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. There are three essential approaches in making staffing decisions. Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. Watson electronics, an mne based in canada, tends to follow an ethnocentric staffing model. The ethnocentric approach is focused primarily on profits that are. The work contained in this thesis has not been previously submitted for any degree or diploma in any educational institution. In the ethnocentric approach, the cultural values and business practices of. Ethnocentric approach countries with branches in foreign countries have to decide how to select management level employees. The eprg ethnocentric polycentric regiocentric geocentric model applied to kcb bank group as a multinational corporation. Multinational companies staffing approaches case solution. Ihrm orientation and staffing strategy alhajie saidy khan laibs. It involves activities on a global basis, including candidate selection, assignment terms and documentation, relocation processing and vendor management, immigration processing, cultural and language orientation and training, compensation administration and payroll processing, tax administration, career. This solution defines the polycentric, ethnocentric, and geocentric approaches to staffing and discusses advantages and disadvantages of each.
Staffing for global operations is quite a complex affair. So, keeping this in view, ethnocentric staffing approach would be best suited for. Ethnocentric, geocentric, and polycentric term paper. In what ways does an ethnocentric approach affect hr an ethnocentric approach is one of several human resources strategies a company can employ when expanding operations into a new foreign country. An ethnocentric approach is one of several human resources strategies a company can employ when expanding operations into a new foreign country. From an ethnocentric to a geocentric approach to ihrm. Considerations for determing a staffing approach when expanding a business overseas are also discussed. Polycentric approach to international management is the policy involved hiring and promoting employees who are citizens of the country that. 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 paper then questions the analytical usefulness of prescriptive expatriate staffing stereotypes, especially the best practice ethnocentric model, and calls for a more informed and strategic approach to. The eprg ethnocentric polycentric regiocentric geocentric.
The staffing policies of swedish companies at their. Human resource management hrm in a mnc faces challenges that are. Under the polycentric approach, local managers are hired to run the foreign subsidiaries of a multinational enterprise. Bonuses for relocating, plus relocation expenses for families, increase the cost of a manager. The regiocentric approach is an international recruitment method wherein the managers are selected from different countries lying within the geographic region of business. There are a few other drawbacks to the polycentric approach which may restrict a multinational. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. What are the main advantages and disadvantages of the ethnocentric, polycentric, regioncentric, and geocentric approaches to staffing policy. The ethnocentric approach is used less today as a staffing policy by. Companies following the ethnocentric approach assume the home country approach is best and that employees from other parts of the. The findings revealed that kcb bank group majorly employs a topdown management approach in executing its organization management function.
For instance, executive positions are given to americans in an office of an american company located in indonesia. What key factors should a firm consider before adopting one of these approaches. There are four primary approaches that multinational companies use in staffing decisions, including ethnocentric, polycentric, geocentric, and regiocentric approaches. Relocating managers from the home country is expensive. In addition to manual analysis done by us coding, we may use. The study evaluated the problems faced by the country as it was using ethnocentric approach staffing. What are the opposing reasons for the polycentric approach. The subsidiaries are in early stages of development. The recruitment approach of hilton hotel indicates something that reveals the shortages of the other two approaches. Geocentric staffing approach is adopted when companies implement a transnational orientation. Brewster 2011 observes a trend towards a more global approach to international staffing which would represent a significant move away from the traditional ethnocentric mode of assignments.
Human resources policies are, therefore, key elements to providing workplace structure and guidelines for the most effective use of human capital. In what ways does an ethnocentric approach affect hr. Globalisation and mnes in simple terms, mnes are those companies which are registered in more than one. Pdf the present study focuses on the international staffing of early internationalizers. Assignments as control is a characteristic of an ethnocentric staffing approach.
Chapter 2 what is the difference between a polycentric, ethnocentric, and geocentric approach to international management. Pdf managerial approaches in multinational companies. 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. 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. What are the main advantages and disadvantages of the. In other words, the managers are selected from within the region of the world that closely resembles the host country. The ethnocentric policy approach to staffing designates home country nationals as top ranking employees in global operations. Mnc that have a global business strategy are most likely to use this approach. Discuss the extent to which mnc global mobility policies have evolved to accommodate this global or geocentric host based approach and the. From which group will it most likely hire for upperlevel management. Pdf the economic interests and activities of many companies go beyond national borders and become transnational. Ethnocentric polycentric regiocentric geocentric pdf the epg in the title of this model stands for the following. International business chapter 17 flashcards quizlet.
Be sure to relate the different global staffing approaches to strategy. This staffing strategy tends to be utilized when foreign ventures have little autonomy, strategic decisions are made at headquarters in the parent country, and most of the key positions at the foreign. Geocentric staffing approach is used when companies implement a transnational orientation. An ethnocentric staffing policy is one in which key management positions are filled by parent country nationals. The nationals of the host country will be aware of. 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. The first one is the ethnocentric approach and that emphasizes the norms and practices of the.
In the article, the ethnocentric approach will be comprehensively and deeply. Multinational companies staffing approaches case solution, multinational companies staffing approaches case solution tiwari 20 investigated human resource management among international organizations. By writing this dissertation we had the chance to apply all the knowledge and competence we have earned during our education. Polycentric, ethnocentric, and geocentric approach to. Pdf from an ethnocentric to a geocentric approach to. The ethnocentric or the geocentric global corporation. 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. The staffing policies of swedish companies at their chinese production units 2 foreword kristianstad, november 2005 as international business students this dissertation concludes our education at university of kristianstad. I certify that, to the best of my knowledge and belief, this thesis entitled multinational companies executive selection practices challenges of human resources in international business management is my own work. The main benefit of this staffing policy approach is that it allows the organization to ensure that the. Multinational companies executive selection practices.
Polycentric, ethnocentric, and geocentric approaches to. Ethnocentric staffing policy 623 words 123 help me. Pdf international staffing strategic considerations for. Given the risks to a small business in globalizing, it is especially important to weigh the pros and cons of. Pdf human resource management and early internationalization. Ethnocentric approach is best used when teams from a certain home country are sent to a new location to help direct and assist due to their experience. Ethnocentric model, polycentric model, or global model which model will be most appropriate for staffing each group. In this chapter, we draw linkages between theory and research from strategic human resource management and its focus on predicting unitfirm performance with the key issues and empirical findings from the staffing and selection literature and its focus on predicting individual performance. Ethnocentric model polycentric model or global model.
Strategic human resource management and global expansion lessons from. The rationale behind this approach was the assumption that firms which engage actively and openly in the recruitment of foreign workers are at. Ethnocentric staffing means to hire management that is of same nationality of parent company. The performance question 1 the ethnocentric or the geocentric global corporation. In the ethnocentric approach, the cultural values and business practices of the home country are predominant. Global staffing policies and human resource orientations. Gayle can rely upon ethnocentric staffing, which involves staffing the most important positions in foreign subsidiaries with expatriates from the companys home country. Expatriates are often believed to better represent the interests of the home office and ensure that the foreign offices are aligned with home headquarters. Global approach to talent source and thus, diverse workforce. These three dimensions allow executives to more accurately develop their firms general strategic profile. Though we may choose to vehemently deny it, all of us are ethnocentric in some way.
In maintaining competitiveness, the staffing function has a great deal of weight in regards to globalization which requires an immense amount of efficiency. Epg model is an international business model including three dimensions ethnocentric, polycentric and geocentric. Headquarters develops a managing and staffing approach and consistently applies it throughout the world. An ethnocentric approach to staffing is characterized by the extensive use of expatriates in overseas positions.
America, an ethnocentric or regiocentric strategy in asia, an ethnocentric. Every company finds it challenging to recruit and select top executives for an international location. Recruitment and selection free download as powerpoint presentation. Ethnocentric staffing approach ethnocentric staffing approach used when advantages disadvantages there is a strong need for the hq to control the subsidiaries. It will enable the student to develop research skills to critically analyse the what and why of hr challenges faced by mnes. Cultural differences and long periods away from relatives and friends contribute to the failure of international assignments. Ethnocentric approach is a staffing policy that is used in companies that has primarily international strategic orientation. Managing human resources in international organizations. Perlmutter within the journal article the tortuous evolution of multinational enterprises in 1969. International recruitment methods ethnocentric approach. Regiocentric orientation is an approach adopted by a firm wherein it adopts a marketing strategy across a group of countries, which have been grouped on the basis of their market characteristics. An ethnocentric approach also has some limitations. 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.
The most valuable resource an organization has is its human capital, meaning the resources, talent and expertise of its workforce. Instructors manual contains tutors notes and answers to chapter questions and. Ichapter 19 international human resource management human resources are among the most critical success factors of international man agement. To perform staffing function effectively, there are three main approaches within. Bus 325 global human resource management week 6 quiz bus325 global human resource management week 6 quiz. Ethnocentric staffing relies primarily on expatriates with a focus on assuring alignment of perspective and interests of foreign subsidiaries. The ethnocentric approach allows an individual to promote a positive selfimage without much risk of conflict or rigidity because of the similarities that they share with the majority in their cultural community. The other way to become multinational is to merge with. Mgt mcq mgt 3320 the ethnocentric staffing model utilizes hostcountry nationals extensively throughout the company. Given the risks to a small business in globalizing, it is especially important to weigh the pros and cons of ethnocentricity against other alternatives to hr. A staffing approach within the mne in which all key management positions are filled by parentcountry nationals. Study 41 chapter 20 final flashcards from cynthia l.
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