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The procedures that identify and address the implications of staffing in a firm on its business strategies and plans are entailed by Staffing Framework. It has generally three types: Ethnocentric, Polycentric, and Geocentric. Three types determine where the staff would be employed. Paul Fierman was a fresh MBA graduate who was allocated in Vietnam by the Chicago Food and Beverage Company, but he could not perform as well as was expected by his former supervisor, Allen Roger.
An ethnocentric kind of Staffing Framework has been used in the provided case study. In this kind of staffing framework, a parent company employs top-level executives from its home country and allocates them into the subsidiaries. The usefulness of this kind is that the parent company keeps the command and control system of the subsidiary in its own hands and thus it attempts to maintain its product quality and way of marketing in coherence with the parent company (Bodolica, & Waxin, 2007). Paul Fierman was a fresh MBA graduate with little international experience of work and he was allocated in Haiphong, Vietnam.
Apparently, the proponents of this framework claim that it is an ideal framework to maintain international standard of the products and it can help the parent company to control and command the business activity in subsidiary firms using its own employees, but the conversation between Paul and his wife Arrie after six months of Paul’s job in Haiphong reveal that Paul could not perform in Haiphong as he expected because of the strange and unfamiliar environment he faced in Haiphong. The Chicago Food and Beverage Company allocated Paul in Vietnam, assuming that he would perform well at the place of Mike Shannon, but Paul expressed that he was not satisfied with the job due to unfamiliar social context, and an unsatisfactory wage. Thus, we can say that this type of staffing framework would prove counterproductive in the case of Paul.
The polycentric type of staffing framework can be a useful replacement of an ethnocentric type, for multinational companies. Top-level executives in the polycentric type of staffing framework are employed from the country or region where a subsidiary branch of a company works. This type is suggested to the company headquarters because the executives who would be employed from the home country of the subsidiary firm might not face such difficult circumstances that were faced by Paul. Paul was missing his home country and friends there. Moreover, he was not enjoying the luxuries which he was used to in the USA despite getting a 178,800-dollar salary there. An executive who would be employed from the home country of a subsidiary firm would be considered to have a high wage and he would also like this amount of salary being paid in his or her home country. Above all, he would know how to successfully run industry there with the help of the firsthand knowledge he or she would have about the social context.
Paul did not ask specifically for this job rather he just contacted his former supervisor Allan Roger expressing that he aspires to join Chicago Food and Beverage Company soon after the completion of his MBA degree. It was because he had prior experience of working for this company and he thought he could have bright future opportunities working in this company, it was Roger who encouraged him to apply for the position considering him a potential candidate for the post, but the results proved opposite. Knowing the aspirations of Paul and the ground realities of Vietnam we can say that Paul did not deserve this job for he was unaware of even what kind of people and market trends were popular in the country, he was being allocated to. Paul is used to and committed to living in a developed region of the world, therefore, was not a good candidate for this expatriate position.
Expatriate Management deals with issues like the transfer of technologies, the transmission of organizational culture, and the development of the international skills of employees. In simple words, expatriate management always deals with issues between different branches of multinational companies (Harvey, Speier, & Novecevic, 2001). Expatriate Recruitment Policy refers to the practice of hiring staff for multinational companies in different regions and countries. Expatriate Recruitment Policy is guided by the Staffing Framework which determines the region that the employees would be selected from.
Three kinds of Compensation methods are discussed in the text: international standard, home country standard, and host country standard. International compensation methods ask the companies to offer the same wages to all workers, whereas, the home country method suggests using the standards of the parent company's home country. Finally, the host country method allows the companies to follow the wage standards popular in the country where the subsidiary firm works. People who migrate from developed countries to underdeveloped countries appreciate the international wage standards feel restless with the host country methods.
It is suggested to the US headquarters' human resource managers to offer international standard wages to the top-level executives so the employees will work motivated. Paul was uneasy with the job because of a strange social context, but one important factor was his uneasiness while he claimed that his salary did not help him enjoy trips on weekends to freshen up his mind (Sadler, Lee, Lim, & Fullerton, 2010). The US headquarters’ HR manager should consider that had Paul have enjoyed a handsome pay package, he would have not expressed such amount of frustration before his wife.
Paul Fierman was employed using the ethnocentric type of staffing framework, but he could not perform satisfactorily because he had little experience of working as an expatriate. Had the firm's HRM in the USA used the polycentric type of framework or international compensation method, he would have received different results than he received from the performance of Paul Fierman.
Harvey, M., Speier, C., & Novecevic, M. M. (2001). A theory-based framework for strategic global human resource staffing policies and practices. International Journal of Human Resource Management, 12(6), 898-915.
Sadler, G. R., Lee, H. C., Lim, R. S. H., & Fullerton, J. (2010). Recruitment of hard‐to‐reach population subgroups via adaptations of the snowball sampling strategy. Nursing & health sciences, 12(3), 369-374.
Bodolica, V., & Waxin, M. F. (2007). Chicago food and beverage company: The challenges of managing international assignments. Journal of the International Academy for Case Studies, 13(3), 31.
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