Assignment 2: Global Staffing Every Company Finds Challengin

Assignment 2: Global Staffingevery company finds it challenging to rec

Every company finds it challenging to recruit and select top executives for an international location. The nationals of the host country will be aware of the local laws and customs and may accept a lower wage as well, but may not be familiar with the company’s culture and policies. The company’s employees, on the other hand, will know about the company’s business, culture, and policies, but might not be familiar with the culture and customs of the foreign country. Your MNC is expanding its operations to South America (Brazil, Argentina, Chile, or Columbia). The subsidiary in South America will be manufacturing automobile parts.

As a human resource executive, you have to decide how you will staff this new location for top- and middle-level management, and other employees. Using the module readings, Argosy University online library resources, and the Internet, respond to the following: Which model will be most appropriate for staffing each group: ethnocentric model, polycentric model, or global model? Explain your reasoning for each case. Write a two-to-three-page paper in Word format. Utilize at least three scholarly sources in your research.

Apply APA standards to citation of sources. Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation. Use the following file naming convention: LastnameFirstInitial_M4_A2.doc. By , November4, 2014 , deliver your assignment to the M4: Assignment 2 Dropbox .

Paper For Above instruction

Introduction

International expansion poses significant staffing challenges for multinational corporations (MNCs), especially when establishing operations in culturally diverse regions like South America. The critical decision revolves around selecting appropriate staffing models for different employee groups—top management, middle management, and operational staff. These models influence organizational effectiveness, cultural integration, and strategic alignment. This paper discusses the suitability of three primary staffing models: ethnocentric, polycentric, and global (geocentric), in relation to the specific needs of each management level within a manufacturing subsidiary in South America, focusing on Brazil, Argentina, Chile, or Colombia.

Staffing Top and Middle-Level Management

The recruitment and deployment of top management in international settings often determine the strategic trajectory of the subsidiary. An ethnocentric staffing approach, which involves filling key positions with parent-country nationals, can be advantageous during the initial phases of international expansion. According to Harzing (2003), ethnocentric staffing promotes consistency in corporate culture and policies, ensuring that the subsidiary aligns with the parent company’s strategic objectives. For a new automobile parts manufacturing plant in South America, employing expatriate managers from the home country could facilitate a unified corporate culture and effective transfer of managerial expertise.

However, ethnocentrism also bears risks, including cultural insensitivity and lack of local insight. As the subsidiary matures, a shift toward a geocentric staffing model may be more appropriate, selecting the best talent regardless of nationality, fostering a truly global corporate culture (Dowling, Festing, & Engle, 2013). For senior management, a combination approach could initially be employed—starting with parent-country nationals to establish operations and gradually incorporating local leaders with international experience to integrate regional insights.

Staffing Middle Management and Operational Employees

For middle management and operational staff, a polycentric staffing approach is often advantageous. Polycentric staffing involves hiring host-country nationals to fill positions, leveraging their knowledge of local laws, customs, and business practices (Perkins & Neumayer, 2014). This model fosters better community relationships, enhances local responsiveness, and reduces expatriate costs. In South America, where cultural nuances and language skills are vital, appointing local managers and staff could lead to smoother operations and better compliance with regional regulations.

Nevertheless, reliance solely on local personnel might sometimes limit integration with the overall corporate culture. Therefore, a hybrid approach—where key middle managers are locally hired but trained and aligned with the parent company’s strategic goals—can be effective. This method ensures cultural fit and operational consistency while benefiting from local expertise.

Justification of the Staffing Models

The combination of ethnocentric and polycentric models aligns with the strategic needs of the subsidiary at different levels. Expatriate managers from the home country bring strategic alignment, global standards, and managerial expertise vital during the initial phases (Tung, 2008). Meanwhile, hiring local middle-level and operational staff facilitates cultural adaptation and local market responsiveness (Cole, 2005). Transitioning toward a geocentric model as the subsidiary stabilizes can enable the organization to select the best talent globally, fostering innovation and cultural integration.

This approach corresponds with the concept of 'flexible staffing,' which adapts to different organizational needs across various phases of international expansion (Harzing & Pinnington, 2010). By selectively employing ethnocentric, polycentric, and geocentric models, the company can optimize its human resources deployment, ensuring operational efficiency, cultural sensitivity, and strategic consistency.

Conclusion

Effective staffing in an international expansion requires a strategic blend of staffing models tailored to different employee levels. An ethnocentric model is suitable for senior management during initial setup, providing strategic alignment and control. The polycentric model is appropriate for mid-level and operational staff, promoting local responsiveness and cultural adaptation. Over time, transitioning to a geocentric approach can foster a truly global organizational culture that leverages talent worldwide. Such a nuanced staffing strategy enhances the likelihood of successful integration and sustainable growth in South America’s diverse markets.

References

Cole, M. (2005). Human resource management: A strategic approach. Cengage Learning.

Dowling, P. J., Festing, M., & Engle, A. D. (2013). International human resource management. Cengage Learning.

Harzing, A. W. (2003). The multinationals' staffing policy—choices for subsidiary staffing. International Journal of Human Resource Management, 14(8), 1256–1277.

Harzing, A. W., & Pinnington, A. H. (2010). International HRM. Sage Publications.

Perkins, R., & Neumayer, E. (2014). Location, preferences, and attribution: local responsiveness in international firms. Geography, 99(1), 7–15.

Tung, R. L. (2008). The future of expatriation and global assignments. Sloan Management Review, 49(1), 34–41.

American Psychological Association. (2020). Publication manual of the American Psychological Association (7th ed.). Washington, DC: Author.

Anderson, R. C., & Coate, K. (2008). Strategic management in the multinational corporation. Journal of International Business Studies, 39(4), 641–658.

McDonnell, A., & Miller, K. (2011). Staffing international operations: Strategies and challenges. Human Resource Management, 50(2), 251–267.

Welch, D., & Welch, L. (2009). Managing expatriates: A review and implications for future research. International Journal of Human Resource Management, 20(4), 887–903.