Hr Ethnocentric

Better Essays
To be able to stay competitive and allow customers to have retention over who we are – Human Resources Management or Development can be a key to generate sustained competitive advantages. (Barney, 1991; Foss and Pedersen, 2002; Fang, Jiang, Makino and Beamish, 2010).
Therefore, as a marketer, I feel that the most important 3 points are:
1) The image of the company, where the corporate identity must be handled properly.

2) The flow of the communication, ensuring not only the key message (company’s culture, value, directions, objectives, operation standards...etc) are being disseminate properly impacting the overall performance of the company, we need to ensure that information gather are being feedback promptly too. This will impact marketing strategies deploy for the subsidiary.

3) Competency of the Area Director. Where the expatriate must understand the core values and culture of our company. He/she must be able to convey the right organisational processes, structures and principals. This is not just based on a set of rules or operations standard, it require us to move from transaction business approach to relationship-based. Selection of this expatriate must be carefully done and with the right model. Such strategies implementation is very much depended on managerial talent.

(Fernandez-Aroaz, 1999; Hollenbeck, 2009; Fang, Jiang, Makino and Beamish 2010).
I suggest that we should identify and appoint one of our talented senior managers to close the productivity gap and have our company specific knowledge readily present in the subsidiary. This will ensure protection over our organisation culture, value, identity and business model. With that in mind, I believed that the best approach for us to fill this key managerial position will be sending people from headquarters (HQ)– that is, parent-country nationals (PCNs). This is what we know as the ethnocentric approach. It will ensure success of transplanting the business model that has worked well

You May Also Find These Documents Helpful

  • Powerful Essays

    Edstrom and Gailbraith (1977) proposed three motives for using expatriates. Firstly, as position fillers when suitably qualified host country nationals (HCNs) were not available. Secondly, as a means of management development, aimed at developing the competence of the individual manager. Thirdly, as a means of organisational development, aimed at increasing knowledge transfer within the MNC and modifying and sustaining organizational structure and decision processes. Although it is important to note that assignments generally have more than one rationale (Sparrow et al., 2004)…

    • 2327 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    With the trend of globalisation, the number of multinational companies is constantly increasing as well as expatriates (Business Recorder, 2011). Expatriate management now is an essential issue of human resource department because it takes a large amount of budget from the corporation. It is inevitable for expatriates to face culture barriers in subsidiaries because of unique national cultures in all countries over the world.…

    • 5013 Words
    • 22 Pages
    Best Essays
  • Good Essays

    International Mangement

    • 438 Words
    • 2 Pages

    Firms using the Ethnocentric staffing approachfill their key managerial positions with persons from headquarter that is parent country nationals. Among the advantages of this approach, parent country nationals are familiar with the company goals, product, technologies, policies and procedures. This policy offers the advantages of maintaining close control. This approach is likely to be used when a company, determine a high need to maintain close communication and coordination with headquarter. This policy will also be chosen for new ventures requiring managerial experience in the parent company and there is a concern for loyalty to the company. Its disadvantages include lack of opportunity for local managers which could result in poor morale, expense, poor adaption and lack of effectiveness of expatriates.…

    • 438 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Noe, R., R. Hollenback, J., Gerhart, B. and M. Wright, P. 2003. Human Resource Management- Gaining a Competitive Advantage. 4th ed. New York: Mc Graw-Hill/Irwin, p. 8.…

    • 4005 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Bp Global Staffing

    • 676 Words
    • 3 Pages

    Next, the company offers employment to expatriates. “Expatriates are employees living and working in a different country from where he or she is a citizen.” (Mathis and Jackson, 2011) These opportunities are offered to expand their global market but only for professionals with passion to work with multi cultural teams and willing to support the global challenge. The business offers support for a smooth transition for relocating into another country. These individuals are employed to assist the area managers and local teams in different countries to track success and lower risk and to be the point of contact for that location to their home station.…

    • 676 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In a growing number of organizations human resources are now viewed as a source of competitive advantage. There is greater recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes, and systems. Increasingly, it is being recognized that competitive advantage can be obtained with a high quality work force that enables organizations to compete on the basis of market responsiveness, product and service quality, differentiated products, and technological innovation.…

    • 2511 Words
    • 11 Pages
    Good Essays
  • Satisfactory Essays

    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.…

    • 296 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    References: Kleinman, L.S, 2007, ‘Human resource Management: A Managerial tool for competitive Advantage, New York, South –Western College Publishing…

    • 2624 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    Brewster, C., Carey., Grobler, P., Holland, P. and Warnich, S. (2008). Contemporary issues in Human Resources Management Gaining a Competitive Advantage 3rd Edition. Oxford University. Cape Town.…

    • 3371 Words
    • 14 Pages
    Powerful Essays
  • Better Essays

    Bibliography: 2) Hollenbeck, N., Wright, G., (2008). Human Resource Management: Gaining a Competitive Advantage, ISBN 978-007-127943-7, MHID: 007-127943-1…

    • 4439 Words
    • 18 Pages
    Better Essays
  • Good Essays

    When considering management and staffing approaches, large national organisations will commonly select the geocentric approach for international operations. Under the geocentric approach the MNE will adopt a global attitude towards its operations, recognizing that both the subsidiaries and headquarters of the company present a unique contribution with its overall competence. Companies will be implementing a transnational orientation whereby employees will be selected owing to their skills and abilities regardless of their nationality. Unlike the alternative approaches to staffing and management, PCNs, HCNs and TCNs can be found in key positions throughout the organisation, including on the board of directors. This aids in the utilization of a wider pool of managers as well as developing core competency by securing the best talents in the core team.…

    • 1091 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Business today is enlarged from manufacturing and selling to placing right people at right position. Human Resource Management provides an international forum for discussion and debate to promote the understanding of the importance of human resource management and people management to business strategy. Human resource management (HRM), as defined by Bratton, J. & Gold, J. (2003), is "A strategic approach to managing employment relations which emphasizes that leveraging people 's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices." According to this definition, we can see that human resource management should not merely handle recruitment, pay, and discharging, but also should maximize the use of an organization 's human resources in a more strategic level.…

    • 731 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The ethnocentric staffing policy refers to the strategy of a multinational company to employ managers for key positions from the parent headquarters instead of employing local staff ("Global Human Resource Management"). Many organizations have traditionally relied on parent country nationals (PCNs) for staffing top management positions abroad for a number of reasons ("Global Human Resource Management"):…

    • 321 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In a growing number of organizations human resources are now viewed as a source of competitive advantage. There is greater recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes and systems. This is in contrast to the traditional emphasis on transferable resources such as equipment. Increasingly it is being recognized that competitive advantage can be obtained with a high quality workforce that enables organizations to compete on the basis of market responsiveness, product and service quality, differentiated products and technological innovation.…

    • 772 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Sending an employee to another country to manage an organisation’s operations has become a complicated process, typically requiring sophisticated understanding and complicated procedures. For the organisation, and for the individual manager, the stakes can be surprisingly high. Why this should be so, and what companies are reported as doing about it in the quest to optimise performance, warrants examination.…

    • 7721 Words
    • 31 Pages
    Powerful Essays