Strategic Recruitment, Selection And Integration Of .

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Strategic Recruitment, Selection andIntegration of International Labour force.Case Study : Company-X , FinlandNde, Martin Nche2012 Leppävaara

Laurea University of Applied SciencesLeppävaaraStrategic Recruitment, Selection and Integration of InternationalLabour force.Case Study: Company X, FinlandMartin Nche NdeDegree Programme inBusiness ManagementBachelor s ThesisJune, 2012

Laurea University of Applied SciencesLaurea LeppavaaraBachelor s Degree Programme in Business ManagementAbstractNde, Martin NcheThe strategic recruitment, selection and integration of international labour force:a case study of Company XYear2010Pages75The purpose of this project is to study the Estonian labour market and examine thepossibilities of recruitment of labour for the Finnish job market. This thesis also examines theeconomic, educational and cultural aspects of Finland and Estonia. The theoretical sectionevaluates the different steps considered in the recruitment and selection processes.This thesis was commissioned by Company-X a human resource organisation operating inFinland. The company provides human resource services and software to other companies inthe Helsinki Metropolitan area and other parts of Finland. Company-X serves both public andprivate organisations and small and medium size enterprises providing services such asrecruitment and selection, training and management and human resource managementsoftware.The research used qualitative and action research methods. Information provided byCompany-X and gathered from previous research work are analysed qualitatively. Theinformation collected from online source also played an indispensable part in the realisationof this research work. The meeting sessions with Company-X and the work rendered as anemployee of the company are aspects of action research used in the project.The findings of the research established that there are opportunities for labour to berecruited from Estonia, and that these are facilitated by common cultural and linguisticheritage of the two countries. The educational systems of both countries also encouragerecruitment, and integration.This research produced a number of materials that are important for further research. In thefuture further research could focus on the benefit of using alternative recruitment strategies.Key wordsStrategic, recruitment, selection integration, International labour force

Laurea-ammattikorkeakouluLaurea LeppävaaraDegree Programme Business ManagementTiivistelmäNde, Martin NcheStrategic Recruitment, Selection and Integration of International Labour force.Case Study: X OyVuosi2010Sivut75Opinnäytetyön tarkoituksena oli tutkia Viron työmarkkinoita ja mahdollisuuksia rekrytoidasieltä työvoimaa Suomen työmarkkinoille. Case-yrityksen toimiala liittyy työvoimanrekrytointiin. Opinnäytetyössä tarkastellaan Suomen ja Viron taloudellisia, koulutuksellisia jakulttuurillisia toimintaympäristöjä. Teoreettinen viitekehys käsittelee rekrytoinnin- javalintaprosessin eri vaiheita.opinnäytetyön toimeksiantajana toimi X oy. X oy on suomalainen henkilöstövuokrauksen jarekrytoinnin asiantuntijayritys. Yritys tarjoaa henkilöstöhallinnan palveluita ja ohjelmistojayrityksille pääkaupunkiseudulla sekä muualla Suomessa. X oy asiakkaita ovat julkiset jayksityiset organisaatiot sekä pk-yritykset. Yritys tarjoaa laajan valikoiman henkilöstöhallinnanpalveluita rekrytointiin, koulutukseen, johtamiseen ja henkilöstöhallinnan ohjelmistoihinliittyen.Tutkimus suoritettiin kvalitatiivisia ja toiminnallisia tutkimusmenetelmiä hyödyntäen.Kvalitatiivinen osa toteutettiin analysoimalla sekä X oy antamaa tietoa että aiemmistatutkimuksista kerättyä tietoa. Osa analysoitavasta aineistosta kerättiin Internetistä.Toiminnallinen osa tutkimuksesta toteutettiin Company-Xkanssa käydyissä tapaamisissa jatyöskentelemällä yrityksessä.Tutkimustulokset osoittavat, että Suomeen voitaisiin rekrytoida työvoimaa Virosta toimimaaneri aloilla. Tutkimuksen perusteella voidaan myös todeta että Suomella ja Virolla on yhteisiäkulttuurillisia ja kielellisiä erityispiirteitä, toisaalta maiden välillä voidaan myös havaita työja elinkeinopoliittisia jännitteitä. Molempien maiden koulutusjärjestelmät ovat myösrohkaisevia tekijöitä rekrytointiin ja työvoiman integraatioon.Opinnäytetyön tuloksena on syntynyt paljon toteuttamiskelpoista materiaalia. Työn tulos luomielenkiintoisen mahdollisuuden syventää aihetta tutkimalla vaihtoehtoisiarekrytointistrategioita pitkällä aikavälillä.Avainsanat: strateginen, rekrytointi, integraatio, kansainvälinen työvoima

AcknowledgementsIt is my intention to attribute this work to my lovely wife Tah Regina Enih for her physical andspiritual support. The time she gave me was indispensable for the project.With regards to my success, I wish to express my profound gratitude to Ove Backlund, mymentor, for his good advice, support and immense contributions towards this research work. Iam indebted to Tarja Kaipio from Company-X for her guidance and also for providing me withthe needed information for this work.Erkki Schalin (my lecturer), Henrika Toivanen and Hanna Olkanen (my colleagues) all providedessential support towards the realisation of this work, and I am grateful for their assistancesupport.

Table of Contents12Introduction . 151.1Background of the study . 151.2Scope of the study . 71.3Choice of the research context . 71.4The purpose and research problem . 71.5Structure of the study . 8Theoretical background . 92.12.22.32.4Introduction . 92.1.1Definition of human resource management. 102.1.2Components of human resource management. 102.1.3Recruitment and selection . 11Equal opportunity . 122.2.1Importance of equal opportunities . 132.2.2Equality of remuneration. 132.2.3Equal opportunity . 13Diversity . 142.3.1Natural characteristics. 142.3.2Artificial characteristics . 142.3.3Diversity in a business perspective . 152.3.4Managing diversity . 152.3.5A systematic approach to the management of diversity. 16Systematic approach to recruitment and selection . 202.4.1Aims and objectives of recruitment and selection . 202.5Strategic approach to recruitment . 202.6Job analysis . 212.72.6.1Job description . 212.6.2Person specification . 212.6.3Competence . 22Advertising and attracting candidates. 222.7.12.8Response from applicants . 23Strategic approach to selection . 262.8.1Selection process . 262.8.2Screening . 262.8.3Interview . 272.8.4Testing . 272.8.5Exercises and achievement tests . 282.8.6Checks and offers . 28

2.9342.8.7Reference and other checks . 292.8.8Offers . 292.8.9Employment contract . 292.8.10Follow –up . 30Conclusion of recruitment and selection . 31Research Approach. 323.1Different methods of research analysis . 323.2Quantitative research . 323.3Qualitative research . 333.4Action research . 333.5Research method . 353.6Validity and reliability. 363.6.1Validity . 363.6.2Reliability . 36Empirical study . 364.14.24.3The Estonian labour market . 364.1.1Economic features of Estonia and Finland . 374.1.2The economy of Estonia . 374.1.3The economy of Finland . 384.1.4The economies of Estonia and Finland compared. 394.1.5The gross domestic product (GDP). 394.1.6GDP per capita (Purchasing power parity- PPP) . 40Education of Finland compared to the education of Estonia . 414.2.1The Finnish educational system . 414.2.2Vocational or trade school graduates . 414.2.3Upper secondary school graduates . 414.2.4University of applied sciences ( ammattikorkeakoulu) . 424.2.5The Universities (higher education) . 42The Estonian educational system. 434.3.1Vocational education. 434.3.2Secondary general school . 444.3.3University (higher education). 444.3.4Doctor studies . 444.4Conclusion of educational systems . 454.5The cultures of Finland and Estonia . 464.6The culture of Estonia . 464.7Estonian culture and society . 464.7.1Religion . 474.7.2The family. 47

4.84.94.104.7.3Hierarchy and power distance. 474.7.4Cultural tradition and manners . 474.7.5Etiquette and customs in Estonia . 484.7.6Meeting and greeting. 484.7.7Gift giving etiquette . 484.7.8Table manners etiquette . 484.7.9Dining etiquette. 494.7.10Business Protocol Etiquette . 494.7.11Meeting and greeting . 494.7.12Business card etiquette . 494.7.13Communication style . 504.7.14Business meeting etiquette. 50The Finnish culture . 514.8.1Finnish culture and society . 514.8.2Egalitarianism . 514.8.3Finnish behaviour . 514.8.4The sauna . 52Etiquette and customs of Finland . 524.9.1Meeting etiquette. 524.9.2Gift giving etiquette . 524.9.3Dining etiquette. 524.9.4Table manners.

The strategic recruitment, selection and integration of international labour force: a case study of Company X Year 2010 Pages 75 The purpose of this project is to study the Estonian labour market and examine the possibilities of recruitment of labour for the Finnish job market. This thesis also examines the

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