THE Three MAIN Approaches TO Staffing PDF

Preview

Summary

Download THE Three MAIN Approaches TO Staffing PDF

Description

The Three Main Approaches to Staffing

THE THREE MAIN APPROACHES TO STAFFING by Student’s name

Course code+name Professor’s name University name City, State Date of submission

The Three Main Approaches to Staffing 2 Abstract Purpose - The aim of this essay research paper is to analyze the three main approaches to staffing (ethnocentric, polycentric, and geocentric) and the advantages and disadvantages for each of the three

The Three Main Approaches to Staffing 3 Table of Contents 1. Introduction.............................................................................................................................................4 2. Ethnocentric Approach............................................................................................................................5 2.0. Table 1: Ethnocentric Approach........................................................................................................5 2.1. Characteristic of the Ethnocentric Approach....................................................................................6 2.2. Advantages and disadvantages of ethnocentric approach................................................................6 3. Polycentric Approach...............................................................................................................................7 3.1. Characteristic of the Polycentric Approach.......................................................................................7 3.1.1. Table 2: Characteristic of the Polycentric Approach...................................................................8 3.2 Advantages and disadvantages of polycentric approach...................................................................8 4. Geocentric Staffing Approach..................................................................................................................8 4.1 Characteristic of the Geocentric Approach........................................................................................9 4.1.1. Table3: Characteristic of the Geocentric Approach....................................................................9 4.2. Advantages and disadvantages of geocentric approach.................................................................10 5. Conclusion.............................................................................................................................................10 6. Reference...............................................................................................................................................11 7. Appendix................................................................................................................................................12

The Three Main Approaches to Staffing 4

1. Introduction International hiring has been in use around 1900 BC, when individuals were moved from one country to another for the purposes of running their businesses. Locals were viewed as inexperienced and incompetent, and were only appropriate for lower-level employment, according to investors, whereas parent country nationals (PCNs) were given preferential treatment. The founders of multinational corporations (MNCs) realized the value of bringing in people they already knew and socializing them into the company to reduce the agency issue (Dowling & Welch, 2004). These are the citizens. Over the last decades, international business and globalization have accelerated. More flexible business frameworks are needed to expand corporate operations outside national borders while maintaining a dedication to local markets. The effective management of an institution's human capital is one of the most important determinants of its performance in global projects. To define MNE strategies to controlling and staffing their branches, the international HRM research uses four words. Perlmutter coined these words after identifying three distinct attitudes toward creating a multinational corporation among multinational executives ethnocentric, polycentric, and geocentric (Katsioloudes & Hadjidakis 2007). The differences are based on speculation made by top management, which are then used to make practical and regional decisions regarding key items. Heenan and Perlmutter refined Perlmutter's differentiation between these three methods, adding a fourth attitude called regiocentric.

The Three Main Approaches to Staffing 5 2. Ethnocentric Approach The Ethnocentric Approach is one of the foreign recruiting approaches in which the human resource hires the right individual for the right job for international companies based on the expertise needed and the candidate's ability to fit into the company's culture. The organization works on the premise that workers from their own country are more competent, skilled, and trustworthy than those from other countries. When divisions are run by host-state residents, the mother-company is far more in control of moral choice than when branches are governed by expatriates in key managerial roles (Egelhoff 1988). It's typically used when there's a lack of local administrative expertise, as well as when the organization needs to keep tight ties with its head office.

2.0. Table 1: Ethnocentric Approach

(Adopted from Business Jargons 2018) Often common in new business ventures and where unusual technological skills are needed that are not available in the original nation's labor force (Tung & Punnett 1993). Firms would also like to use it if their company is set up in the order of a unified drive toward growth and is primarily at the global stage of strategic development (Biscoe & Schuler 2004). Higher international roles are typically filled by expatriates from the parent country. The ethnocentric approach is based on the assumption that workers from the parent country will effectively represent the headquarters' interests and have strong ties to the parent country. In this approach, there are four stages to the hiring process: self-selection, building an applicant pool, assessing professional abilities, and reaching a consensus decision. The employee decides on his/her future path of action in the international stage by self-selection. The staff record is then structured in accordance with the

The Three Main Approaches to Staffing 6 company's personnel requirements for foreign operations. The database is then analyzed in order to select the best and most qualified candidates for international assignments, a method known as technical skills evaluation. Finally, the best applicant for a foreign project is chosen and sent overseas with his permission (Biscoe & Schuler 2004). 2.1. Characteristic of the Ethnocentric Approach  In the headquarters, things are complicated; in the branches, things are clear.  Communication and information flows for subsidiaries in the form of suggestions, guidance, and orders.  A willingness to sustain great communication, cooperation, strict regulation, and an united business structure connected to corporate headquarters  A shortage of qualified HCNs, especially upper management expertise.  A willingness to expedite the transition of a parent company's core competencies to a subsidiary company (Evan 1974). 2.2. Advantages and disadvantages of ethnocentric approach The ability curvature results derive from standardized manufacturing, which is one of the advantages. Initially, the company produces in its home country before channeling its expertise to the host country under the control of expatriate executives. In this situation, the administrators have the skills to create value by experts at the hub. Additionally, they ensure that the company's culture is maintained. Other advantage includes; controlling the subsidiary effectively. The parent company will keep a close eye on the subsidiary's activities. Better technological know-how transition. Communication between the home country and the host company that is efficient. There's no need for a well-developed foreign labor market on the local level (Business Jargons 2018). Some of the drawbacks include the denial of progress to residents of the host country, which results in alien nationals expressing hostility toward the organization (Deresky 2002). It also gives the public a negative impression of the business. Keeping expatriate managers is also very expensive. As a result, they develop a narrow mindset and are exposed to cultural blindness (Hill 2003). As a result, management misses industry niche opportunities. Several studies show that subsidiaries, particularly though overseen by expatriates, have corporate cultures that are more influenced by the cultures of their home countries than by the parent company's (Lee & Larwood 1983). This is now one of the most significant internal risks to any company (Keegan 1999).

The Three Main Approaches to Staffing 7 3. Polycentric Approach Polycentricity, also known as polycentrism, is the idea that natives know their world better than aliens, so key roles are granted to Host Country Managers (HCNs). When a multi-domestic program is implemented, this approach is likely to be used. Host people rise through the ranks of their own state's administration, but their own jobs remain stagnant because they never reach the pinnacle. In polycentric companies, there seems to be little concern about establishing a shared business culture (Heenan & Perlmutter, 1979). This strategy has a composite organizational structure, which necessitates a great deal of coordination and integration across state lines (Edstrom & Galbraith 1977). The aim of taking this approach is to progressively lower the cost of international operations. Also organizations that start out with an ethnocentric mindset can gradually shift to a polycentric mindset. The primary goal of delegating management to locals is to ensure that the organization has a better understanding of the local economy, political situation, cultural, and legal obligations. Companies that use this approach typically have a local Human resources department that handles the company's workforce in that state. 3.1. Characteristic of the Polycentric Approach In the Polycentric Strategy, citizens of the host nation are hired to run the branch business operations. The reasoning behind this strategy is that locals in the host nation are more familiar with their culture and can run the business more effectively than their international counterparts. In this strategy, natives of the host nation are selected to operate the subsidiary's activities and are given the power to develop business plans while keeping the subsidiary's mission and goals in mind. Whereas nationals from the parent country occupy key roles at the company headquarters and oversee the subsidiary's activities from the main office.

The Three Main Approaches to Staffing 8 3.1.1. Table 2: Characteristic of the Polycentric Approach

(Adopted from Business Jargons 2018) 3.2 Advantages and disadvantages of polycentric approach Some of the advantages of this approach are that the organization can expect maximum profits through elasticity because native administrators are obligated to adapt rapidly to consumer demands in areas like costing, manufacturing, product life cycle, and politics. Problems associated with expatriate executives, such as cultural blindness, are limited; ensuring continuity in the management of alien subordinates (Deresky 2002). Furthermore, HCNs are accepted by the communities regardless of where they work— both inside and outside the subsidiary—and other growing mobile workers look up to them (Scullion & Linehan 2005). The disadvantages are: the absence of a bond that is provided when expatriates from the parent country hold managerial positions at the subsidiary creates a lack of cooperation between the host and the parent company. Because of the language barrier, there is a lack of meaningful contact between the host and parent company's employees. Owing to differing thought processes, there could be a disagreement between the administrators of the host and the parent organization. Controlling a subsidiary is difficult and time-consuming. Insufficient understanding of the host country's business conditions (Deresky 2002).

The Three Main Approaches to Staffing 9 4. Geocentric Staffing Approach Geocentricity, also known as geocentrism, is the belief that the best candidates should be hired regardless of their nationality. The Geocentric Approach is based on the idea that the planet is a pool of talented employees, and that the most qualified applicant, who is proficient in his profession, should be hired for the job regardless of nationality. Firms that are genuinely multinational take this path because they pursue an interconnected global corporate strategy. In most cases, recruiting firms or consultants are hired to find the best candidate with all of the requisite qualifications, who can work in any part of the world, to work in a multinational company (Deresky 2002). Furthermore, MNCs may use their internal source of recruiting by keeping a track record of their workers and scrutinizing them to find the best candidate for an international posting. This technique is used by companies that are genuinely multinational in nature because it employs a globally focused business strategy. It is difficult to follow this approach since human resource activities are limited by many factors such as political and cultural factors as well as government rules. Large multinational corporations, on the other hand, have had a lot of progress with the geocentric approach. Organizations typically use workforce agencies or specialists with international contacts and moral character to seek applicants for talent acquisition, particularly on sovereign land, in addition to traditional sources. 4.1 Characteristic of the Geocentric Approach This strategy employs the best candidates for key positions around the board, regardless of ethnicity. Employees with exceptional skills are available not only at corporate headquarters, but also in subsidiaries. Performance in top positions necessitates international experience. High-potential executives are constantly on the lookout for opportunities to be moved from one nation to another.

The Three Main Approaches to Staffing 10 4.1.1. Table3: Characteristic of the Geocentric Approach

(Adopted from Business Jargons 2018) 4.2. Advantages and disadvantages of geocentric approach The following are some of the advantages of using this type of policy: The Corporation gets the most out of its human capital by assembling a team of experts who can collaborate with people of any ethnicity (Hill, 2003). It guarantees the company's activities are competitive by balancing expectations from both ethnocentric and polycentric strategies. MNCs cultivate a pool of senior managers with foreign expertise and cross-border connections. Each manager's experience can be put to good use in achieving the MNC's overall goal. Reduced dissatisfaction, i.e. the feeling of being treated unfairly. Employees will benefit from each other's insights in shared learning. The fact that ethnocentric desire for low-cost homogenized practices is met as a consequence of an enough typology of products for an international customer base to enable for sustainable financial systems and an awareness of curve impact. The polycentric pressure for indigenous response is also achieved for the basic reason that all markets have a tendency to congregate distinct features (Hill, 2003). Some disadvantages are that this method is very expensive since recruiting firms or consultants must be employed to conduct a worldwide search for qualified candidates. The human resource manager must conduct thorough investigations in order to find the most qualified candidate for the position, which may take time. An employee's preparation, wages, and relocation costs are much too high. 5. Conclusion Staffing is concerned with the acquisition, training, and distribution of human capital within an organization. The staffing protocol is projected as a set of levels that are applied on a periodic level to

The Three Main Approaches to Staffing 11 ensure that the organization has the correct workforce at any given time frame, from both a national and global context. Human resource planning, which is part of the company’s strategic policy, recruiting, selection, initiation, and induction, preparation to improve work skills, growth to advise natives beyond the criteria of their current situation, performance evaluation, incentives and promotions, readjustments, and compensation are the stages involved in this process. The administration of the measures in a foreign venture is highly reliant on the Company's plan and the staffing strategy that will be selected to help that strategy. The ethnocentric policy, the polycentric policy, and the geocentric policy are the three key policies that an organization can implement. The strategy and structure of the company, factors connected with the subsidiary in concern, the type of equipment placed into operation, and specific marketing and production procedures are all variables that will influence the choice from the above parameters. Factors related to the developing sovereign state, such as economic development and technology, a secure political climate; regulations governing service and staff, and the socio-cultural condition, all play a significant role.

6. Reference Business

Jargons.

(2018).

“Ethnocentric

Approach”,

https://businessjargons.com/ethnocentric-approach.html

Para.

1-Para.

6.

The Three Main Approaches to Staffing 12 Business

Jargons.

(2018).

“Polycentric

Approach”,

Para.

1-Para.

7.

Para.

1-Para.

4.

https://businessjargons.com/polycentric-approach.html Business

Jargons.

(2018).

“Geocentric

Approach”,

https://businessjargons.com/polycentric-approach.html Briscoe, D.R. & Schuler, R.S. (2004), “International human resource management London”: Routledge Taylor & Francis Group.

Dowling, P., & Welch, D, 2004, “International human resource management”: Managing people in a global context (4th ed.). London: Thomson Learning, pp. 1-800. Deresky, H. (2002), “International management”: Managing across borders and cultures, Upper Saddle River: Prentice Hall Egeihoff. W. G. (1988),” Organizing the Multinational Enterprise”: An Information Processing Perspective Cambridge, MA: Ballinger. Evan, W. M. (1974), ‘Multinational Corporations and International Professional Associations’, Human Relations, 27(6), pp. 587–625. doi: 10.1177/001872677402700604. Hill, C.W.L. (2003) International business: Competing in the global marketplace. New York: McGraw-Hill Irwin. Heenan D.A., & Perlmutter H.V. (1979), “Multinational Organization Development Reading”, MA: Addison-Welsey, pp.18-19. Katsioloudes, MI & Hadjidakis, S (2007), “International business”: A global perspective. in International Business: A Global Perspective. Elsevier, pp. 1-705. https://doi.org/10.4324/9780080471464 Schuler, R. S. and MacMillan, L.C. (1984) ‘Gaining Competitive Advantage through Human Resource Management Practices’, Human Resource Management. 23: 241-55. Scullion, H. & Linehan, M. (2005), “International human resource management: A critical text, New York: Palgrave Macmillan”.

The Three Main Approaches to Staffing 13 7. Appendix

(Adopted from: Heenan D.A., and H.V. Perlmutter, 1979; Multinational Organization Development Reading, MA: Addison-Welsey, pp.18-19.)...