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By Muhammad Hammad Irfan Ullah Khan Mohibbullah Khan Muhammad Amjad Muhammad Ajmal Muhammad Adeel

HRP - Concept
Human Resource Planning is the strategy for the acquisition, utilization, improvement and preservation of organizations human resources. It aimed at coordinating the requirements for and the availability of different types of employees.


International HRP
The HRP is closely linked to the business plans
HRP The process of forecasting an international organization's future demand for and supply of the right type of people in the right number. Corporate planning managerial activities that set the company's objectives for the future and determine the appropriate means for achieving these objectives

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.

International Recruitment - Recent Trends

Some distinct trends observed in international staffing
Work Force Diversity Off shoring Increasing use of background checks Identifying recruiting sources Challenges of dual career couples.

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?

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

The relevance of HR department is at stake

International Recruitment - Recent Trends

Background Checks
Educational qualification Employment record Address Professional qualification Credit and bankruptcy Database Probable criminal record

International Recruitment - Recent Trends

Sources of Recruiting
Job Posting Websites Your Company's Website Employee Referral Programme Recruiters (External) Recruiters (internal) Ads in Local Media Your Companys Intranet College / University Recruiting Temporary to Permanent Hiring Ads in Professional Association Media E-mail lists / Discussion Groups Ads in National Media Blogs 92 % 85 % 81 % 59 % 50 % 48 % 47 % 45 % 42 % 28 % 21 % 15 % 3%

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

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

Staffing Orientations
Companys response to global market opportunities depend greatly on managements assumptions or beliefs
both conscious and unconscious

The world view of a companys 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

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) need 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.

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

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

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

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
Specialty (required skill, knowledge) Management ability (particularly motivational ability) International flexibility (adaptability) Language facility Endeavor (perseverance in the face of difficulty).

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. Nationality is deliberately downplayed Firm actively searches on a worldwide or regional basis for the best people to fill key positions Transactional firms tend to follow this approach.

Geocentric Orientations
Regiocentric or Geocentric orientations are practiced in global or transnational company However, some research suggests that many companies are seeking to strengthen their regional competitiveness rather than moving directly to develop global responses to changes in the competitive environment. This approach is feasible when highly competent and mobile managers have an open disposition and high adaptability to different conditions in their various assignments and such employees are available at HQ as also in subsidiaries.


Familiarity with the home office goals. Objectives, policies and practices Promising managers are given international exposure. PCNs are the best people for international assignments because of special skills and experiences

Difficulty in adapting to the foreign language and the socio-economic, political, cultural and legal environment Excessive cost of selecting, training, and maintaining expatriate managers and their families abroad Promotional opportunities for HCNs arc limited PCNs may impose an inappropriate HQ style Compensation for PCNs and HCNs may differ Family adjustment problems, especially concerning unemployed spouses

Familiarity with the socioeconomic. political and legal environment and with business practices in the host country Lower cost incurred in hiring them compared to PCNs and TCNs Promotional opportunities for locals and consequently, their motivation and commitment Languages and other barriers are eliminated Continuity of management improves since HCNs stay longer in positions Salary and benefit requirements may be lower than of PCNs Difficulty in exercising effective control over the subsidiary's operations Communication difficulties in dealing with home-office personnel Lack of opportunities for the home country's nationals to gain international and cross* cultural experience HCNs have limited career opportunity outside the subsidiary Hiring HCNs may encourage a federation of nationals rather than global units

TCNs may be better informed than PCNs about the countries of assignment TCNs arc truly international managers Host country government may resent hiring TCNs TCNs may not want to return to their own countries after assignment Host country's sensitivity' with respect to nationals of specific countries is missing HCNs arc impeded in their efforts to upgrade their own ranks and assume responsible positions in the multinational subsidiaries HCNs or PCNs

Managing Expatriates
A few guidelines would help identify potential expatriates.
The willingness and enthusiasm of a person to work on overseas assignments Looking at their background - are they multiculturists themselves? He should possess appropriate skills for the positions overseas The family background of the individual also needs to be considered Local laws of host countries often come in the way of expat postings

Managing Expatriates
The element of 'cost' that drives the decision to staff with HCN's rather than PCNs. If expatriation is inevitable, the need lo calculate
Cost-effectiveness differentials Negotiating competitive compensation packages Relocation costs Providing support with relocation with reference to packing and shipping of belongings Locating suitable residence are required to be done

Managing Expatriates
Selection Criteria for International Staffing
Technical Competence Relational Skill Ability to Cope with Environmental Variables Family Situation

Managing Expatriates
Mark Mendenhall and Gary Oddou in 1985 identified four major dimensions that could influence an expat's selection and adjustment.
Self orientation - self-confidence, self-esteem and mental hygiene* Others orientation - develop lasting friendships and close relationships with them and acculturate more easily in overseas assignments Perceptual dimension - ability to make correct attributions about the reasons or causes of hostnationals' behaviour Cultural toughness dimension - the situation rather than to people.

Managing Expatriates
Specific Individual Criteria
Willingness and motivation Performance (previous) Technical abilities Relational skills Cross-cultural adaptability Open-mindedness Stress adaptation skills Administrative skill Communication skill Leadership traits Marital status

Managing Expatriates
Specific Family Support
Willingness and motivation lo become a trailing spouse Spouses adjustability Give up jobs and career prospects Marriage stability Children s education

Managing Expatriates
Job Factors

Technical skills Familiarity with working in HQ Basic managerial skills General administrative capability
Tolerance for ambiguity Behavioral flexibility Non-judgementalism Cultural empathy

Relational Dimensions

Managing Expatriates
Motivational State
Believe in the mission Congruence with career path Interest in overseas, specific host country culture Acquire new patterns of behaviour and attitudes The spouse's willingness to relocate Openness, supportiveness Ability to adapt to a culture different Stability of the marriage

Family Situation

Language Skills
Host country language Non-verbal communication

Managing Expatriates
Common Hardship Factors
Housingavailability and quality of expatriate housing, limitations due to crime or security considerations, reliability of utilities; Climate and physical conditionsconditions of excessive temperature or weather risk of major climatic problems or natural disasters; Pollutionseverity of atmospheric, water, radiation and noise pollution: Diseases and sanitationhealth risks, public sanitation, need for food or water treatment: Medical facilitiesavailability and quality of health care facilities and medical staff; Educational facilitiesavailability of quality schools for expatriate children

Managing Expatriates
Common Hardship Factors
Infrastructurequality and reliability of telecommunication, mail, utilities, road conditions; Physical remotenessgeographic isolation, travel systems; Political violence and repressionrisk of violence, terrorist activities, government repression; Political and social environmentfreedom of expression, human rights, intolerance, corruption and poverty levels; Crimerisk to person and property, police force; Communicationuse of major world languages, media availability and censorship; Availability of goods and servicesavailability and quality of food supplies, clothing and grocery.

Managing Expatriates
Course of Action for MNCs
Provide culture and language orientation to make the unfamiliar become a little less strange. Authorize pre-assignment visits for the expatriate and spouse so that they can find appropriate accommodation Encourage the family to involve the children in the discussion on educational options. Provide local contact information so that the family will be welcomed on arrival.

Managing Expatriates
Course of Action for MNCs
Assign home-country mentors who are familiar with the challenges of expatriation. Provide EAP(Employee Assistance Programme) Provide an explicit job description so that the employee knows precisely what is expected, thus minimizing insecurity Inform the family, prior to their acceptance of the move, of expected hardship conditions so that they can prepare themselves beforehand.

Managing Expatriates
Expat Failure
US Organisations
Inability of spouse to adjust Manager's inability to adjust Other family reasons Manager's personal or emotional maturity Inability to cope with larger international responsibilities

Japanese Organisations
Inability to cope with larger international responsibilities Difficulties with new environment Personal or emotional problems Lack of technical competence Inability of spouse to adjust

Female Expats
Motivation Stereotyping Capabilities Relational skills, coping with stress Organisational Process Host country attitude

Role expectations Patron Male boss Sexual harassment Threatened male colleagues Blocked promotion

Managing Expatriates
Minimize expat failures:
Design a job that maximizes role clarity, minimizes role conflict and compensates for role novelty Use discerning measures for selection of international employees and their companions. Educate native and foreign employees in intercultural communication competence. Provide opportunity for language lessons. Provide a technical assistant to help with the details of starting life in a different culture. Provide all information and equipment pertinent to the role/work of the employee.

Managing Expatriates
Minimize expat failures:
Create open, frequent communication with the home organisation to dispel feelings of abandonment. Create opportunities for positive social interactions in order to communicate and become better acquainted with host country members. Mostly, listen to them. Provide proper organisational support systems, both through logistical support and support from supervisors and co-workers in the host counu). Include spouse in any training and support programmes.