Staffing of Multi-National Enterprise-Which approach is Most Effective?

Either- Geocentric , Polycentric, or Ethnocentric

Geocentric Approach, and why?

Thesis Changes Brought on by GlobalizationReasons For Spread of Multi-National

EnterprisesGlobal Issues,Corporate, and Labor LawsCross-Cultural DifferencesStaffing Subsidiaries

Global TradeTrade Barriers

Free Trade Agreements

International Markets

Establishing New Markets

Effect on Multi-National Enterprises Hiring Practices

Outsourcing

(Hill, 2009) (CIO, 2011)

Examples of American Multi-National EnterprisesCoca-ColaPepsiCoGoogle

McDonaldsWal-Mart

Exxon-Mobile

Successful SubsidiariesPartner with host country builds strong relationships

Adapt to host country tastes and preferences

Main employer of host country nationals,

Utilizes both parent country expatriate, and third country nationals as appropriate to staff subsidiaries.

(Hill, 2009)

Staffing ModelsEthnocentric Model- Utilizes Parent Country expatriate

mangers over Host Country Nations.

Polycentric Model- Utilizes Host Nationals to manage subsidiaries, uses parent country nationals to staff management position on the corporate level

Geocentric Model- Uses the best qualified personnel to manage subsidiaries, and staff corporate management, regardless of country or nationality they hale from.

(Hill, 2009) (HBR, 2011)

Use of Global Information TechnologyBusiness Plan StrategiesMarketing and Promotion, and Advertizing

StrategiesDevelop and program hardware, and software

systems and applications centered around business and marketing strategies.

Constructs and Utilizes Web-Sites to advertise job opening within the MNE and subsidiaries.

CBS Business Network, 2011) (O’Brien & Marakas, 2009)

International Human Resource Management Issues.

Issues transcend local and Global boundaries. Are not isolated.

Ethical conflicts different labor relations laws, and regulations. Poor working conditions and environments.

Fair employee treatment, wages, benefits, and leave.Limited on addressing these issues from the stand

point of organized labor unions.International Labor Relations and Organization for

Economic Cooperation and Development are resources.

(Hill, 2009)

ISO 9000Passed by the European Union to address

quality of goods and services. Efficient and timely responses to host country concerns, preferences and tastes.

Production logistics- Response to manufacturing processes and customer demand and supply issues.

(Hill, 2009)

Emerging EconomiesChina- Second leading economy behind the U.S., just

surpassed Japan.

India- Leading regional economy. Strong developing nation, building strong industrial base. Technologically strong.

Brazil- Leading regional economy in South America. Strong economy, low inflation. Many natural resources. Developing infrastructure. Great place for direct foreign investment.

(Hill, 2009) ( Money Morning, 2010),

Foreign Multi-EnterprisesToyota- Based out of Tokyo, Japan

Largest automaker in the World.

World-wide subsidiaries, manufacturing, and dealerships.

Large employer of host country nationals within all levels of management.

(Hill, 2009) (Money Morning, 2010)

Reorganization of MNE’sGeneral Motors was the largest automaker in the world

until being overtaken by Toyota.Was the largest MNE in the World at one time. Has been

overtaken by Exxon-Mobile as the World largest.Filed for Chapter 11 bankruptcy in 2009, do to declining

auto sales, and unfunded health and pension liabilities.Received loans from the U.S. Government to strengthen

financial base during development of reorganization plan. Sold off some of their domestic and foreign assets.

(White House, 2009) (CNN Money, 2010)

ConclusionGlobalization has changed the way business

is conducted.Called for new business strategies.Partnerships with Host Countries.Fair and Ethical Human Resource

ManagementHiring personnel based upon a Geocentric

Model.