The Ethnocentric Staffing Policy
For appointing a new manager for its subsidiary in India Blue Steel cooperation can:
Appoint staff from parent country: Parent Country Nationals(PNC)
Ethnocentric Approach
Host Country Nationals(HCN)
Polycentric Approach
Third Country Nationals(TCN)
Re-Geocentric & Geocentric
The Ethnocentric Staffing Policy:
Few foreign subsidiaries have an autonomy and strategic decisions are made at the headquarters. Key positions in domestic and foreign operations are held by headquarters personnel. Subsidiaries are managed by staff from the home country.
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").
By adapting this policy model business feels and acts greater to other countries, both in is product, culture and service (Business, 2012). This approach also helps the domestic market to set standards for marketing and pricing. It helps organisations to save resources by not getting much information about the foreign market; through this may lead to loss of competitive advantage in the market that could have been grown by gaining some knowledge about foreign markets (Keegan & Green, 2011). Sometimes firms may find similar verticals in foreign markets to help in minimising coemptive disadvantage. This model focuses more on domestic market than foreign markets for firms.
Most of the organisations usually relay on parent country nationals (PCNs) for staffing highest management positions abroad there are number of reasons why they prefer to do that:
They have political understanding of the headquarters’ organisation.
They get an option to hire people who have good knowledge about business and technology.
It can help the organisation in converting headquarter culture to foreign operations (imparting same beliefs throughout the organisation).
Absence of skilled Host country nationals.
Better capacity of epacts to
Appoint staff from parent country: Parent Country Nationals(PNC)
Ethnocentric Approach
Host Country Nationals(HCN)
Polycentric Approach
Third Country Nationals(TCN)
Re-Geocentric & Geocentric
The Ethnocentric Staffing Policy:
Few foreign subsidiaries have an autonomy and strategic decisions are made at the headquarters. Key positions in domestic and foreign operations are held by headquarters personnel. Subsidiaries are managed by staff from the home country.
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").
By adapting this policy model business feels and acts greater to other countries, both in is product, culture and service (Business, 2012). This approach also helps the domestic market to set standards for marketing and pricing. It helps organisations to save resources by not getting much information about the foreign market; through this may lead to loss of competitive advantage in the market that could have been grown by gaining some knowledge about foreign markets (Keegan & Green, 2011). Sometimes firms may find similar verticals in foreign markets to help in minimising coemptive disadvantage. This model focuses more on domestic market than foreign markets for firms.
Most of the organisations usually relay on parent country nationals (PCNs) for staffing highest management positions abroad there are number of reasons why they prefer to do that:
They have political understanding of the headquarters’ organisation.
They get an option to hire people who have good knowledge about business and technology.
It can help the organisation in converting headquarter culture to foreign operations (imparting same beliefs throughout the organisation).
Absence of skilled Host country nationals.
Better capacity of epacts to