International Recruitment & Selection
● Human Resource Planning:
HRP is the 1st step in staffing activity.
● HRP is defined as the process of forecasting an international organization’s future demand for & supply of, the right type of people in the right number. ● Corporate planning includes managerial activities that set the company’s objectives for the future & determine the appropriate means for achieving these objectives. ● HRP facilitates the realization of the organization’s objectives by providing the right type & the right no of personnel. The key issues in international HRP are as follows:
● Identifying top management potential early.
● Identifying critical success factors for the future international managers. ● Providing developmental opportunities.
● Tracking & maintaining commitment to individuals in their international career paths. ● Tying strategic business planning to HRP & vice-versa. ● Dealing with multiple business units while attempting to achieve globally & regionally focused strategies. Issues in supply of International Human Resources:
● Availability of Data
● Aging population
● Young population
● Recent demographic developments
● Labor supply trends
● Labor productivity
● Labor supply & offshore arrangements
● Challenges of the future
● Retention management & older workers
● Skill levels
● Enlarged cultural diversity
● Migration & immigration issues
● Brain drain
● Educational facilities
● Career orientation
● On-line facilities
Why do MNC’s require different categories of employees?
The different types of human resources needed by MNCs are broadly categorized into 4 types
I. Permanent category
II. Long & Medium term
III. Short-term &
IV. Indirect category
I. Permanent Category:
Employees belonging to permanent category include
1. Permanent cadre :–
● MNC’s employ parent country nationals develop them & depute them to their subsidiaries in various countries. ● This cadre of employees develops sense of belongingness to the MNCs. ● These employees move from one country to another country among subsidiaries of the same MNC. ● Nestle, Siemens & Xerox are some of the companies that use permanent cadre of employees. 2. Permanent Transferees:-
● MNCs develop some employees, who prefer to be the permanent residents of certain countries, as locals of the subsidiary in the country, where subsidiary is located. ● This process helps the MNCs to develop committed category of employees who transform themselves like host-country nationals. ● This category helps the MNC to reduce the cost on expatriate employees. 3. Returnees:-
● College students during their final year of study or recent college graduates are employed with a view to send them on job assignment to the country of their origin. ● Returnees are paid a hybrid compensation package that consists of partly traditional expatriate salary & pertly national employee salary. 4. Boomerangs:-
The term Boomerang is close to the term ‘Returnees’ .Japanese who returned to their home country were employed in subsidiaries due to language & cultural similarities.
5. Second-Generation Expatriates:-
● The expatriates/naturalized citizens acquire the experience of working & living in a foreign environment. ● They also develop the acquaintance with the foreign cultures. ● Thus, they become culturally adaptable & competent to work in other countries. 6. ‘Reward’ or ‘Punishment’ Assignees:-
● MNCs reward the high performers by providing them foreign employment that provides them high salaries, better benefits & enjoyable foreign trips. ● Shell, Unilever, Pepsi-Cola use this strategy to reward their employees. ● Punishment...
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