(Solved Homework): Which factors determine the choice of a staffing approach? Would a MNE choose the same staffing approach

Which factors determine the choice of a staffing approach? Would a MNE choose the same staffing approach worldwide? Place your arguments in the context of the model outlining determinants of staffing choices.

Expert Answer

 An MNE can assume any of the four approaches (i.e. Ethnocentric, Geocentric, Regiocentric, or Polycentric approach) of staffing depending upon the four groups of factors. It will depend on the context specificitiesincluding the type of industry, cultural context, institutional context and staff availability. Second, it can depend on the company specificities as well. This group of factors includes factors such as organization structure, corporate governance, company strategy, and the overall international exposure. Selection of staffing approach may also depend on the local unit specificities such as the establishment methods, the strategic role, and importance, need for control, and locus of the decision. Finally, it may also depend upon the factors which come under the HRM practices. These factors are – selection process, compensation, training/ development, and career management.

These four groups of factors are supposed to scientifically affect staffing practices. However, for the situational factors, the individual staffing decisions might be taken in a non-expected way. Furthermore, there could be interdependencies between these factors. The model thus represents an outline of the reasoning that an MNE could follow while selecting staffing approaches at different contexts. For example, a firm that is getting matured as a networked organization will require IHRM approaches and activities helps it get developed as a flexible global organization integrated and coordinated and yet locally responsive – a geocentric approach.

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