Recruitment sources from the international human resource management (IHRM) oint of is, viz. (i) macro level, i. view can be studied under two level human resources are sourced and (ii) micro level, i.e., the institutional sources within a couptry from which human resources are sourced. Organizations involved in international human resource management are basically of two types, iz., (i ational companies and (ii) domestic companies. These companies search for Prospective employees both from within the country of operation and outside the country. They source certain categories of prospective employees internationally, if they fail to procure them inont and Selection Fl or operon. Tha, these a en oe Somat So ae ee ao an (peta caps et wes (RAEI AS exp il Nan ane scout tational, bat county naan he tere ec Ce cending 0 exDa ats, some genoa 2 fon COU naan, Bees a coty nana hr Som oer somes wa = anne rn wt coe, ats he sr sounctS at macnn sgUITME! LEVEL Ge el nd geocentric ‘Ss, choscenic, polycentric, aang ot teri a Nace erate APPTORENPRECR Country Nation, . we tes ns Sia lens tem and rg tk aN > hiticnal Companies which are mare ates snd ma 2 t, Therefos, H surces the = om se Ts aperach was widely fl ase Bee ahd GaN, Phils Mates Pen Pils important vacancies nationals, non-Dutch Som :Duch Mat. Enocene sey oseh ely used efare 1B oa Cambie, Philips NV and Matsuse acy ‘llowed it. All important postions i PH {er bd by Dulch naonals. Jaggoese and sou eee MING Tike Tout, Mateus ey ilo arash ve Ley. TgaeneGnenras Per te “a Ma ‘eported in Sr 1% of sbidres of he Japanese NCS wae nen sally, some MNCS prefer parent country natgnts se fe dstust other nationals. They feel tha people ee ‘hrs the sills necessary to carson ‘at tat the paren st countries particularly developing count getty of qualified personel comparatively a less cot in hens country * High cost of host Sum aaaal foetal etnies of esaces ary in ‘ni! cous tke USA, UK, Germs Tapas seg “on Sunt pationals when work in foreign countries are TOLS committed to the + Rat of company's stele hn hae oi hat so " "ry national when employed in host country exhibit highest sens o belongings Sompsny than that of the host cote.__—- Advantag 2 amir ws Pato ‘nome a rd unica, ees of Parent Country Nationals/Ethnocentric Approach Jo aa asim Sot national/olow elnocenticaPprMeh in sou . ‘employees die 1 the folowing advantages + Parent county nationale are familar with ss, strategies, tactics, po familiar with company gol i procedures; hed * Parent country ations are mote knowledgeable of the company's products, ‘hao, Customer needs and problems, abd customer service issuers (Re, unt nationals have close petonal network with the Readgurters empl they can gt the things in Headgusrtersinerwork with eedquates exe erefire © Parent country nationals maintain close communication and coordination With began, proach ‘etowing ane tee of parent country nationals enjoy certain advantages, it suffers fom 2 Beene ot for host country nationals to get beter jobs/managerial jot, Z eee in opportunites for human resource development of host country nations peactemployment of host county's employees: pastes in.marale and leaky ofhst county nalaals towards MNCs; OA procession and lack of effectiveness of home county nationale i bor — at ee Gable loved tte howe ccamny susan race irks subsidiary in age, culture. In addition, this pr * Normally, expatriates are costly, except in advanced. Countries, due to high salary and Variety of benefits. This increases con 1°85 in foreign countries due to the ;_fmpleyment of paren country nationals in subsidiaries rather than ost const oni * High cost of salaries and benefits of expatriates create a sense of wage diferente at discrimination among host country national. Infact, hos, county nationals a demotivate Jhon they compare their remuration and job designation with the remintratiee toe esignation of expatriates (See Exhibit 8 1); * Results in complexities of cross-cultwraldiversity management of employees in host cous * Home country nationals may take long-time for cultural adaptability and yt somes ‘@ understand and manage host country’s nationals and consumer behaviow,POLYCENTRIC APPROACH ‘treats each subsidiary as_an indgpgndent company and — yy, a Phrelay all the operations and delegates decision-making authority to its executivesThe exes Intemational Human Resource subsidiary, design Wbsidary formulate the stategies based onthe mission ang s lav, coogi th producvservces based on host county's environment feat cone mie contin, goverment fafeos 3) andthe ene pe gt country, fg omet®: Thus, the polycentric approach mostly. focuses on the conditions : {Suntry in formulation and implementations of stratepies. The CEO of the subg” fay ports the overall CEO of the MNC. "7 deg, MNC, sources prospective employes inching senior mANABErS forthe substi host country national el natiseate ae lew of independent stinctive identity ape, 20, subsidiary onder poljocseicoopeonch. Some MNCs during the Iter stage of ry Sh, Prefer to develop host country nationals though taining provided by parent coum ity through aoa wenn and developmen chalet eopecally OUR unay host couny national ne developed to man the Jos tthe subidary, MNCs Beye ne ‘host county nationals in all jobs including senior executive jobs. For example, South ps _Brewery-a subsidiary of Asia-Pacific Breweries Limited and Coca-Cola Amatil (PNG) Lima’* a subsidiary of Coca-Cola Limited at Port Moresby, Papua New Guinea developed Papua ,° Guineans and placed the nationals at almost all positions including senior management pei Why Do MNCs Prefer Polycentric Approach? ‘Some MNCS prefer to source the prospective employees for subsidiaries from the hu, county nao. In ther word, MNCS follow polyense approach for Teating pom cmplayca for subsidiaries due 1 the following reasons ® MNCS flow te policy of developing and helnng the nationals ofthe county, whee subsidiary is located. a ye tty and dacharge the same towards te soietylommanity of te + MNCS fee its re scomnry where We veelclary is Laid aad doing bus ‘To reduce the cost of human resources by recruiting the host country nationals due t he high cost of expatriates relative to nationals of the host country. aT ‘+ Host country nationals closely fit to the culture of the customers. ‘¢ MNCs prefer to become ‘glocal” companies, ie., think globally (formulate global polices and strategies) and act locally (implement policies and strategies in accordance with lal conditions) in order to maximize business and profits. MNCs recruit employees locally in the process of acting locally.jtment and Selection prantages of Polycentric Approach MNCs prefer host country nation, ls cel polyc : oie emBaEs da oe foes SOUSEOL Cente apron in rertmet of BF a comtyetizta sy — 25S comly than expatriates in almost i INCE need not provide aime SxPatriates in almost all developing countries. provide to expatriates, isto host counry nationals what they invariably ess salary levels and less variety of benefits, host trates, de t0 I country nationals ae less cost than ey + Hast comm national have fat and efeiveadapailiy to the bie practices of the ssbsidary 2 well sth organizational cle of te subside + When MNCS enter frcign markets trough cauiing exiting busines in fre company, coaes he sale ns) treet aera eee ‘can be enanced. Practices of MNCs, ‘ability in employment. Therefor, recruitment elective «Roope ofthe ost country appreciate the employment + Host county nationals will have relatively st as well a5 reieiion management would be Despite hese advanags, polycentric appcach would sur from certain disadvantages Now, we discuss these disadvantages, Distdvantages of Polcetrie Approach Some MNCS avid plcsicaproth in hr resumen de othe floing disantges. They ae * Hvul te very it conte eats, comms, Gani sate, eof te sry wih i ote egress nog tat ‘eporting methods, language, dealing with ‘conflicts, negotiation approach, etc, as the host comty ttn nay oot hve gage alae and tate ee tnplyes i he pret soupy * Mumps of hadgurtes cmc he nlc x oft iii bes acces wae te anu of ie shar ct fete a the headquarters” operations, = * Remon opts feng a vl aces shld eine eh headquarters and subsidiaries, 1 This sppoach ints the motility of eulayecs within the subsidiary a well as headquarters. * Oreanizatonal clture of the parent company cannot be adapted inthe subsidiaries, * Wotk cle a wel as organization culture of sobscatis and headquarters can't be ‘changed as polyenrc aproach isolates the headjuariers fom is abies, * Simlowes ofboth eadqustes and subsidiaries wilt have theft of working in single company.Regiocentrie Approach ‘When HCNs @ Why HCNs? @ Policy of developing HCNS | © During the growth stage of Social Responsiili subsidiary A HRD of host country. pacer pice Distinctive in culture a ceca Cost consideration ‘Glotal” Approach of MENS | 2 Cost consideration No ditnctive competency FH in terms ofall Factors of 1&2 bores Present, then Factors of 1&2 bores Absent, then Best from HCNs o ‘Worst from HCNs o Less Cost of HRs ‘© Coordination becomes 2 Gata 2 Goatwoad tiough acquistions |” complex easily © No lands on experience in + Employee Retention both headquarter nd 2 Employee 1b Satfction sie T Appreciation bythe people | * Lee promot AeSamtt gie ‘opportunities ‘© Limits mobility © Different cultures at headquarter and subsidiaries {es ah iil ten SI Before studying the regiocentrc approach to recruit, we study the regiocentric apprch 10 the business operations of MNCS. MICS afer operating sucessfilly in fein coun, ins of exporting to the neighbouring counties of the host counry. For example,qecrtiment and Selection a sage, tien simigicy — Wetjor >, Nb onl vienna grasa «e Peteemeee ” tose envioumet f ie eve os Swe fr he ein, DK COME suger tke see “Ss 0 regent strateries and Unser caer omcive Fan ay eae Fot example, Bata (Inia) Himited eae ee Sites of AG ace ae a Ty sed Face and Afi sae open counties ike oe ‘Aifcan countries, Now, sus why MICS pee eicenti enc aoa Biceteaprach in einen of pete Why Do MNCs Prefer Repiocentric Approach? Sone MNCE soe the rotpetve copes fi i iri fom tbe region wire the subsidiary is eae dette flloning nonce £0 Come of 4 es — + Nescavalability of qualified persone! in adequate number inte ost cou. orm «Candles from theme ore ores simi aura ales, oles Soa aes ee ‘o bet sil than tat ofc hat catty ames, ee ‘Therefore, the neighbouring country naonals A othe ela requtenens of subsidiary eh crete a em Be =e © Availability. in the regional countries at less cost ‘compared to jd ‘of parent country nationals, = sapere + Canstes fom neighboring cous wil hve a see of commie ad be ‘oi iy loagingness comes ose Of Parent country nationals and eter foreigners. ‘Now, we shall discus, when should MNCs prefer repocentc approai?. ‘When Should MNCs Prefer Reglocentrie Approach? MNCs may prefer regiocentic approach asa source of recruitment of employees for tit subsidiaries inthe followin situations: ‘+ Dung the transition between growth and maturity stages. * When subsidiaries expand their operation to the neighbouring counties trough diet and indirect expors. * Inadequacy of managerial and technicel sls in host country consequent upon the increase ‘in demand for such sil. % ‘+ When neighbouring country nationals with requted skills are available at less cost compared to that of the host county national Advantages of Reglocentric Approach MNCS enjoy the fllowing advantages by prefering the regiocentic approach * Cultural familiarity of the candidates with that ofthe host country. * Less cost of staff comgared to parent county national * Subsidiary can perform its busines operations eiienty in neighbouring countries by Fexriting neighbouring country nationals * Loyalty and commitment of neighbouring country nationals towards sibs,International Human Resource Management © Stability in employment of neighbouring country nationals compared to that of other foreigners. Disadvantages of Regiocentrie vipprosck 4 Regiocentric approach, though, seems to be better than polycentric approach, suffers from the following disadvantages: © Subsidiary cannot a highly qualified and suitable candidates; and employment; * Subsidiary cannot Feduce the cost of human resources to the lowest extent.Recruitment and Selection EOCENTRIC APPROACH/GLOBAL RECRUITMENT APPROACH Before studying the meaning of geocentric approach to recruitment, we study the geocentric approach to business operations of MNCs. Under geocentric approach, the entire world is just like a single country for MNCs. They source all human; technology and equi kinds of resources like material, parts, finance, quipment from all countries in the world based on exclusive business principles of procuring the best quality at the Towest price and market the products/services in the entire world wherever the product can be sold at more favourable terms and conditions. They operate in the entire globe with a number of sul es. Each subsidiary functions like an independent and autonomous company in formulating policies, strategies, product design, human resource policies and the Tike. Under geocentric approach to recruitment, MNCs source for the best prospective emplayees in terms of suitability for the job from the entire world, regardless of nationality or ethnic groupor any other consideration. For example, Ms. Indra Nooyi, the Indian national is appointed as the i ited, Electrolux, a Swedish MING, claims that itresmited Fi mlocted cxchattaeTased an the paialEy of the emndidate fee Soe pontisa?” (See Box 8.1). 205 OMe Uy Under geocentric approach to recruitment, MNCS source for the best prospective employees in terms of suitability for the job from the entire worl.oun Why Do MNCs Prefer Geocentric Approach to Recruitment? MNCs, particularly, after the recent phase of globalization, prefer geocentric approach to globalization due to the following reasons: » Global Business Policy: MNCs with global business policy operate_in many Countries in the world and they treat all the couritries as single country. Therefore, they invariably follow geocentric approach to recruitment. » Intensifying Competition: Re Recent phase of globalisation intensified competition between MNCs and domestic companies in addition to competition among MNCs. The intensified competition forces the MNCs to formulate most appropriate and timely strategies and implement them efficiently and also on time. This process needs best talent rather than preferring parent country nationals or host country nationals. Therefore, MNCs prefer the geocentric approach. ee =): » Technological Revolution: Recent times witness fast growth and signifi innovations in production technology, information ation technology and technology shifts in logistics mi me Shnological shifts invariably need the best skills and dynamism, sot necessarily available either in parent country.or host county. Therefore, MNCs prefer global approach to recruit the best talent. ee » Innovative Practices in Various Functional Areas of Business: Innovati es in manufacturing operations, marketing practices, financial management activities, and human resource management functions have taken place, particularly in recent times. These practices‘ment and Selection in variably need the best talent and skills to operate most t efficiently. Therefore, MNCs shifted their recruitment approach to global Sources in order to tec sorut the Best talent. » Increasing Migration: Globalization and growing international business enabled for the growth of migration of human resources across the countries that enabled the MNCs to sOurce_human resources across various countries based on talent. (See Box 8.2). ReciAdvantages of Geocentric Approach The advantages of geocentric approach include: Geocentric approach is appropriate as: competent pool, shared learning, core competencies, best talent at lest cost, etc. » Competent Pool: Geocentric approach to recruitment helps for attracting most_qualified people willing to serve globally, maintain a poo! of applicants and select the best among them. »» Shared Learning: The competent employees who work in subsidiaries and headquarters throughout the world share and transfer thgir_skills to other emp! oloyees of the MNC, which is turn, leads to human resource development, career and succession planning and development. » Core Competencies: MNC can develop core competencies as well as distinctive competency in skills, talent and knowledge and competent successfully. »» Flexibility and Adaptability: Geocentric approach helps to develop global culture which has more cultural flexibility and adaptability, bilingual and multilingual skills that would suit to varied situations. » Reduction in Resentment: Geocentric approach which would normally bring third country nationals, invariably bring an acceptance between parent country nationals and host countrygecruitment and Selection nationals in case of top level positions. This is because, n ‘employees perceive third country nationals as an acceptable compromise between headquarters and national ‘mangers, resulting in reduction in resentment. = - jp Best Talent at Less Cost: MNCs can place adequate emphasis on reduction in the cost of staff at the same tame Tecruiting talent, in case of geocentric approach. This is time when the home country nationals and host country nationals with the same/similar skills are costlier than the third country nationals. MNCs with truly global orientation towards staffing are phasing out ethnocentric, polycentric and regiocentric approaches to recruitment. »» Transpatriates: MNCs with global approach, recruit the people fom any country. Such employees are termed as “transpatriates’,” replacing the term expatriates. MNCs like Philips, Heinz, Uni Lever, IBM and ABB following global approach.® However, geocentric approach suffers from certain disadvantages. Now, we discuss them Disadvantages of Geocentric Approach MNCs that follow, geocentric approach, suffers from the following disadvantag » Immigration controls by Host country Governments: Host cot , normally insist MNCs, to employ the nationals and therefore, impose restrictions on. the employment of foreigners. (See Box 8.4). Normally, the Ps restrictions imply that MNCs can source globally for those skills which are not_available within the-country. Almost_all the countries impose restrictions on employment of foreign natianals including USA, UK, Japan, Malaysia, Papua New Guinea and Eritrea. Therefore, it would be difficult for MNCs to follow geocentric approach for all the jobs. “‘Thewetiee MAN s cornet vaste’ cet Vid adentens off acting the teat talent ot theta erat 209210 International Human Resource Manageme,, i developing countri dvanced countries and some developing countries j, aearitg documentation and high fee for recruiny ¢ formalities are time consuming, cog, In addition, immigration authorities |, down unnecessary, and time consuming formalities, in ationals. Companies find thes« use and children of employees. Thes, » Immigration Formal and employing foreign nat ; and test their patience in recruiting foreign nationals. at least for certain jobs down still tough procedure for granting visa for spot formalities discourage the MNCs in recruiting employees globally » Opposition from Nationals: People from the host country oppose the geocentric approach to recruitment as it result in loss of jobs for them. In fact, some people even in USA anj UK organized the protests against geocentric policies as well as against expatriates with the slogans such as ‘expatriates go back’, ‘expatriates grab our jobs’, etc. This situation may Greate a sense of insecurity among the expatriate employees and their family members. » Additional Costs: Though, geocentric policy seems to be less costly, in terms of salary, sometimes it may not be true as implementation this policy involves training in culture, language, adjustments, developing national employees in tune with third country a ete.‘sources include: ‘Subsidiaries, Parent Companies, Campus Recruitment, Private Employment ‘Agencies! Consultants, Professional Associations, Data Banks, and Internships. (3) Micro-level Sources of Recruitment Organizations seeking to acquire human resources from international sources should identify the sources within each country they selected for sourcirig the employees. These sources may vary_from country to country due to the varied level of development of institutions inv different al include: (a) Subsidiaries, (b) Parent Companies, countries. These micro level sources in gener: (©) Campus Recruitment, (d) Private Employment Agencies/Consultants, (¢J Professional Associations, () Data Banks, and (g) Internships. prospective employees from their subsidiaries Subsidiaries: Parent companies can source the operating in various countries. Subsidiaries, may at times act as a potential sources of recruitmentRecruitment and Selection satisfaction, loyalty and commitment to ths Saar This also results in enhancing employee Parent Company: Subsidiaries can so ‘ companies. Parent country nationals have Knowledge oe peers employees fom ihe parent procedures and organizational culture. Technically and from organizational calc pont of weg they would be best candidates. This source also reduces the cost of recruitment to the company in addition to satisfying employee's needs for promotion and fulfilling their carcer goals. Further employee commitment and organizational loyalty would increase. . Campus Recruitment: Parent companies and subsidiaries can get fresh candidates of different types from various educational institutions like Colleges and Universities imparting education in Science, Commerce, Arts, Business Management, Engineering and Technology, Agriculture, Medicine, Computer Science, etc., and trained candidates in different disciplines Most of the Universities and Institutes imparting technical education in various disciplines like engineering, technology, management studies provide facilities for campus recruitment and selection. They maintain the bio-data and performance required of the candidates. Organizations seeking to recruit the candidates from this source can directly contact the institutes either in person or via online and stimulate the candidates to apply for jobs. Most of the organizations using this source, perform the function of selection after completing recruitment in the campus of the Institute itself with a view to minimizing time lapse and to securing the cream before it is attracted by some other organizations. Infosys and Satyam Computers recruit the prospective employees through campus recruitment from universities in USA, UK and China. (See Box 8.5).gi jloyment Agencies/Consultants: Private employment agencies or consultants nes alas stra therein! aging ogc client company by sharing ae manages are relieved ffom recruitment functions segs they ean concentrate on al activities and recruitment functions is entrusted to a private agency or consultants, Fie 10 limitations of high cost, ineffectiveness in performance, confidential nature of this pe agerets sometimes donot depend on this source, However, theve i he recruitment of exectives. Hence, they are ao led exer aan tne MNCS depend on is Source for highly eecianes Positions and executive postions. Bs ccciuel Orpintwines Probiaiaal ogee cnn associations maintain complete Jen of tice menbers and provide the same to various MNCs on . Tequistion. They alsg at an exchange belween their members firms in exchanging information, clarifying ba, ‘ete, MNCs find this source more useful to Teoruit the experienced and professional ployees like executives, managers, engineers, etc, Data Banks: MNCS can collect the bio-data of the candidates from different sources like loyment exchanges, educational training institutes, candidates, etc. and feed them ir their banks. It will becgme another source and the MNC can get the particulars a5 and when 4 ‘to recruit. Internships: MNCs encourage the college and university students to work under internship jets, Students under internships lea m practical aspects of the Jobs while imparting the Tatest the college to the regular employees of the MNC. Sn opportunity to evaluate the skills, full-time jobs, if the MNC finds the didates also have a chance to evaluate to accept the offer of full-time job ot recruitment, Now, we shall discuss the techniques of recruitment for global human resources: Techniques of Recruitment ‘nical and conceptual skills they learnt in internship works as an effective source of fsrutment techniques are the meas. or media by which MNCs cont Hes or provide necessary infomation or exchanges ideas or stnulsee AS MNCS use di erent types of techt ‘Siquesusefil to stimulate internal c cts prospective thei To apply, for iques to stimulate internal and external candidates. dates areInet tumen Rca eeey ‘ae i ea ol in og ° Ct rrr nine amar Some ara ay cs pe Heotpecit hp repo "Sp Spot ern ta ‘through ther known sources or professional networks for jobs. MING Strat eee Sie oa oe ho refered ‘andes opn the sus in employing ihe canals. (See Bos Soy Employee-referral Bonuses The company gets a new e este care ee ruins noe S ‘ob, aa {Btoany nates erpoyes =the curent Sey ee ay oth yal im tine erm ceacrsmemoees Sewd er Eo es OO YOU" rns ag 2M: an erolres refer bonaspogran os ot sits CO Senn cn eset salons torr, Employeearven Treaee po les what company woud Jim al favor of policies that er Test S5 20" sf empoveereteral bonuses for So ployee with no 2 or rae terally without your meron, fot ac: SIM we eye made er propa fecentfoks ao better or sere re emia 10 Ne Oren mane ee “companie wy eats an or Rou fe ae People stay in the organisers et cane 9 cl Ianoe os «eae ae, (00) Scouting: Seo wih rn mtd Oe cpeenatn ef 8 MNCs ile ig echt RN yt PANS i oe Jobs. The repres Provide information about i aif the dows of ‘information and ideas and (0) Adverising: Adveting x vides on vay commun, ‘etemation about the jo about ny and exchin he candidates,- gecument ana selection agement in ere 0 achieve te objectives of adverts atverisng hast: Yo) Aayze jb reurements, iy Desde who does wha ‘write the ny: (Bese he advertisement phn and sles he medi uy Boast reponse. pmnageen afer seletng he ent hie as 0 dec upon te tm mae erect fis. PT ‘aun Sess and Tenis of Rerelinest im onber of ode seegitment sure. ad echnigucs ae being waed br he MIM A rates eal scucs and tig. Ths fet and ciigys ie walk a et ing mse, bis alles, an ere im The tan ep caning MNCS oni ime gre a rain Th fre, yas the talent tend for a8 REV fects foie aplatin na ei nt, ie anda Sa ‘The snd io singe inerenes wil sled for apie teenie si jates though tests and interviews {Conlin The by an yan oan eS potential job seckers to sro tk on perl an isa thm sezrig te obs The companies ST hesaTaBle rekon fh antes tough te sleton poet “Hee Hunting: The MNCS reas he professions epsizain: 1 PAE oe ee Hees to the senor eztv poston The poisson ENTS he Sa adi able caddis and advise the MING sezarding he ING of Ce sear Head buns are also called search constants (Ge) Body Shopping: Professional oganizatons and be pol of man resguces fr th poss 1 ir he candidates Otberwio, the organizations themscives-epponsh tnployes to place their human resource. These sd train institutions Frei there actvitie are known ab body shopping. The body shopping i wed only for computer profession (0 Resins Allance: Bynes alignoes ike acquisitions, merger, and ake-overs et cag ma esate Imation, te companies do also have alliances sharing their oman ecu on ad-hoc ba ven Eg sm ie et bond al wen AS otc” cams and ees often peopl oth ir vans) iy ic pe hee HE “cout ape fr and then reeoamnending tet acquisition jus for their employers. Ie does mean that, the MNC with surplus human resources offers the services of thir ‘ples to other needy MNCs 60) eerecrnoment Te tease 20 in eo elped Se moizatn oa nret ws sae egies. MNCS Wt Sou he marine (rw) ere, Sc td © {51 ine Ariel, Jo secs le ALCS ee wbvintret Which um by the prosper employers depending open thelr requirements a218 International Human Resource Manageme ces of prospective employees and motivating the, in rospec 7 en interest of the candidate to work with an organization, rracess. "Most of the MNCs used to follow the selection procedure based on the talents, job dix and job description as discussed earlier. (See Box 8.7). Majority of the employees of internation firms normally are expatriates either parent country nationals or third country nationals, Expatriates, whether they aré Indians working is USA or Chinese working USA or Swedish working in USA, share a common bond and face more or less similar challenges. Expatriates work with the people ra iferently for the same communication. They ofien rms curious to them, of strange cultures, who respond language and live in societies with rules and notepee to0 much to endure, the assignment may fail. The result is that both MING © ete sulle. Therefore, MNCs have to train ioodioete Her to excite the expatriate and increase his jut, not many {MNCs have undertook, the cultural and other areas of trainin te expatriate, NOW, We shall discus the expatriate system, (0) The Expatriate System Expatriates are vital for the growth of international business as inovations, entrepreneuralism and knowledge transfer. In addition, ‘enrol over foreign operations, act as insiders in distant operations, of global markets and foreign workforce. Expatriates with their core ‘les, human and soft skils, motivational and commitinent levels to serve a foreign country, axgrng foreign language skills and the abilities and talents of spouses to adjust with foreign eavironment and cooperate make their assignments more successful. Thus, expatriates are a seat value for MNCs due to the various atributes as presented in Table 8.1. MNCs strongly feel that parent country nationals have a sense of belongingness with the subsidiaries and take ‘sponsibility more or less voluntarily to contribute their skills, and dedication. However, parent ‘ounry nationals sacrifice their conveniences and certain privileges including status and power, ‘tsking alienation from domestic activities, and leave their professional network, social network tad social life at the home country. The expatriate system is different from an organization's domestic system. Expatriate system provides different career cycle based on international jobs! ‘ssignments, they provide skill, talent, they provide home country and deal with externalities and distintive job skills and Creer stages of an expatriate in international carer eycle are depicted in Fig. 8.6, Career Gale for expatriates deals with the sequence of jobs that employees must adress when opt for 4 foreign job. Similarly, it also.deals with the sequence of activities that MNCs must address ‘when employing expatriates to fill the jobs in the subsidiaries.*(2) Expatriates’ Failure Situations and Rates Most of the expatriate employees fail in the frst itself or at different latter stages either due to cul host country’s climatic, security and other envi For example, a Japanese employee could Toyota in Brisbane and returned to his country within three n employees return mostly after the expiring onths of his assignment. Some assignments are debriefed and repatriated Of the first contract. Expatriates failed in ther foreign the home country, to their previous job in Exp: tea job cult andWHY EXPATRIATES FAIL? There would be several reasons for the failure of the expatriates in their foreign assignments. ‘The Board reasons include: Inability of spouse to adjust to foreign environment Inability of employees to adjust Other family problems Employee’s personal or emotional maturity Inability to cope up with larger overseas responsibilities Difficulties with new environment Absence of educational, health and recreational facilities in host countries Lack of technical and job related competence Unsafe living and working conditions in host countries.(3) Selection Techniques MNCs as well as domestic companies hiring foreign employees should use different selection techniques rather than those selection techniques used for selecting nationals for a job assignmen in the domestic company or using domestic job performance rates. (See Box 8.9). Itis established in a research study conducted by Mendenhall and Oddou that domestic performance and overseas 1 In other words, an executive who performs high performance potential is not the same thing. in domestic environment may fail in adapting to different cultural set-up and different systems and practices. Various research studies suggest the following selection techniques for overseas employment in order to minimize the rate of expatriate failure. They are: © Self-orientation * Orientation towards others © Ability to perceive accurately ¢ Cultural variationsRecruitment and Selection * Technical and managerial competence © Adaptability © Age, experience and education Spouse educational background, interests and adaptability Achievement motivation and leadership © Family status © Language Strong desire to transfer knowledge and skills ee ee