The ethnocentric or home country approach focuses on full-scale transfer of the host country’s HRM system to the subsidiary and emphasizes consistency and integration across all subsidiaries.
However, this approach is often viewed as inflexible. It ignores potentially critical local differences and may overlook opportunities with respect to HQ-subsidiary and cross subsidiary learning. This may result in foreign subsidiaries resisting HR practices they feel are inappropriately imposed on them by HQ (Fisher, et al., 2006, p. 737-738).
According to Hill (2007) the ethnocentric staffing policy is now on the wane in most international businesses because an ethnocentric staffing policy limits advancement opportunities for host country nationals, and an ethnocentric policy can lead to cultural myopia. The polycentric or local approach centers on recruitment of host country nationals (HCNs; i.e. individuals within the country) to manage the subsidiary. However, Hill (2007) recognized two advantages to the polycentric approach: (1) the firm is less likely to suffer from cultural myopia, ...
The Challange of Cultural Diversity in Corporate America The expanding conflict over cultural diversity in corporate America may present as many opportunities and problems as affirmative action. Today, cultural diversity is an important fact of life and business, due to the changing face of society, and therefore, the work place. It is growing ever more essential for people to interact with others outside of their racial, ethical, religious, regional, social, etc. boundaries. To stay on top of their competitors, corporations must change their approach, and see diversity not as a necessary evil, but as a source of enrichment and opportunity that may bring a wealth of benefits to the company.
A practicing sociologist has the gift of being able to recognize things that many people spend their entire life in ignorance of. These “things” are what construct an individual person’s sense of reality are ideas that very often differ culture to culture. To further explain this meaning, a person can consider the idea of thunder. In a Westernized culture, many people will hear the loud noise and automatically associate it with a storm. However, in other cultures some people may immediately think that their gods are angry with them and thus cause the sounds in a fit of rage. The interesting thing about this is that both ideas are a direct result of the culture and language in which the individual was raised or adapted into. Their individual
While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the following:
The staffing choice my company, Cummins should incorporate is geocentric. Geocentric staffing policy “seeks the best people for key jobs throughout the organization, regardless of nationality (Hill & Hult, 2016).” I chose this approach because my company would use a transnational strategy and I feel that it would best fit the company. This company has locations on over 190 countries, therefore, they need the best of the best to be a part of their workforce in order to keep up with their qualitative demand for the products that consumers purchase. This approach also allows the company to make the best use of its human resources department. The company can easily put together a team of international executives who will feel at home working
In today’s fast-paced, highly-competitive global marketplace, many companies are embracing the less cumbersome and more flexible decentralized human resource approach. However, there are advantages to centralization and some business professionals point out that in the global marketplace:
In pursuing expansion into the China market, the company must determine the most appropriate means for performing its business duties, specifically whether to employ expatriates or rely exclusively on hiring local talent. According to David Ahlstrom, Michael N. Young, and Anil Nair, in their article, "Navigating China's Feudal Governance Structures: Some Guidelines for Foreign Enterprises", many foreign businesses face considerable operational problems , such as running joint ventures or managing a local workforce that is a significant distance away from their headquarters (Ahlstrom, Young, & Nair, 2003). Consequently, an integrated approach to pursuing business activities is more desirable.
Finding the appropriate candidate, with the right attitude can be half the battle in recruiting, and placing expatriates versus host-country nationals. By focusing on the three primary attitudes of global management; polycentric, ethnocentric, and geocentric, the success of failure of any global endeavor could swing the pendulum toward either success or failure, as “expatriate failure can be costly if he or she leaves the company” (Schaffer, Harrison, Gregersen, Black & Ferzandi, 2006, p. 110).
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
("What is Polycentric Approach? Definition and meaning - Business Jargons", 2015) The rationale for this approach is that the locals know their culture better than the foreign owners and can run the business more efficiently as compared to how we can at this moment. According to Thomas P. Bechet 's article " Developing Staffing Strategies That Work: Implementing Pragmatic, Nontraditional Approaches," addresses staffing from a proactive, planning perspective, not just an implementation concern. It is no longer appropriate to consider staffing solely from an application perspective. (Bechet, 2000) Even though it may have been acceptable practice in the past, it is no longer realistic for business to assume that the staff needed to implement its plans is readily available and quickly recruited, developed and deployed. (Bechet, 2000) In fact, staffing constraints (e.g., an inability to hire a sufficient number of individuals with critical skills) may impact the company’s ability to implement its plans. (Bechet, 2000) In Nigeria, organizational control should be placed in the hands of management the host nation team to effectively manage employees and match them ability closely with our American desired goals and objectives to move the airline forward. (Fajana, Owoyemi, Elegbede, & Gbajumo-Sheriff,
In this paper we have chosen to explore Procter and Gamble (P&G), a multinational corporation which has lead the way in creating one of the best human resource management systems to date. By using P&G, we are seeking to provide an example of how current multinational companies make decisions to manage their human resources (HR) activities, in search of effective management of their HR costs and in search of professional HR management.
The whole organization is controlled by a central authority, the major HR strategies are initiated by the global HR directors (Tayeb, 2005). While the structure seems more complex that the geographic divisions have relative autonomous, each store managers acts as the chef at each store, for example, making decisions on interviewing and selection. While in Cafe Expresso, the whole management style tends to be ethnocentric, which are more likely to have a set of standard HR practices and
...e located and the human resource management to effectively manage the global workforce diversity. Furthermore, management practices across nations should be more focused in terms of enhancing expatriates’ experience with cross-cultural training. It is also highlighted that executives of international firms must efficiently devise the best strategies and plans to increase the business positive performance and for controlling resources of their foreign subsidiaries. As a consequence, global managers play a very important role in the development and success of multinational corporations in the current competitive international market since there are numerous issues that they have to deal with in the operating process. If the enterprises could overcome the management challenges, they would gain great opportunities in the global economy and achieve favorable outcomes.
... are 9,258 non-Hong Kong companies on register in Hong Kong. It is common for these companies to hire people from different nations, in order to get contact with more markets. The figures provided by the Steering Committee on Population Policy showed that within the labour force of Hong Kong, there are only 2.5% of professionals hired from overseas (86,781 workers)(until 2012), and surely there are still many local labours that carry a different culture. Hong Kong as an international city, it is common to have different races and cultures. Therefore, a lot of corporations in Hong Kong contain workers from different races and cultures. In order to help the working efficiency through avoiding most of the conflicts cause by cultural misunderstanding, it is better to study the apologies in an international business, including the preferred ways in most of the cultures.
A well-managed bi-cultural team is proven to be a success because when people from different backgrounds bring their own unique cultural experiences to the situations they face in their companies and this broader perspective of viewpoints tends to allow for a better ultimate resolution, however if those teams are not managed properly, and if the size of those teams are not managed, and the individuals are not catered to, the cons may outweigh the
Choosing between geocentric, ethnocentric and polycentric staffing is crucial when hiring the right people to grow your company internationally. There are pros and cons to all options and choosing the best type of staffing for the company depends on how the company wants to be operated. Geocentric staffing is when a company hires the best person for the job regardless of if they are from the parent country or the host country where you are trying to start the business. Ethnocentric is when the company only hires people from the parent country to run the operations in the host country. Lastly, polycentric staffing is when you only hire locals from the host country (What is Human Resource, 2015).