Every Company Finds It Challenging To Recruit And Select Top

Every Company Finds It Challenging To Recruit And Select Top Executive

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 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 multinational corporation (MNC) is expanding its operations to South America (Brazil, Argentina, Chile, or Colombia). 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, 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.

Paper For Above instruction

The process of staffing international operations involves considerable strategic decision-making, particularly in selecting the most suitable staffing model for different employee groups. The three predominant models—ethnocentric, polycentric, and global (or geocentric)—each offer specific advantages and limitations depending on the managerial level and context of the expansion. In this analysis, the focus is on establishing appropriate staffing approaches for top- and middle-level management and other employees in the context of expanding into South America, specifically—in this case—Chile, a major player in regional automobile manufacturing.

Staffing of Top and Middle Management

For top and middle management, an ethnocentric staffing approach is often most appropriate in the initial phases of expansion, especially when the corporate firm's strategic objectives emphasize maintaining control and consistent management practices. The ethnocentric model positions expatriates from the home country in key managerial roles, ensuring the transfer of corporate culture, strategic vision, and policies across borders. This method is particularly advantageous when the subsidiary’s success depends on aligning operations closely with headquarters’ standards, such as quality control in automobile manufacturing (Harzing & Pinnington, 2011).

An ethnocentric approach simplifies communication and coordination with the headquarters, and expatriate managers are anticipated to embody and transmit the organizational culture effectively. Moreover, selecting expatriates for leadership roles ensures continuity of decision-making and strategy implementation aligned with corporate goals. It also minimizes potential conflicts stemming from local practices that might diverge from headquarters’ standards (Dowling, Festing, & Engle, 2017).

However, reliance solely on expatriates may lead to high costs, cultural insensitivity, and possible neglect of local market nuances. Therefore, after the initial establishment phase, a transition toward a polycentric approach might be considered to foster local responsiveness and develop indigenous managerial talent (Welch & Welch, 2010).

Staffing of Other Employees

For general operational staff and middle-level employees, a polycentric staffing model tends to be suitable. Local nationals are hired to fill these positions because they possess vital cultural knowledge, language skills, and familiarity with the local legal and business environment. Utilizing local employees promotes better relationships with the community, ensures compliance with local regulations, and enhances responsiveness to market needs (Tarique & Schuler, 2010).

This approach also reduces costs associated with expatriate compensation packages and relocation, and local employees often have a better understanding of customer preferences within the South American context (Perkins & Neumayer, 2014). Moreover, the polycentric model encourages the development of local managerial talent, which could be promoted to higher-level positions over time, fostering sustainability and local engagement.

Integration of Models for Sustainable Global Operations

While the ethnocentric approach is advantageous for initial management control at the top levels, over time, organizations should strive for a more integrated approach. This might involve adopting a geocentric or global staffing strategy, where the best talent is selected regardless of nationality. Such an approach facilitates forming a truly international management team, promoting knowledge sharing across borders, and driving innovation (Maznevski & Jonsen, 2000).

In conclusion, an ethnocentric model is most appropriate for staffing executive roles initially to ensure strategic alignment with the parent company, while a polycentric approach is best suited for operational and middle management roles, leveraging local knowledge for market success. Transitioning towards a geocentric model over time can maximize organizational synergy, innovation, and competitive advantage in the evolving global marketplace.

References

• Dowling, P. J., Festing, M., & Engle, A. (2017). International Human Resource Management (7th ed.). Cengage Learning.
• Harzing, A., & Pinnington, A. (2011). International Human Resource Management. Sage Publications.
• Maznevski, M. L., & Jonsen, K. (2000). Cross-cultural training in organizations: What works and what doesn't. International Journal of Intercultural Relations, 24(4), 439-459.
• Perkins, R., & Neumayer, E. (2014). Globalization and local development: Perspectives from multinational companies. Global Policy, 5(3), 290-297.
• Tarique, I., & Schuler, R. S. (2010). Global staffing: A review and suggestions for future research and practice. Journal of World Business, 45(2), 122-133.
• Welch, D. E., & Welch, L. S. (2010). Expatriate Management: Challenges and Opportunities in Global Careers. Routledge.