Four International Human Resource Management Orientations
Global orientation is the concept in which a corporation recruits internationally while assigning international tasks to the best-performing managers. Ethnocentric orientation entails following all aspects of HRM on the parent organization’s home country’s HRM practices. Regiocentric and polycentric orientations refer to the conditions in which HRM practices are different in the host countries, thereby making the HRM more responsive.
In terms of training, ethnocentric orientation does not require staff training. On the contrary, in polycentric, limited training is required for home country nationals because some language training is required. The need for multilingualism and cultural adaptation requires a global orientation to have continuous training. In regiocentric, home country nationals receive moderate training. With compensation, there are additional pay and benefits for expatriate assignments in ethnocentric orientation. In polycentric, besides the extra salaries and benefits, the host country, rates of compensation apply for the host country nationals. Longer assignments make expatriates receive less compensation in regiocentric orientation.
In contrast, in the global orientation, employees receive similar pay and benefits globally. In terms of recruitment and selection, home country nationals occupy essential positions while host country nationals assume lower-level management roles in ethnocentric. On the other hand, a global orientation selection is worldwide and based on employees’ qualifications for the positions. In regiocentric, home country nationals assume top positions and regional, state citizens perform both low and mid-level positions. Host country nationals assume mid-level positions and home country nationals assume senior management positions in polycentric orientation.
Ethnocentric can support multinational strategy by ensuring that essential decisions are centralized, and reduced training costs because home country nationals do not require training. Multinational strategy gains from both Polycentric and regiocentric through reduced training expenses, fewer requirements for language adjustments, and lessened relocation and hiring costs. Global orientation helps multinational strategy by ensuring a bigger talent pool, developing transnational organizational cultures as well as providing high international expertise.