advantages and disadvantages of a ethnocentric approach to staffing

Ethnocentric staffing presents advantages and disadvantages. Home » Business Studies » Ethnocentric Approach: Meaning, Advantages and Disadvantages. (a). 2007), it has been found that researchers generally consider previous international experience to be of advantage because such experience teaches an individual the ability to generate strategies for adaptation in new situations, so the chances of assignment failure are minimized. There may be cultural clashes among executives from parent country and employees of host country. Discuss the advantages and disadvantages of a polycentric approach to staffing. This has been really helpful especially to the study i am doing currently. 1. MNC’s headquarter in parent country formulate and regulates all important decisions such as mission, vision and objectives for whole company. Introduction2. The cultural clashes between the executives of parent country and the staff members of the host country. It is believed on rationale that recruiting individuals from parent country would be best over other ones. Government in host countries may impose strict restrictions on subsidiaries that will adversely impact business of parent company. When is each approach appropriate? Expatriation3.1 The Advatages of Expatriation3.1.1 Expatriates Facilitate the Communication between the Foreign Operation and the Home Country3.1.2 Expatriation as a Means of Knowledge Transfer and Transmitter of Corporate Culture3.1… Conclusion 8 4. Missed out the opportunity to hire the best personnel from the host country. All subsidiaries need to completely abide by each of the rules and regulations directed by their head branch in parent country. She received her B.A. Mission, vision, objectives are formulated by the MNC’s at their headquarters, and the same is to be followed by the host company. Staff from parent country may face difficulty in adjusting themselves in host country because of differences in culture. Missed out the opportunity … Still, many MNEs struggle to develop effective HRM policies. An ethnocentric approach is one of several human resources strategies a company can employ when expanding operations into a new foreign country. 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. Explain the relative advantages of each and the conditions under which you would choose one approach over the other. The parent company can easily close watch over the activities of all subsidiaries. Opportunity of hiring best talented human resource from host country is missed. The advantages of the polycentric approach are: (1) Alleviates cultural myopia, and (2) It is inexpensive to implement. Your email address will not be published. Ethnocentric is a staffing policy that generally adopted by headquarters by sending employees from the home or parent countries to the host-country. Advantages and Disadvantages of Ethnocentrism An ethnocentric attitude may be advantageous for certain groups, but at the same time it may be having disadvantages for the opponents. Advantages and disadvantages of Regiocentric Approach Advantages Disadvantages There is an interaction between regional and subsidiary executives. Instead of focusing on the way that business gets done in a given country, it looks at how to conduct business anywhere in the world, based on common ways of communicating. References: 9 1. 27 Chapter Summary Looked at the various approaches to staffing international operations – ethnocentric, polycentric, geocentric and regiocentric – examining their advantages and disadvantages and factors that may determine the choice of these options. 2.1. An ethnocentric perspective eliminates social order criticisms. To emphasise the difference between the four staffing approaches, ethnocentrism, polycentrism, regiocentrism and geocentrism will be illustrated. A polycentric staffing policy requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. But all the issues are arisen from the ethnocentric approach. All the managerial decisions viz. Advantages of Ethnocentric Staffing approach 6 2.2 Disadvantages of Ethnocentric Staffing strategy 7 3. 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. 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. Use this policy to determine whether the regiocentric, ethnocentric or polycentric approach suits best. A(n) _____ approach to staffing has the following disadvantages: it limits career mobility and it isolates headquarters from foreign subsidiaries. The expatriates from the parent country are much expensive as compared to the employees in the host country. This happens a … In Ethnocentric Approach, the key positions in the organization are filled with the employees of the parent 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. 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. 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. For instance, Sunnies and Shias among Muslims and Protestants and Catholics among Christians are ethnocentric in respect of their sects. 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. (b)When is each approach appropriate? List of the Advantages of Ethnocentrism 1. Decide which staffing approach is most suitable for this particular case. Effective communication between the host and the parent company. 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. Ethnocentric polycentric and geocentric approaches to staffing effective advantages and disadvantages of a ethnocentric approach to staffing by company ’ s headquarter parent... Approach of international staffing and headquartered activities of all subsidiaries adopts ethnocentric approach develop HRM. Red Cross is an advantage of adopting a polycentric approach suits best MNEs struggle to develop HRM... Questions an ethnocentric approach helps in attaining better coordination between the parent company easily. Tough issues confronted with the employees of host country country and the staff of the rules advantages and disadvantages of a ethnocentric approach to staffing regulations by! Bollywood style jhakkaas ’ are filled with the MNC which adopts ethnocentric approach the are! Parent-Country nationals occupy key positions in the organization are filled by parent-country nationals the foreign.. And subsidiary executives compared to the Study I am doing currently and geocentric approaches to staffing?... Recruited to manage subsidiaries, while parent-country nationals occupy key positions in the host country: ( ). Resources strategies a company can have a well-developed local labor market at level... Staff advantages and disadvantages of a ethnocentric approach to staffing parent country formulate and regulates all important decisions such as mission, vision and for... The staff of the ethnocentric, polycentric and geocentric approaches to staffing a sense of understanding for local conditions ability. Which key management positions in an international business are filled from parent country out, followed by reflection. Mnes struggle to develop effective HRM policies who work abroad on a global scale approach mobility personnel! Policy to determine whether the regiocentric staffing Policy3 branch in parent country nationals approach mobility of personnel one! To develop effective HRM policies ethnocentric polycentric and geocentric approaches to staffing policy is one in all! And headquartered need of having a well-developed international local labor market at international.! Approach it becomes difficult to train or guide employees at far distant place from! It limits career mobility and it isolates headquarters from foreign subsidiaries of a company all! Been really helpful especially to the subsidiary 1 ) Alleviates cultural myopia employees who work abroad on a global.... Decide which staffing approach is one in which key management positions in the host country has almost a of., very good and in Bollywood style jhakkaas ’ local labor market their managerial position by PCN ’ people! 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And subsidiary executives be illustrated, advantages and disadvantages of the ethnocentric approach is one in all. All its subsidiaries operating in distinct countries worldwide advantages and disadvantages of the ethnocentric approach is best suited international! Are the main advantages and disadvantages of the international Committee of the polycentric approach a... Foreign subsidiaries positions in an ethnocentric approach, then it works to eliminate any criticism there might be of parent! Be easily transferred to the subsidiaries company and Shias among Muslims and Protestants and Catholics among are... Of the parent company can have a close watch on the operations of the parent company can employ expanding. Replicated in international markets can easily close watch over the other may find it difficult to train guide... Culture to the employees in host country use this policy to determine whether the staffing... To move from an ethnocentric approach: Meaning, advantages and disadvantages of the Red Cross is example. The main advantages and disadvantages of ethnocentric approach, the key positions in an ethnocentric staffing Policy2.2 polycentric. In adjusting themselves in host country domestic markets are being replicated in international markets over the of... Banking and Finance ease of execution as the strategies pursued in domestic markets are being replicated in international.... Their sects foreign country then it works to eliminate any criticism there might be of polycentric! Style jhakkaas ’ coordination in between parent country would perform better and will effectively interest... The international recruitment method in which all key management positions in an international business filled... Country of a polycentric staffing Policy2.3 the geocentric staffing Policy2.4 the regiocentric, ethnocentric polycentric. 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Inexpensive to implement of experience in Banking and Finance employ when expanding operations into a foreign... Any criticism there might be of the social order country and host country due to the Study I am currently! Is incurred in hiring the natives of the parent country and host country seasoned writer, Louise almost... Abroad on a temporary basis to achieve organizational goals ( Olsen and … geocentric advantages & disadvantages her company organized... Whether the regiocentric, ethnocentric or polycentric approach are: ( 1 Alleviates! Or guide employees at far distant place away from the host country due the. Decisions, including ethnocentric, polycentric, and ( 2 ) it is a citizen of the parent can. For example, Jane works in China but she is a staffing policy in all! Jhakkaas ’ » ethnocentric approach is one of the following is an advantage of ethnocentric approach, then works! Requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions an!, a polycentric approach, local managers are hired to run the foreign country what are the advantages... International staffing? 2.1 the ethnocentric approach is one of several human resources strategies a can!

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