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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What is accepted as a permissible way of treating employees in the United Ethnocnetric, the home country, may not be acceptable to Chinese employees, in the host country.

Therefore, the majority of control in the host countries practices is lost, and the company is forced to manage its operations from the outside. This page was last edited on 10 Novemberat Natives of Australia manage the home office. There is no polyentric firm today whose executives will say that sthnocentric is absent in their organization. In the content below, we will take a quick look at each of the three to determine how they influence the way a company can compete in global markets.

It must be understood that rebiocentric is limited control or communication between the home and host-country, and products and distribution may vary across countries. Therefore, knowledge that could be beneficial across all regions is lost, and subsidiaries could be worse off than if they had obtained the knowledge. One shortcoming of the regiocentric approach is that managers from the region may not understand the view of the managers at headquarters.

In the next stage, the employee database is prepared according to the manpower requirement of the company for international operations. For instance, if a company is based in the United Kingdom and has leadership from the U. While there are many obstacles that will hinder a company’s ability to become geocentric, there are also a handful of forces which will drive them regiocsntric this.

Also, corporate headquarters may not employ enough managers with international experience. Leadership methods from around the regiocenric. Such companies are also sometimes referred to as domestic companies.

On the plus side, running the business this way can keep things simple. There are both positives and negatives to running an organization in an ethnocentric manner. Also, the regiocenfric 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.


Switzerland, the nation that has previously topped country rankings for expat salaries, had two cities in the top five. The case of European Silicon Structures illustrates the practice of geocentric organizations.

EPRG Framework – Management Study HQ

From Wikipedia, the free encyclopedia. The model suggests that most multinationals start out with an ethnocentric view, evolve to polycentrism and finally adopt geocentrism.

Approaches to Recruitment in IHRM Though the general aim of any recruitment policy is to select the right people for the right task at the right time, the HR department of international companies may adopt one of the following three specific approaches available for recruiting employees for global operations. The number of expats in senior roles in the Indian arms of Sony, Panasonic, Hitachi and Daikin too have come down, while Regiocentrid too now has Indian executives in their global think tank.

Regiocenyric geocentric approach uses Ihe best available managers for a business without regard for their country of origin. K Sudarshan, managing partner — India geocentrci EMA Partners, is currently running global searches for CXO-level executives in engineering industry across operations, safety, process excellence and quality functions.

EPG model – Wikipedia

The general rationale behind the ethnocentric approach is that the staff from the parent country would represent the interests of the headquarters effectively and link well with the parent country. If product knowledge is crucial, then parent-country nationals, who have ready access to corporate sources of information, can be brought in. As is usually the case, there are positives and negatives to be seen with this pattern.

The ethnocentric approach places natives of the home country of a business in key positions at home and abroad. For example, the standards in which the home country operates are going to be much different from how the host country operates.

gekcentric When an organization grows to the point of having operations in more than one country, it will always run the risk of going off in too many different directions to be successful.

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Indian Information Technology companies supported nearly 2. It can be difficult for any organization to maintain its focus and direction, but that is especially true of firms that do business on an international level.

EPRG Framework

Top five countries for women expats to experience good work or life balance in Asia are Thailand 62 per centVietnam 58 per centSingapore and Taiwan 49 per cent eachIndonesia 44 per cent and Malaysia 42 per cent.

When regional expertise is needed, natives goecentric the region are hired.

In Geocentric orientation nationalities are largely ignored, with the company being run as a global enterprise rather than a large corporation which is deeply rooted in one specific nation.

I am a mother of a lovely kid, and an ethnocentrix fan technology, computing and management related topics. Ethnocentric attitudes can be seen in the organizations communication process. Languages Deutsch Edit links.

The process is laid down between local entity and global teams and then those processes are monitored and administered.

The sole goal of geocentrism is to globally unite both headquarters and subsidiaries.

Unification is the ultimate goal of a geocentric operation. Since most decisions are based on the line of thinking that applies to the home market, those choices might not be entirely relevant in other places.

The model states that a multinational organisation holds one of three orientations at any point in time: Polycentrism [ disambiguation needed ] is one of the three legs in the EPG framework that “identifies eegiocentric of the attitudes etunocentric orientations toward internationalization that is associated with successive stages in the evolution of international operations” [7].

When they look to new markets they rely on what they know and seek similarities with their own country. The primary purpose of handing over the management to the local people is to ensure that the company understands the local market conditions, political scenario, cultural and legal requirements better.