The Pros And Cons Of Staffing Strategy

1527 Words7 Pages
Throughout the previous 20 years or longer, Multinational Corporation and partnership have changed remarkably. Most importantly, for business to compete successfully and remain competitive, employers must have competent supervisors international to differentiate their business’ strategy. Employers operating abroad must first understand the correlation among their Human Resource leaders, their company’s strategy and their firm’s performance; therefore, the owners should trust its Human Resource leaders to select and recruit chief executives and the type of staffing policy. Multinational firms have a choice among three staffing strategy that have its pros and cons, such as ethnocentric, polycentric and geocentric.
Employers benefit from an ethnocentric policy only if (1) they “believe there are a lack of qualified individuals in the host country to fill senior management positions; (2) the best way to maintain a unified corporate culture and tighter control, and (3) the firms are trying to create value by transferring core competences” (Hill, 2014). Thus, this approach is currently “on the wane since it limits advancement opportunities for host-country nationals that can lead to resentment, lower productivity, increased turnover among that group and cultural myopia” (Hill, 2014). A business follows the polycentric policy as it “less likely to suffer from cultural myopia since host-country managers are unlikely to make the mistakes arising from cultural misunderstandings that expatriate managers are subject to and this policy less expensive than other approaches to implement” (Hill, 2014). However, the disadvantages are it “limited opportunities for advancement, resentment may arise and a gap may form between host-coun...

... middle of paper ...

...ment: A Guide for International
Managers. [New York, N.Y.] [222 East 46th Street, New York, NY 10017]: Business
Expert Press.
Hill, C.W.L. (2014). Global Business Today (8th ed.). New York, NY: McGraw-Hill Irwin.
Hitt, M., Steers, R. M., & Javidan, M. (2007). The Global Mindset. Amsterdam: Elsevier JAI.
Porter, G., & Tansky, J. W. (1999). Expatriate success may depend on a `learning orientation':
Considerations for selection and... Human Resource Management, 38(1), 47.
Suutari, V., & Brewster, C. (2003). Repatriation: empirical evidence from a longitudinal study of careers and expectations among Finnish expatriates. International Journal Of Human Resource Management, 14(7), 1132-1151.
Tung, R. L. (1987). Expatriate Assignments: Enhancing Success and Minimizing Failure.
Academy Of Management Executive (08963789), 1(2), 117-125. doi:10.5465/AME.
Open Document