The company wishes to start its operations abroad ought to choose the character of this subsidiary and the way it is going to be managed. Perlmutter (1969) comes out with the concept of four styles of managing abroad. Ethnocentric subsidiary is managed mainly by home country nationals‚ with the home country language and culture. Therefore‚ the recruitment for majority management positions takes place in home country (Muijen et al 2000). For example‚ the unwritten policy of Ikea is that CEO of any
Premium Management
INTERNATIONAL BUSINESS Distinguish between Ethnocentric and Polycentric Human Resource Management policies used by Multinational Corporations‚ clearly outlining the advantages and disadvantages of each. ETHNOCENTRIC POLICY The ethnocentric staffing policy refers to the strategy of a multinational company to employ managers for key positions from the parent headquarters instead of employing local staff. In the ethnocentric approach‚ the cultural values and business practices of the home
Premium Corporation Multinational corporation Globalization
each and the condition under which you would choose one approach over another? Answer (1) Major staffing approaches for international operation falls into one or more of the following staffing modes: ethnocentric‚ polycentric‚ regiocentric and global operation. Firms using the Ethnocentric staffing approachfill their key managerial positions with persons from headquarter that is parent country nationals. Among the advantages of this approach‚ parent country nationals are familiar with the company
Premium Management Polycentrism
Resource Management at Coca-cola. Question 1:- What is Coca-Cola’s staffing policy for managerial positions: ethnocentric‚ polycentric‚ or geocentric? Does this policy make sense? Answer:- .: I think Coca-cola staffing follows a polycentric for managerial positions as they have to do that because they “think globally and act locally” and on this basis their policy is combination of ethnocentric as well as geocentric. Yes this policy makes sense because this is aligned with their global strategy in global
Premium Management Human resource management
setting up an international operation. Firstly ethnocentric; this policy is adopted by headquarters who sends expatriates to parent country nationals (PCNs) to fill manger positions in host country nationals (HCNs). This approach is based on that subsidiaries can be managed more effectively by expatriates as they are more informed of company’s goals‚ objectives‚ policies and strategies compared to local managers. The Second approach is Polycentric‚ this is where locals which are known as Host country
Premium Polycentrism Adoption Expatriate
The Pros and Cons of International Staffing 1. Introduction There has been a rapid pace of internationalization and globalization over the last decade. Expanding business operations beyond national boundaries while continuing commitment to local markets requires more complex business structures. One of the most critical determinants of an organization ’s success in global ventures is the effective management of its human resources. The purpose of this paper is to summarize the advantages
Premium Multinational corporation Human resources Human resource management
venture | | | c. strategic alliance | | | d. franchising company | | Question 5 Marks: --/1 A ________ attitude is characterized by parochialism. Choose one answer. | a. acculturated | | | b. geocentric | | | c. ethnocentric | | | d. polylinguistic | | Question 6 Marks: --/1 The European Expansion (Scenario) You have been hired by a company to look at the ways to best move the company into the European market‚ but you have to first determine what
Premium Geert Hofstede
1.0 Study Case Summary Office Equipment Company (OEC) manufactures a wide variety of office equipments such as copying machines‚ recording machines‚ mail scales and paper shredders in eight different countries and distributes and sells products worldwide. It has no manufacturing facilities in Peru but has been selling and servicing there since the early 1970s. OEC first tried selling in Peru through independent importers but quickly became convinced that in order to make sufficient sales it
Premium Managing director Corporate governance Management
to give its “customers the industry’s most efficient flash storage platform.” In order to better identify which staffing is best fit for Numble’s Storage company we must better understand the four cultural concepts of ethnocentric‚ polycentric‚ regiocentric‚ or geocentric. Ethnocentric “involves staffing the most important positions in the foreign subsidiaries with expatriates from company’s home country”. Expatriates are selected from the current companies country and then transferred to the companies
Premium 2016 Corporation Country
EPRG Framework A firm needs to an appropriate orientation for the world market. While looking for orientation‚ it is important to understand the EPRG framework. Ethnocentric (E) orientation refers to home country organization. Here the firm ’s reference point is the home market. Generally‚ when the firm is ethnocentric‚ it looks for foreign markets to sell its currents products and surpluses. There is hardly any or minimal product adaptation for the foreign markets. Maybe some minor changes are
Premium Marketing Market Economics