This essay assignment looks at the ethnocentric staffing policy impact on international business performance. Countries with offices in foreign countries have to decide how to select management staff. Ethnocentric staffing means one hire management that is the same nationality as the parent company. Polycentric staffing policy, on the other hand, involves companies hiring management employees from the host country. Either one can be appropriate, but one must evaluate when to choose ethnocentric staffing. Maintaining Corporate Culture is one of the impacts of ethnocentric staffing policy. Ethnocentric staffing offers the opportunity to transfer company values to the foreign operation. Lastly, ethnocentric staffing policy’s impact on international business performance can prevent expanding interests into areas a company doesn’t want to go.
ethnocentric staffing policy impact on international business performance,
TYPES OF STAFFING POLICY APPROACHES IN INTERNATIONAL BUSINESS PERFORMANCE
Success in HRM is one of the Ethnocentric staffing policy impacts on international business performance. Human resource management in international business presents issues that are different from those in a domestic or local business. The nature and characteristics of international business are more complicated than domestic or local businesses. As such, HR managers must also choose the right staffing policy approach. The types of staffing policy approaches include polycentric staffing policy, ethnocentric policy and geocentric policy. The polycentric policy approach to staffing assigns home-country workers to top positions in the central offices. Additionally, the approach assigns overseas local workers to other positions. The geocentric policy approach to staffing assigns job positions to any person best suited for the post. Lastly, the ethnocentric staffing policy approach to staffing designates home country nationals as top-ranking employees in global operations.
WAYS IN WHICH ETHNOCENTRIC APPROACH AFFECT HR
Ethnocentric staffing policy impact on international business performance include reducing perceived risk in new venture companies. Small businesses expanding into international markets due to improvements in technology and abroad are more at risk. To reduce these risks, companies may adopt the polycentric staffing policy or the ethnocentric approach. An ethnocentric company assumes that the host country will be unable to supply skilled labour. Although it will recruit local people, an ethnocentric company will reserve skilled positions for its home country employees. During the recruitment and selection process, the ethnocentric company risks imposing cultural norms from its home country. The ethnocentric staffing policy approach, therefore, harms a company’s HR.
ways in which ethnocentric approach affect HR, visit
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