The conclusions drawn by the researchers some time ago are still valid today. The ethnocentric staffing approach, for example, usually results in a higher level of authority and decision making in headquarters compared to the polycentric approach.'3
A study by Rochelle Kopp found that ethnocentric staffing and policies are associated with a higher incidence of international human resource management problems. Exhibit 9-3A shows the breakdown of staffing among PCNs, HCNs and TCNs of the 81 Japanese, European, and American companies studied. In addition, Kopp found that Japanese firms scored considerably lower than European and American firms in their practice of implementing policies such as preparing local nationals for advancement and keeping inventory of their managers around the world for development purposes. As a result of these ethnocentric practices, Japanese firms seen to experience various IHRM problems, such as high turnover of local employees, more than European and American firms, as shown in Exhibit 9-3B.
Without exception, all phases of human resources management should support the desired strategy of the firm.14 In the staffing phase, having the right people in the right places at the right times is a key ingredient to success in international operations. An effective managerial cadre can be a distinct competitive advantage for a firm. How the “right” selections are made is the focus of the next section.
Exhibit 9-2 : Developing a Global Management Cadre article from Global Human Resource Management Catagory Exhibit 9-2
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