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Geocentric Organisation: This staffing philosophy seeks the best people for key jobs throughout the organization,

regardless of nationality, selecting the best person for the job, irrespective of nationality is most consistent with the underlying philosophy of a global corporation. The MNC is taking a global approach to its operation, recognizing that each part (subsidiaries and headquarters) makes a unique contribution with its unique competence. It is accompanied by a worldwide integrated business and nationality is ignored in favour of ability. There are three main advantages to its approach: It enables a multinational firm to develop an international executive team which assists in developing a global perspective and an internal pool of labour for deployment throughout the global organization. It overcomes the federation drawback of the polycentric approach. It supports cooperation and resource sharing across units. There are disadvantages associated with a geocentric policy. Bridging the gap between HCN subsidiary managers and the PCN managers at headquarters is a major problem, especially with regard to language barriers, conflicting national loyalties and differences emanating from personal values attitudes to business and so on. Host government want a high number of their citizens employed and may utilise immigration controls in order to force HCN employment if enough people and adequate skills are unavailable. Many western countries need extensive documentation if they wishes to hire a foreign national instead of a local national, which is time consuming, expensive and at times, futile. A geocentric policy can be expensive to implement because of increased training and relocation costs. A related factors is the need to have a compensation structure with may be higher than national levels in many countries. Lack of exposure to international assignments among PCN managers at headquarters and lack of career mobility among HCN managers due to their stagnation in subsidiaries will ultimately affect the strategic decision-making capabilities of both the groups of managers, thereby affecting the firms, and the quality of their business decisions and their resource allocation capabilities, reducing their market share and customer base and their position in the foreign country, vis--vis their competitors. Large numbers of PCNs, TCNs and HCNs need to be sent abroad in order to build and maintain the international team required to support a geocentric staffing policy. To implement a geocentric staffing policy successfully, therefore, requires a longer lead time and more centralized control of the staffing process. This necessarily reduces the independence of subsidiary management in these issues, and this loss of customarily may be resisted by the subsidiary.

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