INTERNATIONAL STAFFING

REQUIREMNTS
SUSTAINING INTERNATIONAL BUSINESS
OPERATIONS
 ▪ An international recruitment policy outlines the
practices and strategies employed by a company
to hire people all over the world.
International ▪ This International Recruitment Policy template
Staffing/ describes the four global staffing approaches:
Staffing 1.ethnocentric
Orientation ▪ 2.polycentric
▪ 3. geocentric,
▪ 4.regiocentric,
ETHNOCENTRI
C APPROACH
▪ In this we hire parent country nationals to occupy
positions all over the world.
ETHNOCENTRI
C APPROACH
 There are often sound business reasons for pursuing an
ethnocentric staffing policy:

▪ A perceived lack of qualified host-country nationals

(HCNs).

▪ The need to maintain good communication,

coordination and control links with corporate

advantages headquarters. For firms at the early stages of

internationalization, an ethnocentric approach can
reduce the perceived high risks.

▪ PCNs ensure that the new subsidiary complies with

overall corporate objectives and policies; or because
local staff may not have the required level of
competence.
 ▪ It limits the promotion opportunities of HCNs, which
may lead to reduced productivity and increased
turnover among that group.
▪ The adaptation of expatriate managers to host countries
often takes a long time, during which PCNs often make
mistakes and poor decisions.
▪ When PCN and HCN compensation packages are
disadvantages compared, the often considerable income gap in
favor of PCNs may be viewed by HCNs as unjustified.
▪ For many expatriates a key overseas position means
new status, authority, and an increase in standard of
living. These changes may affect expatriates’
sensitivity to the needs and expectations of their host
country subordinates which may be quite different to
the perceptions of the PCN manager.
 ▪ This approach can work, when done well and for the
right reasons. For example:

▪ “Typical examples of the ethnocentric approach are

Japanese firms such as Panasonic, Sony and
Hitachi. In [these companies], the staffing approach
for subsidiaries in Thailand, Vietnam and India
adopted an ethnocentric system due to lack of
example competency…and the need for corporate
communication. Most of the customers in India and
Thailand are Japanese manufacturers, therefore an
expatriate with Japanese language ability to
communicate with the customer’s parent company in
Japan is still vital.”
MERITS &
DEMERITS
POLYCENTRIC
APPROACH
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 ▪ The strategy is appropriate when subsidiaries are
located in market environments with significant
national differences as a result of consumer
preferences, technical standards or legal reasons.

▪ Example -The Coca Cola Company uses polycentric

example strategy to provide the subsidiaries with the
independence and freedom conducting their business
operations in accordance to their product market
environments. It also uses this strategy in order to give
local businesses an opportunity to develop their most
suitable HR practices.
MERITS &
DEMERITS
GEOCENTRIC
APPROACH
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…
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 ▪ For example, McDonald’s,or many other food-service companies
use geocentric staffing policies for their restaurants or cafés. Also,
Disney’s amusement parks use this staffing policy to optimize
positive rapport between employees and customers.
The MC donalds focuses on company culture, it defines the
traditions, habits, and core values that influence workers’ behaviors.
To ensure business efficiency in production and service, McDonald’s
organizational culture encourages learning.

1. People-centricity(studying people behaviour)

example 2. Individual learning(offers T&D to univ stude, global leadership

programs)

3. Organizational learning(reminding policies, rules, employee

feedback, knowledge adapting)

4. Diversity and inclusion(they seek valuable feedback & grilling

from franchisee owners, customers, suppliers)

▪ 2nd example-In this model, a Chinese company might fill a

position in their Mexico office with an employee from the United
Kingdom.
MERITS &
DEMERITS
REGIOCENTRI
C APPROACH
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REGIOCENTRI
C APPROACH
 International
recruitment and
selection
process
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