The Nottingham Trent University
Nottingham Business School
<Module code> Assignment
Module leader: <leader’s name>
Recruitment and selection issues in POG Azerbaijan
Student ID: N0611211 Nottingham
Word Count: 145 January 2015
Recruitment and selection is a key business function for attracting and selecting the best individuals to an organization. Its importance has significantly raised during the last decades of globalization. Nowadays, companies are conducting business on an international level, taking advantages of the loosened regulations, modern technologies and infrastructure.
Multinational companies play important role in this global business ...view middle of the document...
Premium Oil and Gas Azerbaijan has recently targeted an increase of the total number of personnel and the local workforce. Now the business unit has around one thousand employees of whom forty percent are Azeri. The target is to double the staff and increase local workforce to ninety percent in five years’ time. The main reason behind this expansion is company’s willingness to meet its production target. Although the firm has an annual recruitment programme for graduates and trainees every spring, it is experiencing difficulties recruiting qualified engineers (mechanical, electrical, production, instrument) and geosciences specialists. Furthermore, the selection process lacks the trust of the locals and is characterized with high level of nepotism and networking that secures employment. This is typical issue for many traditional and industrializing societies, such as some Middle East and African nations, recruitment especially to higher ranks is largely done through informal networks of relatives, friends and acquaintances. This is a timed-honoured way of doing things, and is also in response to the limited scope and development of mass communications media and their use for advertising job vacancies (Tayeb, 2004).
A company's employees are its greatest asset. When a company fails to grasp this simple business tenet, the result is invariably an oppositional "us and them" divide between management and front-line staff (Branson, 2015) Thus, multinational enterprises are using specific recruitment and selection techniques, such as job postings, applications and interviews (Chron.com, 2015). In the particular case of POG Azerbaijan, recruitment and selection are of high importance because engineers and geosciences specialists are crucial for the existence of the whole business. Well-qualified specialists may mean more oil explored or optimized production while their lack may lead to missed potential opportunities of oil exploration or the need of hiring expensive expatriates.
More important is which of the three staffing policies, identified by Perlmutter (1969), the multinational company uses when implementing recruitment and selection: ethnocentric, polycentric and geocentric. From the information presented in the case, it is obvious that the company is hiring mostly parent country nationals (PCNs) on management positions. As it is mentioned, ninety percent of the managers are of Dutch origin. Therefore, they are familiar with the home office's goals, objectives, policies and practices, have technical and managerial competence, communicate effectively with the home-office personnel and easier exercise control over the operations of POG Azerbaijan. The disadvantages of this approach are: difficulties in adapting to the foreign language and the socioeconomic, political, cultural and legal environment, excessive cost of selecting, training and maintaining expatriate managers and their families abroad, the host countries' insistence on...