International Hrm Staffing Policies - 1357 Words

INTERNATIONAL BUSINESS Distinguish between Ethnocentric and Polycentric Human Resource Management policies used by Multinational Corporations, clearly outlining the advantages and disadvantages of each. ETHNOCENTRIC POLICY The ethnocentric staffing policy refers to the strategy of a multinational company to employ managers for key positions from the parent headquarters instead of employing local staff. In the ethnocentric approach, the cultural values and business practices of the home country are predominant. Headquarters develop a managing and staffing approach and consistently applies it throughout the world. Companies following the ethnocentric approach assume the home country approach is best and that employees from other†¦show more content†¦Ã¢â‚¬ ¢ Complicated personnel planning procedures. †¢ The private life of expatriates is severely affected. †¢ Difficulties in constant mentoring during the stay abroad. †¢ This approach to staffing limits the promotion and career opportunities of local managers, which may lead to low morale and increased turnover. †¢ Parent country nationals are not always sensitive to the needs and expectations of their host country subordinates. †¢ Tensions between the expatriate executives caused by philosophical issues such as the clash of cultures and also by some fairly hard issues such as the often substantial income gap. †¢ Expatriate managers are expensive to maintain: they may become insular in their attitudes and be prone to cultural myopia. The latter may result in management overlooking market niche opportunities. †¢ Legal regulations of the host country that do not agree to the hiring of expatriates. †¢ Government restrictions. †¢ High failure rate from expatriates. POLYCENTRIC POLICY The Ethnocentric staffing policy refers to the strategy of a multinational company to employ managers from host country nationals in key positions in operations abroad. The practice of polycentric staffing believes that the managers being familiar with the culture have the ability to translate foreign guided programs to be more compatible with the culture of employees. Reasons for adopting a polycentric approach in the staffing of operations include the following: Host countryShow MoreRelatedFour Approaches to International Staffing- Microsoft and Red Cross1343 Words   |  6 PagesFour approaches to international staffing, advantages and disadvantages. 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