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  • Essay / Ethnocentric recruitment policy - 623

    The ethnocentric or country of origin approach focuses on the large-scale transfer of the HRM system from the host country to the subsidiary and emphasizes consistency and integration between all subsidiaries. However, this approach is often considered rigid. It ignores potentially crucial local differences and may overlook opportunities for learning at headquarters and between subsidiaries. This can lead foreign subsidiaries to resist HR practices that they believe are inappropriately imposed by headquarters (Fisher, et al., 2006, p. 737-738). According to Hill (2007), ethnocentric staffing policy is now in decline in most international companies, because an ethnocentric recruitment policy limits advancement opportunities for host country nationals, and an ethnocentric policy can lead to cultural myopia. The polycentric or local approach focuses on recruiting host country nationals (HCNs, i.e. individuals present in the country) to run the subsidiary. However, Hill (2007) recognizes two advantages of the polycentric approach: (1) the company is less likely to suffer from cultural myopia, ...