International Business
Briefly discuss the three types of staffing policies in international business. Discuss the staffing policies adopted by MNCs (Multi-National Company) operating in Singapore. Which is the most attractive approach and why?
The 3 types of staffing policies are ethnocentric, polycentric, and geocentric.
Ethnocentric approach fills key management position with parent-country nationals.
Advantage:
* Overcome the lack of qualified manager in host country * Unify corporate culture. * Transfer parent-country nationals’ core competency to host-country operation.
Polycentric approach requires host-country nationals to manage subsidiaries and parent-country nationals to manage headquarters.
Advantage:
* Alleviate cultural myopia * Minimise mistakes arising from cultural misunderstanding * Cheaper to implement * Transfer core competencies
Disadvantage:
* Immigration policies may make it expensive to implement
Geocentric approach seeks the best people internationally, regardless of nationality.
Advantage:
* Make the best of its human resource * Reduces cultural myopia & enhance local responsiveness * Develop unifying culture
Disadvantage:
* Expensive to implement
Most MNCs operating in Singapore seems to be adopting the geocentric approach. This approach is most attractive as it enables firms to build a strong unifying culture, and cultural myopia is at its minimal within the company.
Staffing policies that multi-national companies (MNCs) in Singapore adopt are the polycentric and geocentric policies. These policies are generally acceptable practices in Singapore as Singapore is a first world country that is populated with many races and cultures. As such, cultural clashes and differences are minimised and well managed as both policies alleviate and build strong cultural cohesiveness. Therefore, it helps to develop and promote the corporate culture within, creating a more dynamic and versatile workplace for
The 3 types of staffing policies are ethnocentric, polycentric, and geocentric.
Ethnocentric approach fills key management position with parent-country nationals.
Advantage:
* Overcome the lack of qualified manager in host country * Unify corporate culture. * Transfer parent-country nationals’ core competency to host-country operation.
Polycentric approach requires host-country nationals to manage subsidiaries and parent-country nationals to manage headquarters.
Advantage:
* Alleviate cultural myopia * Minimise mistakes arising from cultural misunderstanding * Cheaper to implement * Transfer core competencies
Disadvantage:
* Immigration policies may make it expensive to implement
Geocentric approach seeks the best people internationally, regardless of nationality.
Advantage:
* Make the best of its human resource * Reduces cultural myopia & enhance local responsiveness * Develop unifying culture
Disadvantage:
* Expensive to implement
Most MNCs operating in Singapore seems to be adopting the geocentric approach. This approach is most attractive as it enables firms to build a strong unifying culture, and cultural myopia is at its minimal within the company.
Staffing policies that multi-national companies (MNCs) in Singapore adopt are the polycentric and geocentric policies. These policies are generally acceptable practices in Singapore as Singapore is a first world country that is populated with many races and cultures. As such, cultural clashes and differences are minimised and well managed as both policies alleviate and build strong cultural cohesiveness. Therefore, it helps to develop and promote the corporate culture within, creating a more dynamic and versatile workplace for