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GROUP 4 - Coggle Diagram
GROUP 4
POLYCENTRIC APPROACH
Definition: The Polycentric Approach is the international recruitment method wherein the HR recruits the personnel for the international businesses.
DISADVANTAGES
- Lack of coordination between the host and the parent company, due to the absence of a link that gets created when expatriates from the parent country hold the managerial positions at the subsidiary.
- Lack of coordination between the host and the parent company, due to the absence of a link that gets created when expatriates from the parent country hold the managerial positions at the subsidiary.
- Difficult to exercise control over the subsidiary.
- Lack of knowledge about the market conditions of the host country.
- The conflict may arise between the managers of both the host and the parent company due to the different thinking processes.
ADVANTAGES
- The difficulty in the adjustment of expatriates from the parent country gets eliminated.
- The hiring of locals or the nationals of the host country is comparatively less expensive.
- The morale of the local staff increases.
- Better productivity due to better knowledge about the host market.
- The career opportunities for the nationals of the host country increases.
- Better government support.
- Chances of success are high.
GEOCENTRIC APPROACH
ADVANTAGES
- The expertise of each manager can be used for the accomplishment of MNC’s objective as a whole.
- Reduction in resentment, i.e. the sense of unfair treatment reduces.
- MNC’s can develop a pool of senior executives with international experiences and contacts across the borders.
- Shared learning, the employees, will learn from each other’s experiences.
DISADVANTAGES
- The cost of training, compensation, and relocation of an employee is too high.
- Highly centralized control of staffing is required.
- Proper scrutiny is required by the HR to select the most suitable person for the job, which could be time-consuming.
- This approach is very costly since the recruitment agencies or the consultants are to be hired for the global search for eligible candidates.
Definition: The Geocentric Approach is a method of international recruitment where the MNC’s hire the most suitable person for the job irrespective of their Nationality.
ETHNOCENTRIC APPROACH
Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organization’s culture.
DISADVANTAGES
- The staff of the parent country may find it difficult to adjust in the host country due to the cultural differences.
- Difficulty in guiding employees living far away from the parent country.
- Missed out the opportunity to hire the best personnel from the host country.
- The cultural clashes between the executives of parent country and the staff members of the host country.
- The expatriates from the parent country are much expensive as compared to the employees in the host country.
- The government restrictions in the host country may hamper the business of the parent company.
- The failure rate is very high
ADVANTAGES
- Better coordination between the host and the parent company.
- The culture of the parent company can be easily transferred to the subsidiary company, thereby infusing beliefs and practices into the foreign country.
- Effective control over the subsidiary.
- The parent company can have a close watch on the operations of the subsidiary.
- Better transfer of technical know-how.
- Effective communication between the host and the parent company.
- No need to have a well-developed international local labor market.