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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.