International recruitment and selection brings a number of challenges for business organizations. They not only face difficulties in hiring the desired skillful staff from the host country, but may also have to deal with severe financial and cultural diversity issues. Through this research study, an effort has been made to highlight the major challenges and issues which make the international recruitment and selection process more complex and challenging for multinational organization.
The research report starts with an ample introduction to the Research question and proceeds by highlighting the core objectives of the research study. The research question clearly states the major objective of this research study in a quite precise and succinct manner. The most important section of the research report is Literature review which has been written after a comprehensive research from a number of academic and industry journal articles and books; most of which are published during the last decade. The next section, critical review of the literature discusses issues from the literature review with a critical eye and tries to find out the applications and limitations of the research studies reviewed for this research report.
The critical analysis section is followed by a Recommendation section which has been written with an aim to provide a proper framework to the international business organizations on how they can best manage their international recruitment and selection process. The recommendations are given in the light of internationally accepted human resource management theories, concepts, and models. The core objectives of the research study have been kept in perspective while making discussions, arguments, and criticism throughout the paper. The paper ends with a conclusion section which restates the major points of the whole research study and presents its usefulness for the future researchers in the field of international recruitment and selection.
SECTION 1: INTRODUCTION
When businesses feel that they have enough financial resources and competencies to grow in the market, they either choose to grow in the local market or decide to expand their operations in some foreign country (Schuler, Dowling, & De Cieri 1993). Setting up business in an international market is not an easy task for a new entrant; it requires it to utilize its strengths and competencies in such a fashion that it can grow profitably and competitively (Ashamalla 1998). In international business expansion projects, organizations hire new workforce at all levels and job positions. They are either filled with the residents of the local market or with the expatriates from the home country (Dowling & Welch 2008).
This research study is carried out with an aim to discuss the recruitment and selection process which is carried out in an international work setting and highlight the problems and issues which this process brings for the organizations. This research study does not aim to disprove some theory or criticize the existing literature on the selected research question; rather it has the overall objective to bring together the relevant knowledge and understanding of the topic from the literature reviewed for this purpose, and reach a definitive conclusion and give recommendations to the business organizations on how they can better manage their human resources in the international markets.
A. Research Question:
"Selection of expatriates for international assignments is the most critical task in the international business expansion process."
B. Purpose of the Research Study:
The main purpose of this research study is to determine the challenges and issues which business organizations face when they have to make recruitment and selection of employees for their international projects. The overall aim is to identify the most important factors which are considered while this research question arises in the minds of business managers, business management students, scholars or researchers, teachers, business experts and analysts. International recruitment and selection process may also lead the organization towards serious industrial relations issues. Therefore, giving recommendations on the basis of analysis and results is also among the main objectives of this research study.
The core objectives of this research study are:
Identifying the major differences between the recruitment and selection processes in a local business environment and an international business environment
Identifying the major factors which contribute in making the international business environment comparatively more complex than a local business environment
Discussing how does the recruitment and selection process in an international work setting bring critical challenges and issues for multinational corporations
Highlighting the major problems which multinational organizations face when they have to make hiring for their international projects from parent country, host country, or some third country.
Highlighting the major problems which multinational organizations face in the management of their culturally diverse workforce
Comparing and contrasting the main components of the salary and compensation packages for expatriates working for multinational organizations in their international assignments with those of local residents working for organizations in their local work settings.
Recommending the ways in which the recruitment and selection process in an international work setting can be carried out in the most effective, well-organized, and cost-efficient manner
C. Research Method to be used:
This research study is completely based on secondary resources; i.e. The problem statement, discussion, and analysis have been explained from the already existing literature in the field of international human resource management. Therefore, the whole research can be called Secondary research whose purpose is to explain a specific research question in the light of past researches which have been made in order to contribute to the available literature. None of the sections from this research study is based on any interview or questionnaire which means the research study has no link with the primary sources.
SECTION 2: LITERATURE REVIEW
When businesses go international, they face a number of issues and challenges in their international expansion strategy. The external environment of the country in which they set up their business, the micro and macro-economic factors, and heavy legal and operational expenditures are the most important issues which modern business organizations have been facing for the last few decades (Pires, Stanton, & Ostenfeld 2006). When a new business is set up in an international market, the need for recruitment and selection of highly skillful and qualified workforce arises (Dowling & Welch 2008). The organization can either choose to recruit it from the target country or call the existing workforce from the parent country. This recruitment and selection of workforce is considered as one of the most critical steps in the international business expansion.
The literature reviewed for this research study contains books and journal articles on a range of different topics and issues. Especially the books reviewed for the purposes of doing a critical analysis on the literature review provide comprehensive knowledge and understanding of the topic of the research study or the research question. A number of books and journal articles have been consulted in order to get deep insights into the issues and challenges which business organizations face in the human resource management policies in the international markets. In the past few years, the literature has been added with numerous research studies conducted specifically to discuss the problems in international recruitment and selection processes (Pires, Stanton, & Ostenfeld 2006).
Through this literature review, an effort has been made to extract the best books and journal articles which can aid both, the reader as well the future researchers in finding the relevant material on international recruitment and selection in one research paper. This comprehensive literature review has also helped in doing a strong and thoughtful critical analysis. This analysis has been made in the light of contemporary management theories, models, and concepts which are applied in the modern multinational business organizations at a large scale. Each and every statement in the critical analysis section is backed up by a complete research study conducted by renowned authors and researchers in their respective books or journal articles.
The discussion has made by keeping in view the real life organizational strategies which large scale local organizations and multinational business corporations adopt in different situations. The major focus has been given on discussing the ways in which modern organizations can best utilize their human resource in the international working environment and avoid or mitigate the negative consequences and threats that arise in the international recruitment and selection. Moreover, the recommendations section is also based on the secondary sources used for this literature review. 1. International Business Expansion:
Businesses go international when they have enough financial resources and capabilities to operate in the international markets in a competitive and profitable fashion (Leveson, Joiner, & Bakalis 2009). International business expansion is carried out as a part of growth strategies (Dowling & Welch 2008). Generally, small and medium scale businesses look for the developed countries of the world to start their international expansion projects. It is because they do not enough competencies and financial resources to operate in a risky business environment. On the other hand, large scale Multinational organizations can expand their business operations in all developed, developing, and under-developed countries. They have well-established businesses in a number…