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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The idea behind ethnocentrism is the concept that the organization is going to default to the thinking, traditions, and more of its home country. It must be understood that there is limited control or communication between the home and host-country, and products and distribution may vary across countries. It is a natural tendency for people to act ethnocentrically because it is what they feel comfortable with.

On the plus side, running the business this way can keep things simple. In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally. In the most extreme views of polycentrism, it is the “attitude that culture of various countries are different, that foreigners are difficult to understand and should be left alone as long as their work is profitable. The term multinational company is often used to describe such a structure.

EPRG Framework

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 reviocentric the business. Geocentric companies, as truly global players, view the world as a potential market, and seek to serve this effectively. Free Strategy Skills Resources See the full list of Strategy Skills eBooks, templates and checklists regiocenttic for free download right now.

The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. Retrieved from ” https: However, large international companies generally adopt the geocentric strategy with considerable success. In this context, ethnocentrism is the view that a particular ethnic group’s system of beliefs and values is morally superior to all others.

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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 be attained. The most effective way to enforce geocentrism is with a formal reward system that encourages both subsidiary and headquarters managers to work for global goals rather than just defending home country values.

A polycentric approach “gives rise to the problems of coordination and control. Geocentric approach When a company geocsntric the strategy of polycentic the most suitable persons for the positions available in it, irrespective of their nationalities, it is called a geocentric approach. On the downside, it can be hard to properly grow the business in other nations when making decisions based on how things are done at home.

Job Sites in UK. Sales are often boosted as a result, since the company remains in touch with local trends, cultures, and more. Ethnocentric staffing means to hire management that is of same nationality of parent company. In this example, the U. The survey was done among 27, expats from countries and territories, including India, through an online questionnaire in March-April Instead of looking back to the country of origin for the ethnoocentric 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.

There is often ineffective planning due to poor feedback from the international subsidiaries. Employers must verify work eligibility by completing Form I-9 along with required supporting documents.

These people or companies believe that the home country is superior. Polycentrism [ disambiguation needed ] is one of the three legs in the EPG framework that “identifies one of the attitudes or orientations toward internationalization that is associated with successive stages in the evolution of international operations” [7].


In this example, the Australian parent company uses natives of India to manage operations at the Indian subsidiary. Putting more emphasis on the local offices will create a situation in which those offices are doing the same work that is being done in other parts of the world — causing costs to rise unnecessarily.

EPG model – Wikipedia

The geocentric approach uses Ihe best available managers for a business without regard for their country of origin. For international recruitment, especially on foreign soil, organizations generally use manpower agencies or consultants with international connections and repute to source candidates, in addition to the conventional sources.

More specifically, the focus of selection for international operations normally includes cultural adaptability, strong communication skills, technical competence, professional or technical expertise, global experience, country-specific experience, interpersonal skills, language skills, and family flexibility. The sole goal of geocentrism is to globally unite both headquarters and subsidiaries.

International Selection Even though cultural differences influence the selection procedure to some extent, organizations tend to follow similar criteria and methods worldwide. Also, the experience and knowledge that is possessed by the home country office may go to waste, since the emphasis will be placed on locals in branch offices.

Polycentric management means that the head office places little control on the activities in each market, and there is little attempt to make use of any good ideas or best practices from other markets.

The purpose of adopting this approach is to reduce the cost of foreign operations gradually. For example, Norway and Spain are both in Europe, but are very different in climate, culture, transport, retail distribution, and so on.