The ‘EPG’ in the title of this model stands for the following –. Ethnocentrism; Polycentrism; Geocentrism. Knowing where your organization lies under these three. Ethnocentrism is pre- dominantly a home country orientation. Ethnocentric Polycentric Regiocentric Geocentric Management orientation. Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. This policy is generally adopted by headquarters.
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Polycentric approach When a company adopts the strategy of limiting recruitment to the nationals of the host country local peopleit is called a polycentric approach. On the downside, it can be hard to properly grow the business in other nations when making decisions based on how things are done at home. Companies in sectors such as automobile, industrial, pharmaceutical, chemical and packaging are keen on bringing in people familiar with international best practices who can replicate the quality and precision of developed markets such as North America, the UK, Korea, Japan and Germany.
With that said, geocentrism is an ideology that must be accepted by any corporation operating globally in order for any sort of success and long term stability to be attained. A truly international HR department would insist on hiring people from all over the world and place them throughout the international business operations of the organization.
The general rationale behind the ethnocentric approach is that the staff from the parent country would represent the interests of the headquarters effectively and link well with the parent country.
Ethnocentric, Polycentric, Regiocentric, and Geocentric Approaches
In many ways, this is an approach that falls somewhere between the first two that we have covered. International firms, while choosing employees for overseas operations, usually prefer people with highly developed technical skills good language and communication skills tolerance towards other culture, race, creed, colour, habits, and values high level of motivation stress resistance goal-oriented behaviour Finally, at the time of selection for international assignments, an organization should consider the previous overseas experience, family circumstances and cultural-adaptability level of the candidates aspiring for the global jobs.
Companies that are truly global in nature adopt this approach since it utilizes a globally integrated business strategy. The process is laid down between local entity and global teams and then those processes are monitored and administered.
The idea behind ethnocentrism is the concept that the organization is going to default to the thinking, traditions, and more of its home country.
The HR department must have the capacity to foresee the changes in these markets and exploit those changes productively. For women expats looking to find personal fulfilment at work, the best places in Asia were Singapore 56 per centChina 48 per cent geocenteic, India 48 per centHong Kong 47 per cent and Indonesia 41 per cent. Languages Deutsch Edit links.
EPG model – Wikipedia
The main difference of geocentrism compared to ethno- and polycentrism [ disambiguation needed ] is that it does not show a bias to either home or host country preferences but rather spotlights the significance of doing whatever it takes to better serve the organization. Rather, this kind of organization will focus only on what they think regioccentric best for the needs of the organization and its customers. Top Indian IT companies like TATA, HCL technologies India’s fourth largest software export, Infosys and Wipro stepped in United States to set up their subsidiaries and recruited American nationals from colleges and regoicentric professionals who had the local knowledge and domain expertise.
Knowing where your organization lies under these three headers is important, whether you happen to find your company under just one or perhaps a combination of two or three. Also, corporate headquarters may not employ enough managers with international experience.
It is essential that the workforce of an international organization is aware of the nuances of international business. The overseas entities send in their representatives from various departments to share best practices being followed by various entities all over the globe.
It is the overall goal of ethnocenntric to form a collaborative network ethnocentrjc headquarters and subsidiaries; this arrangement should entail a set of universal standards that can thus be used as a guideline when attacking key business decisions.
What is accepted as a permissible way of treating employees in the United States, the home country, may not be acceptable to Chinese employees, in the host country. R Suresh, managing director of Insist Executive Search, said that if there are four-five members in the shortlist for a CXO search, two are invariably expats. In this example, the U. These include digital, large world-class manufacturing, research and development, data sciences, artificial intelligence, machine learning, etc.
Putting more emphasis on the local offices will create a situation in which those offices are doing the same work that is being done in other parts of the world — causing costs to rise unnecessarily. Therefore, knowledge that could be beneficial across all regions is lost, and subsidiaries could be worse off than if they had obtained the knowledge.
K Sudarshan, managing partner — India at EMA Partners, is currently running global searches for CXO-level executives in engineering industry across operations, safety, process excellence and quality functions. Natives of Australia manage the home office. This is due to the fact that the end objective of any selection process is to choose the most capable persons for the job.
In contrast to ethnocentrism, polycentrism defaults to the strategies, methods, and techniques of the host country when it comes to decision making for the organization. Since the HR operations are constrained by several factors like political and ethnical factors and government laws, it is difficult to adopt this approach. In this example, the Australian parent company uses natives of India to manage operations at the Indian subsidiary.
Please help improve it by rewriting it in an encyclopedic style. Tripathi cites non-availability of local talent for critical roles as the reason for the increase in expat hiring. When a company follows the strategy of choosing only from the citizens of the parent country to work in host nations, it is called anethnocentric approach. Even those organizations which initially adopt the ethnocentric approach may eventually switch over lo the polycentric approach.
Instead of moving in directions that are not going to allow the business to ultimately reach its desired destination, it is important that the organization remain focused on its core values and culture in order to thrive.
International Selection Even though cultural differences influence the selection procedure to some extent, organizations tend to follow similar criteria and methods worldwide. When regional expertise is needed, natives of the region are hired. Understandably, the company must keep international knowledge and experience as criteria in the recruitment and selection process.
Polycenntric Geocentric orientation nationalities are largely ignored, with the company being run polyecntric a global enterprise rather than a large corporation which is deeply rooted in one specific nation. The ethnocentric approach places natives of the home country of a business in key positions at home and abroad.
The EPG Model provides insight in how far an organisation has internationalised. Etbnocentric shortcoming of the regiocentric approach is that managers from the region may not understand the view of the managers at headquarters. These aspects require relevant talent to be brought into their processes.
From Wikipedia, the free encyclopedia. In the most extreme views of polycentrism, it is the “attitude that culture of various countries are different, that foreigners are difficult to understand and should be left alone as long as their work is profitable.