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Bachelor Thesis: Organization and Strategy

The choice between an MNC and an SME: What corporate aspects attract students to a job?

Name: Chan Fei Yung

ANR: s206664

Program: International Business

Group: SS1

Supervisor: Marloes Röthengatter

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Table of contents: page

1) Introduction

1.1) Introduction 3

1.2) Problem Indication 3

1.3) Problem Statement 4

1.4) Research Questions 4

1.5) Relevance 5

1.6) Research Design 6

2) MNC and SME classification

2.1) Definition of an MNC 7

2.2) Definition of an SME 9

2.3) Comparison of advantages 10

3) Student preferences in a job

3.1) Preference analysis 11

3.2) Job preference ranking 12

4) Managerial advice

4.1) MNC strengths and weaknesses 14

4.2) SME strength and weaknesses 16

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5) Conclusion

5.1) Summary 17

5.2) Limitations of the paper 18

5.3) Recommendations for further research 18

Introduction

This chapter provides an introduction to the thesis by first explaining to the reader where the problem area lies and what aspects will be covered in the thesis. The sections 1.1) and 1.2) deal with the motivation and line of thought in choosing the proper topic. After that an outline is plotted to indicate the methodology used to structure this thesis. The sections 1.3) and 1.4) will compress the problem indications into proper research areas and questions. Following that, in section 1.5) and 1.6) the academic and managerial relevance as well as the academic soundness used to write this thesis will be substantiated.

1.1) Introduction

In today’s business world Human Resource Management (HRM) becomes more and more homogeneous with small and medium sized enterprises (SME) on the one hand trying to show as much professionalism as multinational corporations (MNC) when recruiting (Markusen, 2004). MNCs on the other hand try to offer a similar degree of personal relationship and informality to appeal to potential applicants. This is the result of applicant’s wishes to have a challenging and demanding job as well as a comfortable work environment (Hermanson et al, 2002).

However as much as HRM managers try to offer such well-rounded jobs, differences still exist. Applicants still have different mindsets and expectations, when choosing whether to approach an SME or an MNC. It is the goal of this paper to explore these factual and perceived differences and provide an academically valid guideline.

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1.2) Problem Indication

Strategic orientation of a company and the steps it can take to achieve certain Human Resource (HR) goals is a sharply pursued topic in academic writing. General advice however and overview of a student’s perspective of the labor market and the requirements perceived are highly fragmented. Those are spread amongst many local studies and surveys that cover the wishes of certain focus groups (i.e. special occupations or regions) and their expectations; however these lack the widespread angle needed for a general guideline.

Therefore this thesis will deal with the decision process of students on the verge of entering the job world, when evaluating the different aspects attached to working in an SME or MNC. The key question to answer in this particular topic will be what aspects are attracting students, when choosing between SMEs and MNCs.

1.3) Problem Statement

In order to gain insight into student decision processes the characteristics of both MNCs and SMEs are classified separately and then compared to the working characteristics a first time applicant may deem favorable. In detail the general work profiles that one may encounter in an MNC or SME will be discussed in length, the strengths and weaknesses shown in terms favorability by students and compared to the wishes students may find in a “perfect job”. The following chapters will be dedicated to MNCs and SMEs respectively with the conclusive chapter being the match between the characteristics and students’ wishes of the “perfect job”.

The problem statement is therefore:

“What job aspects should an MNC or SME focus on in order to increase appeal to students?”

1.4) Research Questions

In order to arrive at a satisfying answer certain questions need to be answered. Thus the problem statement will be split up into various research questions:

To begin with a clear differentiation between an MNC and an SME will be given:

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• What are the distinguishing aspects between an MNC and an SME?

After that an analysis of student preferences in a job will be provided through assessments of survey data:

• What do students seek in a job?

• How can these aspects be ranked?

To conclude the research a comparison between company profiles and student job preferences will be provided:

• What can a company offer in terms of student job preferences?

• What managerial advice can be given to an MNC and SME respectively?

1.5) Relevance

The knowledge gained from this thesis will provide insights into applicants’ points of view, when applying for an opening and help managers in HRM to optimize their recruitment strategy based on the tradeoff between the requirements they need for the job and applicants’ wishes.

It is the aim of this thesis to be a guideline for both job seeking and job offering people to get a clearer understanding of the decision processes involved before recruitment actually takes place.

Managerial relevance

The managerial relevance can be described as a rulebook, in which MNCs and SMEs can modify the way they advertise their openings and recruitment process in order to be more efficient and clear about their intentions.

Furthermore a better understanding of applicants’ goals and motivations helps to enrich the information base HR managers can draw from to make an informed decision. As Sekaran (2003) states, the [… managers are responsible for the final outcome by making the right decisions at work. This is greatly facilitated by research knowledge] (Sekaran, 2003, p.17). Thus any knowledge involving their work process, which is the effective hiring and management of workers, can be of great importance.

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Academic relevance

Conversely the academic relevance of this thesis does not lie in advice, as such is available in ample abundance, but in the aggregation of fragmented data. Many articles exist that question the motivation of students about to enter the job market (see survey list), however the scope of these articles are mostly set very narrow to get immediate response to a specific set of circumstances. Most common are research articles on certain regions and the perceived attraction to a given job (e.g. public service, health industry).

Thus the academic value of this thesis lies in connecting two loosely linked fields and establishing a clearer connection between companies and students.

1.6) Research Design

Following the definition of Sekaran this thesis falls into the category of applied research, aiming “… to solve specific problems currently being experienced in the organization…” (Sekaran, 2003, p.126) and more specifically into the region of causal studies in order to establish a link between the student preferences and company type.

This is achieved in a two step process:

Firstly through literature review a clear classification of company types is given. The literature is found through the use of the University of Tilburg (UvT) and affiliated databases through extensive usage of the provided search engines. The most commonly used databases include ABI/Inform Global, ProQuest, Sciencedirect and Google Scholar. The keywords used are focused around MNC, SME, company characteristics and the affiliated word combinations.

The information obtained will help to provide the scientific basis for chapter 2) and set up the framework needed in order to process the data in the chapter 3) and 4) properly.

Secondly a wide range search of student surveys, interviews with students, newspaper reports and articles concerning first time employees is conducted in order to establish a basis for the assessments needed in chapter 3). Despite usage

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of the above mentioned databases also non-academic articles such as newspapers and magazine surveys are used to have access to more descriptive data. A variety of search engines such as Bing, Google and Yahoo are browsed for related articles concerning student job preferences. The keywords used are student, survey, first job, job attraction and job characteristics.

The data acquired from these various sources will then be evaluated and used to forge a comprehensive view on student job preferences. Through a selective process the various data sources will be unified into a ranking and then compared to the to the attribute list created in chapter 2).

MNC and SME classification

This chapter elaborates on the classifications used to provide a sound structure for argumentation and reasoning in the following chapters. A definition of the aspects most concerning this thesis is provided in part 2.1) by first categorizing the outstanding characteristics of an MNC, both good and bad, thereby limiting the research field to a clear link. The characteristics are set in contrast to SMEs in part 2.2), where a differentiating analysis is given. Afterwards a comparison between MNC and SME aspects is made by showing the differences in a graphical representation.

2.1) Definition of an MNC

The definition of an MNC is very straightforward as the term multinational corporation already covers the most important aspect of an MNC. According to Lispey et al. (1991) an MNC is a company present and operating in more than one country, while being based in its home country.

More interesting are the aspects of an MNC in comparison to an SME: Due to the enormous differences in organization and size the working conditions are

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considerably different. In this thesis the most relevant factors will be discussed such as certain HRM aspects, including compensation and work profile, work environments and competition at the workplace.

When speaking of MNCs and their recruitment and job management abilities the term International Human Resource Management (IHRM) is used and admired for its professionalism. This system set up for individual workers can entice high levels of “fringe benefits” (Powell, 1991) such as company credit cards or cars. As a well structured and executed IHRM is essential for the survival of an MNC (Schulter & Florowski, 1994), a well ordered HR organization is a core competence that is highly regarded by showing great professionalism and wide range responsibilities.

The first and utmost important factor, when applicants look for a position at an MNC, is the perceived difference in wages, when comparing it to an equal job opening in an SME. From the study of Heyman et al. (2004), which analyzed the wage dispersion in Swedish production plants, there is definitely an observable gap between MNCs and their SME counterparts with one certain exception. The wage gap was only evident in jobs requiring a high level of qualification and therefore paid higher than minimum wages. As this guideline is fixated upon university graduates seeking jobs, we assume a high paying job opening and disregard low wage jobs, for which this wage gap cannot be statistically proven.

Furthermore applicants are also acutely aware of the increased opportunities for advanced job tasks (Hakkala et al, 2008), as this is one of the most important factors in a modern day work setting. The possibility of doing non-routine tasks in a job and be in charge for personal interaction with customers is a highly motivating aspect of a job and will ultimately result in greater employee satisfaction.

Another important aspect when searching for work is the probability of job advancement (Theodossiou & Zangelidis, 2009) after having proven the capability of handling more challenging tasks and responsibility. Due to the organization of large corporations and constant fluctuations in the workforce, more openings exist and motivate people to compete for higher level tasks (Rogovsky, 1996).

However MNCs naturally have weaknesses as well, as a job with an MNC has specific demands that may be deemed unfavorable. One of these demands is the high level of competition and collegial pressure perceived with MNCs (Teo & Poon, 1994). Due to the greater number of employees and the tournament structure for many promotions the working climate is severely less collaborative than in an SME, causing less competitive applicants to avoid MNCs out of fear of such an environment.

One very important factor that MNCs must cover is the perceived level of job security, which ranks very high in demands for a good job. With applicants thinking

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that an MNC works in a multitude of markets and a quick pull-out of one particular market (Görg & Strobl, 2002) might not be a great problem, they estimate the level far lower than in an SME. Production and services also can be transferred to other branches to a certain degree, if the home branch is delivering unsatisfying results. Therefore potential applicants perceive a lower job security in these factors, greatly increasing the unease in the work environment. Intensive Literature revealed that MNCs job persistence is on par with SMEs (Origo & Pagani, 2009), when controlling for other factors, but MNCs do have a tendency to exit markets faster, when deemed unprofitable (Görg & Strobl, 2002). Therefore it is in the interest of a corporation to communicate the fact that although an MNC might close shop more quickly than a local company in economic downswings, the security of jobs within an MNC is mostly equal to an SME, allowing for stable career planning similar to an SME.

All in all one can say that MNCs are very well positioned in comparison to SMEs as they generally offer better pay and a more challenging environment. The downside however lies in the higher paced surroundings, requiring both more flexibility and competitive spirit than an SME.

2.2) Definition of an SME

The definition of an SME is less clear than the definition of an MNC as the proper size of small and medium is hard to determine. The commonly used European definition has been determined by Lauder et al. (1994) that places small companies in the region between 1-99 employees, while medium enterprises employ between 100-499 people. Like MNCs these companies also have a unique set of rules they adhere to.

Small and Medium Enterprises are often referred to as the backbone of a country’s economy (Moy & Lee, 2002) as it comprises most of the economic activities in basically any given country and is generally the most common type of employment. Although not being treated with the same level of admiration as MNCs, the importance of SMEs and their role in today’s society is widely acknowledged (Chapman et al., 2005). Because of the innate focus on local regions and/or products it also relatively easy to measure the economic impact of the employer from a potential applicant point of view. Thus they are much more informed on SMEs as there is less information to process in order to gain insights into the company.

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The level of job security, an important aspect in employment, is perceived as much higher in an SME (Görg & Strobl, 2002) because of the fact that employees have an easier overview over the total business process, therefore being able to evaluate the company’s success or failure on a more intimate basis than in an MNC. Although the literature does not really suggest higher turnover or firing rates due to less job security the general turnover rate, which is higher in an MNC, still gives applicants the impression that an SME is a safer and less competitive place to work at. This feeling of security and familiarity is part of the innate strengths of SMEs HRM techniques.

The aspect that makes SMEs really stand out is the ability to create a good work-life balance without overexertion or critical deadlines pressing on employees, allowing for a content working ethic while maintaining an active social life (Görg & Strobl, 2002). As the philosophy behind working in an SME lies in continuity and cooperation for long periods of time with the same team, a balanced work-life approach is the way to achieve this optimally (Grubb et al, 2007). The lower level of pressure might appeal to workers wishing to focus their energy on other projects besides work.

The small employee pool (Moy & Lee, 2002), which helps in communicating more efficiently due to the increased personal relationships is another prominent aspect of working in an SME. Emphasis on cooperation above elimination, thereby creating a better work environment that employees will appreciate more, is a highly appreciated good.

However the small amount of employees can also be seen as a weakness because of the lack of job advancement opportunities (Rogovsky, 1996). With a small staff an even smaller amount of leading personnel is needed to manage the team and job openings and chances to advance are very hard to come by. Thus applicants might be disappointed by the rigid structure and lack of flow within the company (Theodossiou & Zangelidis, 2009).

Also the risk of ending up with monotonous work is disadvantageous in the eyes of applicants, as variety in job tasks is essential for applicants wishing for an interesting and challenging work environment (Hakkala et al, 2008). Although the compensations through more free time and better social surroundings are ample, the perceived gap between standard routine jobs and “challenging” adaptations is very big.

A highly sensitive point must be mentioned, when comparing working for an SME with employment by an MNC. There is a definite wage gap between those two corporate structures (Heyman et al, 2004), given the constraint of including high paying jobs only (see 2.1)), and as first time job applicants still do not know their value on the market, they tend to measure their own success in finding a job by the amount of money they can negotiate (Lau & Pang, 1995). This is a major hurdle that has to be overcome, when SMEs want to successfully compete with MNCs for talents.

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As a summary it can be said that SMEs being the more constant amongst the two business forms relies heavily upon its job security and work-life balance to attract potential applicants, while providing a more social work environment to enhance productivity. The downside to this approach lies in the lower possibilities of job advancement, rigid structures and a gap in wages and payments.

2.3) Comparison of advantages

In order to get a graphically more compelling overview of aspects a list directly facing off MNCs and SMEs is provided here:

Student preferences in a job

This chapter provides a detailed analysis of student preferences by introducing various ranking models used to interpret student answers concerning the topic at hand. In 3.1) a general overview of the models used is given. Based on that an actual interpretation and aggregation of the survey data is made in 3.2), resulting in an aggregate ranking. Additionally more descriptive data is given to substantiate the evaluation process and methodology of the analysis.

3.1) Preference analysis

When categorizing the aspects that students deem most important in a job, there are several models established that can be drawn upon. Powell (1991) developed a

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MNC

Professionalism in HRM

Higher wages

More complex job tasks

Fringe benefits

Fast job advancement

Competitive work environment

Lower level of perceived job security

SME

Easier to get more responsibility fast

High perceived level of job security

Better Work-Life balance

More personal contact with co-workers

Slower job advancement

Repetitive job tasks

Lower wages

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model consisting of 15 items, which he grouped into three main categories such as work and related subjects (opportunities, safety et al.), compensation (including all kinds of pay and bonuses) and work environment (combining interpersonal relationships in this point). These three Meta-points may pose as a general reference point for valuating student preferences, when used in combination with the extended model by Teo & Poon (1994). There they localized nine general indicators for student preferences in a job, which include “Pay”, “Fringe benefits”, “Working conditions”, “Managerial relationships”, “Long term prospects”, “Responsibilities given”, “Involvement in decision making”, “Marketability” and “Job security”. With a descriptive analysis of a student survey made by Moy & Lee (2002), which is based on this model, a preference ranking can be made.

This data is also further supplemented by incorporating various other surveys (see survey list in appendix), which are valued using the extended model if fitting and valued at a discount using the meta-point system otherwise to create a generalized ranking for student preferences.

The ranking process shows excerpts from various surveys taken in order to ascertain the user. By providing more traceable information the goal is to clarify the evaluation process and help the reader follow the thought process more easily.

By these means the following ranking is created.

3.2) Job preference ranking

The most cited response to the question, which aspect in a job do students rank the highest, is consistently the term “job advancement”.Ranking constantly amongst the top three answersthe possibility of climbing up the career ladderseems to be a key necessity for work satisfaction and the feeling of accomplishment. As an examplethe student survey reported by Graham Donaldfor the Canadian HR Reporter in 2006 surveyed 30.000 students across Canada on their job preferences. Even when controlling for the differences in study field, job advancement wasmentioned as most important with 44% of studentsranking it first on their list.

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Student preference ranking

Job advancement

Friendly work environment

Work-Life Balance

Pay

Job security

Involvement in decision making

Fringe benefits

Responsibility given

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Closely following that the prospect of having a good“work environment” is very enticing to studentsjoining the workforce. This aspect covers both the wish to work with friendly colleagues as well as understanding superiors. A generally likeable work environment is thus prerequisite for the well being of above mentioned workers. In a qualitative study, conducted by Hermanson et al. in 2002, out of 185 freshly graduated accountants 17.7% answered company culture, the equivalent of work environment in their study, as being the most important factor, when asked why they accepted a position within the firm. Other factors only managed to reach an average of around 10%. This shows the significance of this factor quite clearly.

Ranked third in this list is the wish of students to maintain a healthy “Work-Life Balance” allowing for enough freedom besides work to pursue an active social life and hobbies. In a Canadian study by Ng & Burke, surveying 22.000 students across all fields in 2006, over 4800 of those mentioned it amongst the top three arguments in choosing. Also the HR Reporter ranked this aspect as 4th, having 38% mentioning it as very important.

Surprisingly not amongst the top three is the factor of “pay”, when choosing priorities for a job. Although salary is the easiest discerning factor for comparing two jobs, students are aware that money alone is an insufficient indicator to value job attractiveness. This result is slightly controversial though. An in depth Malaysian study by Lim & Soon in 2006 as well as the Canadian studies rank payment in the 4th spot, showing several concerns above monetary compensation. Other studies though, like the analysis of Turkish students by Aycan & Fikret-Pasa in 2003, have payment and other forms of compensation highly ranked amongst its items. The decision to place it 4th came through the sheer volume of students surveyed by the studies, which placed this factor in 4th spot.

In order to fully identify oneself with the workplace it is necessary to build a trusting bond with the company. This is precluded by the sense of possessing a secure job and not fall victim to layoffs and managerial threats. A survey amongst Taiwanese IS students by Chan et al. in 2007 is focusing on this aspect, showing how much this contributes to the well being at the workplace.

Ranked at position number six is the wish to be involved in the decision making process. To be heard at the workplace and involved has high value to employee satisfaction and motivation. Especially focused on in the study “Attracting applicants in the war for talent” by Trank et al. in 2002, a high level of involvement can attract high achievers amongst students especially while still being attractive to the general graduate population.

Following that is the wish for fringe benefits. These benefits include various bonuses or special services available to employees, such as kindergarten service or medical and financial allowances, enriching the work life and creating a better environment to live in. In the study by Teo & Poon (1994) fringe benefits were

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often associated with provision of good social care by the employer than a simple alternative of monetary compensation. It is seen as a way to show appreciation beyond the common levels of working relationship and care.

Lastly the amount of responsibility handed to employees is of importance, when choosing a job as a demanding job is necessary for fulfillment and satisfaction. This item is mentioned as last of the commonly listed throughout the various studies and surveys as this term responsibility is hard to quantify with such a huge variety of different job aspects covered, but still regarded highly in the decision making process. The study of Aycan and Fikret-Pasa (2003) is amongst the highest ones ranking responsibility, showing high statistical values for their hypothesis.

In the following chapter a comparison between the aspects of companies and the derived ranking of students is made in order to find a fitting profile for either form of organization.

Managerial advice

This chapter brings together the results achieved in the previous parts and gives recommendations on how to properly adjust a company’s HR methods to reflect the proper strengths and weaknesses in their job attributes. In part 4.1) an MNC analysis is given, showing on which aspects a company might gain or lose in this context. The same procedure is repeated for an SME respectively in 4.2).

4.1) MNC strengths and weaknesses

In order to recall the insights gained properly, a graphical representation depicting the strengths and weaknesses of an MNC is provided here. This is achieved by

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marking the student preference lists with a , or ; these represent strong points, weak aspects and ambivalent positions respectively.

The main objective of this study lies in finding out, what job aspects a company should focus on in order to maximize appeal. Following from the data at hand the most significantadvantage an MNC has is the opportunity forquick job advancement. From the paper of Theodossiou & Zangelidis (2009) and the ranking, the advice to an MNC lies mainly infocusing on this career aspect in the job prospect to further the cause. Thus advertisements for job openings, which are aimed at recently graduated students, should be designed around the job advancement opportunities, showing the possible progress within the company and the promise for new and interesting tasks.

Another opportunity to impress potential applicants lies in the amount of pay and fringe benefits provided by a professional HRM department. For well educated students basic monetary compensation does not entice much allure, unless the amounts are way above market level. But in combination with fringe benefits and additional employer support, potential applicants will interpret this kind of compensation as care and support by the employer, thus increasing loyalty. This has been shown in the ample study by Chapman et al. (2005) and Theodossiou & Zangelidis (2009) respectively.

However, not all aspects of working in an MNC are so alluring to students and it is in the best interest of managers to address this in a proper fashion. Certain aspects of student job preferences are negative in MNCs, while others are shown as neutral or ambivalent. While obvious weaknesses arise from the sheer form and size of organization chosen and are hard to eradicate, the ambivalent points can be addressed more readily and can help to win over swaying candidates, if done correctly.

As seen in figure 3 the aspects job security and responsibility given are marked down as neutral. Job security also shows a potential drift to the weakness side as student perception is highly biased in this area towards an MNC. Since this is in fact unproven yet, as has been confirmed by Origo & Pagani (2007), it will be goal of HRM and managers to convince potential applicants of the security level of their jobs through thorough information and reassurance.

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MNC strength/weakness

Job advancement

Friendly work environment

Work-Life Balance

Pay

/ Job security

Involvement in decision making

Fringe benefits

Responsibility given

figure 3

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The aspect of responsibility is harder to improve as every position comes inherent with a given level of responsibility. Only open and truthful communication concerning the true burden given will prevent disappointment from excessive expectations.

Proper communication is also the most direct way to address the weaknesses within an MNC. It is a given that due to the competitive working environment a friendly collegial atmosphere is very hard to achieve, not matter how professional it may be. Thus communicating professionalism may be a better strategy than pretending to offer a job aspect that is effectively not existent within the company.

Also the increased workload that may lead to a bad Work-Life balance is mostly a given. It will be the goal to appreciate the effort of employees and show them the impact of their contribution, rather than pretending a successful Work-Life balance is easily achievable.

Therefore for both positive and negative aspects communication is the key.

4.2) SME strengths and weaknesses

A similar approach is taken to evaluate the strengths and weaknesses of SMEs. Again the same nomenclature is used as in the previous figure.

The strength of SMEs obviously lie in the friendly working environment that greatly contributes to the well being of potential applicants, when searching for a permanent position, where they may spend large parts of their daily life. As Moy & Lee (2002) discussed in their study this good is highly appreciated and even trumps hard monetary

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SME strength/weakness

Job advancement

Friendly work environment

Work-Life Balance

Pay

/ Job security

Involvement in decision making

Fringe benefits

Responsibility given

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compensation.

Furthermore the possibility of creating a good Work-Life balance is enticing to all potential applicants that have commitments outside the work relationship and wish to actively pursue a social and/or family life. This has been investigated by Görg & Strobl (2002), showing how attractive this good can be.

Additionally the good reputation of SMEs for being stable employers is an asset managers might build upon to attract potential applicants. Especially in modern day work environments, where firing might be a constant threat to employees, having a reputation for stability is a benefitting factor.

Also the possibility of participating and contributing by being involved in the decision making process as well as increased responsibility due to smaller employee pools is an alluring factor for applicants. When deciding on how to advertise for the job opening, the possibility of bearing more authority might solve certain intricate problems.

These problems present themselves in certain negative aspects that SMEs will have to address. These include the lower levels of compensation an employee might expect in comparison to an MNC as well as the more rigid structure, leading to lower job advancement opportunities. The wage gap should be properly admitted by pointing out the differences in job requirements and not simply brushed aside in order to communicate truthfulness to applicants.

Also other forms of appreciation should be taken into consideration, if promotions are not available. By circumventing the promotion problem with other forms of bonuses or gestures of appreciation, a motivated workforce can be maintained.

Conclusion

This chapter concludes this thesis by first providing a summary of the advice given in 5.1). Afterwards a critical analysis regarding the limitations of this thesis is given in 5.2), ending into recommendations for further research in 5.3).

5.1) Summary

This thesis brought together certain characteristics of MNCs and SMEs and compared them to a set of job preferences. This is done in order to be able to give well founded advice on how to proceed in the recruiting process, when companies

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figure 4

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with certain profiles face off against the wishes of their applicants. Thereby certain guiding rules can be established.

At first the characteristics of an MNC are recaptured here. The professional organization and sheer magnitude of an MNC allows for various kinds of gratifications. Having the ability to pay higher wages than the competitors, provide a multitude of fringe benefits and a fast paced and exciting job environment is for above mentioned reasons highly regarded with students. These strong points are set in contrast to the competition and impersonal relationships at the workplace, which have a negative impact on the overall well being of workers at the workplace.

Naturally SMEs have a different approach towards this. The smaller amount of employees favors HRM techniques that are more focused towards personal relationship, flexibility in working conditions and job preservation. As a downside the difference in the amount of possibilities in comparison to MNCs is staggering.

As students and first time applicants want to capture as many positive aspects as possible, it lies in the hands of the companies to provide the proper amount of information. The key to success lies in efficient marketing of the important aspects of the job.

The general rule for both MNCs and SMEs lies in playing to their strengths by communicating their strong points to potential applicants as clearly as possible. In advertisements as well as interviews this is a good strategy. Additionally it is in the best interest of managers to clarify the points, where their company is acting neutral, in order to show the individual company position towards the wishes, which applicants might express.

Weaknesses on the other hand are to be admitted and explained, given the characteristics and design of the company, while avoiding blatantly deceiving the applicant or making excuses. With proper information and openness the applicant will be able to make an informed decision, enabling a stable work relationship.

5.2) Limitations of the paper

This thesis has certain limitations that have to be mentioned in order to stand academically correct. Firstly the wage gap mentioned in the paper is only statistically relevant for jobs of higher qualification. This has to be taken into account and the results from this thesis should therefore not be used for low wage jobs.

Additionally the assessment of the various survey data does not follow statistically valid procedures, as this is only an aggregate of various kinds of data, all discerning

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in sample size, question design and answer possibilities etc. This is only to be used as a rough guideline and not as a statistical model.

5.3) Recommendations for further research

Having shown the limitations of the thesis at hand, certain recommendations concerning further research into this area are proposed here. The data used in this research are from an international panel, featuring the survey answers of students from all around the world. But since this thesis is written at a Dutch university, it is of interest, whether the conclusions reached in this thesis can be applied to Dutch students as well.

Furthermore this topic could be approached more in detail. An analysis concerning student preferences can be devised that incorporates various social and ethnic group variables in order to check whether cultural effects concerning these preferences exist.

Additionally this thesis only provides an overview over the topic concerned, leaving a lot of room for econometric analysis and expert design. As the data used is taken from different designs and statistic approaches, the aggregation is imprecise and the results can be refined.

These are only three of many ways to extend the area of research and cover similar topics.

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Görg, H., & Strobl, E. (2002, May). Footloose Multinationals? Retrieved 03 02, 2010, from Center for Economic Policy Research, www.cepr.org : www.cepr.org/pubs/dps/DP3402.asp

Grubb, W., Harris, M. L., & Jr, W. I. (Fall 2006 / Winter 2007, 2 17). Business Students' Perceptions of EMployment in Small and Medium-Sized Enterprises Versus Multinational Corporations: Investigating the Moderating Effects of Academic Major, Gender and Personality. Journal of Small Business Strategy , p. pg. 27 ABI/INFORM Global.

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Survey List:

Carpenter, C.G., & Strawser, R.H, (1970, June). "Job Selection Preferences of Accounting Students." The Journal of Accountancy, 84-86.

Dinius, S.H.. & Rogow, R.B. (1988). "Application of the Delphi Method in Identifying Characteristics Big Eight Firms Seek in Entry-Level Accountants." Journal of Accounting Education, 83-101.

Johnson, A.C., & Simonson, J. (1970, Fall). "The College Graduate and His First Job." Management of Personnel Quarterly, 18-23.

Manhardt, P.J. (1972)."Job Orientation of Male and Female College Graduates in Business." Personnel Psychology, 25, 361-368.

Bundy, Paul, & Norris, Daniel. (1992). „What Accounting Students Consider Important in the Job Selection Process.“ Journal of Applied Business Research, 8(2), 1.

Heather M Hermanson; Mary C Hill; Susan H Ivancevich. “Who are we hiring? Characteristics of entrants to the profession”The CPA Journal; Aug 2002; 72, 8; ABI/INFORM Global; pg. 67

Graham Donald. “What students want”Canadian HR Reporter; Oct 9, 2006; 19, 17; ABI/INFORM Globalpg. 15

John R Hall. “What Students Look for in Future Employers”Air Conditioning, Heating & Refrigeration News; Dec 1, 2008; 235, 14; ABI/INFORM Globalpg. 1

Zeynep Aycan; Selda Fikret-Pasa. “Career Choices, Job Selection Criteria, and Leadership Preferences in a Transitional Nation: The Case of Turkey”Journal of Career Development; Winter 2003; 30, 2; ABI/INFORM Globalpg. 129

Jane W Moy; Sze M Lee. “The career choice of business graduates: SMEs or MNCs?”Career Development International; 2002; 7, 6/7; ABI/INFORM Globalpg. 339

Mariusz Sagan; Joseph Tomkiewicz; Tope Adeyemi-Bello; Robert Frankel. “Importance of Job Characteristics among Future Businesspersons: A Comparative Study of Russian and Polish Students”International Journal of Management; Dec 2008; 25, 4; ABI/INFORM Globalpg. 641

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I-Chiu Chang; Hsin-Ginn Hwang; Chung-Feng Liu; Siao-Hong Siang. “A STUDY OF CAREER ANCHORS AND JOB CHARACTERISTIC PREFERENCES OF IS STUDENTS”The Journal of Computer Information Systems; Spring 2007; 47, 3; ABI/INFORM Globalpg. 24

Hock-Eam Lim; Jan-Jan Soon. “Job Selection Criteria And Job Sector Preference Of Economics Student: An Ordered Logit Model Analysis”International Journal of Business and Society; Jan 2006; 7, 1; ABI/INFORM Globalpg. 53

Eddy S.W. Ng, Ronald J. Burke. “The next generation at work – business students' views, values and job search strategy: Implications for universities and employers”Education+Training 48,7; 2006; ABI/INFORM GlobalPg. 478 - 492

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