Alpha is a company which operations cover three businesses which are IT services, business process and software products. Alpha’s internationalizations process shows approach is of Polycentric. Polycentric approach is the company knows the importance of the host company or the subsidiary countries and its law which governs it. They prefer to have local managers for their knowledge and in depth understanding of the way working in that country. Their management way suits the culture of the local and the aspirations of the locals in the respective subsidiary company.
One of the HR head of Alpha from China has mentioned, ‘Alpha wants to be a Chinese company in China but want to provide the same global experience to their clients no matter where the operations are being provided. They are committed to localized the workforce in their respective subsidiary’s. Here the approach can clearly be seen as polycentric.
Nevertheless, there has been some issues where their effort is hindered for reasons as cost effectiveness, the bulk project in India, and the fewer people are opting to study the IT courses. Besides that, some of its managers at their overseas subsidiaries feels that there is too much centralization of power in the corporate office and the decisions are made in India more than their respective subsidiary. Here it can also be seen from the statement made by one of the managers in their subsidiary company regarding centralization of power and decision making which made mostly in India shows there is Ethnocentric approach being also applied.
In my opinion, Geocentric approach applied will would be better as Geocentric approach uses the best strength of employees no matter where is their country of the subsidiary. This culture of Geocentric approach, will have the right amount of flexibility, taking into consideration the culture and boundaries making their subsidiary’s HR highly effective. The decision making in such cases are usually made by the local subsidiary. This would also make the decision making more faster and at the same time the core value of the organization is applied.