Ethnocentric, Polycentric, Regiocentric and Geocentric Approaches

1. Ethnocentric Staffing Policy:- Ethnocentric is a staffing policy that is used in

companies that has primarily international strategic orientation. This policy is generally
adopted by headquarters by sending employees from the home/ parent countries to the
host country. This approach is used best in some situations such as a team is sent from
the home country to help setting up a new plant as well as train subsidiary personnel to
use new system. The benefit of having staff from home country abroad is that employees
may gain experience worldwide in order to become higher level in management of their
headquarters because international managers require broad perspective and international
exposure.
2. Policentric:- Policentric is the policy involved hiring and promoting employees who are
citizens of the host countries that the subsidiary is operated. This policy is best used when
companies want to keep hiring cost low. Moreover, employees who are hired at subsidiary
level would not have any problem adapting to the culture. Communication is smooth
within the operation.
3. Geocentric:- Geocentric staffing approach is used when companies adopt a
transactional orientation. It is best used when companies need the best personnel to work
at subsidiary. Employees are selected regardless where they come from. The staffing
strategy is reliable for all subsidiaries because best employees are selected and sent from
the company’s worldwide network.
4. Regiocentric Staffing policy:- It involves hiring and promoting employees based on
specific regional context where subsidiary is located. This approach is used when regional
employees are needed for important positions. However, both employees from host
countries and a third country are employed. The disadvantage of using this type of policy
is that sometimes employees from home or host countries are not unselected. Instead
employees from a third are selected to subsidiary in which they may face cultural
differences.

Home/ Parent country means which has it’s headquarter in the same country

Host Country means other country which has subsidiary.

Eg. Apple Head quarter in California(Home/Parent Country) but it can have its subsidiary in
India(Host Country)

1. Ethnocentric-Employees from the Home/Parent country

2. Policentric-Hiring & Promoting employees of Host Country
3. Geocentric-Best employee got selected, Parent or Host Country doesn’t matter
4. Regiocentric-Hiring & Promoting Employees who belongs to region where
subsidiary is situated