Downloads: 9 Views: What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches? Polycentric approach to international management is the policy involved hiring and promoting employees who are citizens of the country that host and operates the company. The polycentric approach is best used in order to maintain low hiring costs. Communication is easier and companies run smoother due to the fact the employees are all related in their geographic location. While polycentric maintains employees from the same area, ethnocentric is generally adopted by headquarters by sending employees from the home or parent countries to the host country.
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It is essential that the workforce of an international organization is aware of the nuances of international business. Understandably, the company must keep international knowledge and experience as criteria in the recruitment and selection process. The HR department must have the capacity to foresee the changes in these markets and exploit those changes productively.
A truly international HR department would insist on hiring people from all over the world and place them throughout the international business operations of the organization. Approaches to Recruitment in IHRM Though the general aim of any recruitment policy is to select the right people for the right task at the right time, the HR department of international companies may adopt one of the following three specific approaches available for recruiting employees for global operations.
Employers must verify work eligibility by completing Form I-9 along with required supporting documents. IRCA also prohibits employers from discriminating in hiring, firing, recruiting, or referring on the basis of national origin or citizenship status.
H-1B workers may be employed temporarily in a specialty occupation or as a fashion model of distinguished ability. An H-1B alien may work for any petitioning U. International recruitment methods 1. Ethnocentric approach Countries with branches in foreign countries have to decide how to select management level employees. Ethnocentric staffing means to hire management that is of same nationality of parent company. When a company follows the strategy of choosing only from the citizens of the parent country to work in host nations, it is called anethnocentric approach.
Normally, higher-level foreign positions are filled with expatriate employees from the parent country. The general rationale behind the ethnocentric approach is that the staff from the parent country would represent the interests of the headquarters effectively and link well with the parent country. The recruitment process in this method involves four stages: self-selection, creating a candidate pool, technical skills assessment, and making a mutual decision.
Self-selection involves the decision by the employee about his future course of action in the international arena. In the next stage, the employee database is prepared according to the manpower requirement of the company for international operations.
Then the database is analysed for choosing the best and most suitable persons for global assignments and this process is called technical skills assessment. Finally, the best candidate is identified for foreign assignment and sent abroad with his consent. The ethnocentric approach places natives of the home country of a business in key positions at home and abroad. In this example, the U.
Polycentric approach When a company adopts the strategy of limiting recruitment to the nationals of the host country local people , it is called a polycentric approach. The purpose of adopting this approach is to reduce the cost of foreign operations gradually. Even those organizations which initially adopt the ethnocentric approach may eventually switch over lo the polycentric approach. The primary purpose of handing over the management to the local people is to ensure that the company understands the local market conditions, political scenario, cultural and legal requirements better.
The companies that adopt this method normally have a localized HR department, which manages the human resources of the company in that country. Many international companies operating their branches in advanced countries like Britain and Japan predominantly adopt this approach for recruiting executives lo manage the branches. In this example, the Australian parent company uses natives of India to manage operations at the Indian subsidiary.
Natives of Australia manage the home office. Indians popular choice for senior roles at Asian companies ET Bureau Jul 10, Nikon and Sony have appointed Indians to lead their local operations, which were earlier managed by the Japanese.
Asian consumer electronics makers are increasingly placing their trust on Indian executives, especially at a time when several of them are struggling in their home turf, or finding the going tough in the largest markets, and are expecting India to play a bigger role when they are expanding to emerging markets.
The number of expats in senior roles in the Indian arms of Sony, Panasonic, Hitachi and Daikin too have come down, while Samsung too now has Indian executives in their global think tank. The overseas entities send in their representatives from various departments to share best practices being followed by various entities all over the globe. The process is laid down between local entity and global teams and then those processes are monitored and administered.
Geocentric approach When a company adopts the strategy of recruiting the most suitable persons for the positions available in it, irrespective of their nationalities, it is called a geocentric approach. Companies that are truly global in nature adopt this approach since it utilizes a globally integrated business strategy. Since the HR operations are constrained by several factors like political and ethnical factors and government laws, it is difficult to adopt this approach.
However, large international companies generally adopt the geocentric strategy with considerable success. For international recruitment, especially on foreign soil, organizations generally use manpower agencies or consultants with international connections and repute to source candidates, in addition to the conventional sources. For an effective utilization of the internal source of recruitment, global companies need to develop an internal database of employees and an effective tracking system to identify the most suitable persons for global postings.
The geocentric approach uses Ihe best available managers for a business without regard for their country of origin. In this example, the UK parent company uses natives of many countries at company headquarters and at the U.
Regiocentric Approach The Geocentric Approach is one of the methods of international recruitment where the Multi National Companies recruit the most suitable employee for the job irrespective of their Nationality. The regiocentric approach uses managers from various countries within the geographic regions of business.
Although the managers operate relatively independently in the region, they are not normally moved to the company headquarters. The regiocentric approach is adaptable to the company and product strategies. When regional expertise is needed, natives of the region are hired. If product knowledge is crucial, then parent-country nationals, who have ready access to corporate sources of information, can be brought in.
One shortcoming of the regiocentric approach is that managers from the region may not understand the view of the managers at headquarters. Also, corporate headquarters may not employ enough managers with international experience.
The regiocentric approach places managers from various countries within geographic regions of a business. Natives of European countries are used to manage the Italian subsidiary. Manufacturing cos recruit expats in key artificial intelligence, digital roles.
Indian manufacturing companies are going all out to woo expat talent in digital, artificial intelligence and other new-age technologies, as they seek to strengthen their global footprint with improved products. Companies in sectors such as automobile, industrial, pharmaceutical, chemical and packaging are keen on bringing in people familiar with international best practices who can replicate the quality and precision of developed markets such as North America, the UK, Korea, Japan and Germany.
A spokesperson for Hero MotoCorp said several experts have joined the company of late. Tripathi cites non-availability of local talent for critical roles as the reason for the increase in expat hiring.
The roles for which they were hired include product development, ride and handling, vehicle refinement, architecture, technology-led programmes, safety to meet global standards, electric vehicle, etc. They will be responsible for setting up processes in line with the best practices from our industry around the globe. These aspects require relevant talent to be brought into their processes.
R Suresh, managing director of Insist Executive Search, said that if there are four-five members in the shortlist for a CXO search, two are invariably expats. For certain professions, there is a dearth of talent in the country. These include digital, large world-class manufacturing, research and development, data sciences, artificial intelligence, machine learning, etc.
K Sudarshan, managing partner — India at EMA Partners, is currently running global searches for CXO-level executives in engineering industry across operations, safety, process excellence and quality functions. It is a win-win for the executives too, as they are seeing scale and growth in India. Switzerland, the nation that has previously topped country rankings for expat salaries, had two cities in the top five.
The survey was done among 27, expats from countries and territories, including India, through an online questionnaire in March-April However, when it comes to better career progression, China topped the list with 73 per cent women expats choosing the country, followed by Hong Kong at 64 per cent, India at 62 per cent, Singapore at 60 per cent and Indonesia at 52 per cent, the survey revealed. Hong Kong was found to be the best country in Asia to acquire new skills with 62 per cent women expats opting for it, closely followed by Singapore at 61 per cent, China at 47 per cent, Taiwan at 44 per cent and Vietnam at 43 per cent.
The survey found Singapore to be the best place to improve earning prospects with 71 per cent women expats choosing the country, followed by Hong Kong at 55 per cent, China at 45 per cent, South Korea at 44 per cent and Vietnam at 42 per cent.
Top five countries for women expats to experience good work or life balance in Asia are Thailand 62 per cent , Vietnam 58 per cent , Singapore and Taiwan 49 per cent each , Indonesia 44 per cent and Malaysia 42 per cent. In terms of job security, the survey said, Japan and Taiwan were rated as the best places for women expats 50 per cent , closely followed by Singapore 49 per cent , Hong Kong 47 per cent , India 45 per cent and China 41 per cent.
The top five countries in terms of work culture for women expats were Singapore 51 per cent , Hong Kong 44 per cent , Vietnam 43 per cent , Indonesia 39 per cent and China 36 per cent. For women expats looking to find personal fulfilment at work, the best places in Asia were Singapore 56 per cent , China 48 per cent , India 48 per cent , Hong Kong 47 per cent and Indonesia 41 per cent. International Selection Even though cultural differences influence the selection procedure to some extent, organizations tend to follow similar criteria and methods worldwide.
This is due to the fact that the end objective of any selection process is to choose the most capable persons for the job. The selection criteria for international jobs usually revolve around the five core areas of behaviour, attitudes, skills, motivation and personality.
More specifically, the focus of selection for international operations normally includes cultural adaptability, strong communication skills, technical competence, professional or technical expertise, global experience, country-specific experience, interpersonal skills, language skills, and family flexibility. Employers around the world usually rank personal interviews, technical competency and work experience in similar jobs as important criteria for selection.
International firms, while choosing employees for overseas operations, usually prefer people with highly developed technical skills good language and communication skills tolerance towards other culture, race, creed, colour, habits, and values high level of motivation stress resistance goal-oriented behaviour Finally, at the time of selection for international assignments, an organization should consider the previous overseas experience, family circumstances and cultural-adaptability level of the candidates aspiring for the global jobs.
Most common mistakes when hiring international employees -Rilind Elezaj Whether you are looking for international employees who can take on roles that your local job market is unable to handle sufficiently or you just want to diversify your workforce, you will need to avoid the common, costly mistakes that recruiters make when hiring internationally. Or maybe you have opened an international shop and you are now looking for local employees to help you with business localization.
To simplify things for you, we have provided you with 5 of the most common hiring mistakes that you cannot afford to make. Be our guest. Prioritizing language skills over core skills It is common practice for recruiters to hire staff members who are experts in the language of their target market. Your business will stand a great chance to prosper if you can hire competent Chinese professionals to run the business for you. The best thing to do is to hire foreign talents with a fairly good grasp of the local language and then help them develop their language skills through a specially-designed management development program.
Foreign businesses in China, for example, have to follow stricter reporting structures and administration protocols than their local competitors. If your employees understand the regulatory aspects of running an international office in China, they will use that knowledge against you in case of future employment disputes.
The best thing is to understand and comply with all regulations before, during, and after the recruitment process. Avoiding uncomfortable conversations with new employees Because taking a local business to the international stage can sometimes be intimidating, some employers opt to play safe with their new staff by avoiding direct, uncomfortable confrontations.
Just remember to follow the right termination laws. Ignoring mandatory employee benefits In most of Europe and the US, employment laws do not obligate employers to give their employees mandatory annual paid vacations. The decision to or not to grant such benefits rest with an individual employer. However, employment laws in Asia specify sick leaves, paid vacations, and many other mandatory benefits that you have to grant your staff members on an annual basis.
There are some limitations to these benefits, which basically attempt to provide checks and balances so that neither the employer nor employee can take undue advantage over the other. The mistake some employers make is to assume that their international employees will conform to the employment laws as applied to the US or Europe, for example. To avoid future friction with authorities, it is imperative that you familiarize with the employee benefits in the international market from which you are hiring, and then fully comply with each one of them.
Global Staffing Approaches: Ethnocentric, Regiocentric, Polycentric, and Geocentric
Ethnocentric staffing definition Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. This policy is generally adopted by headquarters by sending employees from the home or parent countries to the host country. This approach is used best in some situations such as, a team is sent from the home country to help setting up a new plant as well as train subsidiary personnel to use new system. The benefit of having staffs from home country abroad is that employees may gain experiences worldwide in order to become higher level in management of their headquarters because international managers require broad perspective and international exposure. This policy is best used when companies want to keep hiring cost low. Moreover, employees who are hired at subsidiary level would not have any problem adapting to the culture.
Ethnocentric, Polycentric, Regiocentric, and Geocentric Staffing Approaches Essay
It is essential that the workforce of an international organization is aware of the nuances of international business. Understandably, the company must keep international knowledge and experience as criteria in the recruitment and selection process. The HR department must have the capacity to foresee the changes in these markets and exploit those changes productively. A truly international HR department would insist on hiring people from all over the world and place them throughout the international business operations of the organization. Approaches to Recruitment in IHRM Though the general aim of any recruitment policy is to select the right people for the right task at the right time, the HR department of international companies may adopt one of the following three specific approaches available for recruiting employees for global operations. Employers must verify work eligibility by completing Form I-9 along with required supporting documents. IRCA also prohibits employers from discriminating in hiring, firing, recruiting, or referring on the basis of national origin or citizenship status.
Polycentric, Ethnocentric, and Geocentric Approach to International Management Essay
Home Essays Explain Each of Topics: England , Adoption Pages: 1 words Published: February 9, Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. This policy is generally adopted by headquarters by sending employees from the home or parent countries to the host country. This approach is used best in some situations such as, a team is sent from the home country to help setting up a new plant as well as train subsidiary personnel to use new system. The benefit of having staffs from home country abroad is that employees may gain experiences worldwide in order to become higher level in management of their headquarters because international managers require broad perspective and international exposure.