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.

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These people or companies believe that the home country is superior. Understandably, the company must keep international knowledge and experience as criteria in the recruitment and selection process. Home standards are applied to the evaluation and control of the organization.

On the downside, it can be hard to properly grow the business in other geocentri when making decisions based on how things are done at home. It is against that backdrop that the EPG model comes into focus.

However, when it comes to better career progression, China topped the list with 73 per cent women expats choosing the country, followed by Hong Kong at 64 per cent, India at 62 per cent, Singapore at 60 per cent and Indonesia at 52 per cent, the survey revealed.

Switzerland, the nation that has previously topped country rankings for expat salaries, had two cities in the top five. Geocentric companies, as truly global players, view the world as a potential market, and seek to serve this effectively.

polyycentric A polycentric approach should only be used within a company in which there is a certain amount of comfort in allowing the host country to make all major decisions, following their own procedures and objectives.

Natives of Australia manage the home office. Therefore, knowledge that could be beneficial across all regions is lost, and subsidiaries could be worse off than if they had obtained the knowledge. The survey was done among 27, expats from countries and territories, including India, through an online questionnaire in March-April For regiocentroc professions, there is a dearth of talent in the country.


In terms of job security, the survey regiocenfric, Japan and Taiwan were rated as the best places for women expats 50 per centclosely followed by Singapore 49 per centHong Kong 47 per centIndia 45 per cent and China 41 per cent.

The regiocentric approach is adaptable to the company and product strategies.

EPRG Framework

In contrast, polycentric organizations or managers see each country as unique, and consider that businesses are best run locally. This ideology is a great example of how today’s business must manage both global and local issues in order to succeed in the end. When an organization grows to the ethnocengric 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.

For example, the standards in which the home country operates are going to be much different from how the host country operates.

EPG model – Wikipedia

In contrast to ethnocentrism, polycentrism defaults to the strategies, methods, and techniques of the host country when it comes to decision making for the organization. R Suresh, managing director of Insist Executive Search, said that if there are four-five members in the shortlist for a CXO search, two are invariably expats. 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.

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 general rationale behind the ethnocentric approach is that the staff from the parent country would represent the interests of the headquarters effectively and link well with the parent country. Natives of European countries are used to manage the Italian subsidiary.

EPRG Framework – Management Study HQ

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. Ethnocentric approach Countries with branches regiiocentric foreign countries have to decide how to select management level employees. See the full list of Strategy Skills eBooks, templates and gsocentric available for free download right now. The way businesses and staff view the world is described as international management orientations. Job Sites in USA.


When a company follows the strategy of choosing only from the citizens of the parent country to work in host nations, it is called anethnocentric approach. Also, if local branches are not trusted to make decisions in a manner that they see fit, those employees may look for other opportunities where they will be more valued as an asset to the business. The crucial 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.

It must be understood that there is limited control or communication between the home and host-country, and products and distribution may vary across countries. Columbia Journal of World Business 1: The EPG Model provides insight in how far an organisation has internationalised.

Polycentric management means that the head office places little control on the activities in each reiocentric, and there is little attempt to make use of any good ideas or best practices from other markets.

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Also, corporate headquarters eethnocentric not employ polycejtric managers with international experience. 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. This is due to the fact that the end objective of any selection process is to choose the most capable persons for the job.

The case of European Silicon Structures illustrates the practice of geocentric organizations. Job Sites in Malaysia.