What is staffing
selecting the right person for the right post
training and development giving proper remuneration and motivation performance appraisal of employees proper promotions , transfer etc.
Definition of staffing
staffing means filling and keeping filled, position in the organizational structure.
Approaches of staffing
There are four main approaches of staffing 1. Ethnocentric approach 2. Polycentric approach 3. Regiocentric approach 4. Geocentric approach
Ethnocentric approach
Under this, parent nation employees fill all key positions in a multinational. That is key positions in domestic and foreign operations are held by headquarters personnel. Subsidiaries are managed by staff from the home country(PCNs).
impact of approach on Staffing
Headquarters country personnel manage all
operations. Home Staffing policies are replicated in countries. Talent skills transfer essentially one-way.
Polycentric approach
the multinational enterprise treats each subsidiary as a
distinct national entity with some decision making autonomy.
Subsidiaries are usually managed by local nationals
(HCNs) and parent country nationals and are rarely transferred to foreign subsidiary nations.
For ex :Many US companies use home country managers
to get the operations started, then hand them over to the host country managers Hindustan uniliver Ltd, the Indian subsidiary of uniliver has locals has its chiefs.
Advantages of polycentric approach
Employment of HCNs is less expensive.
Gives continuity to the management of foreign
subsidiaries and avoids the turnover of key managers. Managing local politics and administration will be very easier.
Disadvantages of polycentric approach
Bridging the gap between host country nationals
managers and parent country national managers becomes difficult. It also becomes difficult to imbed the original cultural of company. This will not provide the opportunity to the host country employers to get exposure and experience outside their own country.
Impact of approach on Staffing:-
Headquarters country personnel have little impact
on other countries. Talent acquisition policies are unique to each country.
Geocentric appoarches
Multinational enterprise is taking a global approach
to its operations, recognizing that each part (subsidiaries and headquarters) makes a unique contribution with its unique competence. This approach subscribes the view of employing the best people in key positions throughout the organization with out the consideration of any nationality. Moreover, it helps the organization to develop core competency taking the best talents in the core team.
Advantages of geocentric approach: It enables a firm to develop an international executive team which assists in developing a global perspective. It over comes the federation drawback of the polycentric approach. It promotes co operation and resource sharing across units. Disadvantages of geocentric approach: Host governments want a high number of their citizens employed. Many western countries require companies to provide extensive documentation.
Impact of approach on Staffing: Employees circulate throughout the global
organization. Talent acquisition policies maximize long-term strength of the global organization. Talent and skills are deployed globally to achieve global goals while meeting local requirements
Regiocentric approach
in regiocentric approach Operations managed
regionally; communication and coordination high within the region. Like geocentric approach, it utilizes a wider pool of managers but in a limited way. This approach advocates the division of operations of the multinational company on the basis of some geographical regions and allows the transfer of employees with in a particular region
Advantages of regiocentric approach
A major motive for using such an approach is that it
allows the interaction between executives transferred to regional areas. It can be a way for a multinational to move gradually from a purely ethnocentric or polycentric to a geocentric approach.
Disadvantages of regiocentric approach
It can produce federalism at a regional rather than
a country basis. While this approach does improve career prospects at the national level , it only moves the barrier to the regional level.
Impact of approach on Staffing
Employees circulate within regions, with a focus on
regional business results. Talent acquisition policies are developed and coordinated within regions. Talent and skills are developed within regions, with minimal inter-region transfer.
