What are the various types staffing arrangement that an organisation might consider when setting up an international operation? Please ensure you ‘use the language' and define your terms accurately.
There are four staffing arrangements that can be implemented when setting up an international operation. Firstly ethnocentric; this policy is adopted by headquarters who sends expatriates to parent country nationals (PCNs) to fill manger positions in host country nationals (HCNs). This approach is based on that subsidiaries can be managed more effectively by expatriates as they are more informed of company’s goals, objectives, policies and strategies compared to local managers. The Second approach is Polycentric, this is where locals which are known as Host country Nationals (HCNs) are recruited to manage foreign subsidiaries. The third approach is Geocentric which seeks out the best person for the job regardless of their nationality. And the final approach Regiocentric staffing which involves hiring and promoting employees based on specific regional context where the subsidiary is located. With reference to the Scenario provided in the unit L G, pp5-7, what do you think are the advantages and disadvantages of these staffing models for Winch-It?
Advantages of using the ethnocentric approach; confidence in sending expatriate to maintain good communication, coordination and control links, expatriates are able to reinforce objectives and goals to assist in expansion goals for Winch-It. Disadvantages include; adaption of local environment/culture, compensation, wealth, power and as this approach limits opportunities of host country nationals (HCNs) it may reduce productivity. Advantages of using the polycentric approach; lower language barriers, company profile and employment costs, disadvantages of this approach are difficulties of communication with Winch-It headquarters. Advantages of using the geocentric approach; developed global perspective, overcome...
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