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GHRM Terms:

Ethnocentric / Geocentric HRM


perspective

Presented by: RASHMI YADAV


Roll no: B 49
Branch: Systems
What is Global Human Resource
Management
• As a field it is about: the understanding, researching,
applying and revising all human resource activities in
their internal and external contexts
• As they impact the process of managing human
resources in enterprises throughout the global
environment
• Enhance the experience of multiple stakeholders,
including investors, customers, employees, partners,
suppliers, environment, and society.
Ethnocentric Perspective HRM
• The key positions in the organization are
filled with the employees of the parent
country.
• All the managerial decisions viz. Mission,
vision, objectives are formulated by the
MNC’s at their headquarters, and the same
is to be followed by the host company.
Advantages of Ethnocentric Approach
• 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.
• Effective communication between the host and the
parent company.
Geocentric HRM Perspective
• The MNC’s hire the most suitable person for the job
irrespective of their Nationality.
• The rationale behind the Geocentric Approach is that
the world is a pool of talented staff and the most
eligible candidate, who is efficient in his field, should
be appointed for the job irrespective of his
nationality.
• This approach is followed by the firms that are truly
global because they follow the integrated global
business strategy.
Advantages of Geocentric
Approach
• MNC’s can develop a pool of senior
executives with international experiences
and contacts across the borders.
• 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.
• Shared learning, the employees, will learn
from each other’s experiences.
Thank You

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