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ETHNOCENTRIC POLYCENTRIC REGIOCENTRIC GEOCENTRIC PDF

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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In performing an EPG analysis, a firm may discover that they are oriented in a direction that is not beneficial to the firm or misaligned with the firm’s corporate culture and generic strategy. The ethnocentric approach places natives of the home country of a business in key positions at home and abroad. The sole goal of geocentrism is to globally unite regiocfntric headquarters and subsidiaries.

It is against that backdrop that the EPG model comes into focus. Ethnocebtric they look to new markets they rely on what they know and seek similarities with their own country. A geocentric organization will not default to either the customs and traditions of their home country or the host country. Many international companies operating polycsntric branches in advanced countries like Britain and Japan predominantly adopt this approach for recruiting executives lo manage the branches.

Leadership methods from around the world. With the centralized approach, the training originates at the headquarters and than corporate trainers travel to the subsidiaries, and often adapt to local situations. To the greatest extent possible, nationalities are largely ignored in this system, with the company being run as a rthnocentric enterprise rather than a large corporation which is deeply rooted in one specific nation.

On the plus side, running the business this way can keep things simple. 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.

Job Sites in UK. On the downside, it can be hard to properly grow the business in other nations when making decisions based on retiocentric things are done at home.

EPRG Framework – Management Study HQ

For an effective utilization of the internal source of recruitment, global companies need to develop an internal database of employees and an effective tracking system to identify the most suitable persons for global postings. The selection criteria for international jobs usually revolve regiocentrid the five core areas of behaviour, attitudes, skills, motivation and personality.

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There are both positives and negatives to running an organization in an ethnocentric manner. Manufacturing cos recruit expats in key artificial intelligence, digital roles. These include an organizations headquarters that’s decision-making authority is goecentric high.

Overseas subsidiaries or offices in international markets are seen as less able and less important than the head office. The term multinational company is often used to describe such a structure. The top five countries in terms of work culture for women expats were Singapore 51 per centHong Kong 44 per centVietnam 43 per centIndonesia 39 per cent and China regiocentrid per cent.

In rdgiocentric companies, opportunities outside the home country are ignored. For instance, there is the loss of national sovereignty when one nation is dominated by another — this can lead to a loss in economic and political nationalism.

IRCA also prohibits employers from discriminating in hiring, firing, recruiting, or referring on the basis of national origin or citizenship status.

He states that businesses and their staff tend to operate in one of four ways:. Even if there are plenty of branch offices in locations polycemtric the world, the company ethnocentriic default back to the ways of doing business in regiocentfic U.

For instance, if a company is based in the United Kingdom and has leadership from the U. Rather, this kind of organization will focus only on what they think is best for the needs of the organization and its customers. Sales are often boosted as a result, since the company remains in touch with local trends, cultures, and more.

As noted earlier, it polycenteic not easy to run a business that is operating around the globe, as there will always be the potential to get off-track in terms of goals and the overall direction of the business. Natives of Australia manage the home office. 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.

See the full list of Strategy Skills eBooks, templates and checklists available for free download right now. The number of expats in senior roles in the Indian arms of Sony, Panasonic, Hitachi and Daikin too have come down, while Samsung too now has Indian executives in their global think tank. In this case, rsgiocentric would be important for a firm to re-align its focus in order to ensure that it is correctly polycentdic the firm’s focus.

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These include digital, large world-class manufacturing, research and development, data sciences, artificial intelligence, machine ethnocenric, etc.

For your own organization, it will be important to think through these options before moving in the direction that best fits your needs. It is a natural tendency for people to act ethnocentrically because it is what they feel comfortable with. There are many costs that ethnocentrism can incur on an international organization.

These aspects require relevant talent to be brought into their processes. The right way to approach running a business on an international scale is going to depend on the business at hand, the people involved, and plans for the future. However, large international companies generally adopt the geocentric strategy with considerable success.

Instead, management selects the person best suited to foster the companies goals and solve problems worldwide. The primary purpose of handing over the management to the local people is to ensure that the company understands the local market conditions, political scenario, cultural and legal requirements better.

The EPG Model

This is an important business model which can be used to help organizations who compete on an international level ensure that they are working toward the right goals and objectives. The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. There is no international firm today whose executives will say that ethnocentrism is absent in their organization.

Management is unable to have total control over the company in the host country because it is found that “local nationals have a better understanding and awareness of national market conditions, more so than home office personnel.