GPHR practice question 21 of 25

Which of the following best demonstrates a geocentric staffing approach in a multinational organization?

Full set: 130 questions
Answer options
A: Recruiting host-country nationals for local management roles
B: Deploying expatriates from HQ to run global subsidiaries
C: Hiring the most qualified candidates regardless of nationality Correct answer
D: Transferring parent-country nationals to all regional offices
Correct Answer:
C. Hiring the most qualified candidates regardless of nationality
Explanation

A geocentric staffing approach is a global mindset where the organization seeks the best people for key jobs throughout the organization, regardless of their nationality. This approach assumes that talent and competence are not restricted to any single country. The primary goal is to build a team of global executives who can contribute to a worldwide business strategy, leveraging the most suitable talent available on a global scale.

Why Incorrect

A. Recruiting host-country nationals for local roles is characteristic of a polycentric approach, which emphasizes adapting to the local culture and practices of each subsidiary.
B. Deploying expatriates from headquarters (parent-country nationals) to run subsidiaries is the definition of an ethnocentric approach, where HQ's culture and practices are considered superior.
D. Transferring parent-country nationals to all regional offices is another clear example of an ethnocentric staffing policy, not a geocentric one.

References

1. Perlmutter, H. V. (1969). The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4(1), 9-18. This is the foundational article that introduced the ethnocentric, polycentric, and geocentric (EPG, later EPRG) framework for multinational staffing strategies.

2. Harzing, A. W. (2001). Who's in charge? An empirical study of executive staffing practices in foreign subsidiaries. Human Resource Management, 40(2), 139-158. https://doi.org/10.1002/hrm.1004. This study analyzes the application of the EPRG model, defining geocentric as selecting the best person for the job irrespective of nationality.

3. Collings, D. G., & Scullion, H. (2009). Global Staffing. In R. S. Schuler & S. E. Jackson (Eds.), Strategic Human Resource Management (2nd ed., pp. 287-303). Wiley-Blackwell. This chapter explicitly defines the geocentric approach as one where "the MNE is taking a global approach to its operations, recognizing that each part (subsidiaries and headquarters) makes a unique contribution" and hires the best person globally.

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