Costenage college has four different approaches
Costenage college has four different approaches that they can utilize in recruiting the New Zealand college manager. These approaches include ethnocentric, regiocentric, geocentric, and polycentric. However, the critical positions of the foreign entity are filled by employees of the parent company, and all the managerial decisions are formulated in the company’s headquarters and passed to the host country for implementation. This method ensures there is better coordination between the parent company, and it becomes easy to pass the company’s culture in the foreign market. Also, the main company easily watches and controls the subsidiary. However, this method’s disadvantages surpass the advantages making it less preferred by multinationals. For instance, the staff from the main company not easily adjust to the new environment due to cultural differences which reduces there productivity. Expatriates from the main company are also expensive compared to the locals adding extra financial burden to the company. Regiocentric involves recruiting managers from countries that closely resembles the host country. The methods ensure there is a cultural fit, and it’s less expensive. However, there are chances of communication barriers due to different languages addition, and they may fail to understand and replicate the primary entity’s culture to the foreign company. Under ethnocentric, the selection of a manager is based on the willingness and skills of the applicants.
However, due to cultural differences and other factors in the host country, the polycentric approach stands out as the best option. Under this approach, the country manager of the New Zealand college will be selected from the citizens of the host country. The logic behind this approach is that a local manager knows there culture and other dynamics well and can, therefore, run the business efficiently than an outsider. This method has various advantages. For instance, the challenges faced by an expatriate manager is eliminated, hiring of a local manager is less expensive compared to expatriates, recruiting a manager in the host country motivates employees, and the productivity of the firm is improved as the local manager understands the market better. Additionally, the chances of host country government support are increased, and the chances of success are also enhanced. However, the selected manager from the host country needs to be trained about the overall organizational culture so that he passes into the new entity.