Headquarters from the home country makes key decisions, employees from the home country hold important jobs, and the subsidiaries follow the home country resource management practice. Ethnocentric is a term that is sometimes associated with attitudes of national arrogance or assumptions of national superiority. Extensionethnocentric the first can be called an extensionethnocentric pricing policy. Students answers will vary based on their agreement or disagreement with this statement. International journal of business and social science vol. Polycentric marketing segments the market by nationality. Regiocentric staffing is a lot like polycentric staffing in that hostcountry nationals staff each foreign subsidiary to a high degree.
What key factors should a firm consider before adopting one of these approaches. An ethnocentric orientation simply does not work anymore because consumers can choose a different supplier that is willing to take their preferences into account. Each have unique characteristics that could make or break a company. Defining polycentric, ethnocentric, and geocentric approaches to staffing. Factors affecting international staffing in chinese multinationals. Pdf from an ethnocentric to a geocentric approach to. Instructors manual contains tutors notes and answers to chapter questions. Managing human resources in international organizations. Polycentric, regiocentric and geocentric listed as eprg.
Perlmutter within the journal article the tortuous evolution of multinational enterprises in 1969. A geocentric approach means that the parent company will look after talent and skills. Check out our top free essays on ethnocentric polycentric regiocentric geocentric to help you write your own essay. Ethnocentric orientation is when the individual is. The three primary models of international marketing that address the marketing mix include ethnocentric, geocentric and polycentric. Why do people support ethnocentric staffing as the most viable option. As managers gain experience in foreign business activities, the knowledge they gain increases at a faster rate due to synergy. How is ethnocentric, polycentric, regiocentric and geocentric abbreviated. Ethnocentric, polycentric, regiocentric, geocentric model eprg or epg model 1. International recruitement approaches linkedin slideshare. Free essays on ethnocentric polycentric geocentric geocentric. In 1958, grindlays bank merged with the national bank of. Regiocentric approach the geocentric approach is one of the methods of international recruitment where the multi national companies recruit the most suitable employee for the job irrespective of their nationality.
While polycentric maintains employees from the same area, ethnocentric is generally adopted by headquarters by sending employees from the home or parent countries to the host country. Polycentric, ethnocentric, and geocentric approach to. Polycentric orientation is the practice of decentralizing marketing, research and development of a multinational company to the local market of a country where its products are being sold, according to bizshifts. What is the difference between a polycentric, ethnocentric. The ethnocentric model is one which a business feels and acts as though it is superior to other countries, both in its culture and products or services business, 2012. The geocentric orientation or world orientation is a synthesis of the ethnocentric orientation home country and polycentric orientation host country. Transition from a regiocentric to geocentric approach. Eprg ethnocentric, polycentric, regiocentric, geocentric formula as one of the basic strategy typologies. These three dimensions allow executives to more accurately develop their firms general strategic profile. In 1998 the merge of citicorp and travelers group has been done and. Other companies, such as astra and pharmacia, have merged with. Free essays on ethnocentric polycentric regiocentric.
Ethnocentric, polycentric, regiocentric and geocentric listed as eprg. Identify the advantages and disadvantages of each for international company staffing. Pdf international staffing strategic considerations for. The most recent ten members, joining in may 2004, are. Apart from the abovementioned ethnocentric and the polycentric approaches, there are the geocentric and the regiocentric. A geocentric perspective o ne of the greatest competitive advantages for global managers is knowledge. Ethnocentric, polycentric, regiocentric, and geocentric. Regiocentric orientation strategy in fast food chain prof. Geocentric approach global approach under this approach the entire world is just like a single country for mncs they source all kinds of resources from all countries of world each subsidiary functions independently and autonomously mncs source for the best prospective employees in terms of suitability from entire world when a company adopts. Polycentric approach to international management is the policy involved hiring and promoting employees who are citizens of the country that host and operates the company. The selection of manager is based on competency rather than nationality and organizations try to combine the best from both the corporation headquarter and its subsidiaries. What pricing policy should a global company pursue. The company has 40 stores, in which reflects success of social ambition. Polycentric marketing is one of three dimensions in the epg model.
Ethnocentric approach is a staffing policy that is used in companies that has primarily international strategic orientation. Ethnocentric approach is used in mncs having international strategic orientation while polycentric approach maintains employees from the same area, ethnocentric involves sending employees from the home or parent countries to the host country. The paper discusses the relation of the size of the firm and its international strategy, especially the eprg ethnocentric, polycentric, regiocentric, geocentric. Free essays on ethnocentric polycentric regiocentric geocentric. Viewed broadly, there are three alternative positions a company can take toward worldwide pricing. The performance question 2 abstract this study sought to determine if nationally diverse, geocentric global corporations where nonnationals are well represented on boards and in global top management teams gtmt. It incorporates the ethnocentric, geocentric and polycentric approach to analyze hr issues and hence make a. International recruitment methods ethnocentric approach. In polycentric organizations, control is decentralized.
Ethnocentric orientation a person who assumes his or her home country superior compared to the rest of the. This policy requires that the price of an item be the same around the world and that the importer absorbs freight and import duties. Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. The ethnocentric or the geocentric global corporation. Multinational companies executive selection practices. The other way to become multinational is to merge with companies based in. The more a manager learns about various countries, the better he. Ethnocentric, polycentric, regiocentric, geocentric model. This model includes ethnocentric, polycentric and geocentric marketing. Eprg ethnocentric polycentric regiocentric geocentric. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric management orientations.
The objective of this paper is to verify whether the size of internationalised firms from poland plays any role in applying a particular international strategy. The regiocentric approach uses managers from various countries within the geographic regions of business. Chapter 2 what is the difference between a polycentric, ethnocentric, and geocentric approach to international management. The eprg ethnocentric polycentric regiocentric geocentric model applied to kcb bank group as a multinational corporation. Ch1 ch2 ch3 ch4 ch5 ch6 ch7 ch8 ch9 ch10 ch11 ch12 ch ch14 ch15 ch16 ch17 ch18 problem. This policy is generally adopted by headquarters by sending employees from the home or parent countries to the host country. The worldview of a companys personnel can be described as. Recently i delivered a talk a the council on foreign relations titled managing the new trajectory of global innovation explaining why and how multinationals must revamp their westerncentric. Pdf human resource management and early internationalization. Ecoforum volume 3, issue 2 5, 2014 85 krzysztof drachal warsaw university of technology, poland k. Ethnocentrism segments the global market by race or ethnicity. In addition to manual analysis done by us coding, we may use. A management orientation based upon the assumption that there are similarities and differences in the world that can be understood and recognized in an integrated world strategy.
In case youre wondering what the concept of ethnocentrism exactly is, this opinionfront article gives you an explanation as well as some examples to help you understand it better. The other way to become multinational is to merge with companies based. Analysis of ethnocentric approach to hrm customwritings. Explain each of ethnocentric, polycentric, regiocentric, and geocentric approaches toward international human resource management, including. The eprg ethnocentric polycentric regiocentric geocentric. With this approach the domestic market sets the standard for. It incorporates the ethnocentric, geocentric and polycentric approach to analyze hr issues and hence make a contextualized road map. The idea of developing product assortment, customer service and product availability chapter 16, 541 was to be served and adjusted globally. Ethnocentric, geocentric and polycentric essays 937.
The home country practice prevails with this approach. However, company offices and facilities are grouped into. In other words, business units in different countries have a significant degree of. An ethnocentric staffing policy is one in which key management positions are filled by parent country nationals. Download it once and read it on your kindle device, pc, phones or tablets. Explain each of ethnocentric, polycentric, regiocentric. Regiocentric orientation strategy in fast food chain. In addition, the usefulness of a polycentric orientation is also in question when the goal is global competitiveness. Eprg is defined as ethnocentric, polycentric, regiocentric and geocentric rarely. There are four primary approaches that multinational companies use in staffing decisions, including ethnocentric, polycentric, geocentric, and regiocentric approaches. Ethnocentric, geocentric, and polycentric term paper.
The third approach perlmutter identified is known as the geocentric approach. If you were responsible for expanding a business overseas, which. Knowing where your organization lies under these three. Define the polycentric, ethnocentric, and geocentric approaches to staffing. Managers with a regiocentric perspective identify common threads throughout the. Ethnocentric, regiocentric, polycentric, and geocentric worksheet 1.
The suitability of the type of staffing policy adopted by mnes depends on the strategy used by the company. Business and management submitted by sean007 words 637 pages 3. A polycentric approach takes into consideration the differences between the. According to these characteristics, ikea would best be described as a global firm rather than a transnational firm.
Polycentric, ethnocentric, and geocentric approaches. What is the difference between a polycentric, ethnocentric, and geocentric approach to international management. The ppt describes on the various approaches to staffing international operations ethnocentric, polycentric, geocentric and regiocentric examining their advantages and disadvantages and factors that may determine the choice of these options. Finally, nissan had to change its orientation from ethnocentric to polycentric. Contrast ethnocentric, polycentric, and geocentric attitudes toward global business discuss the importance of regional trading alliances and global trade mechanisms describe the structures and techniques organizations use as they go international explain the relevance of the politicallegal, economic, and cultural environments to global. Ethnocentrism is pre dominantly a home country orientation. Eprg stands for ethnocentric, polycentric, regiocentric and geocentric. A companys competitive strategy should, in turn, drive the organizations approach to international human resource management ihrm. Use features like bookmarks, note taking and highlighting while reading defining polycentric, ethnocentric, and geocentric. Ethnocentric approach in the ethnocentric approach, all key positions in the host country subsidiary are filled. This serves as the synergy link between the practices and. Compare and contrast ethnocentric, polycentric, regiocentric, and geocentric staffing policies. It is ethnocentric, polycentric, regiocentric and geocentric.
Though we may choose to vehemently deny it, all of us are ethnocentric in some way or the other, with the marked exception of a few people. Pdf the present study focuses on the international staffing of early. This approach is used best in some situations such as, a team is sent from the home country to help setting up a new plant as well as train subsidiary personnel to use new system. From an ethnocentric to a geocentric approach to ihrm. In this model, a regional manager is employed to market products with awareness to the nuances of. According to these characteristics ikea would best be. The regiocentric approach is a combination of the first two approaches, where the. The ethnocentric staffing approach h eavily focuses on the norms and practices of the parent company where upper management positions are typically held by corporate personnel from the home country. Good students will introduce key words like ethnocentric, polycentric, regiocentric, and geocentric in their answers to describe their view of the manufacturer of beer and how they feel about the national origins of and about the beer they drink. Ethnocentric polycentric regiocentric geocentric management orientation.
Ethnocentric, polycentric, regiocentric and geocentric how is ethnocentric, polycentric, regiocentric and geocentric abbreviated. This content was copied from view the original, and get the alreadycompleted solution here. A study of linkage between swedish mncs strategies and human. Geocentric staffing approach is adopted when companies implement a transnational orientation. Ethnocentric, polycentric, regiocentric and geocentric. A developmental framework for analyzing organizations in terms of four successive management orientations. For the geocentric approach, it combines the advantages of ethnocentric approach and polycentric approach. International staffing policies and practices of south korean. While polycentric maintains employees from the same area, ethnocentric is generally adopted by headquarters by sending employees. There are also some disadvantages of a regiocentric approach. The ethnocentric approach is used less today as a staffing policy by.