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beyond senior positions in their own subsidiary. As in the case of regiocenttrris policy, this may cause resentment.
Perhaps the major drew back with the Polycentric staffing policy approach however is the gap that can form between the host country mangers and parent country managers. Language barriers, national loyalties, and range of cultural differences may isolate the corporate headquarters staff from the various foreign subsidiaries. The lack of management transfers from one home to host countries, and vise versa, can exacerbate this isolation and lead to lack of integration between the corporate headquarters and the foreign subsidiaries. The result can be a ¡§federation¡¨. Of largely independent national units with only nominal links to the corporate headquarters. With in such federation the coordination requires to transfer core competencies or to perceive experience curve and location economics may be difficulty to achieve. Thus although a polycentric approach may be effective for firms pursuing a multi domestic strategy, it is inappropriate for other strategies.
The geocentric approach
This policy seeks the best people for key jobs throughout the organisation, regardless the nationality. There are number of advantages to this policy. First it enables the firm to make the best of its human resources. Secondly it enables the firm to build a cadre of international exceutives who feels at home working in a number of cultures. This could build a strong unifying coorparate culture and informal management network. In addition, geocentric staffing policy tend to reduce cultural myopia. Thus other things beign equal this approach seems the most attractive. Among the disadavantages this policy has are it can be expensive to implement. There are increased training and relocation costs involved in transferring managers from a county to another. Another is the firm
Expactriate employees are citizens of one country who are working in another country. Two of the three staffing policy which we discuss ¡V regionalcentric and geocentric ¡V rely on extensive use of expatriot management. One of the major issues regarding expactriot employment is that its failiur rate. One estimate is that between 16 ¡V 40 percent of employees sent abroad specially to developing nations return from their assignments early. One of the reasons for this failuire rate is the failiur of the firms selection policy to identify individuals who will not thrive abroad. The cost of expactriorate failiur rate are high. One estimate is that the average cost of failiur to the parent firm can be as high as three times the expactriates annual salary plus the cost of relocation. Other than the lack of selection policies the reasons for expactriate failiur are
„h Inability to spouce to adjust and other familiy problems.
„h Personal emotion problems.
„h Inability cope with larger oversees responcibilities.
„h Lack of cultural skills and knowledge.
„h Lack technical competence.
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