Ethnocentric, Polycentric and Geocentric are a global business's staffing system.
Ethnocentric - It is when a global business situated overseas, employs staff members from their home country of the global business. However, this maybe an ineffecient staffing system as the employed staff will incur high financial costs to the global business as they have to pay for the transfer costs of the staff from the home country to overseas and the staff's living expenses (e.g Rent for their new home) also this could bring effenciency to the business if the new staff is not able to fit in and be culturally compatible in his/her newly situated location.
Example: If Commonwealth Bank Australia decides to set up their operations in China. They would employ Australian staff from their branches in Australia and pay them extra monetary benefits for them to move to China and work in the new business location.
Polycentric - It is when a global business situated overseas, employs staff from the new area but only for lower positions within the organizational structure such as line manager and operational staff. Positions of high position such as Senior management will be employed from the home country of the business. This would benefit the business as the employees from the area of expansion would provide the business with knowledge of the culture and protocols of the newly expanded area.
Example: If Commonwealth Bank Australia decides to expand into China, they would employ staff from the China Labour Force to fill out positions at the lower end of the heirachical structure and bring Australian Staff from Australia
Geocentric- It is when the business employs the best person for the job regardless of ethnicity and place of residence.
