that‚ when successfully done‚ it drives the company’s strategy. When poorly done‚ it ruins careers and decreases profitability. Heenan and Perlmutter (1979) have provided four approaches to international staffing: polycentric‚ ethnocentric‚ geocentric and regiocentric. In ethnocentric approach managerial positions are filled by staff from the parent company. Ethnocentrism is based on a belief that the home culture is superior. This means that the organisational culture will mirror that of the home
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Global Marketing‚ 6e (Keegan/Green) Chapter 1 Introduction to Global Marketing 1) A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs‚ more experience‚ and better products. Answer: TRUE Diff: 1 Page Ref: 4 AACSB: Reflective Thinking 2) As Wal-Mart expands into Guatemala and Central American countries‚ it is implementing a market development strategy. Answer: TRUE Diff: 1 Page Ref: 4 AACSB:
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Question 1 1. Which of the following terms refers to working partnerships between MNCs across national boundaries and often across industries? Answer | | transnational corporations | | | strategic alliances | | | foreign subsidiaries | | | turnkey operations | 1. Which of the following terms refers to an overseas business owned and controlled by two or more partners? Answer | | multinational enterprise | | | foreign direct investment | | | global management
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An ethnocentric approach to staffing policy is one in which key management positions in an international business are filled by parent-country nationals. The polycentric approach is a staffing policy that the host country nationals are recruited to manage subsidiaries in their own country‚ while parent country nationals occupy the key positions at corporate headquarters. The geocentric approach is a geocentric staffing policy that the best people are sought for key jobs throughout the organization
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economic and socio – cultural factors. Other factors include trust and personal moral merits. There are three approaches to staffing policy which a multinational firm can adopt. These are the ethnocentric approach‚ polycentric approach and the geocentric approach (Hill‚ 2011). A firm using the ethnocentric approach fills all key management positions with parent country nationals; this approach is often used when operations are carried out in less developed countries (Hills‚ 2011). Although this
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to different cultures. One major problem facing MNCs is that they sometimes attempt to manage across cultures in ways similar to those of their home country. MNC dispositions toward managing across cultures can be characterized as (1) ethnocentric‚ (2) polycentric‚ (3) regiocentric‚ and (4) geocentric. These different approaches shape how companies adapt and adjust to cultural pressures around the world. 2. DISCUSS cross-cultural differences and similarities. One major challenge when dealing with
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COAL INDIA LTD. Introduction Coal India Limited (CIL)‚ a holding company‚ was set up on 1st November‚ 1975 to streamline the working of the coal industry in a manner conducive to more efficient administration and rapid stepping up of coal production. The company has under it seven producing subsidiaries and one planning and design subsidiary. The coal mines in the north eastern region are directly managed by the holding company. Dankuni Coal Complex‚ a coal carbonisation plant in West Bengal‚ is
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three stages. Taken the firm Siemens as example‚ if the company claims that electronics made in Germany are the best and it markets itself as “a German company”‚ then it may‚ in the first stage‚ called home country attitudes‚ which is also called ethnocentric attitude. Companies in the first stage are pervasive. The second stage is the stage of host country
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This chapter focuses on the challenging topic of global human resource management (HRM). The term “expatriate manager” is introduced. The task of staffing foreign subsidiaries is discussed. In this area‚ firms typically pursue either an ethnocentric‚ polycentric‚ or geocentric approach. This section is followed with an explanation of the challenges involved in
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useful thanks to their knowledge of foreign market‚ language and needs and they know human resources policies for local employees‚ whereas PCNs have the ability to maintain control (for example with a newly established subsidiary)‚ to adapt an ethnocentric attitude and to process an expatriation management (staffing‚ training‚ compensation). An IHRM system is a product of distinct activities‚ functions and processes that are directed at attracting‚ developing and maintaining the human resources
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