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Influence of International Orientations of MNCs on Recruitment and Selection Practices within their Subsidiaries Essay Example

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Influence of International Orientations of MNCs on Recruitment and Selection Practices within their Subsidiaries

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Influence of International Orientations of MNCs on Recruitment and Selection Practices within their Subsidiaries. Staffing policies hold an apex position. The key challenges are selection and retention of a talented employee, training and developing, encouraging them to be innovative and creative, living and working conditions, cultural barrier, performance appraisal from distance, legal framework (labor law), compensation package and labor relations (Sengupta, 2009, p. The issue arises since the policies and legal structure varies from country to country. Due to globalization, the companies are not restricted to a single country and these problems require an immediate address. Within the companies, the staffing function imparts a significant impact on the domain of strategic management including recruitment and selection.

Recruitment occurs from the grass root level to the top hierarchy, who are steered with the motive of taking strategic actions for the company. The linkage between the behavior of the employees and performance of organizations has not been promptly highlighted within the HR policy studies. Empirical evidence also reveals that the top management of the companies attach a greater attention to processes like capital budgeting and has ignored proper mechanisms that could be useful for allocating the human skills to form the core competencies (Prahalad & Hamel, 1990, p. Still different aspects of the HR practice should be incorporated within each other so that the business objectives can be rigidly manifested (Searle & Ball, 2003, p. This paper will critically evaluate different international orientations of the MNCs that influence recruitment and selection practices within their subsidiaries. For this, the different types of managing and staffing approaches followed in the subsidiary should be observed. There are three different approaches followed by the companies namely Ethnocentric, Polycentric and Geocentric approach. In the ethnocentric approach, the cultural values and the business practices of the home country or the host country predominates. Influence of International Orientations of MNCs on Recruitment and Selection Practices within their Subsidiaries.

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