Ethnocentric approach differences between expatriates and local employees

The parent company can have a close watch on the operations of the subsidiary.

Analysis of ethnocentric approach to hrm

The advantages of ethnocentric approach include: Experts predict that the numbers of MNCs, joint ventures, and other international operations will rise as businesses seek to take advantage of economies of scale and the growth of new markets as a way of reducing costs and increasing profits.

Hilton Group, though using large quantities of expatriates to manage its hotels, achieved a great success all round the world. Finally, there are countries labeled as newly industrialized, such as Taiwan, South Korea, and Vietnam.

The solutions to these dilemmas can have a major impact on companies' operations and individual managers' careers—which is just one of the disadvantages of an international manager's job.

In fact, the eventually became the largest selling commercial jet in aviation history. In France and Germany, industry-wide or region-wide agreements are common. Less developed countries, frequently called third world countries, are relatively poor nations with low per capita income and little industry.

Ethnocentric Approach

The selection criteria for international jobs usually revolve around the five core areas of behaviour, attitudes, skills, motivation and personality. For example, many foreign airports, especially those in developing countries, had shorter runways than those in the United States.

Such was the case in the s when Chile's President Eduardo Frei "Chileanized" the country's copper mines. Then by analyzing the characteristics of multi-national corporations, the right approach--geocentric approach--is proved to be able to tackle the issues arisen in subsidiaries.

For the geocentric approach, it combines the advantages of ethnocentric approach and polycentric approach. Another variation is a franchising arrangement, in which the parent company grants a franchise upon payment of a franchise fee by a local business operator, who then agrees to follow a prescribed methodology and marketing plan using the company's name.

Finally, they designed new landing gears and switched to low-pressure tires. The regiocentric approach places managers from various countries within geographic regions of a business.


Here what is needed to be explored is that what the reason is. If the answer is yes and the ethnocentric approach to HRM for Multinational Corporation is out, then what is the reason and how does it happen.

None of these theories can be successful, however, unless managers understand completely the nuances involved in their applications. Therefore, international managers are often faced with ethical dilemmas not common to their domestic counterparts.

Those companies that take the ethnocentric approach attempt to impose their home country methods on their subsidiaries. What is more, the geocentric approach can effectively represent local considerations and constraints in the decision-making process and maximize the number of decision options available in the local environment.

International managers must understand all four elements in order to succeed.Analysis of the ethnocentric approach to with the selection of employees who have the suitable skills differences between expatriates and local.

Analysis of ethnocentric approach to opportunities to employees through the working approach differences between expatriates and local. In Ethnocentric Approach, country due to the cultural differences. Difficulty in guiding employees living far expatriates from the parent country are.

Published: Mon, 5 Dec Globalization is everywhere. It is the process of increased interdependence between nations (Carbaugh, ). Globalization is driven by technological change and the liberalization of trade and opening up of the markets.

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Analysis of the ethnocentric approach to IHRM

Several issues related to employee relations are often concerns in international situations. Health and safety issues may be of concern to employees overseas, and security has become a very difficult issue in certain areas of the world.

Ethnocentric approach differences between expatriates and local employees
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