Globalization has transformed the workforce into a unified corporate village, prompting organizations to expand internationally in search of new market opportunities. To manage subsidiaries across different regions effectively, companies must adopt innovative HR practices aligned with their strategies and structures. Two main approaches exist: one focuses on aligning HR policies with organizational strategies, while the other seeks to establish best practices for enhancing HR performance.
In Alpha's case, a contingent fit strategy was employed, revealing challenges that necessitated damage control. While a polycentric approach helped empower employees, a geocentric or regiocentric approach would enhance cross-cultural collaboration. Overall, a geocentric strategy is more effective for multinational corporations, allowing for talent recruitment based on skills rather than nationality, thereby building stronger networks and providing a sustainable competitive advantage.