In today’s global world Human Resource (HR) practices and polices have become very significant for further development of multinationals organizations. In order for multinationals companies to be competitive, it is necessary to have adequate international staffing approach. Management of employees in foreign subsidiary is a complex job. Nevertheless, Human Resource managers need to manage people across borders.
The aim of this paper is to present critical analysis of ethnocentric companies, advantages and disadvantages of this approach are demonstrated. Furthermore, role of expatriates managers and locals were described.
Table of contents:
2. Literature Review5
2.1. Advantages of Ethnocentric Staffing approach6
2.2 Disadvantages of Ethnocentric Staffing strategy7
Over the last few decades, multinationals companies (MNCs) have become very powerful instruments for transfer managerial skills, proficiency, technical knowledge, and capital across nations. In todays world, which has become a global market place, Human resource management (HRM) have significant role in conducting international staffing policies and practices. According to Perlmutter (1969), there are four different categories of multinationals: Ethnocentric, polycentric, regiocentric and geocentric companies.
• Ethnocentric companies: Home country oriented corporations; they believe that home country managers are more competent and trustworthy than foreign nationals. • Polycentric companies: Host country oriented organizations, local employee are recruited to control local operations. • Regiocentric companies: Is the combination pf staffing policies, adequate for specific geographic areas. • Geocentric companies:...