuances and avoiding US based idioms or phrases may create difficulties and relationship challenges. Executives with experiences in living in multiple countries will provide greater understanding of the issues. While the above are only a partial list of global HR competencies, certification with SHRM- SCP or HRCI – GPHR will also assist HR in understanding many of these concepts and critical issues. 9.3.3BARRIERS TO HUMAN RESOURCE PLANNING: Human Resource Planners face significant barriers while formulating a Human Resource Planning in any manufacturing concern or service Organizations. The following are few barriers 1. Many people argued on this saying when needed offer attractive packages of benefits to them to quit when you find them in surplus. When an elaborate and time-consuming planning for human resources? 2. Human Resourced practitioners are perceived as experts in handling personnel matters, but are not experts in managing business. The personnel plan conceived and formulated by the human resource practitioners when enmeshed with organizational plan, might make the overall strategic plan itself defective. 3. Human Resource planning is a difficult activity to be performed in the organization. Sometimes the desired quality people may not available or job specification itself become difficult to formulate. 223 CU IDOL SELF LEARNING MATERIAL (SLM)
4. Human Resource information often is incompatible with the information used in strategy formulation. Strategic planning efforts have long been oriented towards financial forecasting often to the exclusion of other types of information. Financial forecasting takes precedence over Human Resource Planning. 5. Conflicts may exist between short-term and long-term Human Resource needs. For example, there arises a conflict between the pressure to get the work done on time and long- term needs, such as preparing people for assuming greater responsibilities. Many managers are of the belief that Human Resource needs can be met immediately because skills are available on the market as long as wages and salaries are competitive. These managers fail to recognize that by resorting to hiring or promoting depending on short-term needs alone, long- term issues are neglected. 6. There is conflict between quantitative approaches to Human Resource Planning. Some people view HRP as a numbers game designed to track the flow of people across the departments. These people take a strictly quantitative approach to planning. Others take a qualitative approach and focus on individual employee concerns such as promotability and career development. Best results would accrue if there is a balance between the quantitative and qualitative approaches. 7. Non-involvement of operating managers renders Human Resource Planning ineffective. Human Resource Planning is not strictly a Human Resource department function. Successful planning needs a co-ordinate effort on the part of operating managers and Human Resource personnel 9.4 SUMMARY Human Resource Planning (HRP) is the process of forecasting an organization’s future demand for and supply of, the right type of people in the right numbers. Characteristics of effective human resource planning are as follows: o Future-Oriented. o Continuous Process. o Optimum Utilization of Human Resources. o Right Kinds and Numbers. o Determination of Demand and Supply. 224 CU IDOL SELF LEARNING MATERIAL (SLM)
o Environmental Influence. o Related to Corporate Plan. o A Part of the Human Resource Management System. Human resource planning is an important process aiming to link business strategy and its operation. o Factors that affect Human Resource Planning o Type And Strategy of Organization Following Are the Major Steps Involved in Human Resource Planning: o Integration Of HR Planning With Corporate Planning o Assessment Of Environmental Factors o Assessment Of Human Resources o Demand Forecasting o Supply Forecasting o Matching Demand And Supply o Action Plan Factors That Affect Human Resource Planning o Type and Strategy of Organization- The type of organization is an important consideration because it determines the production processes involved, number and type of staff needed, and the supervisory and managerial personnel required. o Organizational Growth Cycles and Planning- The stage of an organization’s growth can have considerable influence on human resource planning. Environmental Uncertainties - Political, social and economic changes affect all organizations. Time Horizons Global Factors That Affect Human Resource Planning 225 CU IDOL SELF LEARNING MATERIAL (SLM)
o Global Talent Environment: o Technology And Privacy Issues o Global Economy o Understanding Cultural Diversity o Agility With Reward Systems o Managing Global Leadership o Managing International Assignments o Communication Skills Barriers To Human Resource Planning: o Human Resource Planners Face Significant Barriers While Formulating A Human Resource Planning In Any Manufacturing Concern Or Service Organizations. o Many People Argued On This Saying When Needed Offer Attractive Packages Of Benefits To Them To Quit When You Find Them In Surplus. o Human Resourced Practitioners Are Perceived As Experts In Handling Personnel Matters, But Are Not Experts In Managing Business. o Human Resource Planning Is A Difficult Activity To Be Performed In The Organization. o Human Resource Information Often Is Incompatible With The Information Used In Strategy Formulation. o Conflicts May Exist Between Short-Term And Long-Term Human Resource Needs. o There Is Conflict Between Quantitative Approaches To Human Resource Planning. o Non-Involvement Of Operating Managers Renders Human Resource Planning Ineffective. 226 CU IDOL SELF LEARNING MATERIAL (SLM)
9.5 KEYWORDS 1. Labour cost or total labour cost is the total expenditure borne by employers for employing staff. 2. Optimum Utilization of Resources Management utilizes all the physical & human resources productively. 3. Corrective action is a process of communicating with the employee to improve unacceptable behavior or performance after other methods such as coaching and performance appraisal have not been successful. 4. A strategic plan is a document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise. 5. Cultural nuance is what distinguish one culture from another. it can be as simple as the way a certain culture greets each other or as complex as their social norms and mores. 9.6 LEARNING ACTIVITY 1. Why it is important to match demand and supply in HRP? Explain the implications. ___________________________________________________________________________ ___________________________________________________________________________ 2. Discuss the impact of Reward system on the HRP in International Business. ___________________________________________________________________________ ___________________________________________________________________________ 9.7 UNIT END QUESTIONS 227 A. Descriptive Questions: Short Answers 1. Write a note on characteristics of the Human Resource Planning 2. Define Human resource Planning and state its meaning. 3. How Organizational Strategy affect Human Resource Planning? 4. Explain the consideration in International Human Resource Planning. CU IDOL SELF LEARNING MATERIAL (SLM)
5. State and describe the barriers to Human Resource Planning. Long Answers: 1. Discuss the significance of Human Resource Planning in International Business 2. Explain the different factors affecting Human Resource Planning. 3. Describe the Human Resource Planning Process 4. What is the significance of Labour market in HRP? 5. Enumerate the Global Factors that are considered in Human Resource Planning B. Multiple Choice Questions: 1. The major issue of Global HRM are a. Global Integration b. National Responsiveness c. Measured initiated by IMF d. Both a & b 2. What is the fourth stage of Human Resource Planning? a. Demand Forecasting b. Assessment of Human Resource c. Supply Forecasting d. Integrating HR Planning and Corporate Planning 3. Which step of HRP is concerned with a surplus and shortages of human resources? a. Assessment of Human Resource b. Action Plan c. Assessment of Environmental Factor d. Matching Demand and Supply 4. The strategic plan of the organization defines the _____________ 228 a. Labour Market condition CU IDOL SELF LEARNING MATERIAL (SLM)
b. Importance of PCN c. organization’s HR needs d. Importance of HCN 5. What is the focus of the declining stage of the HRP? a. Diplomatic relations with unions b. Sources of Recruitment c. Selection Test d. Layoff, retrenchment and retirement Answers: 1 – d; 2 –a; 3 – b; 4 – c; 5 – a; 9.8 REFERENCE Text Book: Wilhelm Schmeisser, Dieter Krimphove, Rebecca Popp, International Human Resource Management and International Labour Law, De Gruyter Oldenbourg, Peter J. Dowling, Marion Festing and Allen D. Engle, Sr., International Human Resource Management, Cengage Learning EMEA By Veronica Velo, Cross-Cultural Management, Business Expert Press Srinivas R. Kandula International Human Resource Management , SAGE Publications Pvt. Ltd Pravin Durai, Human Resource Management, Pearson India Reference Book K Aswathappa , Sadhna Dash, International Human Resource Management, McGraw Hill Gary Dessler, Fundamentals of Human Resource Management, Pearson Ekta Sharma, Strategic Human Resource Management and Development, Pearson India Parissa Haghirian, Successful Cross-Cultural Management, Business Expert Press Open Sources: https://www.Shrm.org/ 229 CU IDOL SELF LEARNING MATERIAL (SLM)
https://www.ncbi.nlm.nih.gov/ https://www.futurelearn.com/ International Journal of Human Resource Studies changingminds.org assignmentpoint.com interculturalmanagement.fandom.com diva-portal.org cvs.edu.in strategy-business.com www.mbaknol.com (Integrity-Asia & ispatguru) publications.anveshanaindia.com smallbusiness.chron.com resources.workable.com whatishumanresource.com resources.workable.com jigsawacademy.com www.personio.com 230 CU IDOL SELF LEARNING MATERIAL (SLM)
UNIT - 10: RECRUITMENT AND SELECTION STRUCTURE: 10.0 Learning Activity 10.1 Introduction 10.2 Recruitment 10.2.1 Concept 10.2.2 International Recruitment 10.2.3 Features of International Recruitment 10.3 Recruitment Process 10.3.1 International Recruitment Process 10.3.2 Sources of Recruitment 10.3.3Pre-Requisites of International Recruitment Process: 10.4 International Recruitment Practices 10.5 Difference between Recruitment and Selection 10.6 Summary 10.7 Keywords 10.8 Learning Activity 10.9 Unit End Questions 10.10 Reference 10.0 LEARNING OBJECTIVE After studying this unit, you will be able to: Explain the Concept and significance of International Recruitment Describe the different sources of International Recruitment Illustrate the International Recruitment Practices Compare the Process of Recruitment and Selection 231 CU IDOL SELF LEARNING MATERIAL (SLM)
10.1 INTRODUCTION Even the small firms can have a worldwide component to because of innovations in communication and movement of goods made possible by the Internet and contemporary logistics. With this in mind, you might want to start seeking for talent across boundaries, just as you might be doing business across countries. A global recruiting plan can utilize the world's talent to transfer earnings back home to you, whether you're importing foreign workers or staffing offices overseas. Expanded Talent Pools In 2010, Steve Jobs explained that one of the reasons that Apple manufactured in China was that he couldn't find enough engineers in America to support manufacturing on the scale he needed. While your small business might not need the quantity of talent that some large businesses need, foreign markets have different types of labor with unique skillsets. Many markets are turning out programmers, engineers and other skilled workers at a faster rate than the US, making it easier to find talent there than to hire domestically. Better Local Management When you have a local office in a foreign country, one strategy can be to ship a US manager over to run it. This might make it easier for you to communicate with that manager, but it can carry additional costs and complexity for you. It also potentially creates a cultural challenge as that worker tries to integrate into the foreign country. Hiring a local to run an overseas office can reduce cultural misunderstandings as she manages that workforce. She can also help to translate that country's business climate to you so that you can better understand what is going on. Deeper Global Understanding Bringing foreign workers into your company helps you to build a deeper understanding of global business. Their reactions to your products and their advice can help you to create offerings that are more palatable both here and abroad. In the long run, this can increase your sales and your success. Creating a Global Brand 232 CU IDOL SELF LEARNING MATERIAL (SLM)
Recruiting globally doesn't just help you to make better products and find better people. It also gives you a way to build your brand in those countries. Your recruiting activities can be a marketing tool that increases awareness of your brand in those countries, as well as a way to get a foothold in talent communities both from a recruiting and from a marketing perspective. 10.2 RECRUITMENT 10.2.1 Concept Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring and onboarding employees. In other words, it involves everything from the identification of a staffing need to filling it. Recruitment is the first step in building an organization's human capital. At a high level, the goals are to locate and hire the best candidates, on time, and on budget. Recruitment is a good process of locating potential employees and encouraging them to apply for positions inside the company. When more people apply for employment, there will be more opportunities to hire better people. On the other side, job seekers are looking for firms that will hire them. Recruitment is a connection activity that connects individuals who have jobs and those who are looking for jobs. In simple terms, recruiting is the process of identifying a source from which potential employees might be chosen. Higher productivity, better salaries, greater morale, lower labour turnover, and a better reputation are all benefits of a scientific recruitment process. It stimulates people to apply for jobs; hence it is a positive process. It is a process of bringing together prospective employees and employer with a view to stimulate the prospective employees to offer their services in the working organization. What is International Recruitment and Selection? International or global recruitment is simply the process involved in the searching and hiring of talented candidates from anywhere across the globe. The recruitment and selection process has a long history with man. We’ve always been involved in nominating and selecting representatives for sports, politics, associations, leadership, etc. Oftentimes, we always desire 233 CU IDOL SELF LEARNING MATERIAL (SLM)
and opt for the most capable, skilled, efficient, and qualified individuals to champion the specific course as to which we are selecting people. Hiring and selection of candidates internationally have a different twist when compare to local or domestic recruitment processes. The variation in market, culture, languages, policies, etc. have given global recruiting of talents a new perspective. For instance, the rules and regulations binding employees’ hiring in Europe will have a different taste to the system used in America. For instance, the resume/CV format for job hiring in America doesn’t need information like date of birth, marital status, etc. compared to how this information is required in some countries. Also, in America, most job CV/resume must be skill and result- driven compared to the duty-based resumes/CV required in some regions of the world. 10.2.2 FEATURES OF INTERNATIONAL RECRUITMENT A wider talent pools Hiring internationally means you’re no longer restricted to a local talent pool that, while interesting and full of skilled workers, might be getting stagnant. The most productive workers in the world come from a diverse number of locations, so by limiting your talent pool to what is immediately around you, you are doing genuine damage to your potential. This talent pool is looking to be picked up and given a chance to work in a role within a new work environment. They are often trained in unique skills that may not be as widely used or studied within your country, giving you a valuable edge over your competitors. This pool of workers is also generally more engaged, especially if they are actively looking to relocate for work. For a business that needs to fill a role quickly to advance with a new project or a recruiter looking to fill a monthly quota, this type of energized applicant is a lifeline that quickly fills a role and provinces you with all kinds of new opportunities. Enriched workplace culture Many businesses will struggle to diversify their workforce in a way that improves their culture, turning to recruiters to do the hard work for them. Hiring from abroad is just the answer to your problems. Businesses owe it to themselves to build a diverse team and culture. They need to add different types of people and thought processes to every stage of their structure, for both legal requirements and to expand the scope of their vision. 234 CU IDOL SELF LEARNING MATERIAL (SLM)
Hiring internationally can be just the change in perspective a company needed and act as the catalyst for a more significant and welcomed change. Welcoming and then sharing global perspectives will help boost the internal and external perception of a business. Workplace diversity has many benefits. A work culture enriched by a diverse team is a happier one that tries new things, builds connections and develops a community atmosphere that can be bragged about as unique within the sector. Extended working hours As a recruiter, you’re always on the lookout for someone who can bring something unique to a business. Hiring overseas offers the unique asset of a team member who will be working different hours to the rest of your staff, should they choose not to relocate. Rather than limiting their interactivity with the rest of the business, this actually allows them to provide a unique, around the clock service. Many international hirees will be looking to work remotely and will see doing so as an opportunity to establish themselves at the forefront of a business’ international expansion. This kind of worker is looking to impress and can do so independently without having to be monitored on a day-to-day basis, so they can be trusted to work to the highest level possible remotely. These extended business hours let you cover multiple time zones as a business. It also gives your customers and clients an improved overall experience around the clock, whether you work in a B2B or B2C industry. If you’re looking to bring in more international clients or customers, hiring this type of team member is essential. Enhanced branding Branding is a huge part of building a successful modern company, and having a diverse, internationally hired team is an essential step of branding you shouldn’t overlook. This is not to say you should look at hiring internationally as a cynical marketing stunt. But instead, you should look to take advantage of the incredibly talented team you have assembled from all kinds of different backgrounds and locations within your branding. It shows you’re a company that focuses on bringing in the best talent they can find, even if it involves a more complicated and expensive hiring process. It screams that you’re a business that only wants the best. These are the kind of messages that potential applicants look for when applying for a position. 235 CU IDOL SELF LEARNING MATERIAL (SLM)
Upgraded customer service If your business or the business you’re recruiting for is international, your customer service needs to be international. Hiring internationally allows businesses to provide a better overall service to their growing worldwide customer base. There are two main benefits here. If you hire internationally, your employees are more likely to be bilingual, allowing them to provide clear, straight forward customer service communicated in the customer’s native language. A language barrier can be a huge detriment to your service and ultimately have an impact on the number of retained customers, as the company will come across as ignorant. Secondly, having a diverse customer service team gives you more insight into the unique problems facing your base in other countries. This can help inform your strategy and lead to important reforms across your business and website. An international customer in one country will face completely different issues to a local one, issues that a team may never have noticed without this more holistic view to customer service that hiring internationally provides. This issue extends deeper than just customer service too, an international team is one that is better at solving a wider spectrum of problems and providing solutions that suit that particular customer. 10.3 RECRUITMENT PROCESS Whenever a position opens, hiring teams should follow this process: 1. 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. 2. 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 country. 236 CU IDOL SELF LEARNING MATERIAL (SLM)
3. 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. 4. Evaluate candidates. When it comes to resume and phone screening, we evaluate all candidates the same way. The preferred method for interviewing video interviews for remote 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. 5. 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. Be in close collaboration with the new hire until everything is resolved. 10.3.2 SOURCES OF RECRUITMENT: 1. ETHNOCENTRIC APPROACH Countries with branches in foreign countries have to decide how to select management level employees. Ethnocentric staffing means to hire management that is of same nationality of parent company. When a company follows the strategy of choosing only from the citizens of the parent country to work in host nations, it is called an ethnocentric approach. Normally, higher-level foreign positions are filled with expatriate employees from the parent country. The general rationale behind the ethnocentric approach is that the staff from the 237 CU IDOL SELF LEARNING MATERIAL (SLM)
parent country would represent the interests of the headquarters effectively and link well with the parent country. The recruitment process in this method involves four stages: o self-selection, o creating a candidate pool, o technical skills assessment, and o making a mutual decision. Self-selection involves the decision by the employee about his future course of action in the international arena. In the next stage, the employee database is prepared according to the manpower requirement of the company for international operations. Then the database is analysed for choosing the best and most suitable persons for global assignments and this process is called technical skills assessment. Finally, the best candidate is identified for foreign assignment and sent abroad with his consent. The ethnocentric approach places natives of the home country of a business in key positions at home and abroad. In this example, the U.S. parent company places natives from the United States in key positions in both the United States and Mexico. 238 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig10.3.1: Ethnocentric Approach Advantages of Ethnocentric Approach 1. Better coordination between the host and the parent company. 2. The culture of the parent company can be easily transferred to the subsidiary company, thereby infusing beliefs and practices into the foreign country. 3. Effective control over the subsidiary. 4. The parent company can have a close watch on the operations of the subsidiary. 5. Better transfer of technical know-how. 6. Effective communication between the host and the parent company. 7. No need to have a well-developed international local labor market. Disadvantages of Ethnocentric Approach 1. The staff of the parent country may find it difficult to adjust in the host country due to the cultural differences. 2. Difficulty in guiding employees living far away from the parent country. 3. Missed out the opportunity to hire the best personnel from the host country. 4. The cultural clashes between the executives of parent country and the staff members of the host country. 5. The expatriates from the parent country are much expensive as compared to the employees in the host country. 239 CU IDOL SELF LEARNING MATERIAL (SLM)
6. The government restrictions in the host country may hamper the business of the parent company. 7. The failure rate is very high. This approach is beneficial in a situation when a new subsidiary is set up in the host country, and the employees of the parent company visit there and initializes its operations. 2. Polycentric approach When a company adopts the strategy of limiting recruitment to the nationals of the host country (local people), it is called a polycentric approach. The purpose of adopting this approach is to reduce the cost of foreign operations gradually. Even those organizations which initially adopt the ethnocentric approach may eventually switch over lo the polycentric approach. The primary purpose of handing over the management to the local people is to ensure that the company understands the local market conditions, political scenario, cultural and legal requirements better. The companies that adopt this method normally have a localized HR department, which manages the human resources of the company in that country. Many international companies operating their branches in advanced countries like Britain and Japan predominantly adopt this approach for recruiting executives lo manage the branches.\" 240 CU IDOL SELF LEARNING MATERIAL (SLM)
Fig 10.3.2 Polycentric Approach The polycentric approach uses natives of the host country to manage operations in their country and natives of the parent country to manage in the home office. In this example, the Australian parent company uses natives of India to manage operations at the Indian subsidiary. Natives of Australia manage the home office. Advantages of Polycentric Approach 1. The difficulty in the adjustment of expatriates from the parent country gets eliminated. 2. The hiring of locals or the nationals of the host country is comparatively less expensive. 3. The morale of the local staff increases. 4. Better productivity due to better knowledge about the host market. 5. The career opportunities for the nationals of the host country increases. 6. Better government support. 7. Chances of success are high. Disadvantages of Polycentric Approach 1. Lack of coordination between the host and the parent company, due to the absence of a link that gets created when expatriates from the parent country hold the managerial positions at the subsidiary. 2. The lack of effective communication between the staff members of both the host and the parent company, due to the language barrier. 3. Difficult to exercise control over the subsidiary. 4. Lack of knowledge about the market conditions of the host country. 5. The conflict may arise between the managers of both the host and the parent company due to the different thinking processes. 3. GEOCENTRIC APPROACH When a company adopts the strategy of recruiting the most suitable persons for the positions available in it, irrespective of their nationalities, it is called a geocentric approach. Companies 241 CU IDOL SELF LEARNING MATERIAL (SLM)
that are truly global in nature adopt this approach since it utilizes a globally integrated business strategy. Since the HR operations are constrained by several factors like political and ethnical factors and government laws, it is difficult to adopt this approach. However, large international companies generally adopt the geocentric strategy with considerable success. For international recruitment, especially on foreign soil, organizations generally use manpower agencies or consultants with international connections and repute to source candidates, in addition to the conventional sources. For an effective utilization of the internal source of recruitment, global companies need to develop an internal database of employees and an effective tracking system to identify the most suitable persons for global postings. Fig 10.3.3 Geocentric Approach The geocentric approach uses the best available managers for a business without regard for their country of origin. In this example, the UK parent company uses natives of many countries at company headquarters and at the U.S. subsidiary. 242 CU IDOL SELF LEARNING MATERIAL (SLM)
Advantages of Geocentric Approach 1. MNC’s can develop a pool of senior executives with international experiences and contacts across the borders. 2. The expertise of each manager can be used for the accomplishment of MNC’s objective as a whole. 3. Reduction in resentment, i.e. the sense of unfair treatment reduces. 4. Shared learning, the employees, will learn from each other’s experiences. Disadvantages of Geocentric Approach 1. The cost of training, compensation, and relocation of an employee is too high. 2. Highly centralized control of staffing is required. 3. Proper scrutiny is required by the HR to select the most suitable person for the job, which could be time-consuming. 4. This approach is very costly since the recruitment agencies or the consultants are to be hired for the global search for eligible candidate 4. REGIO CENTRIC APPROACH The Geocentric Approach is one of the methods of international recruitment where the Multi-National Companies recruit the most suitable employee for the job irrespective of their Nationality. The Regio centric approach uses managers from various countries within the geographic regions of business. Although the managers operate relatively independently in the region, they are not normally moved to the company headquarters. The Regio centric approach is adaptable to the company and product strategies. When regional expertise is needed, natives of the region are hired. If product knowledge is crucial, then parent-country nationals, who have ready access to corporate sources of information, can be brought in. 243 CU IDOL SELF LEARNING MATERIAL (SLM)
One shortcoming of the Regio centric approach is that managers from the region may not understand the view of the managers at headquarters. Also, corporate headquarters may not employ enough managers with international experience. Fig 10.3.4 Regio Centric Approach Advantages of Regiocentric Approach 1. Culture fit, i.e. the managers from the same region as that of the host country may not encounter any problem with respect to the culture and the language followed there. 2. Less cost is incurred in hiring the natives of the host country. 3. The managers work well in all the neighboring countries within the geographic region of the business. 4. The nationals of host country can better influence the decision of managers at headquarters with respect to the entire region. Disadvantages of Regiocentric Approach 1. The managers in different regions may not understand the viewpoint of the managers employed at the headquarters. 2. There could be a communication barrier because of different languages. 3. The manager selected from a particular region may lack the international experience. 244 CU IDOL SELF LEARNING MATERIAL (SLM)
4. It may lead to the confusion between the regional objectives and the global objectives. The regional managers may only focus on accomplishing the regional targets and may oversee the impact on the firm as a whole. 10.3.3 PRE-REQUISITES OF INTERNATIONAL RECRUITMENT PROCESS: There are three specific areas of country differentiation that international HR managers must be aware of: The type of labour legislation – which varies from country to country in terms of scope , whether it conveys an employer or employee bias, and in particular areas of deficiency in the behavior of individuals, organizations and institutions. The scope of labour legislation and associated collective agreements and custom or practices varies markedly. For example, some constitutions convey rights in relation to appointment. The type of labour market – There are marked differences in countries in terms of labour market. Germany, Japan, France and Switzerland generally noted for internal labour markets and recruitment here is focused on specialized entry points at low levels followed by promotions based on internal assessment. Although Internal labour markets are considered to have the benefits like improved morale, commitment and security amongst employees, competencies and accrued knowledge, more specialized HR skills around dedicated HR points (such as graduate recruitment), the downturn is that there can be high levels of political behavior, informal ‘glass ceilings’, complacency and structural shocks when market and technological changes force whole vocational system for a significant overhaul of HR system. The advantages of external labour markets in this context is that it gives an opportunity to bring new blood as part of culture-change processes, insights into competitor capabilities and the ability to respond in the equal opportunities issues more visibly. Examples are Britain, USA, Denmark, The Netherlands and HongKong etc The recruitment methods – Recruitment occurs through both formal and informal methods. Informal methods rely on the contacts of existing employees or on people just applying. International differences in the use of informal recruitment are substantial but it is widespread throughout the world, especially in developing countries. 245 CU IDOL SELF LEARNING MATERIAL (SLM)
10.4 INTERNATIONAL RECRUITMENT PRACTICES The elements of International Recruitment Practices are as follows: EMPLOYMENT BRAND The first step of implementing a global recruitment strategy is building an employment brand that is truly global. Many employers, especially those in the B2B space, don’t have a strong consumer brand. Without a strong consumer brand, most organizations need to rely on their employer brand to attract talent. There are many ways for an organization to build its employer brand, including developing employee ambassadors, using social media and digitizing brand strategy while putting mobile first. When implementing a global recruitment strategy, organizations need to build an employer brand that is effective across the world. It is important to work with local employees to ensure employer branding and recruitment marketing campaigns are culturally appropriate in each region in which an employer recruits. To accomplish this effectively, HR should work with marketing, so the strategy is aligned with and deployed alongside traditional marketing messages. CANDIDATE EXPERIENCE A strong end-to-end candidate experience is important regardless of where candidates are from. Candidates around the world want mobile-friendly applications that are fast and easy to fill out, well-written job descriptions that engage candidates and convince them to apply, positive interview experiences and consistent communication. EMPLOYEE REFERRAL PROGRAM The process should also include a strong employee referral program for each country as employee referrals account for nearly a third of all hires, according to SHRM. It is important to ensure an equivalent referral bonus in each country. The amount should be based on a percentage of the average income in each location. If referral bonuses are too varied in different countries, it can make employees in one location feel less valued. 246 CU IDOL SELF LEARNING MATERIAL (SLM)
CONSISTENT ONBOARDING PROCESS The onboarding process should also be as consistent as possible in each location. According to SHRM, 69 percent of employees are more likely to stay with a company for three years if they experience great onboarding. While some countries have exceptions, like requiring a new hire to come into the office for a signature before the start date, but otherwise the process should be as consistent as possible. STANDARDIZED TECHNOLOGY When building a global recruitment strategy, it is important to standardize technology as much as possible across the globe. While there are exceptions, like Russia where, by law, you need to have an ATS on the ground in the country, you should use the same technology systems wherever possible. A centralized technology system for all global locations gives you better data and a better view of your entire workforce. This gives you the ability to better spot trends and make strategic decisions. GLOBAL LABOR MARKET DATA ANALYSIS If the talent market starts to tighten in one part of the world, you can easily see how your workforce compares throughout the region and other areas of the world. That insight can be used to make high-level business decisions. 10.5 DIFFERENCE BETWEEN RECRUITMENT AND SELECTION S.No. RECRUITMENT SELECTION 01. Recruitment refers to a process of simulating Selection refers to the process of shortlisting applicants for a vacant job position and finding the applicants and selecting the best applicants qualified applicants for the job. who are suitable for that job position. 02. It attracts and encourages a large number of It attempts to reject unsuitable candidates and candidates for a job. picking up suitable candidates. 247 CU IDOL SELF LEARNING MATERIAL (SLM)
03. That’s why it is considered as a positive That’s why it is considered as a negative process/approach. process/approach. 04. Recruitment proceeds selection. Selection follows recruitment. 05. Recruitment is a simple process. Selection is a complicated process. 06. It is the initial process so takes place before It is the final process so takes place after selection. selection. 07. It is an economical method. It is an expensive method. 08. In this less time is required. In this more time time is required. 09. The main objective of recruitment is to create a The main objective of selection is to get the pool of eligible candidates for the purpose of best candidates selected for the job role. selection. 10. It involves everything from identification of a It involves choosing the right candidate from hiring need to filling. the applications received. 11. In this no contractual relation for the service is After selection for the job role a contractual created. relation for the service is created. 12. During recruitment large number of talent During and after selection very less and limited pools or candidates are involved. number of candidates are involved. 10.6 SUMMARY Recruitment refers to the process of identifying, attracting, interviewing, selecting, hiring and onboarding employees. In other words, it involves everything from the identification of a staffing need to filling it. International or global recruitment is simply the process involved in the searching and hiring of talented candidates from anywhere across the globe. Features of International Recruitment 248 CU IDOL SELF LEARNING MATERIAL (SLM)
o A wider talent pools o Enriched workplace culture o Extended working hours o Enhanced branding o Upgraded customer service Recruitment Process: o Decide which staffing approach is most suitable for this particular case.. o Determine the recruitment methods that work for this approach. o Allocate your budget. o Evaluate candidates. o Close the hire and discuss paperwork. o Sources of Recruitment: Ethnocentric staffing means to hire management that is of same nationality of parent company. Polycentric approach: When a company adopts the strategy of limiting recruitment to the nationals of the host country (local people), it is called a polycentric approach. When a company adopts the strategy of recruiting the most suitable persons for the positions available in it, irrespective of their nationalities, it is called a geocentric approach. When a company adopts the strategy of recruiting the most suitable persons for the positions available in it, irrespective of their nationalities, it is called a geocentric approach. The Regio centric approach uses managers from various countries within the geographic regions of business. Although the managers operate relatively independently in the region, they are not normally moved to the company headquarters. There are three specific areas of country differentiation that international HR managers must be aware of: o The type of labour legislation o The type of labour market 249 CU IDOL SELF LEARNING MATERIAL (SLM)
o The recruitment methods The elements of International Recruitment Practices are as follows: O Employment Brand O Candidate Experience O Employee Referral Program O Consistent Onboarding Process O Standardized Technology 10.7 KEYWORDS 1. Work culture is a collection of attitudes, beliefs and behaviors that make up the regular atmosphere in a work environment. 2. Branding is the perpetual process of identifying, creating, and managing the cumulative assets and actions that shape the perception of a brand in stakeholders’ minds. 3. Bilingual - able to speak two languages equally well. 4. A global mindset is defined as the ability to recognize, read, and adapt to cultural signals, both overt and subtle, so that your effectiveness isn't compromised when you're dealing with people from different backgrounds 5. Resentment - a feeling of anger because you have been forced to accept something that you do not like. 10.8 LEARNING ACTIVITY 1. If product knowledge is crucial, then parent-country nationals are preferred. State the valid reason. ___________________________________________________________________________ ___________________________________________________________________________ 2. What are the important legal proceedings taken care by the HR Manager in the International Recruitment? ___________________________________________________________________________ 250 CU IDOL SELF LEARNING MATERIAL (SLM)
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