Sample International Relations Paper on Staffing Approaches

Sample International Relations Paper on Staffing Approaches

Staffing Approaches

International hiring dates back to 1900 BC when people migrated between countries to conduct their businesses. Investors considered locals inexperienced and inept, only suitable for lower-level jobs, while PCNs (Parent Country Nationals) were given preferential treatment. MNCs’ (Multinational Corporations’) founders saw the benefit of bringing in familiar individuals and associates to address the agency problem. According to Ando (2021), globalization and international trade have grown in recent decades, demanding more adaptable business frameworks that remain committed to local markets. Human capital management is one of the most critical factors of an institution’s success in worldwide initiatives. Today, international firms undertake global staffing approaches to satisfy their workers abroad, including ethnocentric, polycentric, and geocentric approaches.

The ethnocentric approach is an overseas recruitment way where human resource chooses the appropriate person for the correct position based on competence and cultural fit. The group believes that domestic employees are more competent, talented, and trustworthy than foreign laborers. Besides, the mother company has more power over moral decisions when locals handle the divisions than when ex-pats oversee them. Azungah, Hutchings, and Michailova (2020) mention that the approach is practical when the firm has a shortage of local administrative workforce and has to coordinate with its headquarters effectively. It frequently occurs in novice business projects where the labor force lacks the necessary technological skills. Firms also prefer using it if they are organized to promote growth and are primarily focused on global strategic development.

The ethnocentric approach assumes that parent-nation-based employers successfully represent the headquarters’ interests and are firmly linked to the home nation. Enrollment follows a four-stage model: self-selection, establishing a candidate pool, evaluating professional skills, and making consensus decisions (Chung and Gowan, 2019). The employees choose their future courses on the global stage. The personnel record is then designed to meet the company’s overseas operations personnel needs. The information is then assessed to find the best talents for overseas tasks. Finally, the best candidates for foreign projects are picked and sent abroad.

In the ethnocentric staffing strategy, all critical posts are filled by relocating current employees or hiring persons from the home country ready to work in a foreign country. The MNC’s parent country formulates and controls all essential choices like mission, vision, and goals. All subsidiaries must fully comply with all laws and regulations set by their home nation’s head branch.

One of the benefits of uniform production is the ability to curvature. Initially, the corporation produces in its nation before transferring its skills abroad. Administrators can generate value from experts at the head office. More importantly, centralization helps preserve the company’s culture. Another benefit is the practicability to control the subsidiary; the parent firm can closely monitor the subsidiary’s activity. There is better technical progress and effective communication between the home nation and the host firm.

Constraints on advancement for citizens of the host country result in antagonism from foreign people. It also harms the company’s image. Keeping foreign managers costs a fortune. As a consequence, individuals adopt a limited perspective and become culturally blind. Expat subsidiaries’ cultures are more impacted by their home nations’ cultures than the leading company’s; this is the primary internal hazard for every foreign business. A further disadvantage is that management ignores specialized market potential.

Polycentricity believes that indigenous understand their world better than invaders, therefore giving HCNs (Host Country Managers) crucial duties. Polycentric strategy is often employed in multi-domestic programs. Host individuals advance through their state’s government levels but never reach the apex. Establishing a shared company culture seems to be unimportant in polycentric firms. According to Tieku, Gänzle, and Trondal (2020), the strategy’s composite organizational structure needs extensive cross-state cooperation and integration. The goal is to minimize foreign operations cost gradually. Besides, firms can dissolve an ethnocentric perspective and develop a polycentric mindset. Designating direction to locals helps the company comprehend the domestic economy, political condition, cultural norms, and legal responsibilities. The polycentric method often involves a local HR (Human Resources) division that coordinates the company’s employees in that state.

In the polycentric approach, host-nation residents control the branch businesses. Patel et al. (2019) allude that the host-country-based workers are better acquainted with their culture; thus, they run the organization more efficiently than their foreign equivalents. Using this approach, the host nation’s natives run the subsidiary’s activities and develop business plans while considering the branch’s mission, vision, and goal. On the other side, home-nation nationals manage critical positions at the firm’s head office, overseeing the subsidiary’s activities.

The polycentric staffing approach has several benefits. Profitability is usually high because native administrators must adjust quickly to customer demands concerning costing, production, product life cycle, and politics. Expatriate executives’ problems, such as cultural blindness, are reduced, enabling continuity in foreign subordinate management. Moreover, HCNs are respected in their communities, both within and outside the subsidiary, and other young mobile employees look up to them.

There is no tie between the host and the parent firm when expatriates from the parent nation are in management positions at the subsidiary. Besides, the language barrier prevents meaningful interaction between host and parent firm staff. Both the hosts’ and headquarters’ administrators can quarrel due to opposing viewpoints. Controlling a subsidiary also takes effort and time. The other demerit is insufficient knowledge of the host country’s business environment.

Geocentricity dictates that the most talented candidates win employment regardless of nationality. The geocentric approach assumes that the world is a talent pool; nationality does not matter. Genuine international companies prefer this strategy because it blends with global business strategies. According to Kim, Chung, and Brewster (2019), the firm engages recruiting agencies or consultants to find ideal applicants with the required credentials to work anywhere globally. MNCs can also leverage internal hiring sources by tracking employees and screening them for foreign postings.

Companies with competitive global business strategies adopt this method, a difficult thing to do since human resource operations are constrained by political, cultural, and legal constraints. Nonetheless, large multinational organizations have made significant strides with geocentric thinking. The engaged recruitment agencies or consultants must prove their global-relationship skills and possess high moral integrity to find ideal personnel.

The geocentric approach hires the most exemplary people for crucial roles, regardless of ethnicity. Exceptional employees are accessible at both company headquarters and subsidiaries. Top positions need global talents. In other words, top-potential executives always migrate between nations to lead subsidiaries.

The corporation maximizes its human resources by establishing a diverse team of professionals. The approach ensures the company’s actions are competitive by balancing ethnocentric and polycentric expectations. MNCs develop top managers with international experience and contacts; the expertise of each management can help the MNC achieve its ultimate purpose. Another advantage is reduced discontent, for example, feeling ill-treated. Employees can gain from joint learning. The geocentric strategy ensures adequate product variety for a worldwide client base to support long-term financial structures and understand the curve effect (Patel et al., 2019). The polycentric drive for indigenous feedback is also realized since all markets seek to aggregate diverse qualities.

The geocentric approach has limitations too. Recruiting companies or consultants must be hired to search for suitable people globally. The human resource manager must also perform extensive research to discover the best applicant for the job. Preparation, salary, and relocation expenditures are excessive.

Staffing involves acquiring, training, and deploying human resources within a business. The staffing prescript is considered a series of periodic levels that guarantee a talented workforce to the company anytime, from domestic and international perspectives. The administration’s measures in a foreign endeavor mainly depend on the organization’s goal and the adopted recruitment strategy. The ethnocentric approach, the polycentric approach, and the geocentric approach are the three primary strategies applied by MNCs.

 

 

 

References

Ando, N., 2021. Human capital, cultural distance and staffing localization. Multinational Business Review, 29(3), pp.420-439.

Azungah, T., Hutchings, K. and Michailova, S., 2020. Ethnocentric HRM practices: evidence from Western MNEs in Ghana. International Journal of Emerging Markets, 15(5), pp.829-848.

Chung, S. and Gowan, M., 2019. Preferences for Human Resource Practices in South Korean and U.S. Based Nonprofits. Academy of Management Proceedings, 2019(1), p.15354.

Kim, C., Chung, C. and Brewster, C., 2019. Beyond nationality. Journal of Global Mobility: The Home of Expatriate Management Research, 7(3), pp.269-284.

Patel, P., Boyle, B., Bray, M., Sinha, P. and Bhanugopan, R., 2019. Global staffing and control in emerging multinational corporations and their subsidiaries in developed countries. Personnel Review, 48(4), pp.1022-1044.

Tieku, T., Gänzle, S. and Trondal, J., 2020. People who run African affairs: staffing and recruitment in the African Union Commission. The Journal of Modern African Studies, 58(3), pp.461-481.