Sustaining International Business Operations

Topics: Corporation, Management, Strategic management Pages: 2 (1024 words) Published: November 5, 2014
IHRM Sustaining International Business Operations Chapter Objectives Chapter Objectives (cont.) Approaches to Staffing Factors affecting approaches to staffing General staffing policy on key positions at headquarters and subsidiaries Constraints placed by host government Staff availability Ethnocentric Polycentric Geocentric Regiocentric Ethnocentric Strategic decisions are made at headquarters Limited subsidiary autonomy Key positions in domestic and foreign operations are held by headquarters personnel PCNs manage subsidiaries. Polycentric Each subsidiary is a distinct national entity with some decision-making autonomy HCNs manage subsidiaries who are seldom promoted to HQ positions PCNs rarely transferred to subsidiary positions. Geocentric A global approach - worldwide integration View that each part of the organization makes a unique contribution Nationality is ignored in favor of ability Best person for the job Color of passport does not matter when it comes to rewards, promotion and development. Regiocentric Reflects a regional strategy and structure Regional autonomy in decision making Staff move within the designated region, rather than globally Staff transfers between regions are rare. Ethnocentric Approach Advantages To ensure new subsidiary complies with overall corporate objectives and policies Has the required level of competence Assignments as control Disadvantages Limits the promotion opportunities of HCNs, leading to reduced productivity and increased turnover among the HCNs Longer time for PCNs to adapt to host countries, leading to errors and poor decisions being made High cost Considerable income gap, high authority, and increased standard of living may relate to lack of sensitivity Polycentric Approach Advantages Employment of HCNs eliminates language barriers, avoids adaptation of PCNs, reduces the need for cultural awareness training programs Employment of HCNs allows a multinational company to take a lower profile in...
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