Question

Explain the advantages and disadvantages of a geocentric staffing policy, and discuss the effects of culture shock when assigning an employee to work in another country.

Answer 1

Geocentric staffing policy is related to hiring best qualified persons, regardless of their nationality to manage foreign operations. In this approach the management is a highly interdependent system which feels in terms of the global market and skill sets of staff is more important than other factors.

The advantages of a geocentric staffing policy

This approach best suited to different cultures in foreign environments and focuses more on worldwide business. Highly skilled workforce, have global perspective and easily adopt the different culture.

The disadvantages of a geocentric staffing policy

They have high individuals command and high cost resource for the company

For staffing foreign environments, the management should analyze the effect of culture shock. It is very important and the greatest challenge for the management while assigning an employee to work in another country. The effects of cultural shock are homesickness, bad temper, problem in mixing-up, depression etc. which ultimately affects the work and productivity. The effect can be mitigated by encouraging the staff to adapt and respect different cultures in foreign environments.