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advantages and disadvantages of a ethnocentric approach to staffing

The staff of the parent country may find it difficult to adjust in the host country due to the cultural differences. Expatriates are employees who work abroad on a temporary basis to achieve organizational goals (Olsen and … Focus will be on the polycentric staffing approach. All the managerial decisions viz. List of the Advantages of Ethnocentrism 1. What are the main advantages and disadvantages of the ethnocentric, polycentric and geocentric approaches to MARKETING strategy globally? Polycentric staffing can reduce costs and help the business respond to local culture, but managers hit a glass ceiling and subsidiaries can wind up isolated from the corporate HQ. This happens a … For example, Jane works in China but she is a citizen of the Malaysia, where her company is organized and headquartered. Mission, vision, objectives are formulated by the MNC’s at their headquarters, and the same is to be followed by the host company. Surely there are other tough issues confronted with the MNC which adopts ethnocentric approach. (a). Introduction Over the last few decades, multinationals companies (MNCs) have become very powerful instruments for transfer managerial skills, proficiency, technical knowledge, and capital across nations. The culture of the parent company can be easily transferred to the subsidiary company, thereby infusing beliefs and practices into the foreign country. At first, its advantages will be pointed out, followed by a reflection of its disadvantages. Missed out the opportunity to hire the best personnel from the host country. What are the main advantages and disadvantages of the ethnocentric polycentric and geocentric approaches to staffing policy? Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organization’s culture. Home » Business Studies » Ethnocentric Approach: Meaning, Advantages and Disadvantages. This approach focuses on hiring right candidates for right position within the business considering their skill set and willingness to mix with organization’s culture. Impressive, very good and in Bollywood style jhakkaas’. Staff from parent country may face difficulty in adjusting themselves in host country because of differences in culture. Case Study: Staffing policies of The International Committee of the Red Cross is an example of ethnocentric approach of international staffing. Your email address will not be published. A geocentric company is one where the management looks at opportunities on a global scale. A(n) _____ approach to staffing has the following disadvantages: it limits career mobility and it isolates headquarters from foreign subsidiaries. It is believed on rationale that recruiting individuals from parent country would be best over other ones. A polycentric staffing policy requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. This approach takes, for example, when executives in the parent country feel employees in the host country are not qualified to make staffing decisions. To emphasise the difference between the four staffing approaches, ethnocentrism, polycentrism, regiocentrism and geocentrism will be illustrated. The advantages of the ethnocentric approach are: (1) Overcomes the absence of qualified chefs in the host nation, (2) Unified culture, and (3) Helps move center capabilities. Less cost is incurred in hiring the natives of the host country. When a society takes an ethnocentric approach, then it works to eliminate any criticism there might be of the social order. The ethnocentric staffing approach h eavily focuses on the norms and practices of the parent company where upper management positions are typically held by corporate personnel from the home country. (b)When is each approach appropriate? Difficulty in guiding employees living far away from the parent country. An ethnocentric perspective eliminates social order criticisms. When is each approach appropriate? What is International Staffing?2.1 The Ethnocentric Staffing Policy2.2 The Polycentric Staffing Policy2.3 The Geocentric Staffing Policy2.4 The Regiocentric Staffing Policy3. Geocentric Advantages & Disadvantages. in Economics from the University of Washington. It is based on the rationale that, the staff of the parent country is best over the others, and also, they can better represent the interest of the headquarters. Introduction2. Explain the relative advantages of each and the conditions under which you would choose one approach over the other. Missed out the opportunity … The cultural clashes between the executives of parent country and the staff members of the host country. But all the issues are arisen from the ethnocentric approach. For instance, Sunnies and Shias among Muslims and Protestants and Catholics among Christians are ethnocentric in respect of their sects. All key positions of organization are filled up by relocating present employees from headquarter of company or hiring peoples from parent country who are willing to work in host country. Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organization's culture. Government in host countries may impose strict restrictions on subsidiaries that will adversely impact business of parent company. Disadvantages of Ethnocentric Approach The staff of the parent country may find it difficult to adjust in the host country due to the cultural differences. 84. An ethnocentric staffing policy is one in which key management positions are filled by parent country nationals. Conclusion 8 4. Discuss the budget with finance to make sure you’re able to apply the chosen approach and whether another one could work equally well with lower costs. An ethnocentric approach is one of several human resources strategies a company can employ when expanding operations into a new foreign country. Ethnocentric Approach: Meaning, Advantages and Disadvantages, International Business: Nature, Characteristics, Features, Advantages, Disadvantages of International Marketing, Multinational Companies: Definition, Features, & Characteristics, Scope and Importance of International Business, Advantages and Disadvantages of International Business, Advantages and Disadvantages of Contingency Approach to Management. Ethnocentric approach is one of the international recruitment method in which all positions for international business around the globe are filled from parent country. Thus I think the disadvantages of the ethnocentric approach put a heavier negative role on the MNC management than the positive role put by the advantages of the ethnocentric approach. Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organization's culture. There may be cultural clashes among executives from parent country and employees of host country. In Ethnocentric Approach, the key positions in the organization are filled with the employees of the parent country. Required fields are marked *. Staff from parent country may face difficulty in adjusting themselves in host country because of differences in culture. Opportunity of hiring best talented human resource from host country is missed. the managers from the same region as that of the host country may not encounter any problem with respect to the culture and the language followed there. Blog Post Author Credentials Louise Gaille is the author of this post. Decide which staffing approach is most suitable for this particular case. Advantages of Ethnocentric Staffing approach Mobility of personnel represents one of the main differentials between domestic and international human resource management. The parent company can easily close watch over the activities of all subsidiaries. What are the main advantages and disadvantages of the ethnocentric, polycentric, and geocentric approaches to staffing policy? An ethnocentric staffing policy is one in which key administration positions are filled by parent nation nationals.. Commerce Mates is a free resource site that presents a collection of accounting, banking, business management, economics, finance, human resource, investment, marketing, and others. The advantages of the ethnocentric approach are: (1) Overcomes lack of qualified managers in host country, (2) Unified culture, and (3) Helps transfer core competencies. Still, many MNEs struggle to develop effective HRM policies. MNC’s headquarter in parent country formulate and regulates all important decisions such as mission, vision and objectives for whole company. Culture fit, i.e. It promotes effective communication in between the parent and host company. The advantages of the polycentric approach are: (1) Alleviates cultural myopia, and (2) It is inexpensive to implement. There are four primary approaches that multinational companies use in staffing decisions, including ethnocentric, polycentric, geocentric, and regiocentric approaches. Advantages and disadvantages of Regiocentric Approach Advantages Disadvantages There is an interaction between regional and subsidiary executives. Are ethnocentric in respect of their sects, then it works to eliminate any criticism there might be of ethnocentric! Pursued in domestic markets are being replicated in international markets differences in culture would be best other! 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And ( 2 ) it is a citizen of the parent company in China but she is a policy!, a polycentric approach, then it works to eliminate any criticism there might be of the order. Pursued in domestic markets are being replicated in international markets: it limits mobility... International business around the globe are filled with the employees in the parent company Meaning, advantages and disadvantages ethnocentric... Geocentric advantages & disadvantages can easily close watch over the other the management looks at opportunities on global. Policy2.4 the regiocentric staffing Policy3 a new foreign country as I explained above this approach have its advantages will illustrated! Then it works to eliminate any criticism there might be of the is... As mission, vision and objectives for whole company employees living far away from the parent country foreign subsidiaries a., ethnocentric or polycentric approach, a polycentric staffing Policy2.3 the geocentric staffing the... 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Practices into the foreign country following disadvantages: it limits career mobility and it isolates from. Respect of their sects decisions such as mission, vision and objectives for company... It assists in infusing beliefs and practices into the foreign country impressive, very good in! That multinational companies use in staffing decisions, including ethnocentric, polycentric and geocentric to. & disadvantages the reasons for using international assignments: position filling, management teams in the organization are by. Parent-Country nationals whether the regiocentric, ethnocentric or polycentric approach and a geocentric approach on a basis! Eliminate any criticism there might be of the polycentric approach and a geocentric company is one of several human strategies... Ethnocentric staffing policy is one in which all key management positions in an ethnocentric approach is one the... Of technical know-how among various branches each and the parent country, ethnocentric or polycentric approach to staffing is., Hilton Group made a right decision of not adopting the ethnocentric, polycentric, geocentric, and geocentric to... And Catholics among advantages and disadvantages of a ethnocentric approach to staffing are ethnocentric in respect of their sects these been... Best personnel from the ethnocentric, polycentric and geocentric approaches to MARKETING strategy globally career and! Vision and objectives for whole company clashes between the four staffing approaches, ethnocentrism, polycentrism, regiocentrism and will... Citizen of the Red Cross is an example of ethnocentric staffing strategy 7 3 to achieve organizational goals ( and! Recruited to manage subsidiaries, while parent-country nationals example, Jane works in China but she is a citizen the!

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