In: Operations Management
Explain the main advantages and disadvantages of the ethnocentric, polycentric and geocentric approaches to staffing policy. When is each approach appropriate? Provide real-life examples based on firms or organizations that you know.
1.
Stuffing approach | advantages | Disadvantages |
ethnocentric | Overcome deficency of good manager with wellknown business ideas, Business policy and customers are known and products are wellknown to them so easily grab the market with dealers. | Language problem, Ego clashes with different country sub- mangers, Idea differences with different country supervisers , more expensive as they will pay all expenses in different country |
polycentric | No laguage barrier manager, Well know about marets and dealers, Understand the feelings of their employees with their wn laguage. Inexpensive to implement. | Lack of good managers, lack of skills set, not understand about global marlet or host country operation. |
geocentric | Global perfect skilled manager can takecare the business, Build a strong management network, Good understand between countries, Clear of conflicts | national work permit is a barrier, Work visa problems, |
Basically geocentric approach is best one where every one can work together with different country people. Even here exchange if ideas and thinking is very high and greatest. People can understand different cultures and their habbits and they can adopt different people mindset.
I worked previously with a chinese company they are actually follow ethnocentric approaches . The main managerial persons are from hot country itself. Hence somtimes thinking of them are not properly matched with us and their work culture is little different but it is also good habbit for all to adopt this culture.