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.

Author: Kecage Meztibei
Country: Sierra Leone
Language: English (Spanish)
Genre: Photos
Published (Last): 8 September 2007
Pages: 232
PDF File Size: 17.47 Mb
ePub File Size: 12.59 Mb
ISBN: 406-7-21152-729-8
Downloads: 96388
Price: Free* [*Free Regsitration Required]
Uploader: Akinonos

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. In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally.

The company does not want to have divisions within its ranks based on nationality. In this context, ethnocentrism is ethnocenntric view that a particular ethnic group’s system of beliefs polycentrkc values is morally superior to all others.

EPRG Framework

The roles for which they were hired include product development, ride and handling, vehicle refinement, architecture, technology-led programmes, safety to meet global standards, electric vehicle, etc. Tripathi cites non-availability of local talent for critical roles as the reason for the increase in expat hiring.

International recruitment methods 1. The third and last aspect of the EPG model is the geocentric portion, this notion focuses on a more world-orientated approach to multinational management.

A polycentric approach “gives rise to the problems of coordination and control. The 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 45 per cent, South Korea at 44 per cent and Vietnam at 42 per cent.

Leadership methods from around the world. Regiocentric Approach The Geocentric Approach is one of the methods of international recruitment where the Multi Ehtnocentric Companies recruit the most suitable employee for the job irrespective of their Nationality. 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.


There are a few other drawbacks to the polycentric approach which may restrict a multinational company from completely realizing its full potential in the host country. Unification is the ultimate goal of a geocentric operation. For example, Norway and Spain are both in Europe, but are very different in climate, culture, transport, retail distribution, and so on. Companies that are truly global in nature adopt this approach since it rthnocentric a globally integrated business strategy.

The regiocentric approach uses managers from various countries within the geographic regions of business. 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. This is due to the fact that the end objective of any selection process is to choose the most capable persons for the job.

Employers must verify work eligibility by completing Form I-9 along with required supporting documents. 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 regiocetnric, more so than home office personnel.

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.

November Learn how and when to remove this template message. While there can be drawbacks to this plan in terms of travel costs and educational investments, there are also benefits in the form of a better global outlook and an elevated level of goods and services. A regiocentric organization sees similarities and differences in a world region, and designs strategies around this.

Normally, higher-level foreign positions are filled with expatriate employees from the parent country. Regiocenyric is against that backdrop that the EPG model comes into focus. See the full list of Strategy Skills eBooks, templates and checklists available for free download right now.


EPRG Framework – Management Study HQ

Ethnocentric staffing means to hire management that is of same nationality of parent company. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people.

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. The top five countries in terms of work culture for women expats were Geocenhric 51 per centHong Kong 44 per centVietnam 43 per centIndonesia 39 per cent and China 36 per cent. Finally, the best candidate is identified for foreign assignment and sent abroad with his consent. On the downside, however, there is a concern regarding duplication which can cause costs to rise.

The term multinational company is often used to describe such a structure. The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy.

All articles with dead external links Articles with dead external links from November Use dmy dates from October Wikipedia articles with style issues from November All articles with style issues All articles with links needing ethnocentirc Articles with links needing disambiguation from Polycdntric The selection criteria for international jobs usually revolve around the five core areas of behaviour, attitudes, skills, motivation and personality.

Even those organizations which initially adopt the ethnocentric approach may eventually switch over lo the polycentric approach. Polycentric orientation assumes that host country cultures are different making a centralised approach unfeasible. This in turn could cause a lack of flexibility and local responsiveness.

Columbia Journal of World Business 1: The case of European Silicon Structures illustrates the practice of geocentric organizations.