The influence of management selection process on the effectiveness of expatriates working for multinational corporations in kenya; a case study of tetra pak limited

Abstract

Over the past few decades, the world‟s fundamental business and economic perspective have greatly shifted. Today, the boundaries of a country do not in effect determine the limits within which companies conduct their businesses and how they select their employees. Many large companies have injected huge capital investments in branches overseas in pursuit of new markets for their products, cheap labour or other factors of production. The advent of international business and globalization have given birth to multinational corporations (MNCs) which are ever confronted with the challenge of selecting the best, effective, efficient and competent managers (expatriates) for their international outlets. In order the get the most effective and efficient expatriates MNCs must adopt an objective and water tight selection process. This research was conducted to determine how the management selection process of expatriates affects the effectiveness of those expatriates in Kenya and Tetra Pak was used as a case study. The contingency approach to management as pioneered by Fred Fiedler which suggests that efficient management techniques vary in different types of situations and circumstances was the basis of this research. The hypothesis of the research was that the effectiveness on expatriates depends on their individual characteristics and the company characteristics. The research focused on the expatriate‟s personal characteristics that affect their preference to be sent to undertake foreign assignments and how those characteristics affected their effectiveness. In play here were characteristics such as age, gender, international experience, location, nationalities, salary scale, areas of specialization, family status, and other inherent qualifications and characteristics. Company characteristics and policies were also taken into consideration. Data was collected from the expatriates as well as from the HRM at Tetra Pak using interview guides. Additional information about expatriate at Tetra Pak was gathered from websites and other print media. The data that was collected was grouped into common recurring themes and was analyzed using content analysis. The information was presented in tables, graphs and charts. The study established that the selection process highly affect the effectiveness of expatriates working for MNCs. The expatriates were satisfied with the selection process as formulated by their employer. The study established that all of the respondents had spouses but female expatriates were not staying with their partners. This depicts that the majority of the expatriates valued their families but the company did not. Of interest was the fact that Tetra Pak did not involve the spouses of the potential expatriates in the selection process yet family situation was a key consideration for expatriation. It was established that majority of the expatriates were from the home country of the MNC therefore it was conclusive that ethnocentric selection approach was preferred by Tetra Pak. The study also established that the selection of expatriates from within the organization highly influenced their effectiveness. The use of a succession planning model was very important in enhancing expatriate success. The study recommends review of the existing policies to give family situation a higher consideration. There being no expatriate aged below 30 years, it was recommended that the company considers hiring young and vibrant expatriates.