Professional Documents
Culture Documents
INTERNATIONAL STAFFING 2
APPROACHES TO
INTERNATIONAL STAFFING
4 approaches:
Ethnocentric approach
Polycentric approach
Regiocentric approach
Geocentric approach
INTERNATIONAL STAFFING 3
ETHNOCENTRIC
APPROACH
Results in the staffing of key positions in
the MNC by PCNs.
INTERNATIONAL STAFFING 4
ETHNOCENTRIC
APPROACH
REASONS:
Lack of qualified HCNs particularly senior
management talent.
A desire to maintain good communication,
coordination, tighter control and a unified
corporate culture linked with corporate HQ.
A desire to transfer parent firm’s core
competencies to a foreign subsidiary more
expeditiously.
INTERNATIONAL STAFFING 5
ETHNOCENTRIC
APPROACH
ADVANTAGES:
Organizational control and coordination is
maintained and facilitated.
Promising managers are given
international experience.
Assure that subsidiary will comply with
company objectives.
INTERNATIONAL STAFFING 6
ETHNOCENTRIC
APPROACH
DISADVANTAGES:
Limits the promotion opportunities of HCNs
which may lead to reduced productivity and
increased turnover among that group.
The adaptation of expatriate managers to
new environment takes time during which
these expatriates make poor decisions.
Income packages of expatriates are 4
times higher than locals.
INTERNATIONAL STAFFING 7
POLYCENTRIC
APPROACH
The MNC with this approach staff its
foreign subsidiaries with HCNs and its
home office with PCNs.
INTERNATIONAL STAFFING 8
POLYCENTRIC
APPROACH
ADVANTAGES:
Eliminates language barriers.
Avoids adjustment problems of expatriates
and their families and removes the need for
cultural awareness training.
Less expensive.
Gives continuity to the management of
foreign subsidiaries, thus reduces turnover.
INTERNATIONAL STAFFING 9
POLYCENTRIC
APPROACH
DISADVANTAGES:
The gap between HQ and subsidiaries
increased which becomes difficult to be
managed.
Limited career opportunities for HCN and
PCN managers.
INTERNATIONAL STAFFING 10
GEOCENTRIC APPROACH
This approach utilizes the best people
for key jobs through out the
organization, regardless of nationality.
INTERNATIONAL STAFFING 11
GEOCENTRIC APPROACH
REASONS:
Highly competent employees are available
not only at HQs but also in subsidiaries.
International experience is a condition for
success in top positions.
Managers with high potential are constantly
ready to be transferred from one country to
another.
INTERNATIONAL STAFFING 12
GEOCENTRIC APPROACH
ADVANTAGES:
Enables an MNC to develop an
international executive team.
Overcome the federation drawback of
polycentric approach.
INTERNATIONAL STAFFING 13
GEOCENTRIC APPROACH
DISADVANTAGES:
Host govt. pressurizes MNC to employ high
number of HCNs.
Expensive to implement because of
training and relocation expense.
Time consuming.
Requires more centralized control of
staffing.
INTERNATIONAL STAFFING 14
REGIOCENTRIC
APPROACH
Refers to the functional rationalization
on a more than one country basis.
INTERNATIONAL STAFFING 15
REGIOCENTRIC
APPROACH
ADVANTAGES:
Allows interaction between executives
transferred to regional HQs.
A step for MNC to move from purely poly or
ethnocentric or geocentric approach.
INTERNATIONAL STAFFING 16
REGIOCENTRIC
APPROACH
DISADVANTAGES:
It provides federalism at regional basis
rather than country basis. This serves as a
barrier in taking a global stance.
Limits career progression opportunities to
the regional level.
INTERNATIONAL STAFFING 17
ISSUES IN STAFF
SELECTION
Expatriate selection
Selection criteria
Use of selection tests
Other factors in expat selection
INTERNATIONAL STAFFING 18
EXPATRIATE SELECTION
The major challenge in international
staffing is Expatriate selection.
INTERNATIONAL STAFFING 19
EXPATRIATE FAILURE
The premature return of an expatriate
before completion of assignment is
referred to as Expatriate Failure.
INTERNATIONAL STAFFING 20
EXPATRIATE FAILURE
DIRECT COST:
Airfares
Associated relocation expenses
Salary
Training
INTERNATIONAL STAFFING 21
EXPATRIATE FAILURE
INDIRECT COST:
Affecting organization
Loss of market share
Difficulties in dealing with the host govt.
officials.
Affecting Expats
Loss of self esteem
Loss of self confidence
Loss of prestige among peers
Reduced motivation
Loss of promotional opportunities
INTERNATIONAL STAFFING 22
EXPATRIATE FAILURE
REASONS:
Spouse/partner dissatisfaction
Family concerns
Ability to adapt
Wrong Candidate selection
Job fails to meet expectations
Job performance
Quality of life
Remuneration dissatisfaction
INTERNATIONAL STAFFING 23
SELECTION CRITERIA
Technical ability
Cross cultural suitability
Family requirements
Country cultural requirements
Language
INTERNATIONAL STAFFING 24
USE OF SELECTION
TESTS
Personality tests
Psychological tests
INTERNATIONAL STAFFING 25
OTHER FACTORS IN EXPAT
SELECTION
Dual career couple
Female international managers
Family considerations
INTERNATIONAL STAFFING 26