Ethnocentric approach

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1. Ethnocentric Approach:
 The ethnocentric approach is one of the international recruiting methods in which
human resources recruit the right person for the right position for international
companies based on the required skills and willingness of the candidate to adapt to the
corporate culture.
 In Ethnocentric Approach, the key positions in the organization are filled with the
employees of the parent country. All the managerial decisions viz. Mission, vision,
objectives are formulated by the MNC’s at their headquarters, and the same is to be
followed by the host company.
 The obvious benefit of ethnocentric employees lies in coordinating the interests and
perspectives of the headquarters with all foreign branches abroad. Communication is
also easier because there should be no language or cultural barriers.
 An example of ethnocentrism in culture are Asian cultures in all Asian countries.
Throughout Asia it is common practice to use chopsticks at every meal. Such people
may not find it necessary to find out that people from other societies such as American
society eat with forks, spoons, knives, etc.
Companies that use the ethnocentric approach:
Typical examples of ethnocentric companies are Japanese companies such as Panasonic, Sony
and Hitachi. In the organization, the staff approach for branches in Thailand, Vietnam and India
adopted the ethnocentric system due to the lack of expertise in HCNs and the need for corporate
communication.