The Ethnocentric, Polycentric, and Geocentric Approaches to Staffing Policy - Essay Example

This staffing policy helps companies to give more emphasis to home country norms. Polycentric staffing policy, on the other hand, gives more emphasis on hiring and promoting employees from the host countries. This policy would help companies to utilize local knowledge as much as possible so that the company’s business prospects in the host country can be enhanced. This policy gives more importance to host country norms. It also helps companies to reduce labor costs considerably since in most cases the labor cost in the host country would be lesser than that in the home country.

The geocentric staffing approach is implemented in global and transnational companies. It helps companies to get the services of the best personnel all the time irrespective of the country of origin of the employees. It gives a lot of flexibility to the staffing policy.

The major disadvantage of the ethnocentric approach is that it may produce anger and cultural conflicts in the business units in the host country. Moreover, this strategy is suitable only for international companies. The major disadvantage of the polycentric staffing policy is the lack of career growth and opportunities for the employees. It may also isolate the headquarter from subsidiaries. Geocentric staffing policy is highly expensive as far as implementation is concerned. Moreover, immigration policies in the host and home countries may limit the exchange of workforce. This strategy is not at all suitable for domestic firms.

The link between an international business's strategy and its human resource management policies, particularly about the use of expatriate employees and their pay scale
The utilization of an expatriate employee force is necessary for international companies to manage their business activities successfully in overseas countries. For example, Microsoft or Apple Inc can't manage its activities in India with the help of Americans alone. Only the Indians know their market well and hence their service is vital for Microsoft or Apple to build their business strategies in India. Moreover, labor cost in India is extremely low compared to that in America. Under such circumstances, I would be suicidal for Microsoft or Apple to bring the workforce from America to India to manage their business activities there. It should be noted that all the companies are currently trying to establish business units, especially manufacturing units in cheap labor-oriented countries. This strategy would help such companies to stay competitive in the international market. It should be noted that prominent Japanese and American companies have manufacturing units in China at present. For example, majority of the Sony products are currently manufactured in China even though their origin of Sony is in Japan.

While operating cross-culturally, HR managers should make sure that the employees on deputation to the host country have adequate exposure to the cultural norms in the target country. HR Management of the local workforce is extremely different from the HR management of the international or cross-cultural workforce. Most international organizations are keen on keeping a diverse workforce. HR managers should make sure that the interests of the diverse workforce never make any conflicts in the workplace.

In what ways can organized labor constrain the strategic choices of an international business? How can an international business limit these constraints?
“Organized labor has attempted to (i) set up its international organizations, (ii) lobby for national legislation to restrict multinationals, and (iii) achieve regulation of multinationals through an international organization such as the United Nations” (End-Of-Chapter Problems, n. d.). In some countries, labor is highly organized compared to other countries. For example, in India, employees are highly organized because of the peculiarities of Indian democracy.

Moreover, the influence of left parties in Indian politics helps workers in India to get organized under different trade unions. It is impossible or difficult for foreign companies to operate freely in India just like they do in America or Europe. It should be noted that Indian employees are well aware of their rights and they will call for trade union strikes once they feel any exploitation from the employer.
International organizations should do everything possible to gain the trust of overseas employees. They should convince overseas employees about their commitment to the communities in which they operate. They should follow sustainable business practices and should demonstrate their social responsibility as much as possible.