In Ethnocentric Approach, the key positions in the organization are filled with the employees of the parent country.
Share on Facebook An ethnocentric approach is one of several human resources strategies a company can employ when expanding operations into a new foreign country. Given the risks to a small business in globalizing, it is especially important to weigh the pros and cons of ethnocentricity against other alternatives to HR.
Basics With an ethnocentric approach, you intentionally recruit and deploy parent company leaders and employees to manage foreign operations. Additionally, putting parent company leaders in place can help ensure consistency in operations in foreign markets.
Selection Process An ethnocentric approach challenges HR because its staff may not be familiar with the local customers and business processes. Often, domestic firms outsource HR or hire international consultants to assist in getting a new foreign office off the ground.
As you screen employees, you want to ensure that the people you recruit meet the technical requirements and have a desire and willingness to transfer overseas.
Before using an ethnocentric strategy, spend time researching the market to see whether your HR policies and talent resources make this the best strategy. Training and Culture When a new headquarters opens, you may need established parent company managers and trainers to spend weeks or months with the new staff.
This ensures new employees understand the challenges and changes in policies, procedures and task requirements of the operation, department and positions they hold. Additionally, a key HR concern in globalizing is maintaining a consistent organizational culture while having staff spread across countries.
This initial training process can help in building company-wide cultural norms in the new office.
Alternative Strategies Polycentric, geocentric and regiocentric are common alternatives to ethnocentric HR. Geocentric HR means you hire the best mix of employees regardless of nationality. Regiocentric approaches are common in companies with widespread global operations.
In this approach, you hire regional leaders as opposed to country-based leaders. A London-based manager might head up European operations, for instance. References International Human Resource Management: Dowling, Marion Festing, Allen D.
He has been a college marketing professor since Kokemuller has additional professional experience in marketing, retail and small business.Illustration Bookkeeping Essa. Caterpillar’s Worldwide Plan. The sector of worldwide company idea possesses an too much to handle assortment of points of views and.
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While recruiting people for international operations, the international HR managers must identify the global competitiveness of the potential applicants at the time of the recruiting process.
Their disproportionate participation in communism, Marxism, and socialism. Marxism is an exemplar of a universalist ideology in which ethnic and nationalist barriers within the society and indeed between societies are eventually removed in the interests of social harmony and a sense of communal interest.
Ethnocentric is a staffing policy that is used in companies that has primarily international strategic orientation. This policy is generally adopted by headquarters by sending employees from the home or parent countries to the host country.
Ethnocentric Approach Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organization’s culture.