Recruitment and Selection Process in US MNCs

1 . INTRODUCTION

Globalisation: Peugeot in Jakarta, Indonesia. Inte...

A British armed forces recruitment centre in Oxfor...

expatriates

During the last few decades, companies have been confronted with an increasingly competitive environment. Forces facilitating globalisation, such as the liberalisation of international trade, the international integration of production, research and marketing by major MNCs, as well as the emergence of major economic regions like the European Union, have enabled companies to invest overseas to gain or maintain competitive advantage. It has been argued that human assets are an emerging source of competitive advantage for MNCs (Bartlett and Ghoshal, 1991). HRM is evolving from being just a support function to one of strategic importance (Teagarden and Von Glinow, 1997). Bartlett and Ghoshal (1991) have argued that human resource management (HRM) policies and practices are becoming crucial because they can act as mechanisms for co-ordination and control of international operations. The point is selection and recruitment process has key role in the international human resource management (IHRM).

The study is important for the following reasons:

· US MNCs are in the forefront of the global economy and have a predominant weight among foreign investors in many countries, including the Europe, with a corresponding influence on the World economy.

· American companies have traditionally been a source of HR innovation in the World (e.g. in productivity bargaining and performance-related pay). Hence they may hold lessons for 'organisational learning' across borders, as well as having broader implications for national competitiveness.

· The research throws lights on broader business & management debates about the impact of globalisation, particularly whether there is convergence in the way MNCs of different national origins behave. Previous research has shown that 'country of origin' is a major determinant of MNC behaviour(Especially for selection and recruitment policy).

2.CONTEXT

As international trade continues to rise, the number of people working...