Ibus Sgq Essay

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STUDY GUIDE QUESTION ONE: Staffing Frameworks (Textbook pps. 162 - 167) 1. Name and describe each of the three general frameworks MNEs can use to fill positions to manage the firm's value creation activities worldwide. In your descriptions, state the advantages and disadvantages of each. Ethnocentric Framework: Ethnocentrism is the tendency for an individual to believe his/her own customs and traditions to be better than any one else’s. Borrowing from that, the ethnocentric framework x Polycentric Framework Polycentrism is the idea of having multiple centers of authority or importance. Therefore a polycentric framework uses the host-country to manage local subsidiaries. This is more economical as hiring locally is cheaper than an expatriate. Local hires can offer a better insight to their market. Although, because an MNE needs to adjust its HRM policies with each market, this may cause confusion that may lead to accountability confusions. Disengagement from the parent company may also occur because coordinating activities are more difficult in a polycentric framework. Geocentric Framework Geocentrism views humanity as a single entity. Geocentric framework draws the best people for the job regardless of nationality. This system promotes growth through learning resulting strong ideas worldwide. At the same time, it can be very costly to run and develop. Finding qualified expatriates to move from country to country can be difficult. STUDY GUIDE QUESTION TWO: Short answers on international human resource management issues. 1. In your own words, define expatriate failure and describe its direct and indirect costs. Expatriates are sent abroad on an assignment over a predetermined period of time. Failure is when they return home before that contract is over for whatever reason (low performance, adjustment problems, etc..) Direct costs of
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