More important is which of the two common approaches the MNC takes when implementing recruitment and selection. Some use a domestic-based philosophy by allocating home-market employees to lead and manage offices in other countries. Others take a more localized tack and hire people within each foreign market. Each method has its own pros and cons.
This implies that human resource management is imperative in ensuring that these crucial company assets optimize their potential and work effectively toward achieving corporate objectives Richards,p. These common objectives of HRM apply to every corporate environment irrespective of the Recruitment and selection practices of mncs in china location.
However, actual HRM practices may vary from one corporate setting to another or even one country to another. The ultimate assertion is that, it is becoming progressively crucial to execute effectual HRM practices, while matching them to the cultural backgrounds of a particular environment, in order to successfully manage people.
The contemporary corporate environment is increasingly embracing globalization and as a result, it has become crucial for companies that seek to succeed internationally, to adapt to changes that accompany this trend.
The changes range from emerging laws or reforms, to social trends. Companies must act swiftly, so as to survive, while retaining relevance and competitiveness.
However, there are varying HRM models in the modern environment and equally diverse disparities in the manner in which different countries implement them. These dissimilarities are primarily attributable to national differences in employment systems, coupled with national culture variations Broadway,pp.
One of the basic HRM practices in any organization is selection and recruitment of employees. Employers around the globe often use similar recruitment processes, with the selection criteria varying slightly from nation to nation. For instance, just like most countries around the world, corporate employers in America usually select and recruit potential candidates based on personal interview findings.
This first phase enables organizations to select the first lot of employees that qualify for the next phase of evaluation. The other HRM practice worth evaluating is performance appraisal.
This is essentially a tool utilized in measurement of performance or objective achievement of a person or team. The principal purpose of this practice is to evaluate the efficacy of employees and recognize them for meeting their obligations. Performance appraisal also makes it possible for an organization to identify challenges and obstacles that impeded employee development and overall productivity Dessler,pp.
In America, performance appraisal is largely oriented toward encouraging individual achievement and productivity. The appraisal approach in America is also oriented toward attaining results and meeting individual obligations.
Contrastingly, performance appraisal as a HRM practice is not accorded much attention in most Chinese organizations. The two countries also differ on general human resource planning.
For instance, while in China this practice is used to replace employees that leave, in America it is specifically linked to organizational strategy. Employee training and skill development is yet another crucial HRM practice in the modern corporate environment. However, the proportion of money allocated to training programs, as well as, the training modalities applied may differ from one country to another.
Most American invests heavily in employee training programs, in terms of both money and time, compared to China. While American organizations set aside longer durations to facilitate comprehensive training of employees, Chinese firms opt for shorter conceptual training and more on job training.
For instance, most Chinese organizations provide recruits with a one-week company orientation and induction. This training makes it possible for new employees to familiarize with rules, regulations, working environment, tasks to carry out, and overall business operations.
After the orientation and initiation duration, recruits are then assigned to various departments, where they work under qualified supervisors for a specified probationary period.
Clearly, the greater part of training in China takes place while employees are working. This is unlike in most American organizations, where companies set aside specific times and training programs for employees.
Further, both Chinese and American employers envisage and work toward a common goal of broadening and improving the technical expertise of their staff. In many cases, workers are offered incentive payments in order for them to get motivation, as well as, reaching out to the workers in a positive manner.
Opposed to the convectional ways that are applied by many organizations all over the world, utilization of financial incentives is a key factor that is used by the Chinese people. However, the traditional aspects of motivation are more applicable in America where people are paid in terms of their performance results.
This system is not very applicable in China because the management always insists on implementation of incentive schemes than it is applied in the USA. Evidently, there is a huge difference in regards to the compensation practices of America and China.We asked MNC managers working in China to indicate the extent to which their China policies for recruitment, training, employee development, compensation, performance appraisal, and promotion of local employees were similar to the company’s global policies.
The international recruitment and selection policies and practices that South Korean MNEs employed in China can be characterized as polycentric in international staffing, ‘one-way selection.
Recruitment and Selection (International Staffing): Dr. Shyamal Gomes failure of any MNCs. Question is why? Recruitment & Selection is the process that interlinked the HR and practices and experienced in management practices (TCNs).
• For example, positioning in Sri lanka, South Indians can be preferred. Selection Procedures of Expatriates: In view of the direct and indirect costs of expatriate failure, and knowing the reasons for their failure in their assignment, MNCs spend considerable time and effort in screening employees and their families before selecting them for foreign postings.
MNCs’ recruitment and selection practices, as discussed below. Process model of international recruitment and selection In this chapter we propose a holistic four-stage model of th e.
In that case, the study of recruitment and selection practices of MNCs in China, actually, illustrates how to develop IHRM practices under conditions of high cultural and institutional distance between partners.