Geocentric, polycentric staffing

First posting: Friday, 14 September 2001 1:55:21 PM

James

I dont understand these ideas - what do they mean?

RESPONSES

Mike the Webmaster | (129.78.224.227) | Friday, 14 September 2001 1:58:28 PM
Hi James, Here are some ideas from GLOBAL HUMAN RESOURCE MANAGEMENT An Outline for Class Discussion Ref: Hill, Charles W.L. Global Business Today. 2nd ed. Boston: Irwin McGraw-Hill, 2000. > > > Caution: > The following notes are not meant to replace the text-book. Students > must read the respective chapter and other supporting literature to gain a > deeper understanding of the issues mentioned in the outline. > > > Staffing Policy > * To select individuals with the right skills > * As a tool for developing and promoting corporate culture (norms & > value systems) > * The Ethnocentric Approach (International Strategy) > * All key management positions filled by parent country nationals > * Why? > * Absence of qualified managers overseas > * Maintain a unified corporate culture > * An easier way to transfer core competencies to a foreign operation > * Problems > * Limits advancement opportunities for host country nationals > * Cultural myopia leading towards major blunders > * The Polycentric Approach > * Host country nationals recruited to manage the subsidiaries, and > parent country nationals occupy key positions at corporate HQ > * Problems > * May create little kingdoms > * Friction between home and host country managers > * Resentment amongst host country managers > * May be suitable for a firm pursuing a multidomestic strategy but not > for others > * The Geocentric Approach > * Best people sought for key jobs > * Ideal with a global or transnational strategy > * Problem > * Most countries have bureaucratic impediments in hiring foreign > nationals > * Expensive > * What is more dominant in staffing policy--geographic scope or > strategic orientation? > The Expatriate Problem > * Expatriate Failure > * Premature return of an expatriate manager to his or her home country > > * Expatriate Failure Rates > * Average cost per failure to the parent firm--as high as 3 times the > expat's annual domestic salary and the cost of relocation > * U.S. multinationals experience an average of >10% expat failure rate > > * Reaons for Expat Failure > * Inability of a spouse to adjust > * Inability of a manager to adjust > * Other family problems > * Expat selection process at many firms is fundamentally flawed > * Expatriate Selection > * Domestic performance and overseas performance potential are not the > same > * Four dimensions that predict success in foreign posting > * Self orientation > * Expats with high self-esteem, self-confidence and mental well-being > more likely to succeed in foreign postings > * Others' orientation > * Relationship development and willingness to communicate > * Ability to make long lasting friendships > * Perceptual ability > * Understand why people of other countries behave the way they do > * Ability to empathize with them > * Critical for managing host country nationals > * Be non-judgmental and non evaluative in interpreting foreign > behavior and have a flexible management style > * Cultural Toughness > * How well an expat adjusts to a particular posting- > * A function of the country of assignment > * Standard psychological tests can be used to assess the first 3 of > these dimensions > * For the 4th, make a comparison of cultures > * Employees are selected mostly for their technical skills and not > their cross-cultural fluency, interpersonal skills, adaptability or > flexibility > * Employee's family situation should be a part of the selection > process & the spouse must be given training > Training and Management Development > Selection is followed by training and management development > > Most international businesses are more concerned with > training than management development > * Training for Expat Managers > * Only 30% receive training > * Cultural training for the whole family > * Language training > * A willingness to communicate in the host language would help > * Practical training > * Day-to-day life in the host country > * Expat network of friends > * Repatriation of Expats > * Re-entry is often poorly planned > * 60-70% do not know what will be their position upon return > * 10% leave the firm within one year and 14% in 3 years > * Management Development (MD) and Strategy > * MD--to increase the overall productivity and quality of the firm's > management resources > * Helps build a unifying corporate culture > * Initiation rites > * Transfer employees back and forth between the HQ and subsidiaries > Performance Appraisal (PA) > * Problems > * Unintentional bias of host and home country managers > * Cultural frame of reference > * Set of expectations > * Hard data + soft variables > * Guidelines for Performance Appraisal > * An evaluation by an on-site manager is preferable > * HQ managers involved in PA should have served in the same location > previously > Compensation > * National Differences in Compensation > * Should nations equalize pay on a global basis, or should it be based > on prevailing standards in each country? > * This is a very real problem in geocentric staffing decisions > * Very important to build a cadre of international managers > * Expatriate Pay > * Balance sheet approach > * Equalizes purchasing power across countries > * Employees enjoy same living standards > * Typical expat compensation package is three times that in the home > country > * Base Salary > * Same range as the base salary for a similar position in the home > country > * Foreign Service Premium > * Inducement > * 10-30% of base salary after-tax > * Allowances > * Hardship allowance > * Housing allowance > * COLA > * Education allowance > * Taxation > * Benefits >

Willy Wagtail | (153.107.40.233) | Wednesday, 10 October 2001 6:54:31 PM
I will pay top dollar for hsc papers for 2001... Anyone got the stuff I need?

mike | (24.189.207.220) | Tuesday, 3 December 2002 7:39:02 AM
kooli

mike | (24.189.207.220) | Tuesday, 3 December 2002 7:39:19 AM
kooli

sxfdhg | (153.107.45.43) | Monday, 24 February 2003 12:18:39 PM
szyryuj

joe | (153.107.45.64) | Monday, 24 February 2003 12:23:11 PM
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