Implications for International HRM
Diversity of various types in a global company suggests that HRM practices have to be tailor-made to suit the local conditions. Such practices can be seen in the context of different HRM functions. Recruitment and Selection A global company has the following alternative approaches to recruitment and selection of employees: Ethnocentric-all key positions, in headquarters as well as subsidiaries, are staffed by parent-country nationals. Polycentric-key positions in subsidiaries staffed by host-country nationals and those in headquarters staffed by parent-country nationals. Regiocentric-key positions staffed by host-country nationals within particular geographical regions (such as continent-wise). Geocentric-key positions in headquarters as well as subsidiaries staffed by people based on merit, irrespective of their nationality. Different MNCs adopt different approaches for recruitment. For example, a survey of recruitment practices adopted by MNCs reveals that 50 per cent MNCs believe in geocentric approach while 35 per cent MNCs believe in ethnocentric approach and key functionaries Continue reading