Topic > The Pros and Cons of Staffing Strategy - 1527

Introduction Over the last 20 years or more, multinational corporations and partnerships have changed dramatically. More importantly, for companies to compete successfully and remain competitive, employers must have internationally competent supervisors to differentiate their business strategy. Employers operating abroad must first understand the correlation between HR leaders, their company's strategy and their company's performance; therefore, owners should trust HR leaders to select and recruit CEOs and type of personnel policy. Multinational companies can choose from three staffing strategies that have their pros and cons, such as ethnocentric, polycentric and geocentric. Employers benefit from an ethnocentric policy only if they (1) “believe that there is a lack of qualified individuals in the host country to fill management positions; (2) how best to maintain a unified corporate culture and tighter control, and (3) companies are trying to create value by transferring core competencies” (Hill, 2014). Therefore, this approach is currently “in decline as it limits advancement opportunities for host country citizens, which can lead to resentment, lower productivity, increased turnover within that group, and cultural myopia” (Hill, 2014) . A firm follows the polycentric policy because it is “less likely to suffer from cultural myopia as host country managers are unlikely to make the mistakes resulting from cultural misunderstandings that expatriate managers are subject to and this policy is less costly than other approaches to implement” (Hill, 2014). However, the disadvantages are “limited opportunities for advancement, resentments can arise, and a gap can form between host country...... middle of paper ......ment: A Guide for InternationalManagers. [New York, NY] [222 East 46th Street, New York, NY 10017]: BusinessExpert Press.Hill, C.W.L. (2014). Global Affairs Today (8th ed.). New York, NY: McGraw-Hill Irwin.Hitt, M., Steers, R.M., & Javidan, M. (2007). The global mentality. Amsterdam: Elsevier JAI.Porter, G., & Tansky, J.W. (1999). Expatriate success may depend on a “learning orientation”: considerations for selection and… Human Resource Management, 38(1), 47.Suutari, V., & Brewster, C. (2003). Repatriation: Empirical evidence from a longitudinal study of careers and expectations among Finnish expatriates. International Journal of Human Resource Management, 14(7), 1132-1151.Tung, R.L. (1987). Expat Assignments: Improving Success and Minimizing Failure. Academy Of Management Executive (08963789), 1(2), 117-125. doi:10.5465/AME.1987.4275826.