9. Major approaches to managing and staffing subsidiaries
• Ethnocentric: company uses the approach developed in home country and
the values, attitudes, practices and priorities of headquarters determine
the HR policies and practices.
• Polycentric : company considers the needs of the local subsidiary when
formulating human resource policies.
• Regiocentric : the company considers the needs of an entire region when
developing the human resource policies and practices.
• Global or geocentric: The company’s priority is the optimal use of all
resources including human resources, local or regional considerations are
not considered important for the success of corporate strategy.
10. Choosing an Approach to IHRM
• Political and legal concerns
• Level of development in foreign locations
• Technology and the nature of the product
• Organizational life cycle
• Age and history of the subsidiary
• Organizational and national cultural
differences
