Staffing is one of the main functions on Human Resource Management, refer to International Human Resource Management perspective, staffing will be more important on the managing by the headquartered company to their subsidiaries in order to gain more competitive advantage for them. As a company want to achieve the mind of globalization, they must choose a suitable staffing approach in order to doing business successfully not only in the domestic also in the international environment. Maral Muratbekova-Touron (2008) stated that “One of the main issues facing the development of the global companies has always been to find the right balance between the local autonomy between subsidiaries and the control of the corporate headquarters.”, it related to how the company recruit and select their staffs in their subsidiaries. In the present paper will concentrate on the international staffing approaches in global companies, and there has four different approaches to managing and staffing their international subsidiaries. The following literature reviews will attempt to explain that four approaches and point out what is the advantage and disadvantage of each approach in the internationalization process of the company.
Approaches to Managing and Staffing Global Subsidiaries
In research text book by Ball, et al. (2008), it was explained these four approaches in detail, they are Ethnocentric approach, Polycentric approach, Geocentric approach and Regiocentric Approach. Ethnocentric approach is related to the company employing and promoting the Parent-country nationals (PCNs) in their subsidiaries which the employee are the citizen of the nation in the parent company; Polycentric approach is related to employing and promoting the Host-country nationals (HCNs) in their subsidiaries which the employees are the citizen of the nation in the operating subsidiaries; Geocentric approach is related to the company employing and promoting the employees base on their ability and experience, this approach can refer the company select the best person for the job without any consideration of the citizenship; and Regiocentric approach is related to the company employing and promoting the employees which they are the citizen on the basis of the specific region in the operating subsidiaries, it can be HCNs or Third-country nationals (TCNs) which the employees are the citizen of neither the parent company nation nor the host country. (Ball, et al. 2008)
Ethnocentric approach refer to the staffing policy base on the PCNs, therefore the clear advantages come up immediately for the headquarters are the communication and control, the PCNs are familiar the policies and practices or working-style of the headquarters, or the PCN staff was training in the headquarters already. (Ball, et al. 2008) As Kathy Monks, et al. (2001) stated “In the very early stages of internationalization, the staffing policies of the majority were largely ethnocentric in character, an approach which is relatively common at this stage in the internationalization process where a company is setting up a new business process or product in another country, and knowledge of the company’s culture and reporting systems is considered essential”, it shows the Ethnocentric approach are common at the early stage of internationalization process in the multinational or transnational companies, because the controlling and communicating is very important at that stage, therefore, the companies would like to employ the PCNs in order to fully control their subsidiaries at the early stage of internationalization process. Another reason also make Ethnocentric approach are common at the internationalization process is the cost of the company. As Brewster (1988, pg. 18 ) noted, “Despite the importance of expatriate positions, the high costs associated with expatriation and the extensive...