16.2: Staffing Policy Flashcards
What is the primary concern of a staffing policy in international business?
The primary concern is selecting employees who not only have the skills required for particular jobs but also whose behavioral styles, beliefs, and value systems are consistent with the corporate culture of the firm.
What are the three types of staffing policies in international businesses?
The three types are ethnocentric, polycentric, and geocentric.
What is an ethnocentric staffing policy?
An ethnocentric staffing policy is one where all key management positions are filled by parent-country nationals.
Why might a company pursue an ethnocentric staffing policy?
Companies may pursue this policy to maintain a unified corporate culture, ensure that host country operations are aligned with home office practices, or transfer core competencies to foreign operations.
What are the drawbacks of an ethnocentric staffing policy?
Drawbacks include potential resentment from host country nationals due to limited career opportunities, cultural myopia, and the potential for ethically suspect decisions due to a lack of understanding of the host country’s culture.
How can staffing policy be used to promote the desired corporate culture?
By hiring individuals whose behaviors and values align with the company’s culture, the firm can reinforce and promote this culture across its global operations.
What are the legal considerations for staffing policy in countries like Canada?
Legal considerations include compliance with laws like the Employment Equity Act, which mandates equality in the workplace and requires special measures to accommodate diverse groups.
What is a polycentric staffing policy?
A polycentric staffing policy requires host country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.
What are the advantages of a polycentric staffing policy?
Advantages include alleviating cultural myopia, being less expensive to implement, and potentially leading to a more motivated and productive workforce within the host country.
What are the disadvantages of a polycentric staffing policy?
Disadvantages include limited career mobility for host country nationals, potential isolation of headquarters from foreign subsidiaries, and difficulties in transferring core competencies due to a lack of integration between corporate headquarters and foreign subsidiaries.
What is a geocentric staffing policy?
A geocentric staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality, aiming to build a strong global culture and a cadre of international executives.
What are the benefits of a geocentric staffing policy?
This policy can efficiently use human resources, help build a strong unifying corporate culture, and is suitable for global standardization and transnational strategies.
What challenges does a geocentric staffing policy face?
Challenges include national immigration policies that may limit implementation, higher costs associated with training and relocating managers internationally, and potential resentment due to differences in pay scales.
How can HR create policies on diversity?
HR can develop diversity policies, encourage mentoring, raise awareness of potential biases, hold management accountable for diversity, and provide transparent communication about career opportunities.
