Considering the research by Howard Perlmutter, the choice among ethnocentric, polycentric, and geocentric staffing strategy can be stipulated by the company’s marketing orientation. Therefore, the key aim of the report is to review researches that reference Perlmutter’s concept, and analyze the scientific value, as well as the righteousness of the concept itself.
The staffing policies and principles, applied by the international corporations, are generally featured with the E.P.R.G. approach, which is developed, and theorized by Howard V. Perlmutter. In fact, most multinational companies have to be multi cultural, and rely on the experience, knowledge, and culture of their foreign employees in order to operate successfully overseas. Therefore, in accordance with the researches by Perlmutter, the choice among ethnocentric, polycentric, or geocentric approach in staffing practices depends on the aims and plans of the company.
Royal Dutch Shell plc is known for its ethnocentric approach for staffing. In accordance with the rules of the corporate policy, most financial officers, working for Shell, are the Dutch citizens. The key reasons of this strictness are associated with the high qualification of these experts, and considerable lack of highly experienced and qualified managers in the countries where the company operates. The other reasons are:
Ethnocentric approach is a part of the company’s corporate culture. The changes in this approach will require deep changes in the entire HRM policy, while the company is facing issues that are more challenging now.
However, it should be emphasized that technical personnel (engineers, technicians, exploration personnel) can be from other countries. The company had to consider the fact that German, Russian, Brazilian, and Arabian drilling and exploration engineers are of the same qualification level as the Dutch experts.
In fact, polycentrism and geocentrism in recruiting policies take