Phil Evans & Jose Figueroa - Cultural management

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Ethnocentric

First known use of Ethnocentric

When a company follows the strategy of choosing only from the citizens of the parent country to work in host nations, it is called an ethnocentric approach.

Polycentric

The policy is best suited to a multidomestic strategy.

A company will hire host-country nationals for positions in the company from mail room clerks all the way up to the executive suites.

Advantages Vs Disadvantages

The company may also be able to transfer employees with a clear performance record that will provide some level of predictability.

Communication is also easier because there should be no language and cultural barriers.

Alignment of interests and perspective of the home office with all foreign subsidiaries abroad.

-Managers have the opportunity to influence decisions and compete for jobs at the regional level. -The development of a regional approach can help develop from an ethnocentric or polycentric approach towards a geocentric approach. - The view of the expatriates can be broadened "while reducing the adaptation problems and the opposition to "strangers"

Geocentric

Geocentric staffing approach is used when companies adopt a transnational orientation. It is best used when companies need the best personnel to work at subsidiary. Employees are selected regardless where they come from. This staffing strategy is reliable for all subsidiaries because best employees are selected and sent from the company’s worldwide network.

Disadvatages

-It can lead to identification with regional rather than global objectives and may limit the development of a global approach -Goverment may use inmigration controls in order to increase local employment -Expenisve to implement due trainnings and relocations costs . -Independence of subsidary management is reduced

Disadvantages

Lose local perspective and insights that local employees can provide

A high ratio of expatriates may create local resentment at foreign subsidiaries, which may hurt morale.

Advantages

-Companies gain knowldage and improve in the work force and work enviroment from another perspective or point of view. -Share new ideas and old ideas that can promote the continous improvement in the company (personally level and staff level ) -Promotes local , and global competition within the workforce because workers can be selected from anywhere in the world if meets the right requierements since this world every day that pass by is more linked up together .( economy , culture and society ).

Regiocentric

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Regiocentric staffing policy involves hiring and promoting employees based on specific regional context where subsidiary is located. This approach is used when regional employees are needed for important positions. However, both employees from host countries and a third country are employed.

Definition

1990

Disadvatages.

-This kind of staff could affect local economies that depend on their human resources . -Currency monetary exchange may affect workers . -Different views from different perspectives or/and cultures could affect on the communication of the company running the risk to create conflicts.

Phil Evans & Jose Figueroa Cultural management

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