Ethnocentric staffing policies

Small businesses are expanding into international markets due to improvements in technology and increasing globalization. This expansion includes setting up production facilities and sales offices abroad. To reduce the perceived risk in these new ventures, companies may be tempted to adopt an ethnocentric approach to their HR practices.

Ethnocentric staffing policies

Maintaining Corporate Culture

Ethnocentric staffing means you hire management that is the same nationality as the parent company, while polycentric companies hire management employees from the host country. Either one can be appropriate, but you must evaluate when to choose ethnocentric staffing. Controlling How Systems are Set Up When the parent company's procedures and operations require control and management for the company to profit, it can be appropriate to choose ethnocentric staffing for foreign offices.

The employees from the parent company will have a strong working knowledge of company policies and procedures, and can ensure that company guidelines are followed. Maintaining Corporate Culture Ethnocentric staffing offers the opportunity to transfer company values to the foreign operation.

Types of Human Resource Management Issues in International Business

Employees who have worked at the parent company know how the company views work ethic, customer service, productivity and a host other issues. Management staff from the parent company can bring company values to bear on the building of the foreign branch.

Ethnocentric staffing policies

Giving Employees International Exposure Sending management employees overseas gives them international exposure and broadens their thinking. This can help them rise to higher levels in the company as it goes global, allowing them to bring their global sensitivity to new positions.

Continuity When a company opens an overseas operation, it is in a growth stage. Using ethnocentric staffing can prevent expanding interests into areas the company doesn't want to go. Diversifying into products aimed specifically at the host country may not be in the interests of a global concern.

A company can achieve continuity by putting people in charge in the host country that have a working knowledge of the parent company's long-range goals.Define ethnocentric, polycentric, regiocentric, and geocentric staffing policies OR • Compare and contrast each of these staffing policies OR • Define ethnocentric, polycentric, regiocentric, and geocentric staffing policies.

Ethnocentric staffing policy is where most of the "decisions are made at headquarters by using the home country's 91%(23). Recruitment and Selection.

Chapter Summary

An ethnocentric company assumes that the host country will be unable to supply skilled labor. Although it will recruit local people for low-level positions, an. Define ethnocentric, polycentric, regiocentric, and geocentric staffing policies OR • Compare and contrast each of these staffing policies OR • Define ethnocentric, polycentric, regiocentric, and geocentric staffing policies.

Ethnocentric staffing policy is where most of the "decisions are made at headquarters by using the home country's frame of reference."92%(24). Regiocentric staffing is a lot like polycentric staffing in that host-country nationals staff each foreign subsidiary to a high degree.

However, company offices and facilities are grouped into. Ethnocentric approach is a staffing policy that is used in companies that has primarily international strategic orientation. While polycentric maintains show more content Common law systems are used in England, which was where it originated.

Ethnocentric staffing presents advantages and disadvantages. The obvious advantage to ethnocentric staffing is the alignment of interests and perspective of .

Staffing Policy & HRM Issues in International Business - Panmore Institute