Ethnocentric Staffing

Ethnocentric staffing approach, when the company is at the internatioanlization stage of strategic expansion, and has acentralized structure. Using this approach to fill key managerial postitions with people from headquarters. Advantages: parent-country nationals(PNCs) are familiar with company goals, product, tech, policies,and procedures. Diadvantages: 1. The lack of opportunities or development for local managers. 2. The poor adaptation and lack of effectiveness of expatriates in foreign countries.

Polycentric staffing approach is local managers( host country national- HCNs) are hired to fill key positions in their own country. Advantages: 1.managers are familiar with the local culture, language, and wys of doing business. 2. Wieh regard to cost, it is less expensive for a company to hire a local manager than to transfer one from headquarters, with a family and often at a higher rate of pay. Disadvantages: it is the difficulty of coordinating activities and goals between the subsidiary and the parent company, including the potentially conflicting loyalties of the local manager.

Global staffing approach is the best managers are recruited from within or outside of the company, regardless of nationality. This recruiting third country national(TCNs), it has been used for some time by many European multinationals. Advantages: 1. This provides a greater pool of qualified and willing applicants from which to choose, which results in further development of a global exective cadre. 2. TCNs are used to manage subsidiaries, 3. It can be more cost-effective to transfer and pay managers from some countries than from others becoz their pay scale and benefits packages are lower.