International Staffing Strategies - Essay Example

The basic implication of this staffing strategy is that it provides autonomy to its subsidiaries at very low level which is in fact quite negligible. The actual decision making authority rests with headquarter in an almost centralized manner. As a result all of the strategic decisions are made at headquarter and even some important tactical level of decisions. Only day to day levels of operative decisions are taken at the subsidiary level. Therefore, it is a centralized authority which actually leads and directs the overall operations of the organization.

In ethnocentric staffing strategy, generally the key and important staff positions are held by the personnel belonging to headquarter whether those positions are vacant at domestic level or foreign level. The headquarter personnel are given the preference for filling out those vacant positions as they are highly important in nature. However, in case of subsidiaries, the staffing requirements are fulfilled by attracting the pool of candidates from the home nations such that headquarter does not actively participate in recruiting the employees at the subsidiary level. . But on the other hand, headquarter also provides an opportunity to the subsidiaries to prepare their own staffing strategies such that the host country nationals can be employed at the relevant subsidiaries.

Control and Communication Ethnocentric approach allows headquarter to maintain a mechanism of control and effective communication between headquarter and the subsidiaries. Since the major strategic decision making authority lies with headquarter, therefore, headquarter has a better chance to practice effective control over the management of the subsidiaries and in doing so, the communication channels become quite effective between headquarter and subsidiaries. Step towards Internationalization The biggest advantage of ethnocentric staffing strategy is that it actually provides a platform to those organizations that are intending to expand their business operations outside their domestic market.

Since this staffing strategy empowers headquarter and the overall control is maintained by that headquarter, therefore, the first step towards going global demands the implementation of ethnocentric strategy as it suits those organizations the most. Transferring Organizational Values to the Subsidiaries One of the main important aspects of this ethnocentric approach is that it actually causes transfer of organizational culture, values, principles, objectives and policies to the newly acquired subsidiary from the main headquarter of the business.

As a result, the overall theme, values and principles of the organization rest throughout the organization uniformly at both headquarter and subsidiary level. Polycentric Approach This staffing approach works on the principle that every subsidiary is provided full