Human Resource Planning strategy
INTERNATIONAL STAFFING
RECRUITMENT AND SELECTION
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HRP – Concept
- Human Resource Planning is the strategy for the acquisition, utilization, improvement, and preservation of organizations’ human resources.
- It is aimed at coordinating the requirements for, and the availability of, different types of employees.
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HRP – PROCESS
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Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource Planning
Forecasting Human Resource Requirements
Comparing Requirements and Availability
Forecasting Human Resource Availability
Surplus of Workers
Demand = Supply
No Action
Restricted Hiring, Reduced Hours, Early Retirement, Layoff, Downsizing
Shortage of Workers
Recruitment
Selection
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International HRP
- The HRP is closely linked to the business plans
- Corporate planning – managerial activities that set the company’s objectives for the future and determine the appropriate means for achieving these objectives
- HRP – The process of forecasting an international organization’s future for demand and supply of the right type of people in the right number.
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International HRP – Key Issues
- Identifying top management potential early.
- Identifying critical success factors for future international managers.
- Providing developmental opportunities
- Tracking and maintaining commitment to individuals in their international career paths.
- Tying strategic business planning to HRP and vice-versa.
- Dealing with multiple business units while attempting to achieve globally and regionally focused strategies.
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International Recruitment – Recent Trends
- Some distinct trends observed in international staffing
- Work Force Diversity
- Outsourcing
- Increasing use of background checks
- Identifying recruiting sources
- Challenges of dual career couples.
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International Recruitment – Recent Trends
- Diversity Policy – a global guideline
- Need for diversity – why should a company seek diversity? What will be the benefits to die company and its customers?
- Vision of diversity – what should diversity look like? What is the ideal form of diversity for this company?
- Commitment to diversity – who all need to be supportive and involved in making the initiative real?
- Systems and structures for diversity – How to institutionalize diversity throughout the management practices?
- Sustain it – how to devise action plans for creating and sustaining diversity?
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International Recruitment – Recent Trends
- Out sourcing
- HR activities divested from operational to strategic role
- Helps in reducing bureaucracy
- Encourage a more responsive culture by introducing external market forces
- Disadvantage
- The relevance of HR department is at stake
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International Recruitment – Recent Trends
- Background Checks
- Educational qualification – Recent UWI issue
- Employment record
- Address
- Professional qualification
- Credit and bankruptcy
- Database
- Probable criminal record
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International Recruitment – Recent Trends
- Sources of Recruiting
- Job Posting Websites 92 %
- Your Company’s Website 85 %
- Employee Referral Programme 81 %
- Recruiters (External) 59 %
- Recruiters (internal) 50 %
- Ads in Local Media 48 %
- Your Company’s Intranet 47 %
- College / University Recruiting 45 %
- Temporary to Permanent Hiring 42 %
- Ads in Professional Association Media 28 %
- E-mail lists / Discussion Groups 21 %
- Ads in National Media 15 %
- Blogs 3 %
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International Recruitment – Recent Trends
- Dual Career Groups
- Turn down the international assignment
- Find a job for the traveling spouse
- Commuter assignment
- Sabbatical
- Intra company employment
- On assignment career support
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International Selection
- The following four issues are relevant in the context of staffing global businesses
- Linking staffing plans with the evolution of the MNC
- Staffing orientation
- Managing expatriates
- Female expatriates
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Staffing Orientations
- Company’s response to global market opportunities depend greatly on management’s assumptions or beliefs
- both conscious and unconscious
- The world view of a company’s personnel can be described as
- Ethnocentric
- Polycentric
- Regiocentric
- Geocentric
Ethnocentric Orientation
- Firms at the early stages of internationalization
- Assumptions
- Home country is superior
- Similarities in markets
- Assume the products and practices that succeed in the home country will be successful every where
- Domestic companies – the ethnocentric orientation means that opportunities outside the home country are ignored
- International company – they adhere to the notion that the products that succeed in the home country are superior and therefore, can be sold everywhere without adaptation
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Ethnocentric Orientation
- Managing international operations – people from the home country i.e. Parent Country Nationals (PCNs) fill top management and other key positions
- Perceived lack of qualified Host Country Nationals (HCNs)
- DFeed to maintain good communication, coordination, and control links with corporate headquarters
- The firm uses a large group of expatriate mangers
- Foreign operations are viewed as being secondary or subordinate to domestic ones
- Operates under the assumption that “tried and true” headquarters’ knowledge and organisational capabilities can be applied in other parts of the world.
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Polycentric Orientation
- Opposite of ethnocentric orientation
- Assumption that each country in which a company does business is unique
- Each subsidiary to develop its own unique business and strategies in order to succeed
- the term multinational company is often used to describe such a structure
- This eliminates the language barriers, avoids adjustment problems for expatriates and allows an MNC to take a lower profile in sensitive political situations
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Polycentric Orientation
- Subsidiaries are managed and staffed by personnel from the host country
- The HCNs are recruited to manage subsidiaries
- PCNs occupy the corporate headquarters
- Employment of HCNs is less expensive
- It has its limitations in terms of
- Bridging the gap between the HCN subsidiary managers and PCN managers at corporate head quarter
- language barriers
- conflicting national loyalties
- a range of cultural differences may isolate the corporate HQ staff
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Regiocentric Orientations
- Management views regions as unique and seeks to develop an integrated regional strategy
- It is a regional approach in which the MNC divides its operations into geographical regions and transfers staff within these regions
- This approach reflects some sensitivity to local conditions, since local subsidiaries are staffed by HCNs
- This approach to staffing policy will reflect organisational needs, but there are difficulties in maintaining a uniform approach to international staffing
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Regiocentric Orientations
- Strategies in different countries may require different staffing approaches
- Have a worldview on a regional scale
- Selection for staffing is on the basis of a set of characteristics
- SMILE
- Specialty (required skill, knowledge)
- Management ability (particularly motivational ability)
- International flexibility (adaptability)
- Language facility
- Endeavor (perseverance in the face of difficulty).
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Geocentric Orientations
- Views the entire world as a potential market
- Strives to develop integrated world business strategies
- Represents a synthesis of ethnocentrism and polycentrism
- a ‘world view’ that sees similarities and differences in markets and countries and seeks to create a global strategy that is fully responsive to local needs and wants.