Advantages And Disadvantages Of The Geocentric Approach

There are certain advantages such as the HCN are not expensive and there is no language barrier or discrimination between the peers. HCN gives an opportunity to stay low profile on political issues. While there are also certain disadvantages such as there is building of gap between the HCN employees and PCN employees. There is a huge difference of cultural values because both have different culture and different way of working. HCN have limited carrier options to gain knowledge from outside their subsidiary. In the Geocentric approach the people are appointed regardless of PCN or HCN it is more performance and suitability of position. “It is based on five assumptions, (i) highly qualified staff is appointed for the betterment of the company …show more content…
There are also certain drawbacks to this approach such as some western countries require extensive documentation. Providing these documents could be time consuming and there is a difficulty in taking a work permit visa for that person. It could be more expensive because of training courses and abroad exposure. In the Regiocentric Approach a company divides its regions globally like European region, American Region and Asian Region. A person working in the European region could be relocating to any subsidiary in the Europe same as the case for American and Asian. The main advantage of this is it covers the all three positive aspects of the ethnocentric, polycentric and geocentric. And it is very easy for a firm to transfer its employees from subsidiaries to headquarters and vice-versa. There are certain disadvantages also that it only moves from barrier to regional level not globally. Employee carrier is not specified some time he may get confuse in attaining a common goal and personal task. (Dowling P.J, Welch D.E, Schuler R.S 1999, …show more content…
Organizations working within United States and most developed countries in Europe seem to be more stable than the rest of the countries. Although their political circumstances changes such as different presidents, governors, prime ministers coming over the span of time period. But the legal systems are so well established that organizations working within or globally in that country can rely on the continuity and consistency of the system. On the other side of picture the other’s country political system are unstable the countries government are over thrown by military, and some country there are dictators who emphasis on the international organizations to buy goods and services from the host-national country. In some origins of world a single party is continuously in rule and that sometimes led to different illegalities such as corruption, bribes and racism. While in some countries there is constant change in the policies and laws due to their unstable system as the new political party coming in rule they changes the policies and laws according to their own desire. So this may lead to the problems for international organization. IHR laws and regulations vary from country to country. In many western European countries different policies and labor unions are in charge so it may become tough for the HR to cut short people from organization because the required payment of existing can be very high. In