English IV Workshop . [PDF]

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ENGLISH IV WORKSHOP Answer the following questions according to the reading

1. What are the main advantages and disadvantages of the ethnocentric, polycentric and geocentric approaches to staffing policy? When is each approach appropriate? 2. What is the link between international business’s strategy and its human resource management policies, particularly with regard to the use of expatriate employees and their pay scale? 3. Reread the Management Focus on McDonald’s compensation practices. How does McDonald’s approach help the company take local difference into account when reviewing the performance of different country managers and awarding bonus pay? 4. 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 or consequences of these problems and how might a firm reduce the recurrence of such problems? 5. Read the closing case from page 638 to 639 and answers the following question: what international staffing policy is AstraZeneca pursuing with regard to its “high potential” employees?

ANSWERS 1) ETHNOCENTRIC: Advantage: The company may believe that the country does not have qualified individuals to hold managerial positions. The company can see an ethnocentric hiring policy as the best way to maintain a unified corporate culture. If the parent company is trying to transfer value to a foreign operation, you may believe that the best way to do this is by transferring the citizens of your country who have the knowledge to carry those competences. Disadvantages: Generates resentment in the receiving country. May cause cultural myopia. Limits the availability of opportunities for the citizens of the country.

POLYCENTRIC Advantage: The company is less likely to suffer from a cultural myopia. It can be less expensive to implement, reducing the costs of creating a value. Disadvantages: Citizens of the host country have limited opportunities to gain experience outside their own country and, therefore, can not progress beyond managerial positions in their own subsidiary. Isolates subsidiary matrix abroad But perhaps the greatest disadvantage of this approach is the gap that can be formed between the directors of the receiving country and those of the country of origin. GEOCENTRIC Advantage: It allows the company to make the best use of its human resources Perhaps the most important, it allows the company to form a cadre of global executives who can feel at home working in different cultures. It tends to reduce cultural myopia and strengthen local sensitivity.

Disadvantages: Many countries want foreign subsidies to employ their citizens. Most countries ask for a lot of paperwork if they want to hire a foreigner instead of a citizen. A remuneration structure with an internationally standardized base salary level, higher than national levels in many countries may be necessary. 2) The link between international business strategy and human development management is that they seek to improve skills in local markets through their selection of employees, management development, performance evaluation, and compensation policies, so that employees Expatriates can join the destination where they are and can perform Their duties correctly. 3) I help the company implement global compensation programs; This program requires the corporate head office to provide local business managers a menu of business principles to address the next year and thus be successful in their local market. McDonald's awards the annual bonus on individual performance and expects differentiation of performance while allowing some flexibility in local centers. By providing principles and guidelines, And at the same time let the local managers customize their compensation programs to meet the needs of the market. 4) The main consequences of expatriate employees • Inability of the spouse to adapt. • Inability of the director to adapt. • other family problems and personal or emotional maturity of the principal. • Inability to handle greater responsibilities abroad. • Difficulties with the new environment. • Personal or emotional problems • Lack of technical knowledge. One way to reduce expatriate failure rates is by improving screening procedures to identify disabled applicants.    

Orientation to self. Importance to the expatriate's self-esteem, self-confidence and his mental well-being. Third-party orientation. Emphasis on the ability of the expatriate to interact effectively with the citizens of the receiving country. Perceptive ability. Ability to understand why people from other countries behave how they do it, that is, the ability to identify. Cultural rigidity. The fact that the good adaptation of an expatriate to a particular destination usually has to do with the country of the appointment.

5. The policy that the staff of Astrazeneca pursues is geocentric because it seeks the best people for the key positions of the whole organization regardless of nationality, it seeks that the managers have a global approach and can adapt to any culture no matter the country in which they they are going to develop their skills and make the company something better.