We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

International Business Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 745
  • Category: policy

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

International Business Essay Sample

Briefly discuss the three types of staffing policies in international business. Discuss the staffing policies adopted by MNCs (Multi-National Company) operating in Singapore. Which is the most attractive approach and why? The 3 types of staffing policies are ethnocentric, polycentric, and geocentric. Ethnocentric approach fills key management position with parent-country nationals. Advantage:

* Overcome the lack of qualified manager in host country
* Unify corporate culture.
* Transfer parent-country nationals’ core competency to host-country operation. Polycentric approach requires host-country nationals to manage subsidiaries and parent-country nationals to manage headquarters. Advantage:

* Alleviate cultural myopia
* Minimise mistakes arising from cultural misunderstanding
* Cheaper to implement
* Transfer core competencies
Disadvantage:
* Immigration policies may make it expensive to implement Geocentric approach seeks the best people internationally, regardless of nationality.

Advantage:
* Make the best of its human resource
* Reduces cultural myopia & enhance local responsiveness
* Develop unifying culture
Disadvantage:
* Expensive to implement
Most MNCs operating in Singapore seems to be adopting the geocentric approach. This approach is most attractive as it enables firms to build a strong unifying culture, and cultural myopia is at its minimal within the company.

Staffing policies that multi-national companies (MNCs) in Singapore adopt are the polycentric and geocentric policies. These policies are generally acceptable practices in Singapore as Singapore is a first world country that is populated with many races and cultures. As such, cultural clashes and differences are minimised and well managed as both policies alleviate and build strong cultural cohesiveness. Therefore, it helps to develop and promote the corporate culture within, creating a more dynamic and versatile workplace for all. However, the most attractive approach of the two would be the geocentric approach. Even though it may be costly to implement, it not only seeks for parent company nationals to hold key positions, but anyone who is eligible with the requisite skills to do the job, regardless of his/her nationality. It further promotes the organisation culture as all employees will be competing for key positions equally.

Ethnocentric approach: it is the staffing of key management positions with parent-country nationals, it is more suitable for a firm with international strategy. Firms that use this approach believe that there is a lack of qualified individuals in the host country to fill senior management positions and it is the best way to maintain a unified corporate culture. However, using ethnocentric approach limits advancement opportunities for host country nationals. – Polycentric approach: it is the recruiting of host country nationals to manage subsidiaries in their own country, and parent country nationals for positions at headquarters, it is more suitable for a firm with localization strategy. Polycentric approach helps to minimize cultural myopia and also less expensive to implement. However, host country nationals have limited opportunities to gain experience outside their own country. – Geocentric approach: it is the seeking of the best people, regardless of nationality for key jobs, it is more suitable for a firm with global strategy. The approach is consistent with building a strong unifying culture and informal management network, enabling the firm to make the best use of its human resources. However, it can be can be limited by immigration laws and is costly to implement.

Among the three staffing policies, geocentric approach seems to be the most attractive for MNCs as it is suitable for firms with global strategy, helps to build a strong unifying culture, enabling firm to make the best use of HR. In addition, in comparison to ethnocentric approach, it will not lead to cultural myopia in the workplace. Also, even though polycentric approach will help to minimize cultural myopia, but it is more for firms with localization strategy.

A geocentric staffing policy seeks the best people for key jobs throughout the organisation, regardless of nationality. This approach enables the firm to make the best use of its human resources. Also, a geocentric policy enables the firm to build a cadre of international executives who feel at home working in a number of cultures. Firms pursuing this policy may be better able to create value from the pursuit of experience curve and location economies and from the multidirectional transfer of core competencies than firms pursuing other staffing policies. Also, this approach may reduce cultural myopia and to enhance local responsiveness. The most attractive staffing policy as well as the policy used by MNCs operating in Singapore is the geocentric approach because it utilises human resources efficiently and helps build strong culture and informational management networks.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

The Thucydides Trap – Foreign Policy

Introduction: In the real-world division of power between two superpower states is not really possible. But it is still a threat to the ruling states from the rising power state. But if we go back to Machiavelli’s state of nature then we must need to agree that the prince can do whatever he needs to do to keep the power since he can’t trust anybody....

How serious case reviews inform practice?

Some of the results of serious case reviews show that there were no policies and procedures in place to safeguard children and staff or there was violation of policies which led to cause death or gave serious harm to children by abusing or neglecting them. For example, there are a number of lessons to learn from the review of Vanessa George case who abused children...

Central banking and monetary policy

1.1 Background Central banks were first established in the 17th century, with the primary purpose of providing war finance to governments and managing their debts. Their role in the economy has since evolved in a very different direction. Central banks perform several tasks such as; providing settlement services to large-value payments, oversee banks for the sake of financial stability, act as lenders-of-last-resort and implement monetary...

Probation and Parole

Faculties are not required to give make-up assignments or tests. All make up request will be considered on an individual documented, medical emergency basis only. Unless otherwise agreed upon, make-ups will not be given. Academic Integrity: University of Maryland Eastern Shore is committed to providing an educational experience designed to develop professional competencies, including habits of personal and professional integrity. The College expects all members...

Planning Permission/Policy

1:- INTRODUCTION Briggs & Mortar have commissioned Spencer Property to carry out a local survey for land in Withernsea, which could be used for their latest project. The inspection was carried out on 9th February 2004, by Mr Whiteley. Brief a. Identify a suitable site for mixed-use development, including appropriate supporting local plan policies, whether they are site specific or general. b. Give appropriate design...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member