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International recruitment and selection practices of South Korean multinationals in China

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Step 1 –Individual task — ‘Analysing a Journal Article’

  1. Haiying Kang

Year of publication:

Volume, Issue, Pages:

24:17, 3325-3342,

Title of Article:

International recruitment and selection practices of South Korean multinationals in China,

Title of Journal Publication:

The International Journal of Human Resource Management,

Identify at least three key issues that have been discussed in the literature review. How have these issues informed or influenced the current study and its research questions? (Paraphrase – i.e., use your own words)

  1. According to the paper, there are a number of approaches to international recruitment and selection. These includes regionocentric, geocentric, polycentric and ethnocentric. Each of these approaches have their merits and demerits and more critical is the unique situations and circumstances through they are applicable. From a research carried out in 200, it is evident that Korean firms’ investment in China have been growing exponentially since year 2001. Past research have been concentrating have been focusing on selection and recruitment of the host – Country national (HCNs). This gives the paper the opportunity to deal with the main international challenges and selection procedures for both expatriates and HCNs. It is suggested that German and Australian firms tend to employ more HCM in their subsidiaries in china, while this is not the case for Chinese firms’ subsidies. Among the research questions is on understanding how Koreans firms in china recruit.

  1. The reasons why companies engage expatriated in international assignments is in order to bridge skills, as well as managing organizational development. It is however argued that the reasons are no longer sufficient due the growing demand for developing international managers as well as advancing technology, thereby making it easier for transfer of knowledge. Firms are also keen on maintain control over the implementation strategies, marketing and finance as well as the efficient interaction between the subsidiary and the mother company back at home. For instance, North American and Japanese firms other than filling skill gaps, they use expatriates to assist in establishing new businesses, and controlling of the local operations. This background information helped in formulation of the research questions on the reasons why Korean firms use expatriates.

  1. Recruitment procedures and selection criteria plays a key role in the performance of the expatriate. Past research have showed then most multinational firms internally recruit expatriates, while considering factors such as candidates technical competence an expertise, interpersonal traits, family issues, and ability to acclimatise with a new environment. The general approaches used for hiring expatriates include home- based, host- based and integrative approaches. Most Korean firms in China adopt an integrative approach thereby such as open recruitment of hiring fresh university graduates while smaller companies rely on the less formal recruitment method of referrals. The research question developed from this information is on the recruitment method used by Korean firms in China.

:Data collection and analysis methods

The researcher adopted a snowball method developed through Korean and Chinese networks, carried out on 10 firms involved in a variety of operations. Data was collected through semi- structured interviews by a human resource and a general manager, in both Chinese and English. The interviews started by the getting the demographic information of the interviews and the interview process was tape- recorded. More data was sourced from the company reports, documents and official company websites. Some of the confidential information such as turnover rates of the expatriates was requested from the company headquarters. The data was finally content analysed.

Who was studied in this research? (Paraphrase – i.e., use your own words)

The research studied the number and expected to which the selected companies have engaged both host- country national (HCNs), and expatriates in both middle level and senior level management positions. The information was provided by the human resource manager and one manager in each Korean subsidiary.

(Paraphrase – i.e., use your own words): List and describe the research findings

From the information derived from the research findings it is evident that majority of the researched firms recorded a significant sharp decline in the number of expatriates. For instance one company had 10 expatriate managers. The number decreased to 6 and 3 after 4 and 7 years respectively. Another company had eight expatriated in year 2007 and just 2 in year 2011. Among the reason suggested for the reason behind this according to the interviews carried was trust and control. When Korean comes penetrate the Korean market they preferred to have a Korean national to take care of the finance, thus the reason why majority most were holding the position of the finance directors. Another reason is ensure that the subsidiary is aligned with the corporate strategies of the mother company back at home. Although the Chinese interviewees did not believe that the researched firms used cutting edge technology, they appreciated the fact that Koreans had their unique working culture, far different from Chinese.

(Paraphrase – i.e., use your own words)?How has this research study contributed to the knowledge on this topic

This paper has provided the reasons behind the recruitment of expatriates. Some of the reasons include, control, communications and transfer of knowledge to the subsidiaries- the reasons provided in the review of past research studies. The paper also provides answers why the Korean firms readily hire locals in china. Firstly, due to the geographical proximity of Korea to China, it is possible to send assignees from Korea if need arises. Secondly, there is high Korean Chinese population in china, making it sensible as well as economical to hire them since they understand both Korean and Chinese.

(Paraphrase – i.e., use your own words):Suggestions for future research

There are a number of limitations in the research study that may hinder the generalizability of its findings to all companies from Korea. Basically the data was sourced from the Korean subsidiary firms, this means that due to the dissimilarity of goals and objectives between the headquarters, the apparent employment practices of managers by the subsidiary may be differ from the practices in the headquarters. For more credible conclusions, it is wise for data to be collected from both headquarters and subsidiaries offies as well. Data used in this study was collected basically from management level i.e. middle and senior management, whose perception of human practices may differ from other employment cadres. To get a wider application, it is advisable for past research to consider non- managerial posts, as well.

(Words count: 1000)