What are the differences between the three approaches to Staffing policy (ethnocentric, polycentric, and geocentric)?
Staffing is the process of choosing an appropriate employee for an edge, role, or job demand. Staffing policies are made for the pliability of the processes that math carried on. When human resources management assumes a worldwide perspective, it becomes a world or global or cross-cultural human resource management. It's all about the worldwide management of human resources. International Human Resource management enables the firm, the multinational corporations (MNCs), to achieve success globally. It's the method of sourcing, allocating, and effectively utilizing human resources in multinational corporations.
Strategic functions of international HRM are Human Resources Planning, Recruitment and Selection, Training and development, Remuneration, Performance Management, and Employee relations. Within the scenario of staffing, there are some strategic approaches to international HRM. That's as follows:
Ethnocentric Approach: This approach involves exporting the organization's home country practices and policies to alien locations. This strategy is usually employed by organizations whose competitive strategy is concentrated on creating a picture. An ethnocentric approach is often beneficial in allowing standardization, integration, and efficiency. However, if it's forced onto another culture that doesn't describe the values on which the practices are based there are often severe problems. Some turnover is often expected and even encouraged when using this approach. It also can help to form expatriate assignments more attractive to the organization's domestic employees.
Polycentric Approach: A polycentric approach involves allowing each location to develop its own practices, and policies that are according to the local culture, and workforce characteristics. Management practices are localized to suit the prevailing needs of the market place, and acceptableness of customer tastes may be a key strategic initiative facilitated by this approach. Although this approach is often costly, it's also extremely aware of the local market and labor conditions, and may help to scale back the turnover rate in a purchase, particularly if there are anti-foreign ownership attitudes among locals.
Geocentric Approach: A geocentric approach, involves developing one set of worldwide practices and policies that are applied in the least locations. This approach differs from the ethnocentric approach therein although the ethnocentric approach exports its one set of management systems supported home country culture to all or any locations, the geocentric approach considers the worldwide workforce altogether of its areas of operations also because the numerous local cultures during which it operates and attempts to develop practices and policies that transcend cultural differences. This approach is often very difficult to implement, given different host government policies and regulations, and therefore, the got to address them simultaneously. Compensation plans and standards of living are often difficult to unify in an equitable way across different cultures.
The differences between these approaches to staffing policy are;
Aspect of the enterprise | Ethnocentric | Polycentric | Geocentric |
Staffing | Home country Managers | Host country Managers |
Best people where they can be best used |
Get Answers For Free
Most questions answered within 1 hours.