“An ethnocentric approach to staffing policy fills all key management positions in an international business with parent-country nationals” (p. 531). The advantages of the ethnocentric approach are: Overcomes lack of qualified managers in host country, unified culture, and helps transfer core competencies. The disadvantages of the ethnocentric approach are: Produces resentment in host country, and can lead to cultural myopia. An ethnocentric approach is typically appropriate for firms utilizing an international strategy. A polycentric staffing policy requires host country nationals to be recruited to manage subsidiaries, while parent country nations occupy key positions at corporate headquarters. The advantages of the polycentric approach are: Alleviates cultural myopia, and it is inexpensive to implement. The disadvantages of the polycentric approach are: Limits career mobility, and isolates headquarters from foreign subsidiaries. “ A polycentric approach is typically appropriate for firms utilizing a multidomestic strategy. A geocentric staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality. The advantages of a geocentric approach are: Uses human resources efficiently, helps build strong culture and informal management network. The disadvantages of the geocentric staffing policy are: National immigration policies may limit implementation, and it is expensive to implement. A geocentric approach is typically appropriate for firms unitizing a global or transnational strategy” (Hill, p.534).
b. Research suggests that many expatriate employees encounter problems that limit both their effectiveness in a foreign posting and their contribution to the company when they return home. What are the main causes and consequences of these problems,