The choice between an MNC and an SME: What corporate aspects attract students to a job?
Name: Chan Fei Yung ANR: s206664 Program: International Business Group: SS1 Supervisor: Marloes Röthengatter
Table of contents:
1.1) Introduction 1.2) Problem Indication 1.3) Problem Statement 1.4) Research Questions 1.5) Relevance 1.6) Research Design
3 3 4 4 5 6
2) MNC and SME classification
2.1) Definition of an MNC 2.2) Definition of an SME 2.3) Comparison of advantages
7 9 10
3) Student preferences in a job
3.1) Preference analysis 3.2) Job preference ranking
4) Managerial advice
4.1) MNC strengths and weaknesses 4.2) SME strength and weaknesses
14 16 2
5.1) Summary 5.2) Limitations of the paper 5.3) Recommendations for further research
17 18 18
This chapter provides an introduction to the thesis by first explaining to the reader where the problem area lies and what aspects will be covered in the thesis. The sections 1.1) and 1.2) deal with the motivation and line of thought in choosing the proper topic. After that an outline is plotted to indicate the methodology used to structure this thesis. The sections 1.3) and 1.4) will compress the problem indications into proper research areas and questions. Following that, in section 1.5) and 1.6) the academic and managerial relevance as well as the academic soundness used to write this thesis will be substantiated.
In today’s business world Human Resource Management (HRM) becomes more and more homogeneous with small and medium sized enterprises (SME) on the one hand trying to show as much professionalism as multinational corporations (MNC) when recruiting (Markusen, 2004). MNCs on the other hand try to offer a similar degree of personal relationship and informality to appeal to potential applicants. This is the result of applicant’s wishes to have a challenging and demanding job as well as a comfortable work environment (Hermanson et al, 2002). However as much as HRM managers try to offer such well-rounded jobs, differences still exist. Applicants still have different mindsets and expectations, when choosing whether to approach an SME or an MNC. It is the goal of this paper to explore these factual and perceived differences and provide an academically valid guideline. 3
1.2) Problem Indication Strategic orientation of a company and the steps it can take to achieve certain Human Resource (HR) goals is a sharply pursued topic in academic writing. General advice however and overview of a student’s perspective of the labor market and the requirements perceived are highly fragmented. Those are spread amongst many local studies and surveys that cover the wishes of certain focus groups (i.e. special occupations or regions) and their expectations; however these lack the widespread angle needed for a general guideline. Therefore this thesis will deal with the decision process of students on the verge of entering the job world, when evaluating the different aspects attached to working in an SME or MNC. The key question to answer in this particular topic will be what aspects are attracting students, when choosing between SMEs and MNCs.
1.3) Problem Statement In order to gain insight into student decision processes the characteristics of both MNCs and SMEs are classified separately and then compared to the working characteristics a first time applicant may deem favorable. In detail the general work profiles that one may encounter in an MNC or SME will be discussed in length, the strengths and weaknesses shown in terms favorability by students and compared to the wishes students may find in a “perfect job”. The following chapters will be dedicated to MNCs and SMEs respectively with the conclusive chapter being the match between the characteristics and students’ wishes of the “perfect job”....