Alpha took poly-centric approach, they realize the importance of the host country and its governing laws. Further, they are aware that the National culture plays an important role in all aspects of management. Hence it is prudent to follow the market needs of the host country and frame a strategy which can give the best results.
To implement such a strategy, they need local knowledge and in-depth understanding of the way of working in that country. They have to align their management style to suit the local culture and aspirations of the people in that country.
In this approach, organizations have local people are recruited at senior positions. There are very few parent country nationals. The decision making is highly decentralized and local management takes all decisions. Apart from broad policies which are framed by the corporate at parent country, all operational policies are decided at a local level.
In case of management of HR as well, the policies including compensation are decided locally. The guiding principles of culture like Values are driven from the corporate office in the parent country, generally, all other policies are framed locally keeping in view the practices in that country.