What is staffing

selecting the right person for the

right post training and development giving proper remuneration and

motivationperformance appraisal of employees proper promotions , transfer etc.

Definition of staffing

“staffing means filling and keeping filled, position in the organizational structure’’.

Approaches of staffing

There are four main approaches of staffing 1. Ethnocentric approach2. Polycentric approach3. Regiocentric approach4. Geocentric approach

Ethnocentric approach

Under this, parent nation employees fill all key positions in a multinational. That is key positions in domestic and foreign operations are held by headquarters personnel. Subsidiaries are managed by staff from the home country(PCNs).

impact of approach on Staffing

Headquarters country personnel manage all operations.

Home Staffing policies are replicated in countries.

Talent skills transfer essentially one-way.

Polycentric approach

the multinational enterprise treats each subsidiary as a distinct national entity with some decision making autonomy.

Subsidiaries are usually managed by local nationals (HCNs) and parent country nationals and are rarely transferred to foreign subsidiary nations.

For ex :Many US companies use home country managers to get the operations started, then hand them over to the host country managers Hindustan uniliver Ltd, the Indian subsidiary of uniliver has locals has its chiefs.

Advantages of polycentric approach

Employment of HCNs is less expensive.Gives continuity to the management of

foreign subsidiaries and avoids the turnover of key managers.

Managing local politics and administration will be very easier.

Disadvantages of polycentric approach

Bridging the gap between host country nationals managers and parent country national managers becomes difficult.

It also becomes difficult to imbed the original cultural of company.

This will not provide the opportunity to the host country employers to get exposure and experience outside their own country.

Impact of approach on Staffing:-

Headquarters country personnel have little

impact on other countries.Talent acquisition policies are unique to each

country.

Geocentric appoarches

Multinational enterprise is taking a global approach to its operations, recognizing that each part (subsidiaries and headquarters) makes a unique contribution with its unique competence.

This approach subscribes the view of employing the best people in key positions throughout the organization with out the consideration of any nationality.

Moreover, it helps the organization to develop core competency taking the best talents in the core team.

Advantages of geocentric approach:It enables a firm to develop an international executive

team which assists in developing a global perspective.It over comes the ³federation´ drawback of the

polycentric approach.It promotes co operation and resource sharing across

units. Disadvantages of geocentric approach:Host governments want a high number of their

citizens employed.Many western countries require companies to provide

extensive documentation.

Impact of approach on Staffing:-

Employees circulate throughout the global organization.

Talent acquisition policies maximize long-term strength of the global organization.

Talent and skills are deployed globally to achieve global goals while meeting local requirements

Regiocentric approach

in regiocentric approach Operations managed regionally; communication and coordination high within the region. Like geocentric approach, it utilizes a wider pool of managers but in a limited way.

This approach advocates the division of operations of the multinational company on the basis of some geographical regions and allows the transfer of employees with in a particular region

Advantages of regiocentric approach

A major motive for using such an approach is that it allows the interaction between executives transferred to regional areas.

It can be a way for a multinational to move gradually from a purely ethnocentric or polycentric to a geocentric approach.

Disadvantages of regiocentric approach

It can produce “federalism” at a regional rather than a country basis.

While this approach does improve career prospects at the national level , it only moves the barrier to the regional level.

Impact of approach on Staffing

Employees circulate within regions, with a focus on regional business results.

Talent acquisition policies are developed and coordinated within regions.

Talent and skills are developed within regions, with minimal inter-region transfer.