Example Answers to Questions on HR globalization Essay Example

This can include hiring third-country nationals, who are individuals from a country other than the subsidiary's home or host country. For instance, an Indian employee working at Volkswagen's Chinese subsidiary would be an example of the geocentric recruitment policy (Tahvanainen, Welch & Worm, 2005).

When it comes to informal methods of enlisting and choice in foreign subordinates, there are certain factors that affect the process. These factors can be categorized as internal factors and external factors. Internal factors refer to the ones within the organization that impact enrolling employees, whereas external factors are outside the organization and exert control over the enlisting procedure (Pavalko, 1970).

In cases where organizations choose to recruit internally, it tends to involve informal methods of enlisting. This means that competent and experienced foreigners are not given the opportunity to fill vacancies in the organization. Instead, preference is given to current staff members. One advantage of informal enlisting is that employers sometimes fill higher positions within the organization through promotions and transfers of existing employees. This approach has several benefits: promoted employees are already familiar with the organization's culture, they are motivated by the promotion, it is cost-effective, and it reduces the need for job training.

On the other hand, this method of recruitment has a disadvantage in that it limits the options to only a select few individuals and prevents the hiring of foreign candidates who may be more qualified and skilled. Additionally, promoting current employees within the organization can lead to inbreeding, causing dissatisfaction among those who do not receive promotions (Adler, Bartholomew, 1992). Informal recruitment and selection of employees in foreign subsidiaries also has its advantages. For instance, when former employees

who left the organization for a valid reason return to work, they can be considered as potential candidates for job openings. This is beneficial because their performance is already known to the organization. When the organization promotes its employees to fill key positions, they can then fill lower-level jobs by hiring employee referrals, such as family, friends, and relatives of current employees.

This is another form of informal recruitment that often occurs in many organizations, including foreign subsidiaries. This informal method of recruitment is considered to be one of the most successful practices for hiring people in the organization because existing employees easily refer prospective candidates who meet the organization's requirements. However, this informal method of recruitment and selection in foreign subsidiaries disadvantages individuals who are highly qualified and competent for the jobs, as they do not have the opportunity to work in that specific organization. On the other hand, less competent and less experienced individuals easily get the job because of their references and various sources (Wiener, 1988). Additionally, there are other advantages of informal recruitment in terms of internal recruitment; organizations prioritize their own employees more because they have more information and awareness about their strengths and weaknesses compared to outsiders. Moreover, organizations do not need to spend a lot of funds, time, and effort to find and attract potential competitors. Furthermore, this type of recruitment has proven to be more efficient.

The disadvantages of the informal method of internal enlistment include limiting the selection to only the talent existing within the organization and overlooking potential candidates in the larger industry. This method excludes external applicants, which can create a perception among employees that promotions

are guaranteed without extra effort in their work. Another method of recruitment commonly used by foreign companies is external enlistment, which involves hiring individuals from outside the organization. Organizations that frequently utilize external recruitment often operate in industries with high profit margins. There are various approaches to external recruitment, and one popular method is enlisting through recruitment agencies.

Enlisting bureaus are organizations that match employers with employees, providing services to individuals and employers seeking employment. These bureaus specialize in recruiting and selecting candidates for various industries. They typically present a shortlist of applicants to employers based on their registered pool of candidates (Dipboye, 1982). In addition to government agencies, there are also private recruitment agencies that register job seekers and provide a list of suitable candidates when requested by prospective employers. These agencies primarily focus on recruiting managerial and higher level positions.

The main purpose of these agencies is to promote applications and shortlist suitable applicants for the organizations. Enlisting agencies provide several advantages in terms of time-saving for the employer organization and allowing them to better utilize their time elsewhere. Another advantage is that the organization's identity remains unknown to job seekers, helping them avoid receiving unsolicited correspondence. Additionally, recruitment agencies attract a large number of applicants through an open recruitment process, thus widening the pool of candidates and increasing competition for the best talent.

Traveling through such a competitive process of choosing the best rival for the organization is beneficial because the selected individual is likely to be more skilled and adept, working with a positive attitude and great energy. This, in turn, creates a strong competition and productive work environment within the organization. However, there

are also disadvantages to using recruitment agencies for hiring and selecting foreign employees. This method is expensive and time-consuming, with no guarantee that the organization will find superior and suitable candidates. Additionally, all applicants are from outside the organization and are unfamiliar with the organization's tasks, job requirements, and global affairs. This type of recruitment also has an impact on existing employees who may feel uncertain about their promotion prospects, which discourages them from working as hard. As a result, the organization's output decreases (Wiener, 1982).

The decision to recruit and select employees is one of the most impactful activities in human resource management. It is widely recognized that poor hiring decisions can negatively affect an organization’s performance and ability to achieve its goals.