Question

Explain hw multinational enterprise use the three approach to management , ethnocentric, polycentric and geocentric in their approach to international human resources?

Answer 1

The three approaches are as follows:

• Ethocentric Approach: In this approach, management fill the jobs with PCNs( Parent Country Nationals). The reasons for such approach includes lack of senior management talent, desire to get tighter control and transferring the core competencies of the parent to foreign subsidiary.
• Polycentric Approach: The staffing done by this approach is required to manage subsidiaries and hired from host country nationals. Corporate headquater positons are occupied by parent country nationals.
• Geocentric Approach: This approach hires best people throughout the organization irrespective of the nationality of the candidate. It is based on making a company a global organization where skills are most important than anything else.