DEVELOPMENT OF A MULTINATIONAL PERSONNEL SELECTION SYSTEM By Group C1

Problem Statement: The lack of understanding by the top management about the intricacies involved in the design of global personnel selection system.

SWOT STRENGTHS 1) Giving an opportunity to Dr. Koch to form a team and work on the development of a multinational personnel selection system. 2) New concept of cross-functional project teams was given an opportunity to prove its worth. 3) Well structured-2 levels with 7 clearly defined modules in all. 4) Proper module definitions with each module having its separate job requirements 5) Diverse representation in the team considering the development of multinational personnel selection system.

WEAKNESSES 1) Poor team dynamics due to cultural and regional differences. 2) Prevailing bureaucratic environment resulted in low motivation among employees. 3) Practical vs. Academic argument among the team members. 4) Only on 6 dimensions candidates were evaluated instead of 15 dimensions which could have been more advantageous 5) There could be a gap between the actual requirement of the job and what is being suggested by the team. This could be because the team members do not have much industry exposure.

OPPORTUNITIES 1) Different ideas and perspectives will be generated because of cultural diversities in the organization which will be beneficial. 2) The interviewee and the interviewer can be of the same background which will bring in better evaluation.

3) The ideas will be more close to what is required because of proper representation of the team members in terms of regional and cultural views.

THREATS 1) The findings of the meeting could be arrived on in a hurry without proper analysis due to the time deadline 2) The findings of the team were such that if implemented would increase the cost incurred by the company. 3) The Standardized test may have disadvantage of not being generally accepted

PESTC Political In some Asian countries like China, the political system is such that they are bound to accept what the government has to say and so have a different view of following orders when compared to a country like Australia.

Economic Different countries have different ways of doing business and it is important to train people to understand this fact. A standardized worldwide common selection system might not meet to this requirement.

Cultural Every country has their own cultural differences and it is important to understand their culture. It would be best if the locals are hired for the job but if an outsider is trained well then he could also fit in.

Factors affecting the Problem: Employees from different countries around the world Different cultures followed by the employees Lack of a single culture within the APAC region Different ideas by the members on the selection criteria Inability of the members or Koch to reach a consensus on the different points No decision on country specific adaptations for the selection process Implementation process of the new personnel system Thinking of Mr. Koch and his beliefs on his Chinese subordinates Urgency by the top management to implement the selection process Long term effects on the company on account of the selection process

Critical Factors: 1. Different cultures of the employees across the company: ComInTec was a worldwide leading industrial company with plants and offices across the world. The cultures followed by the employees across the company varied country wise. For e.g.: its mentioned in the case that an English society was an individualist society. However, an Indian society was a collectivist society. This led to people behaving differently during work. If the selection process was standardized, it would not be able to capture the thinking of the people and their ability to work under different situations. The selection process would have a standardized test procedure of panel interview, biography oriented in-depth interview, simulated group exercise and test. The behavior of the people during different situations would be different across cultures. The tests do not capture how the cultural influences will be measured. Hence, a deserving candidate may be rejected on account of his thinking and behavior.

2. Inability by the members or Dr. Koch to reach a consensus on the selection process: The members were Chinese and German by nationality. They had very different views on how the selections should be considered. Instead of respectfully listening to each other and building on each others points, the members instead are arguing with each other and

trying to outdo one another. Dr. Koch is also to be blamed as he should be the moderator in the meeting. He should co-ordinate the meeting better. An independent observer could be called to make sure the timing for each agenda was met by the team. They could move onto the next topic when the time was over. It was extremely necessary for a moderator to be present who would encourage the flow of ideas. Also, there is no trust or respect between members in the team. This has led to everybody putting up their points. The lack of respect has led to ideas being discarded.

3. Attitude of Dr. Koch Dr. Koch is the Director of HR in the regional headquarters in Hong Kong. Dr. Koch believed that the individual assessment centers required modifications. He also believed that the past of the candidate was important in the assessment. However, he was having difficulties in communicating to Mr. Koenig that there was a need for more time to develop a suitable selection process. Also, his team was unable to come up with a consensus on the different decisions. He also doesnt help and guide his team in reaching a consensus. He instead remains a silent spectator when his team argues on the different points. He also has his own prejudices. He doesnt like the fact that the Chinese are so respectful and deferential of their superiors. Also, he isnt very sympathetic of the different cultural differences like the importance food has in an Asians life, the hierarchical process etc.

4. Urgency by the top management to implement the selection process The current job openings are for 25 middle management positions in the APAC region. Its very important that the management does a good job of selecting the candidates due to the importance of the region. Also, the selection process would have a long term effect on the company. the company had fired employees few years back without even offering the termination pay. This had led to a lot of litigation problems for the company. Also, it had led to a bad feeling between the employees and people had low morale about the company. The top management was in a hurry to hire the people. They didnt place a lot of importance eon having the right selection process to ensure that there is the best of candidates getting selected. Mr. Koenig also believes that spending time in considering

the different factors for a selection process is a waste of time. He even threatens Dr. Koch with the termination of half the HR employees at Kochs office. He wants the results on Friday to ensure that the managers are selected as soon as possible. Also, he doesnt believe in trusting the employees, but in controlling them. As a result there may not be a highly positive atmosphere in the workplace. Also, with the time deadline being so close, there isnt enough time to arrive at a proper consensus. The points 2 and 3 in the agenda were still not discussed and only Dr. Koch would make the decision. This may lead to problems later on as there would be many factors that may not be considered by Dr. Koch. Theoretical Framework: Dimensions and indicators of cultural differences (Hofstede)

Analysis of each dimension of Hofstede: 1.Power/Distance (PD) Characteristics Centralized companies. Strong hierarchies. Large gaps in compensation, authority, and respect. Flatter organizations. Supervisors and employees are considered almost as equals. Tips Acknowledge a leader's power. Be aware that you may need to go to the top for answers Use teamwork Involve as many people as possible in decision making.

High PD

Low PD

2. Individualism (IDV) Characteristics High valuation on people's time and their need for freedom. An enjoyment of challenges, and an expectation of rewards for hard work. Respect for privacy. Emphasis on building skills and becoming masters of something. Work for intrinsic rewards. Harmony more important than honesty. Tips Acknowledge accomplishments. Don't ask for too much personal information. Encourage debate and expression of own ideas. Show respect for age and wisdom. Suppress feelings and emotions to work in harmony. Respect traditions and introduce change slowly.

High IDV

Low IDV

3.Masculinity (MAS) Characteristics Men are masculine and women are feminine. There is a well defined distinction between men's work and women's work. A woman can do anything a man can do. Powerful and successful women are admired and respected. Tips Be aware that people may expect male and female roles to be distinct. Advise men to avoid discussing emotions or making emotionally-based decisions or arguments. Avoid an "old boys' club" mentality. Ensure job design and practices are not discriminatory to either gender

High MAS

Low MAS

4..Uncertainty/Avoidance Index (UA) Characteristics Very formal business conduct with lots of rules and policies. Need and expect structure. Sense of nervousness spurns high levels of emotion and expression. Differences are avoided. Informal business attitude. More concern with long term strategy than what is happening on a daily basis. Accepting of change and risk. Tips Be clear and concise about your expectations and parameters. Plan and prepare, communicate often and early, provide detailed plans and focus on the tactical aspects of a job or project. Express your emotions through hands gestures and raised voices. Do not impose rules or structure unnecessarily. Minimize your emotional response by being calm and contemplating situations before speaking. Express curiosity when you discover differences.

High UAI

Low UAI

5.Long Term Orientation (LTO) Characteristics Family is the basis of society. Parents and men have more authority than young people and women. Strong work ethic. High value placed on education and training. Promotion of equality. High creativity, individualism. Treat others as you would like to be treated. Self-actualization is sought. Tips Show respect for traditions. Do not display extravagance or act frivolously. Reward perseverance, loyalty, and commitment. Avoid doing anything that would cause another to "lose face". Expect to live by the same standards and rules you create. Be respectful of others. Do not hesitate to introduce necessary changes.

High LTO

Low LTO

By noting the characteristics of each dimensions and following the tips provided we can match the situation to the present problem in the ComInTec and can provide the right solution.

Recommendations: Koenig and the top management should support the Koch team and should provide them some more time to come up with a robust recruiting system that will benefit the company in the long term. Koch should help the team in resolving the issues in the project like, which job requirements to be assessed, the modules it must include, cultural differences and heterogeneous perspectives that exist among team members, conflicts between the HR executives. The team has a great strength of international management with German and Chinese HR experts so by resolving the issues between them; a global recruitment system can be developed only if the top management supports the HR team.

Courses of Action: 1. Arrange a meeting with the board to highlight the ill effects of using a standardized selection system. Each country had its own unique economic and education situations, which would undoubtedly become problematic if we apply a universal personnel selection system. Also standardized personnel selection system would ignore cultural differences and cultural specific circumstances. If do not consider these problems company may face some problems in the long term. So arrange a meeting and explain these consequences to the top management. 2. Koch team can work along with the HR team of the global head quarters where they can explain their concerns regarding the universal personnel selection system. If the HR team at the headquarters find the concerns reasonable they may convince the top management asking some more time to come up with the selection system. 3. Koenig should consider the concerns of Koch and give his team some more time to develop the multinational personnel selection system so that they come up with a robust system, which will be beneficial to the company in the long term.