Pros and Cons of Polycentric Staffing by Perlmutter (1968)

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Term paper

“Pros and cons of polycentric staffing by Perlmutter (1968)”

Scientific research and writing

I Outline

I. Outline

1 Introduction

1.1 Research problem
1.2 Research methodology
1.3 Way of investigation

2. Degrees of multinationality and how to measure them

1. General assumptions
2. The role of a manager in a multinational corporation

3 Global staffing

4. The EPRG concept

1. Ethnocentrism
2. Polycentrism

4.2.1 Pros of polycentric staffing
4.2.2 Cons of polycentric staffing

3. Regiocentrism
4. Geocentrism

5 Conclusion

II. Bibliography
III. Appendix
IV. Declaration of originality

1. Introduction

1. Research problem

Multinational enterprises become increasingly significant in our progressive globalising world. Political, social and economic affairs within a country are persistently affected by their international activities which have worldwide impacts, consequently international ventures are incrementally gaining authority. In the highly competitive strive for achieving the highest degree of multinationality by various means, companies want to obtain sustainable prosperity since a mondial performance is related to motions towards a bright future.

A further scope that is no longer of national interest is the matter of staffing. In the contemporary advancing world, in which country-borders are of dwindling relevance, the recruitment of the ideal staff seems to become increasingly challenging as a rising number of people are being enabled to move to another state in order to search for a suitable and attractive employment. Hence, local human resources become gradually seldom, so qualified staff from all over the world is needed and sought for.

Howard V. Perlmutter, a worldwide recognised expert on the internationalisation of firms and other institutions[1], adopts this difficult topic and introduces the four approaches which become visible when people are engaged on managerial positions in multinational companies. Hiring the most eligible employees for their company, managers of multinational enterprises would conduct with a mix of an ethnocentric, polycentric, regiocentric or geocentric attitude. Perlmutter’s findings are demonstrated in the so-called EPRG concept which is frequently discussed since 1968 and still an essential subject on international human resource literature. As there are always two sides of the same coin, there are also advantages and disadvantages of each of the different staffing practices. By virtue of the manager’s attitude, he acquiesces in the pros and cons that are accompanied by the chosen staffing philosophy.

This term paper will investigate the advantages and disadvantages that go along with a polycentric attitude concerning international recruitment in multinational enterprises. It will further examine the definitions of the common applied staffing approaches originated by Howard V. Perlmutter. 2. Research methodology

This term paper analyses the pros and cons of polycentric staffing according to Howard V. Perlmutter in context of global staffing in international corporations. Hence, an outlook on the causes and consequences of international recruitment as well as on the measures that are used to describe a company’s multinationality is required. Furthermore, the induction into Perlmutter’s EPRG concept which analysis will give information about the four staffing approaches will highlight polycentrism and its impacts. Additional examinations to this topic by other authors can either support or doubt Perlmutter’s statements and consequently reveal new views. Thus, a comparison of different literary works is inevitable.

3. Way of investigation

Corresponding the research question that has been postulated in chapter 1.1, it is worthwhile to describe the term “multinationality” and its...
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