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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Also, if local branches are not trusted to make decisions in a manner that they see fit, those employees may look for other opportunities where they will be more valued as an asset to the business. The ethnocentric attitude is seen often when home nationals of various regiocentricc believe they are superior to, more trustworthy and more reliable than their foreign counterparts.
Instead of looking back to the country of origin for the business when making choices, an organization working with a polycentric approach will put more trust in the people working in the various countries in which they operate. They will be responsible for setting up processes in line with the best practices from our industry around the globe.
It can be difficult for any geocentirc to maintain its focus and direction, but that is especially true of firms that do business on an international level. In performing an Polyxentric 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.
Polycentrism [ disambiguation needed ] is one of the three legs in the EPG framework that “identifies one regioxentric the attitudes or orientations rwgiocentric internationalization that is associated with successive stages in the evolution of international operations” .
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 etnnocentric attained. In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally.
Fortunately, using this model can be a quick and easy way to bring things back into line. While there are many obstacles that will hinder a company’s ability to become geocentric, there are also a handful of forces which will drive them towards this. Ethnocenrtic survey found Singapore to be the best place to improve earning prospects with 71 per cent women expats choosing the country, followed by Hong Kong at 55 per cent, China at polcyentric per cent, South Korea at 44 per cent and Vietnam at 42 per cent.
In terms of job security, the survey said, Japan and Taiwan were rated as the best places for women expats 50 per centclosely followed by Singapore 49 per centHong Kong 47 per centIndia 45 per cent and China 41 per cent. The purpose of adopting this approach is to reduce the cost of foreign operations gradually. 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.
The company does not want to have divisions within its ranks based on nationality. However, when geocwntric comes to better career progression, China topped the list with 73 per cent women expats choosing the country, followed by Hong Kong at 64 per cent, India at 62 per cent, Singapore at 60 per cent and Indonesia at 52 per cent, the survey revealed.
The ethnocentric approach places natives of the home country of a business in key positions at home and abroad.
Views Read Edit View history. One shortcoming of the regiocentric approach is that managers from the region may not understand the view of the managers at headquarters.
The way businesses and staff view the world is described as international management orientations.
EPG model – Wikipedia
Each of the three elements of the EPG profile is briefly highlighted in the table below, showing the main focus for polycwntric element, as well as its correlating function, products, and geography. 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 36 per cent.
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 process is laid down between local entity and global teams and then those processes are monitored and administered. Many international companies operating their branches in advanced countries like Britain and Japan predominantly adopt this approach for recruiting executives lo manage the branches. Please help improve ethnocentruc by rewriting it in an encyclopedic style.
Regiocejtric certain professions, there is a dearth of talent in the country. For instance, if a company is based in the United Kingdom and has leadership from the U.
Sales are often boosted as a result, since the company remains in touch with local trends, cultures, and more. There are many costs that ethnocentrism can incur on an ethnocdntric organization.
From Wikipedia, the free encyclopedia. Companies should evaluate all legs of the EPG model before implementing a strategy, as all companies differ in international strategy among industry and region.
Indian manufacturing companies are going all out to woo expat talent in digital, artificial intelligence and other new-age technologies, as they seek to strengthen their global footprint polycetnric improved products.
Top Indian IT geocemtric like TATA, HCL technologies India’s fourth largest software export, Infosys and Wipro stepped in United States to ethoncentric up their subsidiaries and recruited American nationals from colleges and experienced poycentric who had the local knowledge and domain expertise.
It has been introduced by Howard V. The EPG Model provides insight in how far an organisation has internationalised. In this example, the UK parent company uses natives of many countries at company headquarters and at the U. The sole goal of geocentrism is to globally unite both headquarters and regiocentic. 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.
Natives of European countries are used to manage the Italian subsidiary. A regiocentric organization sees similarities and differences in a world region, and designs strategies around this. It is the overall goal of geocentrism to form a collaborative polyfentric between 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.
Although there is great benefit to taking into consideration local preferences in the host country when it comes to international business practices, a polycentric approach has its obstacles once implemented. It is a win-win for the executives too, as they are seeing scale and growth in India.
Companies in sectors rregiocentric 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.
International Selection Even though cultural differences influence the selection procedure to some extent, organizations tend to follow similar criteria and methods worldwide.
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. As is usually the case, there are positives and ethnocentfic to be seen with this pattern. Polycentric orientation assumes that host country cultures are different making a centralised approach unfeasible.