Advantages Of Staffing Policy
Question 4
Human resource management (HRM) is key to the competitiveness of International firms.
HRM refers to those activities undertaken by an organization to effectively utilize its human resources. These activities include human resource strategy, staffing, performance evaluation, management development, compensation and labour relations.
Firm success requires that HRM policies are congruent with the firm 's strategy, and with the firm 's formal and informal structure and controls.
Slogans like “think globally and act locally” sound good, but they require effective HRM policies for these slogans to be put into action.
The staffing Policy is concerned with the selection of employees who have the skills required to perform a particular job. Staffing policy can be viewed as a major tool for developing and promoting a corporate culture (the organization’s norms and value systems).
Research has identified three main approaches to staffing policy within international businesses. These have been characterized as an ethnocentric approach, a polycentric approach and a geocentric approach.
The Ethnocentric Approach
An ethnocentric approach is best suited to international business. It is a staffing policy in which all key management positions in an international business are filled by parent-country nationals.
The advantages are the ability to communicate strategic information. The ability to transfer core competencies and in many nations the host country may lack
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