1) What are the major alternative staffing approaches for international operations? Explain the relative advantages of each and the conditions under which you would choose one approach over the other.
a) ethnocentric staffing approach- Parent-country nationals, or people from the home country of the corporation are employed to fill key managerial positions because they are familiar with the goals, policies and procedures, technology and products of the parent company. They are in a much better position to report to the company, especially where there is an inadequacy of managerial skills at the local level. It is the preferred method with a centralized approach to globalization.
b) polycentric staffing approach- HCNs, or host country nationals are hired to fill key positions. This is more effective in a multinational approach when a company wants to act "local." People in and outside the subsidiary will more readily accept this system. This approach provides a role model for upwardly mobile personnel.
It is also usually less expensive to hire locals who are more instrumental in dealing with problems as they arise. There is, however, difficulty with this approach in the areas of coordinating goals between the main and regional offices and the conflicting loyalties of a host country national .
c) global staffing approach- Managers are chosen from within and outside the company, regardless of nationality. This approach provides a greater pool of highly qualified and willing applicants who bring with them cultural adaptability such as language skills. They are an accepted compromise between headquarters and the local region. It can be a cost-effective measure according to the home country's rate of pay.
d) Regiocentric staffing approach- Recruits are from the region. This approach can result in a mix of host country nationals, transpatriates, and parent country nationals.
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