Types of Staffing Policy Research has identified three types of - TopicsExpress

Types of Staffing Policy Research has identified three types of staffing policies in international businesses: the ethnocentric approach, the polycentric approach, and the geocentric approach. [Perlmutter;69,Heenan/Perlmutter;79,Ondrack;85,Jackson;02] We will review each policy and link it to the firms strategy. The most attractive staffing policy is probably the geocentric approach, although there are several impediments to adopting it. The Ethnocentric Approach - An ethnocentric staffing policy is one in which parent-country nationals fill all key management positions. This practice was widespread at one time. ... Firms pursue an ethnocentric staffing policy for three reasons. First, the firm may believe the host country lacks qualified individuals to fill senior management positions. ... Second, the firm may see an ethnocentric staffing policy as the best way to maintain a unified corporate culture. ... Third, if the firm is trying to create value by transferring core competencies to a foreign operation, as firms pursuing an international strategy are, it may believe that the best way to accomplish this goal is to transfer parent-country nationals who have knowledge of that competency to the foreign operation. The Polycentric Approach - A polycentric staffing policy requires host-country nationals to be recruited to manage subsidaries, while parent-country nationals occupy key positions at corporate headquarters. In many respects, a polycentric approach is a response to the shortcomings of an ethnocentric approach. The Geocentric Approach - A geocentric approach seeks the best people for key jobs throughout the organization, regardless of nationality. This policy has a number of advantages. First, it enables the firm to make the best use of its human resources. Second, and perhaps more important, a geocentic policy enables the firm to build a cadre of international executives who feel at home working in a number of cultures. International Business - Hill

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