iHRM

International Human Resource Management

 Syllabus of IHRM
1 Introduction to International Human Resource Management

2 Socio-Culture Contexts

3 Recruitment and Selection

4 Training and Development

5 Introduction to International Industrial Relations

 3
Recruitment and Selection
 Content
1. Concept- Sources of Human Resources: Micro level, Macro level,
Modern Sources
2. Techniques of Recruitment
3. Centralized v/s Decentralized recruitment
4. Selection: The expatriate System
5. Reasons for expatriate failure in foreign assignment
6. Selection techniques for international assignment
7. Adaptability to cultural change
8. Motivation for a foreign assignment and leadership ability
 Concept
International recruitment policy refers to practices and strategies employed to hire
people all over the world. Further explaining the approaches to international
recruitment and when to use each one.

• There are four approaches to international recruitment at the Macro level:

ethnocentric, polycentric, geocentric, and Regio-centric.
• Micro-level staffing includes institutional sources within a country as a centralized or
decentralized recruitment.
• Modern sources of recruitment
 Modern sources of recruitment
• Networking events • Conscientiousness tests
• Body Shopping • Benefit from the gig economy
• ESOP’s • Passive candidates
• Social Media • Managing the aging workforce
• Employer review sites
• Mobile recruitment and video interviewing
• Analytics
• Inclusive Job Adverts
• Programmatic advertisements
• Talent pool database
• Rehiring past employees
• Employment exchanges
• Structured employment interviews
• Work sample tests
• Integrity tests
International recruitment at the Macro level
 Approaches to International Staffing
High
Polycentric Geocentric
Strategy Strategy

Focus on Multicultural
Ethnocentric Regio centric
differences
strategy Strategy

Low

Low Focus on Multicultural High

Commonalities
EPRG Model:
This framework was developed by wind, Douglas, and Perlmutter in 1969 based on types
of employees PCN, HCN, TCN for the suitability of the type of staffing policy to be
adopted by MNEs
 What is ethnocentric staffing?
The ethnocentric approach to recruitment means hiring people from the parent country
to fill positions all over the world. For example, if we want to fill an executive role in a
foreign country, we could:

• Relocate one of our existing employees who’s a permanent resident of our parent
country.
• Hire a person from our parent country who lives or wants to live in the host country.

We use the ethnocentric method when [opening a new branch at a new country, so it’d
be easier for our company’s policies and procedures to be transferred from the parent
country to the new branch]. As a rule, expatriates from our parent country should
comprise less than [20%] of a foreign office so that we minimize the total hiring costs
and avoid missing the pulse of the local community.
 What is polycentric staffing?
• The polycentric approach to recruitment means that we hire locals to fill our positions
in a host country.
• For example, we could advertise on local job boards or create a contract with a local
recruitment agency.

We use the polycentric approach when [we need the skills of locals to conduct our
business. For example, if we want to expand our clientele to a specific country, we’d hire
a local professional who knows the market and can coordinate our sales operations.]
We’ll apply one of the other approaches if we haven’t found qualified candidates after
[four months].
 What is regio-centric staffing?
• The regio-centric approach to recruitment means that we hire or transfer people
within the same region (like a group of countries) to fill our open positions.
• For example, we might decide to transfer employees to Scandinavian countries. So if
we want to hire someone in Sweden (a host country) we could transfer one of our
employees from Denmark, a host country in the same region.

We use the regio-centric approach when [the costs of transferring an employee from a
host country are lower than transferring them from the parent country.] When deciding
to use this approach, take into account any language or cultural barriers that may exist.
 What is geocentric staffing?
A geocentric approach to recruitment is hiring the best people to fill our positions
without regard to where they come from or where they live. This means:

• Hiring remote employees. We use this option when we want to hire someone at a
place where we don’t have offices. For example, if we want a customer support agent
in another time zone to support our customers there.
• Relocating employees. This includes both bringing foreign talent into our parent
country and relocating people to a new host country. We use this approach when we
need someone to be physically present at a specific location, but the best person for
the job is living elsewhere.
 What is geocentric staffing?
To use the geocentric approach, we need to have a global outlook on recruitment. For
example, whenever a position opens at a host country or our parent country, the hiring
team could:

• Advertise on global job boards first, before using local job boards mentioning the
location of the job clearly. Also, advertise on job boards focused on remote work
when possible.
• Source candidates online without looking at their current location.
• Check our global employee database to find internal candidates who may wish to
relocate.
• Ask recruiters to suggest candidates they met at international career fairs or events.
• Ask for referrals from our existing employees, as they may have someone in their
network who could fit in this position and be willing to relocate.
International recruitment at the Micro level
Centralized v/s Decentralized
 Centralized v/s Decentralized Recruitment
Centralized recruitment
• All hiring decisions and recruitment
responsibilities fall on a single unit for
the entire company. That means one
corporate human resources (HR)
department has sole decision-making
authority regarding recruiting.
• For organizations with centralized
recruitment, this group is exclusively
responsible for standardizing and
overseeing the whole recruitment and
hiring process.
Decentralized recruitment
• Each manager or a dedicated recruiter
dispersed to each business unit based on
department or geography is solely
responsible for making recruitment
decisions within their unit and can choose
their own employees based on different
criteria.
• It varies from unit to unit and allows for a lot
of freedom in recruiting strategy.

Some companies take a hybrid approach by having both centralized and decentralized recruiting functions, with
some decisions and policies deployed across the organization while others are implemented locally.
Why and when should you centralize or decentralize the recruiting function?
Centralized recruitment
Today, about 50% of HR organizations have a centralized recruitment structure.
Ex: Samsung is an example of an organization that operates with a centralized structure, which
works well for the communications company because it allows for extensive product development
oversight at the corporate level.
Decentralized recruitment
Only around 15% of organizations operate with a fully decentralized recruitment model without any
input or oversight from their corporate headquarters.
Ex: Johnson & Johnson uses a decentralized recruiting function to accommodate their
geographically dispersed structure.

On their website, here’s how Johnson & Johnson explains their decentralized approach:
“Each of our operating companies functions as its own small business. They are strongly entrepreneurial in character, and
they know that their success depends on anticipating customers’ needs and delivering meaningful, high-quality solutions.
While our people operate in a small company setting, they also have access to the know-how and resources of a Fortune
50 company. It’s like having dozens of strategic partners at their fingertips.”
 Advantages of centralized recruitment Advantages of decentralized recruitment
• Develop consistent policies and universal standards for • Policies can be tailored to each business unit and/or local
recruitment and hiring across the organization so that all market’s unit needs and priorities. That means a
of the valuable recruitment data and use the same tech decentralized process offers better recruiting flexibility,
stack to operate as one recruitment powerhouse. which can sometimes lead to faster hiring—especially
• For a lot of companies especially large corporations, a when you need to fill a position quickly.
centralized process tends to be faster and more cost-
effective. • The hiring managers benefit from firsthand knowledge of
• Centralizing responsibilities to one unit allows for better the working environment and a better understanding of
efficiency and lower costs overall, as specific employees departmental or local market needs.
focus on recruitment rather than individual department
leads, who may be less qualified to recruit and more • That personal touch can really go a long way when it
distracted by other responsibilities. comes to making the right hires at the right moments. It
• A centralized recruitment function can also help ensure also empowers hiring managers with localized experience
fair hiring practices with equal opportunities for every to operate independently of corporate headquarters.
candidate.
• Standardizing recruiting requirements means every
applicant has to follow the same process instead of it
varying by business unit or physical location. As a result,
the candidate experience for every individual is more likely
to be fair and unbiased.
International recruitment and selection process
Whenever a position opens, hiring teams should follow this process:
• Decide which staffing approach is most suitable for this particular case.
• Determine the recruitment methods that work for this approach.
• Allocate your budget.
• Evaluate candidates: Are self-motivated and can work independently (especially if
their manager is remote), Can communicate well even through cultural and language
barriers, and Have a global mindset, are tech-savvy.
• 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.
 The roles of an expatriate
Agent of direct control

Agent of socializing
Language node

Expatriate roles in
the interplay of HQ
and local unit

Boundary spanner Network builder

Transfer of competence and knowledge

 The roles of an expatriate
Agent of Control
A bureaucratic control mechanism intended to ensure compliance through direct supervision is more
commonly represented by PCNs in an ethnocentric staffing approach.
Network builders
Ex-pats can be used for informal control and communication purposes. As employees move between various
organizational units, their network of personal relationships changes. There is often resentment felt by
subsidiary HCNs when a PCN manager is assigned. Expats as network builders can help bridge the gap
between employees and reduce the likelihood of conflicts.
Boundary spanners
Expatriates in this role can help bridge internal and external contexts such as high-context and low-context
cultures. They collect host country information and can act as a representative for their firm in inter-
organizational business in the host country.
Language nodes
Here expatriates can be the one who helps bridge the gap between members of staff speaking different
languages. This can be particularly helpful in ethnocentric, geocentric and Regio centric staffing approaches
where the manager may not speak the native language of the country in which they are working.
 The roles of an expatriate
Agent of Socialization
This role is related to the use of corporate culture as an informal control mechanism. There is an implicit
expectation that expatriates assist in the transfer of shared values and beliefs. Attempts to instill corporate
values and norms ritualized in the form of certain expected behaviors often have negative results at the
subsidiary level.
Transfer of competence and knowledge
International assignments do assist in knowledge sharing and competence transfer and encourage the
adoption of common work practices, aspects of which may comprise elements of the corporate culture. Staff
in the various organizational units may be exposed to different viewpoints and perspectives that
will shape their behavior and may reinforce their feeling of belonging.
 Expatriate Failure
• Expatriate failure is a term used to describe any unsatisfactory outcome of sending an employee on an
international assignment.
• Complete failure, which could be the employee returning without completing the assignment, partial
failures which may include poor performance, or failure to achieve specific commercial outcomes.
The cost of expatriate failure
• Globally, expatriate failure rates are consistently high due to the mental, emotional and physical strain
placed on employees who relocate abroad.
• Research has shown that expatriate failure rates are higher among employees sent to developing countries
and lower among those sent to economically flourishing countries.
• Successful long-term international assignments typically cost an employer as much as three times the
employee’s annual salary.
• If the assignment is not a success, your organization may not see the commercial gains needed to balance
the investment and could be forced to spend more money bringing the employee home ahead of schedule.
• Beyond the financial cost, there is also the impact of the experience on the employee. They may have been
selected for their skills and knowledge, and a premature and unsuccessful return to their home country
may impact their confidence and their pride, potentially precipitating a fresh start with a new employer.
 Reasons for Expatriate Failure
• Poor candidate selection: avoid favoritism, ability to speak a foreign language, being single or without
children, passionate about the project
• Insufficient support systems: Assigning a personal mentor, negotiating a new work environment, building
social connections outside work, organizing services like having a phone line installed or making an
appointment with a doctor
• Lack of expatriate training: must include cultural and language training, in addition to basic training
regarding their role and assignment
• Poor communication: Employers should develop a plan for structured communication with their overseas
employees. Part of your support plan should include keeping the expatriate employee ‘in the loop’ with
regular communications from the office.
• Prepare for repatriation: Failure to consider the implications of repatriation often results in poor talent
management. Consider the fact that the returning employee has likely acquired valuable new skills,
knowledge, and experience during their time abroad. These are assets to your business that may be
wasted by sending the employee back to their previous job role. It may be more appropriate to move the
employee to a new role in higher management or an entirely different sector within the company.
 Expatriate selection criteria
1. Technical Ability: research findings consistently indicate that multinationals place heavy reliance on
relevant technical skills during the expatriate selection process. For example, the Price Waterhouse survey
reports that the most important selection criterion was job-related skills (99 %), and leadership skills ( 76
%). Since expatriates are predominantly internal recruits, personnel evaluation records can be examined
and checked with the candidate’s past and present superiors. The dilemma though is that past
performance may have little or no bearing on one’s ability to achieve a task in a foreign cultural
environment.
2. Cross-cultural Suitability: An American manager who is considered an excellent communicator by his US
colleagues because of his face-to-face and to-the-point style may be a disaster when required to
communicate with say, Chinese or Japanese subordinates who value subtle, indirect forms of
communication. Hence, the country where the posting is to be and its culture are likely influences in the
selection of the candidates. The ability to successfully translate managerial or technical skills into the
foreign environment, whereas coping skills enable a person to become reasonably comfortable or at least
survive in the foreign environment. It is not easy to define intercultural competence and even more
difficult to measure it. What is needed is to measure the relational ability of a person, i.e. his/her ability to
relate with another cultural group, which is also a personality-related trait.
 Expatriate selection criteria
3. Family Requirements: The contribution that the family, particularly the spouse, makes to the success of the
overseas assignment is now well documented. Apart from the accompanying partner’s career, there are family
considerations that can cause a potential expatriate to decline the international assignment. Disruption to
children’s education is an important consideration, and the selected candidate may reject the offered
assignment on the grounds that a move at this particular stage in his or her child’s life is inappropriate. The
care of aging or invalid parents is another consideration.
4. Country or Cultural requirements: the multinational may wish to use an expatriate and has selected a
candidate for the international assignment, but may find that the local Government do not allow it. Further,
the host country may be an important determinant. Some regions and countries are considered ‘hardship
postings’: remote areas away from major cities or modern facilities; or war-torn regions with high physical risk.
Accompanying family members may be an additional responsibility that the multinational does not want to
bear. These aspects may result in the selection of HCNs rather than expatriates. Hence it is important to raise
government awareness of the connection between work permits and employee mobility.
 Expatriate selection criteria
5. MNCs Requirements: Apart from expatriate-related factors, there are contextual factors, such as the
management philosophy and approach of the MNC- whether it is ethnocentric, polycentric, region-centric, or
geocentric. The status of the MNC-whether it is an international, multi-domestic, transnational or global
company-also influences this decision to a great extent. Other situational factors include, The mode of
operation involved if it is a joint venture etc., duration of the assignment so that to check the addition of
family members too in relocation, amount of knowledge transfer inherent in the expatriate’s job in a foreign
operation: If the nature of the job is to train local staff, then the MNC may include training skills as one of the
selection criteria.
6. Language: Differences in language are recognized as a major barrier to effective cross-cultural
communication. Yet, in terms of the other selection criteria, from the multinational’s perspective, language is
placed lower down the list of desirable attributes.
 Cultural adaptation

• Adapting to a new environment takes

time, and the pace of transition varies
from person to person.
• The typical pattern of cultural
adjustment often consists of distinct
phases: Honeymoon, Crisis, Recovery,
and Adjustment.

Note that this cycle is repeated upon re-

entry to one's home country or culture of
origin. 
 Cultural adaptation
The Honeymoon Phase
This phase is best described by feelings of excitement, optimism, and wonders often experienced when one
enters a new environment or culture. Employees are likely to focus on the positive aspects and pleasing
differences of the new environment.

The Crisis Phase

• The Crisis Phase is also called "culture shock." In general, culture shock describes the anxiety and
feelings of surprise, disorientation, or confusion one feels when operating in an entirely different cultural
or social environment.
• Culture shock does not necessarily occur suddenly, but may gradually affect a person's mood over time.
The length of time a person experiences culture shock depends on their level of self-awareness and the
length of time they stay in a culture.
• Symptoms of Culture Shock: changes in eating habits and sleeping habits, homesickness, feeling hostile
and complaining frequently about the host country/culture, irritability, sadness, depression, recurrent
illness, withdrawing from friends or activities
 Cultural adaptation
The Recovery and Adjustment Phase
Recovering from culture shock is handled differently by everyone; we each have our unique circumstances,
backgrounds, strengths, and weaknesses that need to be taken into consideration.

• Realize that what you are going through is normal.

• Keep in touch with your home country. Read newspapers from home, international magazines, etc.
Watch international television channels or surf the internet. Call home regularly. Have familiar things
around you that have personal meaning, such as photographs or ornaments. Find a supplier of familiar
foods or visit restaurants that are similar to your home cuisine.
• Take care of yourself. Eat well, exercise, and get enough sleep!
• Talk to someone. Find friends who are going through a similar process, call your family back home, or
see a counselor.
• Have fun and relax!
• Improve your English skills. Cultural adaptation is greatly enhanced by perfecting your English skills. Not
being able to clearly communicate can create isolation and loneliness. Make a point to join activities that
give you the opportunity to share in conversation and express your identity.
By Ayesha Syed, JRF, Yogi Vemana University, Kadapa