University of the PeopleSOC 101IBT_ASSIGNMENT

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There are three main approaches to staffing namely: Ethnocentric approach, Polycentric approach, and Geocentric approach. The ethnocentric staffing approach emphasizes on the standards and practices... of the parent company where the upper management positions are usually held by the headquarters’ personnel. Strategic decisions are made at the company’s headquarters. The second key role is the polycentric staffing approach. In here, each subsidiary is a distinct national entity with some decision-making sovereignty. The polycentric staffing approach intensely centers around the standards and practices of the host organization where upper administration positions are regularly held by corporate work force from the neighborhood country. Lastly, the geocentric approach focuses on finding the most suitable managers regardless of their nationality. The first and second key role that expatriates play is that they train local employees, and they can be a manager. There is a certain reason why expats get called abroad; their knowledge and skill. Having a foreign individual train a local personnel can be an advantage to your company. Also, an expatriate that manages and runs the operations can have an edge in engaging in foreign business because they have a knowledge about the other country’s culture and norms. The third key role is that expatriates are strategists; they represent the interest of the multinational company’s headquarters. The fourth key role is that they can represent the headquarters' interests, build relationship with the host country stakeholders. Being an expatriate comes with a lot of advantages like earning more money, learning something that are not taught to you home country, etc. But it also comes with an disadvantage. The most common problem expatriates face is their inability to adjust in a foreign country. Living in a foreign country means dealing and adjusting to the country’s culture and norms. You can’t just go around a foreign country ignoring its societal norm. Some expatriates fail abroad because of family and work problems. The going rate approach highlights the local market rate, with additional benefit or more commonly known as compensation, if the salary is lower than home country. This is also known as ‘host country based approach’. The balance sheet approach compensation on the other hand is used to set expatriate compensation. The objective is to secure or adjust an expatriate's purchasing power while on assignment abroad. This is a compensation approach that adjusts the average cost for basic items. According to my research, there are a lot of challenges expatriates are going to face when they go back to their mainland. Some of these are: being out of place in your friend group, will have to readjust to the old culture, lesser salary. These problems can be solved with time, but it will take several months or years before they get settled completely. A psychological contract is actually ironic because a contract is defined as a written rule. However, with the psychological contract, it refers to the unspoken rules or set of expectations of the employee to the management. Based on what I have read, employees should manage their expectations, and employers should not give false perceptions and conjunctures [Show More]

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