58761221 recruitment selection staffing in the international context

8/2/2019 58761221 Recruitment Selection Staffing in the International Context

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Presentation on

Ethnocentric approach

Polycentric approach

Geocentric approach

PresentedBy

KhushpreetChawla

Ethnocentric Polycentric

Geocentric


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There are four major approaches to

international staffing:

1.Ethnocentric approach2.Polycentric approach

3.Geocentric approach


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Definition:It is an approach of multinational staffing

where in the personnel of the parent countryholds the key position in the host countryoperations.

The approach appears to be appropriate forsmall co just entering international operations

or co with minimal international commitmentsover seas.


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Reasons for pursuing an ethnocentricstaffing policy:

Perceived lack of qualified host countrynationalsThe need to maintain good

communication, co-ordination & controllinks with corporate head quartersFor firms at the early stages of

internalization, an ethnocentric approach

can reduce the perceived risk.When a multinational acquires a firm in

another country ,the local manager isreplaced by a parent country national toensure that the subsidiary complies withoverall corporate objectives.


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Definition:A polycentric approach of staffing refers to

the staffing where in the host country nationalis placed in the key position of the subsidiaryoperations.

This is because of the inherent differences inthe overseas market.

Local managers are recognized as beingpsychologically close to people & market


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3. Geocentric Approach:In this approach the multinational

environment is taking a global approach to itsglobal operations

It recognizes that subsidiary & corporatemakes unique contribution with its uniquecompetency.

It is accompanied by a worldwide integrated

business & nationality is ignored in favor ofability.


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Advantages of GeocentricApproach:

It enables a multinational to develop aninternational executive team which assists

in developing a global perspectiveAn internal pool of labor is developed for

deployment thought the globalorganization

It does not isolate the corporate &subsidiary

It supports co-operation & resource

sharing across units.


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Ethnocentric

Key management

positions filled byparent-countrynationals

Polycentric

Host-countrynationals manage

subsidiaries,parent companynationals hold key

Headquarterpositions

Geocentric

Seek best

people, regardlessof nationality


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Staffing Strategic

qualified managers in host country

Alleviates cultural Limits career mobility

Inexpensive to from foreign

Transnational

Uses human resources National immigration

myopia

Approach Appropriateness Advantages Disadvantages

Ethnocentric International

Polycentric Multi-domestic

Geocentric Global and

Overcomes lack of Produces resentment

in host nation

Unified culture Can lead to culturalHelps transfer corecompetencies

myopia Isolates headquarters

implement subsidiaries

efficiently policies may limitimplementation

Helps build strongculture and informalmanagement network

Expensive

Higher cost


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58761221 recruitment selection staffing in the international context

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