The paper "Importance of Staffing of Multi-National Corporations " is a perfect example of a business literature review. The diverse environment in multinational companies such as political, economic, legal, business, parent company’ s needs for control makes staffing for these multinational complicated. Thus, the management, acceptability and effectiveness of the human resource of these multinational companies are greatly impacted by these mentioned factors. The nature of the environment around the international businesses is facing a sea change which is also impacted by geographical diversification, the rapid expansion of global trade and business consolidation which are forcing multinational companies to change their managerial, staffing styles and structure.
This paper, therefore, aims to review the importance of staffing of Multi-National Corporations while evaluating the merits and drawbacks of geocentric, ethnocentric and polycentric approach to staffing within an international organization. The main role of the Human Resource Management in a company is to deal with the recruitment, training and development of organization staffs as well as conducting; performance appraisal, communication and other labour-related tasks in the organization (Mead, 2007 n. d). In addition to this, the Human Resource Management is also in charge of coming up with Human Resource policies where the Human Resource Management functions are built around.
In the international context, there is need for Multinational companies to choose the best type of Human Resource Management based on these multinational companies based on the need for standardization and adaptation (Liu et al. 2016, pp. 147). Consequently, the distinct differences between these multinational companies’ headquarters and subsidiaries, in this case, the companies Human Resource policies in this foreign environment are built around the basis of various factors such as; castle, religion, gender, and nationality in order for them to fit in these new markets. Staffing is an important aspect of these multinational organizations’ HRM.
In line with this, these organization globalization approaches have determined the staffing practice that they decide to go for. For instance, some Multinational Companies which decide to go with the ethnocentric approach means that their top managerial positions are filled with their home country’ s nationals thus, ensuring that the multinational companies’ practices in the organization domestic market are reciprocated in its subsidiaries abroad.
For the company adopting the polycentric approach in their globalization expansion, they fill all their senior managerial position in the company with local national ensuring that the company adapts to the local condition and standards (Du, Deloof and Jorissen 2013, pp. 404). On the other hand, some of these multinational company’ s might decide to go with the geocentric approach in their globalization initiative in the company where they identify the best qualified and capable managers to lead this multinational company’ s top managerial position irrespective of nationalities. This particular approach guarantees that these Multinational companies ensure that the best practices for the company are identified and are also replicated in all the organizational units in its globalization initiative.
In addition, the managers or employees from a different country but working in a foreign country are regarded as expatriates. The selection of these expatriates, training, a period of stay in these abroad countries, compensation and expatriates repatriation are some of the main issues which these Multinational company’ s’ Human resource departments manage (Dö rrenbä cher and Geppert 2010, pp. 616). In line with repatriation, these Multinational companies Human Resource department ensures that they provide suitable challenges which give these expatriates and the other organization employees aboard the autonomy that they later become accustomed to.
However, maintaining expatriates’ management for these multinational companies is quite expensive therefore, it is better to develop local talent through in– house Management Development Programs (MDP) (Wimmer 2009, pp. 734). This will help improve the coordination of these multinational companies’ employees with diverse culture, and the religious and educational backgrounds ensuring that they are the best fit to adapt to these new working environments in these foreign countries.
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