Lecture 6 Flashcards
Home oriented
Ethnocentric
Host oriented
Polycentric
World oriented
Geocentric
Ethnocentric - Incentive structure
High in HQ, low in subsidiaries
Polycentric - Incentive structure
Wide variation
Geocentric - Incentive structure
Managers compensated for local and global objectives
EPG model
Ethnocentric
Polycentric
Geocentric
Ethnocentric - HR Policy
Recruitment and development in the home country to key positions abroad
Polycentric - HR policy
Recruitment and development in the host countries for key positions in those countries
Geocentric - HR policy
Recruitment and development of the best irrespective of their origin. Opportunities are independent of nationality
Ethnocentric - Communication
Dense volume into the subsidiaries
Ethnocentric - Identity
Nationality of the shareholders or of HQ
Polycentric - Communication
Small vol. to and from parent co. Small vol. among subsidiaries
Polycentric - Identity
Nationality of host country
Geocentric - Communication
In both directions and among subsidiaries
Geocentric - Identity
True international corporation
Ethnocentric - complexity
Complex in the home country, simple in host country
Ethnocentric - Authority/ decision making
Concentrated in HQ
Ethnocentric - Evaluation and control
Domestic patterns applied across
Polycentric - complexity
Varied and independent
Polycentric - Authority/ decision making
Dispersed by subsidiaries
Polycentric - evaluation and control
defined locally
Geocentric - complexity
increasingly complex and interdependent
Geocentric - Authority/ decision making
Collaborative approach btw HQs and subsidiaries
Geocentric - evaluation and control
Universal and local standards simultaneously
