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Case study - Identify and recommend an adaptive approach

Case study - Identify and recommend an adaptive approach

by ANGGORO GAGAH RAHARDIYAWAN . -
Number of replies: 8

From the case study, it can be inferred that the approach used by multinational company Alpha Computer is the polycentric approach. It is further confirmed with its policy of decentralization, distributed leadership, employee empowerment and non-hierarchical work environment. Its policy of decentralization and distributed leadership means that its subsidiaries in foreign countries can independently frame a strategy based on the market needs of the host country. Following this approach, Alpha tries to localize the workforce in its subsidiaries to the extent possible, as stated by Alpha’s Head of HR in China “Alpha wants to be a Chinese company in China but provide the same global experience to clients, no matter where the operations are carried out”. However, from the case study, Alpha also has an indication of adopting ethnocentric approach. It mentioned that Alpha wants to maintain a cohesive organizational culture, but some of the managers at its subsidiaries believe that there is too much centralization of power and decisions are more often India-centric than global.

Aside of polycentric and ethnocentric approaches, the approach I would like to recommend to global HR for multinational companies is the geocentric approach. By adopting this approach, company will recruit the most suitable persons for the positions available in it without any consideration of geographical region or country. Unlike in the case of Alpha Computer, such companies create a culture that has right proportion of flexibility as well as defining culture and boundaries which make them unique and highly effective. Since the company hire the right talent irrespective of their nationalities, it will become multicultural, which helps them grow the business in different countries. However, this approach is difficult to be adopted due to several factors like political, ethnical, and government laws. Managing such a company also need quick decision making and continuous monitoring of all functions across the globe.


In reply to ANGGORO GAGAH RAHARDIYAWAN .

Re: Case study - Identify and recommend an adaptive approach

by DANIEL SIM-XIEN . -
Very good answer based on cultural understanding
In reply to ANGGORO GAGAH RAHARDIYAWAN .

Re: Case study - Identify and recommend an adaptive approach

by THITA SAWAENGHA . -
I really agree with you point that if the company hire people from globally without limitation of their nationality, the company would become multi-culture and diverse which the people can learn about different culture so it would help when expand in those region.
In reply to ANGGORO GAGAH RAHARDIYAWAN .

Re: Case study - Identify and recommend an adaptive approach

by PASHCHENKO OLGA . -
Thank you for your reply. This is true that it is important to comunicate with different people from other cultures, so we receive the opportunity to understand the world better, taking into account the economy of the region the company wants to operate in
In reply to ANGGORO GAGAH RAHARDIYAWAN .

Re: Case study - Identify and recommend an adaptive approach

by NILIMA HOSSAIN . -
Interesting observation.
In reply to ANGGORO GAGAH RAHARDIYAWAN .

Re: Case study - Identify and recommend an adaptive approach

by TOKA AHMED ALY HAGGAG . -
very well thought of. I agree with your recommended approach
In reply to ANGGORO GAGAH RAHARDIYAWAN .

Re: Case study - Identify and recommend an adaptive approach

by EMAAN MALIK . -
Interesting that you recommend the geo-centric approach, do you think it is more effective to hire a qualified person from a different country who may not understand the work culture in the Indian market? Perhaps a local hire, albeit less qualified, might be more effective considering he/she would have a better grasp on the local work culture, and would make the appropriate changes in the local HRM policies accordingly?