The basic idea of every business enterprise on the globe is to strive for profit maximization. To realize this particular objective corporations have to operate across international borders. In doing so, it is assumed that there is a company-network consisting of the mother company that is always located in the home-country, whereas the subsidiaries are situated in the host-countries. Moreover it is important to recognize that there are different approaches how to fill the senior executive positions within the whole company group. One of the very first scientists, who dealt with this issue, was Howard Perlmutter in 1969. He firstly found out that there is a clear distinction of three orientations how Multinational Corporations would be differentiated:
The ethnocentric perspective, also defined as the home-country-perspective.
The polycentric orientation, called as the host-country-perspective.
The geocentric approach, the world-wide-perspective, which is the most specialized orientation, gained particular recognition.
The aim of this research paper is to allow an insight into the specifics of Multinational Corporations, with special focus on the geocentric staffing approach.
Table of Contents
- Introduction
- Research problem
- Course of investigation
- Multinational Corporations
- Corporate Strategy
- MNC's Function and Global Distribution
- The EPG Concept
- Pros of the Geocentric Staffing Concept
- Limitation to the Geocentric pattern
- Pros of the Geocentric Staffing Concept
- Cons of the Geocentric Staffing Concept
- Conclusion
- Summary
- Critical Acclaim
- Outlook
- List of References
- Declaration of Originality
- CD-ROM
Objectives and Key Themes
This research paper explores the advantages and disadvantages of a geocentric staffing approach in multinational corporations. It aims to provide a comprehensive overview of this staffing model, analyzing its potential benefits and drawbacks. The paper focuses on the work of Howard Perlmutter, a pioneer in the field of corporate internationalization, and his 1969 article on distinguishing multinational corporations. Key themes include:- Geocentric staffing as a strategy for multinational corporations
- Advantages of the geocentric approach, such as increased global talent pool and improved organizational performance
- Challenges of the geocentric approach, such as cultural differences, language barriers, and cost considerations
- Perlmutter's contributions to understanding multinational corporations and their staffing strategies
- The broader context of international business and corporate strategy
Chapter Summaries
The introduction establishes the research problem, which is the evaluation of the geocentric staffing approach within multinational corporations. It provides context by explaining the concept of geocentrism in both scientific and business perspectives, highlighting the global search for management personnel without nationality bias. The second chapter delves into the characteristics of multinational corporations, encompassing their corporate strategy, function, global distribution, and the EPG concept. This chapter sets the stage for understanding the context in which geocentric staffing operates. Chapter three explores the advantages of the geocentric staffing concept, outlining its benefits such as access to a global talent pool and improved organizational performance. It also addresses limitations and challenges related to implementing this approach. The fourth chapter examines the disadvantages of the geocentric staffing concept, focusing on potential drawbacks such as cultural differences, language barriers, and cost considerations. It explores the challenges associated with implementing a geocentric approach.Keywords
This research paper focuses on the geocentric staffing model in multinational corporations. Key terms include geocentric staffing, ethnocentric, polycentric, staffing, recruiting, subsidiaries, headquarters, multinational corporations, corporate strategy, and ERP model. The paper analyzes the work of Howard Perlmutter, a prominent researcher in the field of corporate internationalization, and his contributions to understanding different staffing approaches. The paper explores the benefits and challenges associated with geocentric staffing within the context of global business and corporate strategy.- Citar trabajo
- Till Schaumann (Autor), 2012, The Pros and Cons of Geocentric Staffing by Perlmutter (1969), Múnich, GRIN Verlag, https://www.grin.com/document/286450
