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Human resource planning and development t2

Paper Type: Free Essay Subject: Human Resources
Wordcount: 1032 words Published: 1st Jan 2015

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Q) It could be said that international recruitment is the most important HR function within LVMH. What argument would you use to support this view?


1) Recruitment is the process of searching and attracting potential applicants to a company. All companies, at one time or another, engage in recruiting activity, though the extent to which it is carried out, vary.

The increasing globalisation of the marketplace combined with an increasing shortage of skilled staff and advances in technology have resulted in large scale changes to recruitment practices throughout the world.

Attracting staff from overseas remains a challenge for human resources, due to a low rate of labour market mobility.

Deciding how best to publicise a vacancy is just one element of how to devise a successful international recruitment strategy.

It is important to remember that most workers don’t automatically think about looking for a job abroad. It is only when they see a vacancy that they might seriously consider relocating.

It is therefore crucial to not just post a job somewhere and wait until candidates reply, but rather to tailor each vacancy according to the factors that motivate the potential applicants that are targeted. This research reveals that those motivations vary from country to country so any international recruitment strategy must be informed by these cultural differences.

Cultural and language differences are the biggest barriers for international recruitment strategies (43%), followed by legislative problems (31%) and the difficulty in checking candidate qualifications and references (26%).

Companies in mainland Europe prefer to recruit from neighbouring countries, whereas firms in the UK have no particular preference regarding the country of origin of their foreign employees.

Almost 40% of British people would be amenable to working in another country for more than five years. However those from Nordic countries (Norway, Sweden and Denmark) prefer to return home within two years.

2) One of the first lessons global corporations learn is that it is far cheaper to hire competent host-country national than to send their own executives overseas, for foreign service employees typically cost two to three times the salary of comparable domestic employee, and often many more times the salary of a local national employee in the assignment country.

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For example, General Motors typically spends $750,000 to $100,000,0 on an executive and his or her family during a three years stint abroad. The costs of doing business are often much higher overseas than in the USA. Consider office space as an example. In USA, rent per square foot ranges from about $21 in Los Angeles to $36 in midtown Mahatteam. By contrast, rents expressed in U.S. dollar average about $49 in Paris and Frankfurt and $61 in London. In such Asian cities as Bombay, Beijing, HongKong, and Tokyo, dollar rents range from $64 to $101. Of course, these costs fluctuate with international exchange rates relative to the U.S. dollar. On top of the high costs of such items as office space are the costs incurred by a high failure rate among expatriates—between 16 and 40 percent of all Americans sent overseas. For all levels recruitment, relocation expenses, premium compensation, repatriation costs, replacement costs, and the tangible costs of poor job performance. When an overseas assignment does not work out, it still cost a company, on average, twice the employee’s base salary.

Although the costs of expatriates are considerable, there are compensating benefits to MNCs. In particular, overseas postings allow managers to develop international experience outside their home countries—the kind of experience needed to compete successfully in the global economy that we now live in. When you are sending someone abroad to work on an possible about how to do business in the country. The cost of training is inconsequential compared to the risk of sending inexperience or untrained people.

Business leaders of the present-let alone the future-need to possess international business skills par excellence in order to survive the chaotic world of international business. It also goes without saying that human resource managers will face new, unforeseen obstacles.

Understanding the links between people, productivity and quality is the key to understanding why some firms succeed and other don’t-in exactly the same economic and social environment. It is far too easy and wrong to categorize human resource practices as being the soft science—part of the hard science of making organizations competitive. In fact, this is far from the truth. The best organizations are very focussed and hard-nosed about their human resource policies because they clearly understand HR policies and their link to productivity and quality. Human resource strategies are designed to motivate people to immerse themselves in the activity of the company, to ensure that people are valued, respected and rewarded so that they continually contribute to the success of the company and enhance their own well being.

Understanding the difficulties of finding qualified executives for international companies (ICs) and the importance of foreign language knowledge. Knowledge of a people’s language is essential to understanding his or her culture and to know what’s going on as every effective manager must.

Compare home country, host country, and third country nationals as international companies’ executives. Source of IC executives may be home country, host countries, or third countries, and their differing culture, language, ability, and experience can strengthen IC management.

Remember some of the complications of compensation packages for expatriate executives. Expatriate manager compensation packages can be extremely complicated. Among other sources of complication are fluctuating currency exchange rates and differing inflation rates. Basic elements of those packages are salaries, allowances, and bonuses.


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