This document discusses different approaches to international staffing for multinational companies. It outlines four main approaches: ethnocentric, which imposes the home country culture; polycentric, which adapts to local cultures; geocentric, which takes a global approach based on ability; and regiocentric, which has regional autonomy. It also discusses factors to consider like political/legal issues, development levels, and cultural differences when choosing a staffing approach. Expatriate recruitment and selection involves deciding source countries and dealing with costs, training needs, and cultural adjustment challenges.

1. Branch - MBA
International Business Management
DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY
By
Dr. B. B.Tiwari
Professor
Department of Management
Shri Ramswaroop Memorial Group of Professional Colleges, Lucknow
Unit-3: Lecture – 6
International HRM:
International Staffing Approaches

2. Approaches of staffing
• Recruitment and Selection Procedures of Expatriates
• Expatriate’s Success and failure factors
• Women Expatriate
• Non – expatriates their roles
• Issues in staff selection

3. International recruitment have 3
important questions -
•From what country/ies to recruit (home, host or third)?
•What Techniques to be used when recruitment is planned
out side home country?
•Whether to centralized recruitment activities in home
country or decentralize in foreign subsidiaries?

4. Different sources of employees
• First, the company can send employees from its
, which are referred to as
expatriates, expats or home country nationals.
• Second, it can recruit
(natives of the host country),
• Third, it can hire who are
natives of a country other than the home country
or the host country.

5. Challenging aspects
• First, the initial cost of airfare, living expenses and transportation in
the host country.
• The second expense incurred with bringing expatriates in to the
international operation is the training involved in making sure the
people going to the host country are familiar with, laws, rules,
culture, languages and expectations in the new country.

6. International employee selection based on four issues in the
context of staffing global business:
•Linking staffing plans with the evolution of the MNC.
• Staffing orientation/ approach of staffing
• Managing expatriates
• Female expatriates

7. Approaches to staffing
• Ethnocentric policy
• Polycentric policy
• Geocentric policy
• Regiocentric policy

8. Ethnocentric policy
“ Home country’s culture is to be imposed on subsidiaries”
MNC’s exports its HR Policy from Home country to foreign
location.
• Strategic decisions are made at headquarters
• Key positions in domestic and foreign operations are
hold by headquarters’ personnel

9. Three factors are to be
considered in the staff:
•Should be able to adjust in family, cultures and personality
problems to avoid failure.
•To succeed, should enjoy local entertainment, develop local
relationships and communicate with locals.
•To achieve success, expatriates to have open attitude and take
training towards host – country.
Under ethno centric, lines of communication are one – directional, i.e.
advice from headquarters. In fact, home country attitude and culture
dominates.

10. Polycentric
to the local cultural needs of“MNC’s seeks to adapt
subsidiaries ”
• Each subsidiary is a distinct national entity with some
decision-making autonomy
• Host-country nationals manage subsidiaries who are
seldom promoted to HQ positions
• Parent company nationals hold key headquarter
positions

11. Poly – centric: Here primary positions are filled
by nationals from host country( HCNs)y.
Advantages of this are:
• •

12. Advantages of Polycentric
• It eliminate the high cost of relocating expatriate manager and
families.
• Offer a great degree of autonomy in decision making to subsidiary
heads.
• Host country nationals are less expensive than parent country used
and Training Host country’s nationals results in low cost
• Better local knowledge
• Reduce personal problems
• Host country managers can protect a MNC from hostile treatment by host
Government.
• Here subsidiary is allowed some autonomy but financial controls arekept.
• Top people are limited to subsidiary and not for corporateposition.

13. For example, in international manufacturing and
processing facilities in Mexico, companies recruit
with a sign announcing job openings outside the
facility or by employees introducing family
members who are looking for jobs.
Another example is Hungary, where government
attempts to combat unemployment have led to the
requirement that an organization must get
permission from the Ministry of Labor before hiring
an expatriate

14. Geocentric
• A global approach - worldwide integration
• View that each part of the organization makes a unique
contribution
• Nationality is ignored in favor of ability:
– Best person for the job
– Color of passport does not matter when it comes to rewards,
promotion and development.

15. Regiocentric
• Reflects a regional strategy and structure;
• Regional autonomy in decision making;
• Staff move within the designated region, rather
than globally.

16. Choosing an Approach to
IHRM
• Political and legal concerns
• Level of development in foreign locations
• Technology and the nature of the product
• Organizational life cycle
• Age and history of the subsidiary
• Organizational and national cultural
differences