In this assignment therefore I will endeavour to interrogate the following: based on the article on ‘The Tortuous Evolution of the Multinational Corporation’ (Perlmutter, 1969), which management approach can be liken to my organisation ways of managing people and examine the bottlenecks in each of the identified approaches. I will also propose some strategies that will mitigate some of these challenges MANAGEMENT APPROACHES THAT FITS MY ORGANISATION
Perlmutter, (1969) proposed four management approaches such as ethnocentric, polycentric, geocentric and regiocentric. Having gone through all these approach I can confidently say I work for a polycentric organisation. My organisation is an international organisation that has gone …show more content…
In as much as the staff are all nationals some other colleagues might want to ignore cultural diversity, which is greatly linked with the ways of working (Jogulu, 2010).
Inasmuch as the polycentric approach has worked to some extent for some international organisation yet some of the downsides can result to lack of control with its branch organisation bearing in mind the heavy commitment of the organisations resources (Welch, 1994). The lack of experience in working in some of these countries can affect the selection of the appropriate management staff which will cause you to rely heavily on expatriates (Borg, 1987).For example in my organisation there was a case of reputational blackmail which warranted the parent organisation to designate an expatriate to oversee the affair for a period of six months until the situation was brought under control. There is also a problem of maintaining organisational …show more content…
This is so because the management of a geocentric approach calls for high calibre of staff mostly managers who can build and maintain the international company. If these managers fail to achieve the goals of the organisation it will lead to reduction of staff and subsequently reverting to a polycentric model of operation (Borg, 1987). In some countries there are strict legislation for migrant workers and this might limit the operations of the organisation.
The regioncentric more or less follows the same steps of the polycentric approach. It major downside is that in most cases there is a detachment in viewpoint and interests with the parent body. There is also a possibility that the regional interest can be put above the organisation’s goal