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ethnocentric, polycentric and geocentric

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What are the main advantages and disadvantages of each of the ethnocentric, polycentric and geocentric approaches to staffing policy? When is each approach appropriate?

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What are the main advantages and disadvantages of each of the ethnocentric, polycentric and geocentric approaches to staffing policy?

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Let us first see the advantages and disadvantages of the these major staffing approaches for MNC:

THE ETHNOCENTRIC APPROACH. An ethnocentric approach to staffing is characterized by the extensive use of expatriates in overseas positions. This staffing strategy tends to be utilized when foreign ventures have little autonomy, strategic decisions are made at headquarters in the parent country, and most of the key positions at the foreign venture are occupied by parent country nationals (Adler, 1991; Dowling, Welch, and Schuler, 1999; Zeira, 1976). Firms use this approach in early stages of internationalization and when a firm is establishing a new business or product overseas and prior experience is critical. Firms employing this approach will attempt to achieve control over its foreign operations by utilizing expatriates and technical staff to transfer its reporting and operational systems. Although its advantages are clear, this approach is not without its problems.

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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