 In this topic, we are going to discuss a model of determinants of staffing choices. It means that we are going to talk about what are the factors that actually lead to certain kind of approaches and then finally hiring of different type of people in the international operations. We have discussed in the previous topics that there are four approaches to staffing international operations, ethnocentric, polycentric, geocentric and regiocentric. But what are the reasons? What are the factors because of which we go for either of this approach? Why would we go for an ethnocentric approach? Why would we go for a polycentric or a geocentric approach? What are the factors, different contextual factors, different local factors, different HR factors and different company specific factors that actually lead to such kind of approach being employed by an organization? So we are going to discuss and look at a model of determinants of staffing choices. So let's take a look at this model. So in this diagram, you can see that there are four sets of determinants of these staffing choices. At the center, you can see the staffing choices being listed as ethnocentric, polycentric, regiocentric and geocentric approaches. And there are four types of variables which are affecting these staffing choice. So the first on the left-hand corner is the context specificities. What is the context in which the firm is operating? And in that then there are, again, four classification of this context. What is the cultural context? What is the institutional context? And whether there is staff availability in that particular multinational and in that particular country or set of countries. And then what is the type of industry? As we discussed in the previous chapters, in the previous topics that the type of industry is going to affect what type of approach you can employ in staffing. So the type of industry that is also going to affect the staffing choice of your organization. And then in the top right corner, you can see that there are the factors which affect staffing choices is company specificities. So what type of company specifics are there? What is the structure and strategy of the company? How much is the international experience of the company? If the international experience of the company is not so much, then you will go towards the ethnocentric approach. And if you do not have a very international existence, then it means that there is no need for a geocentric approach. If for example, your operations are going on in just a few countries, then the experience of it means that you are not so much that you go towards the geocentric approach. So you will go for an ethnocentric or maximum for a polycentric approach. Then what kind of corporate governance strategies are employed by your multinational organization? If corporate governance requires some kind of centralization, then it means that you cannot go for a geocentric or regeocentric approach. And finally, the organizational culture, what kind of culture is there? So culture is going to actually define what type of hierarchies, what type of structure, what type of formal informal relationships are there. So accordingly, your staffing choices are going to be decided according to your organizational culture. So if your organizational culture is loose, organic, it's well integrated, then you may go for a geocentric approach. But if it is fragmented and if the organizational culture is separated and the cultures which are held in different countries, they are keeping their own identities, then for it's difficult to go for a geocentric approach. And in that situation, you would be going for a polycentric approach. Then another set of factors which affects your staffing choices is the local unit specificities. So the local unit, the foreign subsidiary which is operating in that particular host country, what type of specific situation is there in that local unit? So in that, what was the establishment method of that particular firm? So the establishment method that is going to affect what kind of approach you can employ for staffing or that establishment method then is going to at least define the initial way in which you staff your organizational members. Then the strategic role and importance of the local unit, agar us local unit ka strategic importance jo hai wo hai hai, as a situation may you will not go for a polycentric approach agar unki strategic importance hai hai because then you would want to keep them aligned with your own organization. So you may go for a geocentric approach but or an ethocentric approach. But if the strategic importance of that particular local subsidiary is high, you will not go for a polycentric approach in which you are given complete autonomy and decision making to that particular subsidiary. Then how much is there the need for control? If it depends on your type of industry, it depends on the type of the culture of your host country. It depends on the type of the experience of your organization. It depends on how long the company has stayed in a particular culture. So how much need for control is there? If the need for control is high, you need to go for an ethocentric approach. But if the need for control is low, you can go for a polycentric approach. And if the need of control is for integration, then you would have to go for a geocentric or a regiocentric approach. And then finally, locus of decision making, decisions you have to go for an ethocentric approach. So these are the different local unit specificities which affect the staffing choice that you have for your international operations. And finally, the last set of factors is the IHRM practices. So your international human resource management practices, they are going to affect what type of staffing choices you have. So the type of selection techniques that you use, the training and development, your organization, if your training or development does not have your concentration or focus then you cannot go for a geocentric approach because the geocentric approach has to bring you to different types of people and you have to get them exposed in different cultures. So if your training or development unit is not aligned with it and can't complete this requirement, then you can't go for a geocentric approach. Then compensation, obviously as we discussed in the geocentric approach that there has to be an international standard base pay. So if your compensation packages are not according to that requirement or the approach that you want to apply, then you cannot go for that particular approach. So if you have got a high degree of variance between your home country nationals and your parent difference between your host country nationals and parent country nationals, then you may not be able to go for a geocentric approach. And then finally what type of career management is, what type of career carriers are being supported by your organization that also affects what type of staffing policy or staffing choice you can go for. So if you are going for long term lifetime carriers, then you can employ the geocentric approach. But if you are offering short term carriers, then you will have to go for an ethnocentric or a polycentric approach. So different types of factors coming from various different external environment factors that affects your staffing choices and this model it classifies these different factors in four categories and tries to explain what different factors would be affecting your career choices, staffing choices in international operations.