ASSIGNMENT #3 If you own an MNC, which attitude (Ethnocentric/Polycentric/Geocentric) would you adopt and why?

If I own an MNC, I would like to use and adopt ethnocentric approach. Why did I want to adopt this attitude is that firstly, a new MNC should be more on formalize concept or a top down management that is if a MNC did not apply this approach, the subordinates or lower level manager and workers won’t see the company as a global corporation that will affect management process from the supplier to the customer. A serious approach will be the first step in order to gain trust and respect from the subordinates. Secondly, looking at the decision making process, and the authority to making decision, top level manager will be pursuing the decision for the companies, thus this means the top level manager were high in its knowledge about everything related in the industry as well as their employees. A good manager will choose a good strategy that not only enhancing its operation but also the healthier and wealthier of its employee. The higher the low level management giving the feedback, the higher chances that the company will survive. Next, in context of communication or information flow, top management or HQ would be the first mover to develop new ideas and command. As being discuss in the last told in the last element, HQ have the power to command and giving advices to its subsidiaries. Giving order or command to the lower level manager or subsidiaries doesn’t mean that they have to follow 100% exactly all the order from the high authorities, this concept are blindly misinterpretation by people. Yes, it is true the top manager order the low manager but the low manager must bear in mind that they can make own justification about the order and reply it by using correct channel to the top manager or HQ if the order was wrong. That is the concept of being a top down

management. The upper has higher power and the lower have the rights to reply even though it is been reject by the upper manager. Last but not least is about the employee recruiting or staffing development. Usually MNCs that adopting ethnocentric attitude in the management will recruit and develop people of home country and positions their workers everywhere in the world where the subsidiaries was. Expecting that company doesn’t accepting local manager was the first impression to all people around the world. But there was a significant understanding why company usually send own employee to the other countries where the subsidiaries was established. Using simple words, company need to make sure in the environment is qualified for the HQ in order to run a longterm business. Company’s not exactly using only one approach to the end of its operation. Sometimes companies will adopt new approach in order to sustain its process in a different atmosphere. Me in this context, as a MNCs manager will also adopting new strategy that different from ethnocentric - e.g. polycentric or geocentric, if the time is suitable and the requirements has been meet.

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