Which of the following is true about staffing approaches for multi-national organizations and organizations engaged in offshoring?
Which of the following is true about staffing approaches for multi-national organizations and organizations engaged in offshoring?
A . A company that has a high-level of proprietary software and trade secrets should practice a holistic polycentric approach
B . The most endemic people-related challenge international organizations face with an ethnocentric model is cultural and communication differences
C . The most successful companies are those that adopt an ethnocentric staffing approach for senior level roles, a polycentric staffing approach for mid-level roles and a geocentric approach for lower-level roles.
D . A core disadvantage of the polycentric approach is the prohibitive cost of training, compensation,
and relocation of employees.
Answer: B
Explanation:
The ethnocentric staffing policy refers to the strategy of a multinational company to employ managers for key positions from the parent company instead of employing local staff in the host country. The polycentric staffing policy describes a multinational’s approach of recruiting host country nationals to manage subsidiaries in their own country. In the geocentric approach the best people are sought for key jobs throughout the organization, regardless of nationality. In the regiocentric approach, employees "are transferred to positions in subsidiaries in other countries, but stay within the same region. A company with trade secrets should practice the ethnocentric model; every company has its own peculiarities therefore there is no one-size-fits-all staffing approach; option D states a disadvantage of the geocentric approach C note that the polycentric approach will not require relocation
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