The paper "International and Comparative Human Resource Management" is a wonderful example of a Management Assignment. EBMC has been observed to apply a polycentric staffing approach with the focus on the utilization of resources in the host country such as employees in the host country. There are a number of advantages and drawbacks associated with this form of staffing approach. These advantages and disadvantages have affected the operations of subsidiaries if the company both positively and negatively. In polycentric staffing, each office is managed as a unique entity. If a multinational corporation is operating in another country, employees are hired from the host country for the purpose of minimizing communication (Scullion and Starkey, 2000).
In this form of staffing, parent country nationals are not allowed to occupy top managerial positions. In addition, minimum interventions exist for the development of subsidiary companies in the new country of operation. There are also limited opportunities for promotion within the subsidiary. This form of staffing is appropriate for a company that serves heterogeneous product markets where it is necessary to adapt the products to the markets and market the product to specific national’ s tastes.
In this form of staffing, it is not easy to achieve product integration and subsidiaries are usually autonomous. There are many advantages associated with this form of staffing. These advantages have contributed to the success of operations of EBMC in subsidiary countries in a number of ways. Due to the fact that staffs for the subsidiary are employees of the country of operation, language barriers and cultural barriers between the staff of the company and customers are not a problem (Tayeb, 2005). This is due to the fact that both customers and employees of the company use a common language and many difficulties brought by the language barrier can be solved.
For instance, it is possible to agree on terms of service and trade as well as maintain a better relationship between the staff and customers. In addition, due to the employment of local residents as employees of the company, they are most likely to take a long term view of the subsidiary and work towards maintaining the long-term goals of the company.
Employment of host country nationals in the subsidiaries also results in low costs in terms of remuneration, ensures the company has goodwill in its operating environment and local business subtleties are known. This is in terms of policies that ensure activities of the company are targeted towards achieving the long terms goals of the company and ensure the continued survival of the company. Furthermore, key positions are occupied by nationals from the host country and host country governments are most likely to receive the operations of the company positively (Teagarden, Meyer and Jones, 2008).
This may lead to opening restrictions to operations of the company and it can be free to operate in the country. Employees of the company can also have a positive attitude towards the company and maximize services that result into success of operations of the company. There is also increased motivation and loyalty to the company due to the autonomy of the subsidiary from the parent company. Furthermore, the need to understand the culture of the people in the areas where the subsidiaries are located becomes easier.
This is because employees and managers of the subsidiary are nationals of the country of operation and they understand the culture of the people in their areas of operation (Yeung, Warner, and Rowley, 2008). This ensures Human Resource practices are done in accordance with the cultural demands of the country of operation. Another limitation of this form of staffing is that the use of staff in the country of operation does not result in the exposure of employees of the parent country regarding the conditions and challenges in the subsidiary country.
Thus, they are not equipped with the skills of managing organizations where there are different cultural requirements for management.
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