In: Operations Management
When global companies recruit new employees for their overseas operations, what are the different options for staffing policies available to them? Which option do you think works best and why? Give answer in 500 words.
WORD COUNT : 560 WORDS
As multinational corporations hire new workers for their activities overseas, they must recognize the employees' potential during their recruiting process. At first, the employees must have comprehensive international business knowledge and some experience in the same area. It is a primary requirement a organization can adopt during recruitment. Beyond that, the recruitment department will have a good understanding of the skills and strengths of every labor market around the world. It will help them recruit workers from all over the world and have the best team for their activities overseas. To recruit workers is all about getting the right human resources for the right job at the right time.
It is important that the multinational corporations' employees be aware of the complexities of international industry. For the businesses that wished to hire applicants from abroad there are four forms of hiring available. One ethnocentric hiring where the organization recruits the workers from their own country to fill the overseas vacancies. In this case the company considers the relocation of the selected individuals to overseas countries. In this situation, a person who wants to stay abroad or who lives abroad but works in the parent company will be employed. Ethno-centric workplace strategy helps the company in incorporating the parent company's work procedures, values and community in its overseas activities.Nevertheless, the downside is the lack of knowledge of these expatriates in local culture and the shortage in facilities for local residents who are more able to appreciate cultural disruption and job habits. Another approach available to the company for the staffing is the polycentric approach to staffing. In this case , the company hires Overseas local people. The work vacancies will be promoted on the local news papers and other outlets for this reason to fill the roles. This sort of approach is required because the organization needs to use the local people 's expertise to manage the business. The next type of staffing is regiocentric staffing. In this scenario, the organization recruits employees from a number of countries similar to the overseas sector, or from the same area where the business and industry are based. For example, a organization looking to open a Scandinavian business office selects the candidates from the Scandinavian region. The regiocentric method is used where the cost of recruiting a host nation employee is greater than that of employing them from neighboring area or parent nation. Regional-centric recruiting is a result of cross-cultural understanding among the new workers.When the case shows that multinational businesses are recruiting new hires, the right strategy or solution to staffing would be a regiocentered solution. Global businesses face challenges of human resource mobilization, cross-cultural business issues, communication issues, physical and remote employee management issues , lack of diverse workforce, etc. It is imperative that global businesses hire a mix of candidates from different countries to enhance diversity, innovation, communication, diverse human resource skills. Ethnocentric policy or polycentric policy alone can not address global corporate problems. Therefore, a regiocentric approach that recruits a dynamic team, promotes the recruiting of remote workers, adds innovation to the organisation. It also decreases the movement towards national workforce identity and creates a pool of foreign managers. Ethnocentric ism can be curbed and openness to cultural disparity that is crucial for handling foreign operations can be strengthened. Regiocentric hiring practices are also ideally geared to selecting applicants for multinational businesses.
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