STAFFING POLICY

ASSIGNMENT

HUMAN RESOURCE MANAGEMENT

MASTERS OF BUSINESS ADMINISTRATION

By

RINI GAUTAM MBA/10090/19

DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RANCHI
2019-21
 Staffing policies

Staffing is the process of hiring eligible candidates in

the organization or company for specific positions. In management, the

meaning of staffing is an operation of recruiting the employees by

evaluating their skills, knowledge and then offering them specific job

roles accordingly

 Staffing can be defined as one of the most important functions of

management. It involves the process of filling the vacant position of the

right personnel at the right job, at right time. Hence, everything will

occur in the right manner.

It is a truth that human resource is one of the greatest for every

organization because in any organization all other resources like- money,

material, machine etc. can be utilized effectively and efficiently by the

positive efforts of human resource.

Therefore it is very important that each and every person should get

right position in the organization so as to get the right job, according to

their ability, talent, aptitude, and specializations so that it will help the

organization to achieve the pre-set goals in the proper way by the 100%

contribution of manpower. Thus it can be said that it is staffing is an

essential function of every business organization. 

1. The first and foremost function of staffing is to obtain qualified

personnel for different jobs position in the organization.

2. In staffing, the right person is recruited for the right jobs, therefore it

leads to maximum productivity and higher performance.

3. It helps in promoting the optimum utilization of human resource

through various aspects.

4. Job satisfaction and morale of the workers increases through the

recruitment of the right person.

5. Staffing helps to ensure better utilization of human resources.

6. It ensures the continuity and growth of the organization, through

development managers.

Objectives:-

Needs Assessment

An objective of staffing is to be effective in determining the specific

manpower needs of the business. This may vary according to season

and is likely to ebb and flow based on changing economic conditions.

employment needs of the business as it changes.

Hiring and Job Placement

Staffing begins during the recruitment process. Detailed job

descriptions are created in advance of recruitment to attract the best-

qualified candidates. The objective of this approach ensures that

applicants understand the requirements and responsibilities of

advertised positions and interviewers know what to look for during

the screening process. You should also have a firm idea of your

staffing needs based on the size and scope of your operations. Under-

hiring can result in inefficient service levels, while overstaffing is a

waste of financial resources.

Training and Assimilation

Effective staffing involves a full-spectrum introduction to a business’s

corporate culture. This includes skills training as well as education

regarding a company’s policies and procedures. Adding new staff

members to an existing employee pool should include peer training

and mentoring.

Efficient Workforce Development

When employees are hired and appropriately trained, an objective of

staffing is to pair the right employees with the right job

experience levels. Staffing managers must assure all shifts are

appropriately staffed and that employees have full understanding of

their job duties. Ongoing training is a necessary staffing objective

required for ongoing employee development and efficient workplace

productivity.

Effective Business Operations

An objective of staffing is to ensure effective business operations.

Employees should be provided with professional enrichment

opportunities. Job mentoring and job shadowing can encourage

employees to learn more about the industry and increase their ability

to contribute to the health of the organization.

Workforce Longevity

Developing an effective staffing system can help your small business

retain employees over the long term, which can be a positive aspect

of developing and nurturing a skilled, seasoned workforce. The

objective of this approach is to provide employees with opportunities

for advancement and increased earning potential. Motivation,

employee incentive programs and morale boosters all play a role in

supporting long-term employment.

conglomerate that employs thousands of people in facilities on every

continent except Antarctica. She's part of a team of staffing specialists

that helps recruit employees for the company's overseas operations.

Gayle and her team may fill some positions with people that are not

citizens of the country where they will be employed. Let's take a quick

look at the types of employees working on the international stage. 

You can generally break employees working in a foreign facility or office

of an international company into three categories. Let's take a look. 

Ken works in France but is a citizen of the United States, where his

company is organized and headquartered. Ken is an expatriate, which is

a citizen of the company's home country working in a foreign country.

Antoinette is Ken's executive secretary in France, but unlike Ken, she's a

citizen of France and is considered a host-country national. She is an

employee hired by a foreign company to work in her own country. Hans

works for the same company as Ken and Antoinette in France, but he's

German. An employee like Hans that is a citizen of one country but is

working in another country for a company that is headquartered in a

third country is called a third-country national. 

Types of staffing policy:-

Gayle can rely upon ethnocentric staffing, which involves staffing the

most important positions in foreign subsidiaries with expatriates from

the company's home country. Expatriates are often believed to better

represent the interests of the home office and ensure that the foreign

offices are aligned with home headquarters. In fact, many expatriates

are selected from the company's current employees and are simply

transferred to a foreign subsidiary. 

Ethnocentric staffing presents advantages and disadvantages. The

obvious advantage to ethnocentric staffing is the alignment of interests

and perspective of the home office with all foreign subsidiaries abroad.

Communication is also easier because there should be no language and

cultural barriers. The company may also be able to transfer employees

with a clear performance record that will provide some level of

predictability. 

On the other hand, you can lose local perspective and insights that local

employees can provide that may help overcome unique hurdles in each

foreign office. Moreover, hiring expatriates tends to be expensive

compared to hiring locally. Additionally, a high ratio of expatriates may

create local resentment at foreign subsidiaries, which may hurt morale. 

Polycentric Staffing
Another option available to Gayle and her team is polycentric staffing.

In polycentric staffing, a company will hire host-country nationals for

positions in the company from mail room clerks all the way up to the

executive suites. Polycentric staffing is particularly feasible in developed

countries, such as European countries, Canada, Australia and Japan,

where highly educated and trained employees can be easily located.

Polycentric staffing is an international staffing method in which

multinational corporations treat each subsidiary as a separate national

entity with some individual decision-making authority and hire host-

country nationals as managers. This approach can minimize the dangers

of cultural myopia, but it can create a gap between home and host-

country operations. 

The practice of polycentric staffing believes that the managers, being

familiar with the culture, have the ability to "translate" foreign guided

programs to be more compatible with the culture of their employees. A

polycentric staffing policy is best suited to a multidomestic strategy.

Geocentric Approach

A geocentric company is one where the management looks at

opportunities on a global scale. Instead of focusing on the way that

business gets done in a given country, it looks at how to conduct

business anywhere in the world, based on common ways of

you mix people from all of your locations equally based on their skills

rather than their home country.

The Geocentric Approach is a method of international recruitment

where the MNC’s hire the most suitable person for the job irrespective

of their Nationality.

The rationale behind the Geocentric Approach is that the world is a pool

of talented staff and the most eligible candidate, who is efficient in his

field, should be appointed for the job.

Ethnocentric

ADVANTAGES

1. The expatriate's technical and business expertise.

2. Ability to transfer the headquarters' culture to the foreign

operation (infusing central beliefs throughout the organization).

3. Political understanding of the headquarters' organization.

4. Effective communication between headquarters and the

subsidiary.

5. Lack of qualified host country nationals (HCNs).

parent to the subsidiary.

7. Measure of control over the subsidiary.

8. Career and promotion opportunities for PCNs.

9. Personnel development.

10. No need of well-developed international internal labor market.

11. Rapid substitution of expatriates possible.

DISADVANTAGES

1. Parent country nationals continue to experience difficulties to

adjust to international assignments.

2. The adaptation of expatriates is uncertain.

3. Complicated personnel planning procedures.

4. The private life of expatriates is severely affected.

5. Difficulties in constant mentoring during the stay abroad.

6. This approach to staffing limits the promotion and career

opportunities of local managers, which may lead to low moral and

increased turnover.

7. Parent country nationals are not always sensitive to the needs and

expectations of their host country subordinates.

8. Tensions between the expatriate executives and the HCNs (caused

by philosophical issues such as the clash of cultures and also by some

9. Expatriates are very expensive in relation to HCNs.

10. Legal regulations of the host country.

11. Government restrictions.

12. Repatriation.

13. High failure rate.

Polycentric:-

ADVANTAGES

1. Language barriers as well as adjustment problems of expatriates

and their families are eliminated (no adaptation problems).

2. Allows continuity of management within the host country.

3. The employment of HCNs is generally less expensive.

4. "No tension between the locals and the "watchdogs" sent from

headquarters occurs" (Mayrhofer and Brewster: "In Praise of

Ethnocentricity": 754).

5. Enhances the moral and career opportunities of local staff.

6. Supported by host country governments.

DISADVANTAGES
 1. Difficulty of achieving effective communication between HCN

managers at subsidiary level and PCN managers at corporate

headquarters.

2. Difficulties in exercising effective control over the subsidiaries that

arise when a multinational firm becomes a loose federation of

independent national units with weak links to corporate

headquarters.

3. Difficulty of coordinating the activities between headquarters and

subsidiaries because of a lack of "boundary persons".

4. There is a problem concerning the career paths of HCN and PCN

managers as both have very limited opportunities to gain experience

abroad outside of their own country (reduced opportunities for

personnel to widen their horizons and get an international view).

5. This lack of international experience is a liability in an increasingly

competitive environment.

Geocentric:-

ADVANTAGES

1. It enables a multinational firm to develop a pool of senior

international managers (development of a network of persons with

2. It reduces the tendency of national identification of managers with

subsidiary units of the organization.

DISADVANTAGES

1. It is increasingly the case that many host countries use their

immigration laws to require the employment of local nationals

(HCNs) where possible.

2. This approach can be difficult to implement because of increased

training, compensation and relocation costs.

3. The successful implementation of a geocentric staffing policy

requires a highly centralized control of the staffing process and the reduced
autonomy of subsidiary management may be resented.
4. A highly sophisticated personnel planning system is needed that allows worldwide
matching processes between vacant positions and persons with adequate qualification
profiles.
5. High costs.

BEST APPROACH :-

 The geocentric policy approachto staffing assigns job positions to any

person best suited for the position, regardless of the employee's

staffing policy approach is that it is highly flexible.

can increase the firm’s cultural knowledge about the different markets and
countries. However, a disadvantage of this staffing policy approach is that it could be
difficult to apply. Immigration policies, costs of worker relocation and diversity
management create pressure on HR management.

A geocentric staffing policy seeks the best people for key jobs throughout the
organization, regardless of nationality. The advantages of a geocentric approach are:
(1) Uses human resources efficiently, (2) Helps build strong culture and informal
management network. The disadvantages of the geocentric staffing policy are: (1)
National immigration policies may limit implementation, and (2) It is expensive to
implement. A geocentric approach is typically appropriate for firms unitizing a global
or transnational strategy. Thus mainly its depend on what kind of small and medium
enterprises you took about, if SMEs working in international market,then the GSP
can applied in SMEs