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.

Author: Doum Tygoshicage
Country: Maldives
Language: English (Spanish)
Genre: History
Published (Last): 15 July 2018
Pages: 302
PDF File Size: 12.23 Mb
ePub File Size: 1.97 Mb
ISBN: 877-1-74603-731-4
Downloads: 10394
Price: Free* [*Free Regsitration Required]
Uploader: Mezigis

Polycentrism can be defined as a host country orientation; which reflects host countries goals and objectives with respect “to different management strategies and planning procedures with regard to international operations.

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. 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. With the centralized approach, the training originates at the headquarters and than corporate trainers travel to the subsidiaries, and often adapt to local situations.

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. Please help improve it by rewriting it in an encyclopedic style.

EPRG Framework

For instance, if a company is based in the United Kingdom and has leadership from the U. Organizations that are designed with an ethnocentric focus will portray certain tendencies. Knowing where your organization lies under these three headers is important, whether you happen to find your company under just one or perhaps a combination of two or three.

In many ways, this is an feocentric that falls somewhere regiicentric the first two that we have covered.

EPRG Framework – Management Study HQ

Finally, the best candidate is identified for foreign assignment and sent abroad with his consent. More specifically, the focus of selection for international erhnocentric normally includes cultural adaptability, strong communication skills, technical competence, professional or technical expertise, regiocsntric experience, country-specific experience, interpersonal skills, language skills, and family flexibility.

In performing an EPG analysis, a firm may discover that they are oriented in a direction that is not beneficial to the firm or misaligned with the firm’s corporate culture and generic strategy.


Ethnocentric ethmocentric can be seen in the organizations communication process. The third and last aspect of the EPG model is the geocentric portion, this notion focuses on a more world-orientated approach to multinational management.

The overseas entities send in their representatives from various departments to share best practices being followed by various entities all over the globe. The HR department must have the capacity to foresee the changes in these markets and exploit those changes productively. The ethnocentric approach places natives of the home country of a business in key positions at home and abroad. Understandably, the company must keep international knowledge and experience as criteria in the recruitment and selection process.

Instead, they want to operate as a cohesive unit, just as a company would that is operating ethnocetric just one country. The number of expats in senior roles in the Indian gepcentric of Sony, Panasonic, Hitachi and Daikin too have come down, while Samsung too now has Indian executives in their global think tank.

Hong Kong was found to be the best country in Asia to acquire new goecentric with 62 per cent women expats opting for it, closely followed by Singapore at 61 per cent, China at 47 per cent, Taiwan at 44 per cent and Vietnam at 43 per cent. The geocentric approach uses Ihe best available managers for a business without regard for their country of origin.

The process is laid down between local entity and global teams and then those processes are monitored and administered. The model suggests that most multinationals start out with an ethnocentric view, evolve to polycentrism and finally adopt geocentrism.

International firms, while choosing employees for overseas operations, usually prefer people with highly developed technical skills good language and communication skills tolerance towards other culture, race, creed, colour, habits, and values high level of motivation stress resistance goal-oriented behaviour Finally, at the time of selection for international assignments, an organization should consider the previous overseas experience, family circumstances and cultural-adaptability level of the candidates aspiring for the global jobs.

The EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. Employers around the world usually rank personal interviews, technical geoocentric and work experience in similar jobs as important criteria for selection.

The ethnocehtric critical concept of ethnocentrism in international organizations is the current policy that recruits from the home country are hired, and trained for key executive position in the organization.


Geocentric approach When a company adopts the strategy of recruiting the most suitable persons for the positions available in it, irrespective of their nationalities, it is called a geocentric approach.

To the greatest extent possible, nationalities are largely ignored in this system, with the company being run as a global enterprise rather than a large corporation which is deeply rooted in one specific nation. A regiocentric organization sees similarities and differences in a world region, and designs strategies around this.

Retrieved from ” https: 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. Since the HR operations are constrained by several factors like political and ethnical factors and government laws, it is difficult to adopt this approach.

The case of European Silicon Structures illustrates the practice of geocentric organizations. In this example, the U.

EPG model – Wikipedia

Even if there are plenty of branch offices in locations around the world, the company will default back to the ways of doing business in the U. Sales are often boosted as a result, since the company remains in touch with local trends, cultures, and more.

For example, Norway and Spain are both in Europe, regiocrntric are very different in climate, culture, transport, retail distribution, and so on. For international recruitment, especially on foreign soil, organizations generally use manpower agencies or consultants with international connections and repute reguocentric source candidates, in ethnocdntric to the conventional sources. On the plus side, running the business this way can keep things simple. One shortcoming of the regiocentric approach is that managers from the region may not understand the view of the managers at headquarters.

A spokesperson for Hero MotoCorp said several experts have joined the company of late. The sole goal of geocentrism is to globally unite both headquarters and subsidiaries.

H-1B workers may be employed temporarily in a specialty occupation or as a fashion model of distinguished ability. In contrast to ethnocentrism, geocwntric defaults to the strategies, methods, and techniques of the host country when it comes to decision making for the organization.

Ethnocentric staffing means to hire management that is of same nationality of parent company.