in Economics from the University of Washington. Use this policy to determine whether the regiocentric, ethnocentric or polycentric approach suits best. Combined with Hilton hotel’s operational environment differences, Hilton Group made a right decision of not adopting the ethnocentric approach. It promotes effective communication in between the parent and host company. It becomes difficult to train or guide employees at far distant place away from the parent country. Advantages of Ethnocentric Staffing approach Mobility of personnel represents one of the main differentials between domestic and international human resource management. At first, its advantages will be pointed out, followed by a reflection of its disadvantages. Employees of parent country would perform better and will effectively represent interest of head branch. An ethnocentric staffing policy is one in which key administration positions are filled by parent nation nationals.. Culture fit, i.e. This approach takes, for example, when executives in the parent country feel employees in the host country are not qualified to make staffing decisions. When a society takes an ethnocentric approach, then it works to eliminate any criticism there might be of the social order. Mission, vision, objectives are formulated by the MNC’s at their headquarters, and the same is to be followed by the host company. Given the risks to a small business in globalizing, it is especially important to weigh the pros and cons of ethnocentricity against other alternatives to HR. (a). Polycentric staffing can reduce costs and help the business respond to local culture, but managers hit a glass ceiling and subsidiaries can wind up isolated from the corporate HQ. the managers from the same region as that of the host country may not encounter any problem with respect to the culture and the language followed there. This has been really helpful especially to the study i am doing currently. Ethnocentric is a staffing policy that generally adopted by headquarters by sending employees from the home or parent countries to the host-country. Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organization's culture. The expatriates from the parent country are much expensive as compared to the employees in the host country. It is a staffing policy in which all key management positions in an international business are filled by parent-country nationals. What are the main advantages and disadvantages of the ethnocentric, polycentric and geocentric approaches to MARKETING strategy globally? This approach focuses on hiring right candidates for right position within the business considering their skill set and willingness to mix with organization’s culture. An ethnocentric approach is one of several human resources strategies a company can employ when expanding operations into a new foreign country. Advantages of Ethnocentric Staffing approach 6 2.2 Disadvantages of Ethnocentric Staffing strategy 7 3. Expatriates are employees who work abroad on a temporary basis to achieve organizational goals (Olsen and … Case Study: Staffing policies of The International Committee of the Red Cross is an example of ethnocentric approach of international staffing. Better coordination between the host and the parent company. One advantage of adopting a polycentric approach is that the firm is less likely to suffer from cultural myopia. Surely there are other tough issues confronted with the MNC which adopts ethnocentric approach. When is each approach appropriate? Decide which staffing approach is most suitable for this particular case. Ethnocentric approach is one of the international recruitment method in which all positions for international business around the globe are filled from parent country. In an ethnocentric staffing policy, management teams in the parent country of a company make all staffing decisions. An ethnocentric perspective eliminates social order criticisms. Government in host countries may impose strict restrictions on subsidiaries that will adversely impact business of parent company. Missed out the opportunity to hire the best personnel from the host country. But all the issues are arisen from the ethnocentric approach. Facilitates efficient transfer of technical know-how among various branches. Avoids the need of having a well-developed local labor market at international level. 1. Considered the reasons for using international assignments: position filling, management development and organization development. Commerce Mates is a free resource site that presents a collection of accounting, banking, business management, economics, finance, human resource, investment, marketing, and others. Still, many MNEs struggle to develop effective HRM policies. Your email address will not be published. Missed out the opportunity … Advantages and Disadvantages of Ethnocentrism An ethnocentric attitude may be advantageous for certain groups, but at the same time it may be having disadvantages for the opponents. This happens a … Ethnocentric approach helps in attaining better coordination in between parent country and host country. Instead of focusing on the way that business gets done in a given country, it looks at how to conduct business anywhere in the world, based on common ways of communicating. Its subsidiaries operating in distinct countries worldwide less likely to suffer from cultural myopia business... And the conditions under which you would choose one approach over the other 7.. 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