User:Employeeselection

Employee Selection

Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. By selecting best candidate for the required job, the organization will get quality performance of employees. Moreover, organization will face less of absenteeism and employee turnover problems. By selecting right candidate for the required job, organization will also save time and money 1.

Value creation – the performance of actions that increase the worth of goods, services or even a business . Value creation equals comparison between benefits and costs 2.

Employee selection is the certain type of transaction between employee and company. By employing a new worker company gets some benefits, which increase the worth of goods.

There are two types of benefits – direct and indirect. For example, company`s direct benefit is good quality of the employee` s performance. Indirect benefit is money and time, which company will save because of the good employee`s performance.

Production cost – the costs related to making or acquiring goods or services that directly generates revenue for a firm. 3 .Thus, production cost is employee`s salaries or wages in this model. Coordination cost – cost of process coordination. (Finding those, who can do something).

Motivation cost – cost of measures to create motivation, as motivated employees can create bigger value. (Finding those, who are willing to do something).

Organizational Triad – from the organizational perspective, it can be argued that the transaction costs result from the costs of coordinating and motivating.). The coordination task concerns the creation of right skills, as inputs, that coordinate individual or collective action, assigning the allocation of employee selection within the firm. The motivation task concerns the creation of incentive that motivate individual to behave according to the created rules.

Coordination: ability to accomplish the assigned task. (Empowerment and reliance )

Motivation: the willingness to accomplish the assigned task. (Responsibility and trust)

The information function refers to the task of coordination, while the capital and enforcement functions cover motivational aspects of the organization.10 It is assumed that different organizational forms and institutional and contractual arrangements will represent different solutions to the problems of coordination and motivation. These problems give rise to transaction costs, which manifest themselves differently in different contexts.11 The coordination task is to assure right inputs and motivation task is to ensure right outputs. Motivation and Coordination are closely connected and it becomes necessary to ensure that the input and output rights are in balance, that is to say, the employees of an organization have to bear the consequences of their decisions.12

The contribution of employee selection for solving the coordination and motivation problems

The main idea of this model: there is a shortage of division of work and specialization. Coordination and motivation problems must be solved to remove this problem.

Solving the Motivation and Coordination Problem using Perlmutter´s approach

There are three ways to solve the Motivation and Coordination Problem according to Perlmutter’s approach. These ways have been described by Howard V. Perlmutter within his work "Three conceptions of a world enterprise” (Perlmutter, 1988.). They are:

1) ethnocentric (all employees from the home country)

2) polycentric (Administration of foreign subsidiaries by local staff and assignment of employees from the parent company to headquarters)

3) geocentric (qualification is important, not nationality). The comparison of these strategies are represented in the following table:

This comparison covers such aspects like: costs, qualification of managers, cultural preferences. The choice depends on the required terms. Nonetheless, Perlmutter adds: “they never appear in pure form, they are clearly distinguishable” Perlmutter, H. (1969) The Tortuous Evolution of the Multinational Corporation. Columbia World Journal of Business. P. 9-18).

Qualification (of an employee) is all requirements to do successful job. There are different kinds of these requirements, for example, knowledge, abilities, skills.

Motivation (of an employee) is a will to perform the job.

Signaling

Signalling is way of sending information from sender of the signal to the receiver.

Signal = an observable attribute which can be manipulated.

There are three main requirements for effective signals:

In the cases, which there is no correlative between the signal and the attribute, we need other signals to determine. Because it can be manipulated in some ways. A lazy person can claim he is motivated but this is not a good signal or he can claim that he will be motivated forever. But they aren't also good signal from receiver's point of view. But actual motivation and qualifications are the issues which can help to receiver.

For example; school grades show the person's position without any doubt. So, it can be a good signal. Besides, if company's candidate named in TOP 10 students in his school. This also can be a good signal for the firm.

But in some other cases, grades might not show your real situation. Person might not be able to reflect himself on his grades. Besides, he might have the top grades, so he can study medicine. But, it doesn't show us he will be a good doctor. So, grades can show person is disciplined and hardworking, but can not reflect everything like a mirror. There is a need for other supporting elements like diploma, thesis etc.

Approach of Mendenhall/Oddou

According to Mark Mendenhall and Gary Oddou there are four dimensions of the expatriate adjustment process. They are : “The Self-Oriented”, “The Others-Oriented”, “The Perceptual” and “The Cultural Toughness”

  In their paper “The Dimensions Of Expatriate Acculturation : Review” they state what each dimension includes. For the first one :  “This dimension includes activities and attributes that serve to strengthen the expatriate’s self-esteem, self-confidence, and mental hygiene.” In their paper they say that personality, but not nationality is important. They explain the importance of being yourself and being balanced with yourself in order to be capable of making trustworthy relationships, which are needed in business environment. It is, also, important to find substitutes to activities which “.. bring pleasure and happiness in home culture with similar – yet different- activities that exist in home culture..” 

(Mendenhall, Oddou, 1985, The Dimensions Of expartriateAcculturation) These activities may include sports, music, architecture, etc.

For “The Others-Oriented” dimension Mendenhall and Oddou (1985) say: “This dimension encompasses activities and attributes that enhance the expatriate’s ability to interact effectively with host-nationals.” There are two factors of great importance included in this dimension. “The willingness to communicate” and “relationship development”. The second factor shows us the importance of developing long-lasting friendship and the importance of a host guidance. The first one is about the willingness to use the host country language, in order to become more familiar and intimate with people from the host country.

"The Perceptional Dimension" –the ability to understand why foreigners behave the way they do is important in adjusting to an unfamiliar cultural environment. The ability to make correct attributions about the reasons or causes of host-nationals’ behavior allows the expatriate to predict how they will behave towards him/ her in the future thus reducing uncertainty in interpersonal and intercultural relations..” (Mendenhall, Oddou, 1985, The Dimensions Of

expartriateAcculturation) In other words one should understand what one sees. It is of great importance to be able to describe what you see and afterwards to correctly interpret and evaluate it.

“The Cultural Toughness” dimension states that to adapt in certain countries is more difficult than to adapt in others. These difficulties may come from cultural differences as language, or the climate in the host country is not suitable to the expatriate, safety may also be another difficulty – in some countries in Asia it is not safe to move freely. A good example for cultural toughness is that for an American it may be easier to adapt in the UK, because of the familiar language and culture than to adapt to a eastern country as China or India.

There are some selection methods of expatriates to see whether they are right person for that position or not.

Some of the major issues which needs to be discovered are his ability to be an expatriates, learning the prospective expatriate's thought about going abroad and his intercultural perspective. Those selection methods help to discover these issues.

References

Miligrom/Roberts(1992) p. 25-35, Wolff(1995a.), p. 20-22, and Wolf(1999), p. 43.

Perlmutter, H. 1965 Three conceptions of a World Enterprise. Revue. Economique et Sociale. May. Roland, A. 1988