Staffing policies - Essay Example

Contents Abstract …………………………………………………………..2 Executive Summary………………………………………………..4 Introduction……………………………………………….………4 Objectives …………………………………………………………4 Staffing Policies in the Royal Dutch Shell plc……………..………5 International Expansion and the Staffing Approaches…………….5 E.P.R.G. Concept…………………………………………………6 Conclusion………………………………………………………..8 Appendix………………………………………………………….

9 Reference List……………………………………………………..10 Executive Summary The staffing policies, applied by the most MNEs, generally depend on the key business strategies followed by the companies. Considering the research by Howard Perlmutter, the choice among ethnocentric, polycentric, and geocentric staffing strategies can be stipulated by the company’s marketing orientation. Therefore, the key aim of the report is to review pieces of research that reference Perlmutter’s concept and analyze the scientific value, as well as the correctness of the concept itself.

Introduction The staffing policies and principles applied by the international corporations are generally featured with the E.P.R.G. approach, which is developed and theorized by Howard V. Perlmutter. In fact, most multinational companies have to be multicultural and rely on the experience, knowledge, and culture of their foreign employees in order to operate successfully overseas. Therefore, in accordance with the research by Perlmutter, the choice among ethnocentric, polycentric, or geocentric approaches in staffing practices depends on the aims and plans of the company.

Objectives 1. Review academic articles and research referencing H. Perlmutter’s E.P.R.G. concept. 2. Define the weaknesses and strengths of the concept and whether the other researchers agree or disagree with it. Staffing Policies in the Royal Dutch Shell plc Royal Dutch Shell plc is known for its ethnocentric approach for staffing. In accordance with the rules of the corporate policy, most financial officers working for Shell are the Dutch citizens. The key reasons of this strictness are associated with the high qualification of these experts and considerable lack of highly experienced and qualified managers in the countries where the company operates.

The other reasons are: Inability (and, sometimes, unwillingness) to follow the corporate culture rules; Tight control, which causes amplified stress on the managers. Most executives can not bear such a high pressure; Ethnocentric approach is a part of the company’s corporate culture. The changes in this approach will require deep changes in the entire HRM policy while the company is facing issues that are more challenging now. However, it should be emphasized that technical personnel (engineers, technicians, exploration personnel) can be from other countries.

The company had to consider the fact that German, Russian, Brazilian, and Arabic drilling and exploration engineers are of the same qualification level as the Dutch experts. International Expansion and the Staffing Approaches In fact, polycentrism and geocentrism in recruiting policies take place when the company is extending its operations to the overseas markets. In accordance wi