Question

A international financial services company headquartered in Sweden hires and promotes its executives based strictly on ability and experience. Each executive must meet global goals related to social responsibility and profitability. Policy dictates that decision making is handled collaboratively between regional management and headquarters management. According to Heenan and Perlmutter's IHRM model, this company's human resource strategy is

Multiple Choice

• ethnocentric.

• polycentric.

• regiocentric.

• geocentric.

Answer 1

ANSWER: Geocentric

Explanation: There are four International Human Resource Management strategies namely, ethnocentric, polycentric, regiocentric and geocentric. Firms with ethnocentric approach recruit managers from home country; firms with polycentric approach recruit managers from host country; firms with regiocentric approach recruit managers from a specific region (like South Asian for Japan; European national for France etc) and firms with geocentric approach recruit managers irrespective of their geographical location; employees in geocentric firms are recruited based on merit and skills irrespective of his/her geographic location.

In the above question the Swedish firm recruit employees ability and experience to meet global goals. The recruitment strategy here is geocentric. Therefore, answer for this question is GEOCENTRIC