International Staffing Decision
Human resource planning having been done, the international human resource manager must proceed with the job of hiring the right number of people of the right type.
The international human resource manager must not only select people with skills, but also employees who can jell with the organisation's culture. ;so it wants to hire employees whose styles, beliefs, and value systems are consistent with those of the firm.
Approaches of Staffing
International businesses are said to adopt three approaches to staffing:
(1) Ethnocentric,
(2) Polycentric, and
(3) Geocentric.
Ethnocentric Approach In this approach, all key management positions are held by parent-country nationals. This strategy may be appropriate during the early phases of international business, because fums at that stage are concerned with transplanting a part of the business that has worked in their home country.
This practice was widespread at one time. Firms such as P & G, Philips NY, and Matsush*ta originally followed the ethnocentric approach.
Reasons :
• Perceived lack of qualified host country nationals;
• Understanding that a united corporate culture can be maintained; and
• Need to maintain good communication, coordination, and control links with headquarters.
Disadvantages:
• Denial of promotional opportunities to host-country nationals, leading to reduced productivity and increased turnover.
• The adaptation of expatriate managers to host countries takes a long time during which home-country nationals make poor decisions and commit mistakes.
• For many expatriates a key international posting means new status, authority, and increased standard of living. The changes may affect expatriates' sensitivity to the needs and expectations of their host country subordinates.
Polycentric Approach
The polycentric staffing policy requires host-country nationals to be hired to
manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. Although top management positions are filled by home-country personnel, this is not always the case.
For example, many US MNCs use home-country managers to get the operations started, then hand it over to the host-country managers. Hindustan Lever Ltd, (HLL), the Indian subsidiary of Unilever, has locals as its chiefs.
The Geocentric Approach This staffing philosophy seeks the best people for key jobs throughout the organisation, regardless of nationality. Seeking the best person for the job, irrespective of nationally is most consistent with the underlying philosophy of a global corporation.
Colgate Palmolive is an example of a company that follows the geocentric approach. It has been operating internationally for more than 50 years, and its products are household names in more than 170 countries. 60 per cent of the company's expatriates are from countries other than the US. All the top executives speak atleast two languages, and important meetings routinely take place all over the globe.
FAQs
There are four approaches to international recruitment: ethnocentric, polycentric geocentric, regiocentric. We're mainly a [geocentric company/ polycentric company/ etc.] but we may occasionally shift to other approaches based on our needs.
What makes international staffing so complicated? ›
Addressing the International Staffing Challenge
Factors such as adjusting to foreign culture, family concerns, technical ability, length of the assignment, etc., must also be considered when recruiting international staff.
What is the most effective Ihrm staffing strategy to adopt? ›
Regiocentric – This is perhaps the most common strategy followed by successful companies across the globe. In a Regiocentric HR practice, people (especially those in leadership positions) are recruited with a view towards having them serve throughout a particular region, rather than just one specific country.
What are the four 4 international staffing philosophy management principles? ›
These are ethnocentric, polycentric, regiocentric, and geocentric approaches. An ethnocentric approach refers to management considering the employees of the home country superior to the employees of the host country. Management positions are only given to employees from the home country.
What is international staffing strategy? ›
This staffing strategy uses employees from the home country to live and work in the country. These individuals are called expatriates. The second staffing strategy is a host-country national strategy, which means to employ people who were born in the country in which the business is operating.
What are three 3 benefits of an ethnocentric approach when staffing internationally? ›
Benefits of an Ethnocentric Approach
There is no need to have a full-fledged international labor market. Communication is better between the parent company and the host. You have effective control over the subsidiary. There is typically better coordination between the parent company and the host.
What are the top international staffing companies? ›
Here are 10 of the biggest recruitment agencies around the world:
- Randstad (www.randstad.com): ...
- ManpowerGroup (www.manpowergroup.com): ...
- Robert Half (www.roberthalf.com): ...
- Hays (www.hays.com): ...
- Michael Page (www.michaelpage.com): ...
- Korn Ferry (www.kornferry.com) ...
- Allegis Group (www.allegisgroup.com): ...
- Modis (www.modis.com):
One international human resource management challenge that your human resource department needs to be prepared for is global employment laws. When hiring outside of your organization's typical area of operation, ensure that your HR department has read up on local labor laws in that particular country.
What is the number one staffing agency in the world? ›
Leading companies in the global staffing industry 2020, by revenue. In 2020, Randstad was the leading staffing firm worldwide in terms of revenue. The Netherlands-based staffing company reported a total revenue of 21.84 billion U.S. dollars.
What is ethnocentric international staffing strategy? ›
Ethnocentric staffing is an international staffing approach in which foreign subsidiaries are managed by parent-country nationals. geocentric staffing is an international staffing policy in which the best person is appointed to manage foreign subsidiaries regardless of nationality.
The top 5 HR priorities for 2024
- Employee retention. A staggering 57% of HR pros listed employee retention as one of their top priorities. ...
- Talent acquisition. Not far behind retention, 50% of HR pros told Pollfish talent acquisition was among their top priorities in 2024. ...
- Training. ...
- Employee engagement. ...
- Career development.
In international human resource management, the types of staffing policy approaches are as follows:
- Ethnocentric staffing.
- Polycentric staffing.
- Geocentric staffing.
The 5P Model is founded on five fundamental principles: purpose, principles, procedures, people, and performance. When these five guiding principles are properly aligned and balanced, a company is more likely to succeed.
What are the five core of staffing? ›
The five core staffing activities are recruitment, selection, employment, training and retention.
What are the three main approaches to staffing? ›
Describes three approaches to staffing policy: ethnocentric, polycentric, and geocentric.
What is ethnocentric and polycentric approach? ›
Ethnocentrism – Companies apply the values of their home country to the new office. Polycentrism – Companies begin to appreciate the values and working styles of the host nation. Regiocentrism – Companies realize that that even regional offices need to adopt a tailored approach to work.
What are the different types of international employees? ›
3) The three types of employees of an international firm: host-country nationals(HCNs), parent-country nationals (PCNs), and third-country nationals (TCNs).
What are the staffing methods and approaches? ›
There are four primary approaches that multinational companies use in staffing decisions, including ethnocentric, polycentric, geocentric, and regiocentric approaches.
