Professional Documents
Culture Documents
• Staffing policy
– Selecting individuals with requisite skills to do a particular
job
– Tool for developing and promoting corporate culture
• Types of Staffing Policy
– Ethnocentric
– Polycentric
– Geocentric
Ethnocentric policy
• Two issues:
– Pay executives in different countries according to the
standards in each country?
or
Equalize pay on a global basis?
– Method of payment
Compensation issues
• Key Issue
– Degree to which organized labor can limit the choices of
an international business
• Aims to foster harmony and minimize conflicts
between firms and organized labor
Concerns of organized labor
• Multinational can counter union bargaining power
with threats to move production to another country
• Multinational will keep highly skilled tasks in its
home country and farm out only low-skilled tasks to
foreign plants
– Easy to switch locations if economic conditions warrant
– Bargaining power of organized labor is reduced
• Attempts to import employment practices and
contractual agreements from multinationals home
country
Strategy of organized labor