Instead, upper level management positions are held by the most qualified employees selected form a global pool of candidates. Every company finds it challenging to recruit and select top executives for an international location. The pros and cons of international staffing policies kathrin mossler seminar paper leadership and human resource management miscellaneous publish your bachelors or masters thesis, dissertation, term paper or essay. The model states that a multinational organisation holds one of three orientations at any point in time. Polycentric, ethnocentric, and geocentric approach to. It overcomes the federation drawback of the polycentric approach. The polycentric approach to staffing is essentially an approach that is based upon the premise of staffing an organization with employees from the host nation.
A staffing approach within the mne in which all key management positions are filled by parentcountry nationals. It consists of 4 stages in the international operations evolution process and the framework states that the business and the staff tend to operate in one of the four explained ways. Use this policy to determine whether the regiocentric, ethnocentric or polycentric approach. Factors affecting international staffing in chinese multinationals. Ethnocentrism is pre dominantly a home country orientation. In what ways does an ethnocentric approach affect hr. While polycentric maintains employees from the same area, ethnocentric is generally adopted by headquarters by sending employees from the home or parent countries to the host country. Pdf from an ethnocentric to a geocentric approach to. Pdf international staffing strategic considerations for. Changes in size bring difficulties in staffing also.
Ethnocentric, geocentric, and polycentric term paper. Mar 24, 2017 the ethnocentric staffing policy approach is also used to ensure that the culture of the entire organization is unified rather than diversified. Ethnocentric approach is used in mncs having international strategic orientation while polycentric approach maintains employees from the same area, ethnocentric involves sending employees from the home or parent countries to the host country. Staffing in global business management and relevant issues. Approaches of staffing there are four main approaches of staffing 1. Identify the advantages and disadvantages of each for international company staffing. What are the opposing reasons for the polycentric approach of. An mne with an ethnocentric staffing approach tends to employ. The way businesses and staff view the world is described as international management orientations. Thesis changes brought on by globalization reasons for spread of multinational enterprises global issues, corporate, and labor laws crosscultural differences staffing subsidiaries 3. Ethnocentric staffing relies primarily on expatriates with a focus on assuring alignment of perspective and interests of.
The subsidiaries are in early stages of development. Ethnocentric staffing means to hire management that is of same nationality of parent company. Pdf international staffing strategic considerations for different. Jan 17, 2020 the ethnocentric staffing approach heavily focuses on the norms and practices of the parent company where upper management positions are typically held by corporate personnel from the home country. Analysis of the ethnocentric approach to ihrm published. Polycentric approach to international management is the policy involved in hiring and promoting employees who. Firms may choose an ethnocentric approach to staffing as opposed to a polycentric approach because of the cost savings it promotes.
Ethnocentric model polycentric model or global model. In this approach host country nationals occupy positions in the foreign subsidiary. Originalityvalue international business, human resource management, multinational companies, ethnocentrism paper type case study intro. Eprg ethnocentric, polycentric, regiocentric, geocentric formula as one of the basic strategy typologies. Using the centralized approach can cause inefficient staffing problems in the organization, this is because the employed staff will incur high financial costs to the global. Ethnocentric approach polycentric approach regiocentric approach geocentric approach 3international staffing 4. The authors used the qualitative research approach of building theory.
Ethnocentric approach in international business example. International staffing strategic considerations for different world regions. The epg model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. Ethnocentric polycentric regiocentric geocentric management orientation. Jun 18, 2014 approaches to international staffing 4 approaches. In order for multinationals companies to be competitive, it is necessary to have adequate international staffing approach.
The nationals of the host country will be aware of. This solution defines the polycentric, ethnocentric, and geocentric approaches to staffing and discusses advantages and disadvantages of each. Knowing where your organization lies under these three. The ethnocentric staffing approach h eavily focuses on the norms and practices of the parent company where upper management positions are typically held by corporate personnel from the home country. The ethnocentric approach places natives of the home country of a business in key positions at home and abroad. Considerations for determing a staffing approach when expanding a business overseas are also discussed. The ethnocentric approach is used less today as a staffing policy by. Ethocentric orientation is where the organizations senior management believe that nationals from the. A similar approach is taken in the recruitment of ffgs. Staffing of multi national enterprise which approach is. There are four primary approaches that multinational companies use in staffing decisions, including geocentric, ethnocentric, polycentric, and regiocentric approaches.
Originalityvalue international business, human resource management, multinational companies, ethnocentrism paper type case study introduction. Dec 09, 20 developing an international business presence than an ethnocentric approach, and is often less costly to establish than other staffing strategies. Developing an international business presence than an ethnocentric approach, and is often less costly to establish than other staffing strategies. When a company opens an overseas operation, it is in a growth stage. Relocating managers from the home country is expensive. Oct 24, 2008 it is argued that the forces of globalization constrained this multinational company to change from an ethnocentric approach to a geocentric approach to its ihrm. The recruitment approach of hilton hotel indicates something that reveals the shortages of the other two approaches. The international journal of human resource management. Under the polycentric approach, local managers are hired to run the foreign subsidiaries of a multinational enterprise. Apr 14, 2014 from an ethnocentric to a geocentric geocentric approach to. Staffing strategy ethnocentric polycentric geocentric regiocentric. There are four primary approaches that multinational companies use in staffing decisions, including ethnocentric, polycentric, geocentric, and regiocentric approaches.
Nov 24, 2014 for example, initial evidence suggests that the design of international staffing practices may impact on local employees turnover intentions the ethnocentric approach to staffing displays the most salient journal of international business studies, 23. The reorganization into divisions changes the orientation. From an ethnocentric to a geocentric approach to ihrm. This approach puts localized decisions in the hands of people directly connected to the companys central headquarters, decisions on the ground are made by employees familiar with the parent companys culture but not necessarily the native one. Use this policy to determine whether the regiocentric, ethnocentric or polycentric approach suits best. From an ethnocentric to a geocentric geocentric approach to. Some transfers of hcns to headquarters also take place. In an international organization, the managing and staffing approach strongly affects the type of employee the company prefers. Polycentric, ethnocentric, and geocentric approaches.
The ethnocentric approach an ethnocentric approach to staffing policy is one in international business transactions in 1997 which obliges member states to make the bribery of foreign public officials a criminal offense 41 apr11. What are the 3 reasons pursue ethnocentric staffing policy 1 the firm may believe the host country lacks qualified individuals to fill senior management positions. What are the opposing reasons for the polycentric approach. The ethnocentric staffing policy refers to the strategy of a multinational. Use features like bookmarks, note taking and highlighting while reading defining polycentric, ethnocentric, and geocentric. Cultural differences and long periods away from relatives and friends contribute to the failure of international assignments. International business chapter 17 flashcards quizlet. The pros and cons of international staffing policies grin. Polycentric staffing can reduce costs and help the business respond to local culture, but managers hit a glass ceiling and subsidiaries can wind up isolated from the corporate hq. Nov 03, 2010 ethnocentric staffing approach word number. When is it appropriate to use ethnocentric staffing.
In a company with an ethnocentric approach, parent country nationals usually staff important positions at headquarters and subsidiaries. Regiocentric reflects a regional strategy and structure. It supports cooperation and resource sharing across units. Motto this works in my country, so it must work in all other countries. Mncs using a global strategy are more likely to use an ethnocentric staffing approach. Ethnocentric approach countries with branches in foreign countries have to decide how to select management level employees. Either geocentric, polycentric, or ethnocentric geocentric approach, and why. Jan 26, 2019 under the polycentric approach, local managers are hired to run the foreign subsidiaries of a multinational enterprise. As this article aims at the ethnocentric approach analysis, it can be concluded that the hilton group did not adopt the ethnocentric approach as the staffing strategy for some reason.
Pdf from an ethnocentric to a geocentric approach to ihrm. Mnc that have a global business strategy are most likely to use this approach. Ethnocentric model, polycentric model, or global model which model will be most appropriate for staffing each group. These managers are considered parent company nationals, or pcns. With the exception of engineers or research staff, ffgs degree subjects or a potential. Describe your staffing approach ethnocentric, polycentric, or geocentric and why you are choosing this approach. While polycentric maintains employees from the same area, ethnocentric is generally adopted by headquarters by sending employees. Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. Ethnocentric approach to human resources management essay.
Defining polycentric, ethnocentric, and geocentric approaches to staffing. The approach to hcn management in terms of recruitment and selection is. Few foreign subsidiaries have an autonomy and strategic decisions are made at the headquarters. A key advantage to the polycentric approach to staffing, is that it is easier for an organization to market goods that have been produced by individuals who reside in the nation in which. The ethnocentric or the geocentric global corporation.
Ethnocentric approach results in the staffing of key positions in the mnc by pcns. Decide which staffing approach is most suitable for this particular case. Pdf this paper introduces the different international staffing strategies ethnocentric, geocentric, polycentric, and regiocentric that international. Ethnocentric the example of such change is nissan which in the first years of its existence on international arena was following ethnocentric approach by selling its cars abroad exactly as they were sold in their domestic market in japan, after several years of its international trading the company realized that ethnocentric international marketing orientation is no longer relevant for some. Bonuses for relocating, plus relocation expenses for families, increase the cost of a manager. The objective of this paper is to verify whether the size of internationalised firms from poland plays any role in applying a particular international strategy. When a company follows the strategy of choosing only from the citizens of the parent country to work in host nations, it is called anethnocentric approach. The polycentric approach a polycentric staffing policy requires host country nationals to be recruited to manage subsidiaries, while parent country nationals occupy key positions at corporate headquarters. Essay on ethnocentric staffing approach 1412 words. Ethnocentric staffing approach ethnocentric staffing approach used when advantages disadvantages there is a strong need for the hq to control the subsidiaries. International recruitment methods ethnocentric approach. Japanese and korean firms follow this approach quite often. However, the problem with the ethnocentric policy approach is that it does not fully support the transfer of local knowledge to the company.
The polycentric approach is the international recruitment method wherein the hr recruits the personnel for the international businesses. Aug 29, 2019 ethnocentric polycentric regiocentric geocentric management orientation. December 1, 2015 human resource management hrm refers to the activities an organization carries out to utilize its human resources effectively, including determining the firms human resource strategy, staffing, performance evaluation, management development, compensation, labor relations. Download it once and read it on your kindle device, pc, phones or tablets. The pros and cons of international staffing policies. In polycentric approach, the nationals of the host country are recruited for the managerial positions to carry out the operations of the subsidiary company. Identification and documentation of employee progress and productivity have enhanced the standardization of service delivery in all coca cola divisions across the world. With an ethnocentric approach, you intentionally recruit and deploy parent company leaders and employees to manage foreign operations.
Ethnocentric approach differences between expatriates and. Geocentric staffing approach is adopted when companies implement a transnational orientation. It examines how the organizational changes influenced the companys approach to the international human resource management ihrm. In many respects, a polycentric approach is a response to the shortcomings of an ethnocentric approach. Multinational company to change from an ethnocentric approach to a geocentric approach to its ihrm. Discuss the budget with finance to make sure youre able to apply the chosen approach and whether another one could work equally well with lower costs. He states that businesses and their staff tend to operate in one of four ways. The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies mncs. The relationship between mncs strategies and executive. Managing human resources in international organizations. Developing an international business presence 9 a rewarding business decision for companies of all sizes.
The companies adopting or working in this way believe that home country is superior in nature and. For example, initial evidence suggests that the design of international staffing practices may impact on local employees turnover intentions the ethnocentric approach to staffing displays the most salient journal of international business studies, 23. Using ethnocentric staffing can prevent expanding interests into areas the company doesnt want to go. False a polycentric approach may be less expensive to implement, reducing the costs of value creation. Headquarters develops a managing and staffing approach and consistently applies it throughout the world. The geocentric staffing approach does not focus on one nationality over the other. Topic staffing policy 10 firms may choose an ethnocentric. In doing business in a japan, the polycentric staffing approach would work best. For an effective utilization of the internal source of recruitment, global companies need to develop pollycentric internal database of employees and an effective tracking system to identify the most suitable persons for global postings. Howard perlmutter identified a way of classifying alternative management orientations, which is commonly referred as perlmutters eprg model.
International recruitement approaches linkedin slideshare. Polycentric, ethnocentric, and geocentric approaches to staffing. Polycentric, ethnocentric, and geocentric approaches to. The other staffing approach that is widely used in all coca cola subsidiaries is a continual tracking and documentation of employee productivity, progress, and morals. Plessis and huntley, 2009, p417 defines the ethnocentric approach as the approach where the cultural values and business practices of the home country are predominant as it is the head office ho of the multinational corporation mnc which develops a managing and staffing approach and applies it consistently around the world. Companies following the ethnocentric approach assume the home country approach is best and that employees from other parts of the world can and should follow it. The purpose of this paper is to study the case of one french multinational company which has undergone a process of radical restructuring and internationalization because of acquisitions of anglo.
Regiocentric approach the geocentric approach is one of the methods of international recruitment where the multi national companies recruit the most suitable employee for the job irrespective of their nationality. Aug 15, 2019 the ethnocentric approach places natives of the home country of a business in key positions at home and abroad. More popular past 20 years 3 reasons for ethnocentric policy. Ethnocentric approach is a staffing policy that is used in companies that has primarily international strategic orientation. Ethnocentric approach results in the staffing of key positions in. The ethnocentric approach is one of the methods of international recruitment wherein, the hr recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organizations culture.
877 1035 1261 1553 43 143 954 787 151 879 200 1122 122 1621 629 233 629 219 122 258 1585 1177 1305 1236 681 116 857 863 184 889 732 567 768 186 1194 1030 401 909 267 318 571 384 1183 1329 951 995 1303