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Which factors determine the choice of a staffing approach? Would a MNE choose the same staffing approach worldwide? Place your arguments in the context of the model outlining determinants of staffing choices
Which factors determine the choice of a staffing approach? Would a MNE choose the same staffing approach worldwide? Place your arguments in the context of the model outlining determinants of staffing choices.
Expert Solution
There are multiple factors that determine the choice of staffing approach. The culture of different markets is important in choosing the right approach. When hiring in a foreign market, both the company's culture and the candidate's culture have to match. Location of potential candidates is also important. Recruiters have to make decisions based on the location of candidates or expand their search by potentially offering online work.
Multinational enterprises have four options when choosing a staffing approach. These approaches are designed to cover their different needs. The ethnocentric approach is centralized, all decisions are taken by the parent company, which has full control over staffing. Key positions are filled by employees of the parent company. The polycentric approach is the exact opposite. The locals of the host country are recruited for managerial positions. This approach is based on the belief that locals understand their culture better and can run the organization efficiently. The geocentric approach refers to hiring candidates from different locations and of different nationalities. This approach helps in talent acquisition. Most multinationals use the geocentric approach. Finally, the regiocentric approach refers to hiring managers from different countries within the same geographical business area. This facilitates a strong company culture based on the similarities of neighboring countries.
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