A Business Encyclopedia

Geocentric Approach

Definition: The Geocentric Approach is a method of international recruitment where the MNC’s hire the most suitable person for the job irrespective of their Nationality.

The rationale behind the Geocentric Approach is that the world is a pool of talented staff and the most eligible candidate, who is efficient in his field, should be appointed for the job irrespective of his nationality. This approach is followed by the firms that are truly global because they follow the integrated global business strategy.

geocentric Approach final

Advantages of Geocentric Approach

  1. MNC’s can develop a pool of senior executives with international experiences and contacts across the borders.
  2. The expertise of each manager can be used for the accomplishment of MNC’s objective as a whole.
  3. Reduction in resentment, i.e. the sense of unfair treatment reduces.
  4. Shared learning, the employees, will learn from each other’s experiences.

Disadvantages of Geocentric Approach

  1. The cost of training, compensation, and relocation of an employee is too high.
  2. Highly centralized control of staffing is required.
  3. Proper scrutiny is required by the HR to select the most suitable person for the job, which could be time-consuming.
  4. This approach is very costly since the recruitment agencies or the consultants are to be hired for the global search for eligible candidates.

Generally, the recruitment agencies or the consultants are hired to find the most suitable employee equipped with all the necessary skills, residing in any part of the world, to be employed in the global business.

In addition to this, MNC’s can make use of their internal source of recruitment, by maintaining a track record of its employees, and scrutinize these to find the most suitable candidate for the global posting.

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