CULTURAL BIAS -Priyanka Nair

1. CULTURALBIAS -Priyanka Nair

2. CULTURAL BIAS • Cultural bias is the phenomenon of interpreting and judging phenomena by standards inherent to one's own culture. • In other words, a person may be biased towards someone else because they do not fit into that persons own culture, or they may be different. • Ordinary people may tend to imagine other people as basically the same, not significantly more or less valuable, probably attached emotionally to different groups and different land. • In short it basically means anything that gives an advantage to one culture over another.

3. EPRG MODEL OF CULTURAL BIAS • EPG Model is an International Business model including three dimensions - Ethnocentric, Polycentric and Geocentric. • It has been introduced by Howard V. Perlmutter within the journal article "The Tortuous Evolution of Multinational Enterprises" in 1969. • The authors have later extended the model by a fourth dimension, "Regiocentric", creating the "EPRG Model". • Elements of the EPG Model • Ethnocentric • Polycentric • Geocentric • Regiocentric

4. ETHNOCENTRIC APPROACH • The word ethnocentrism derives from the Greek word "ethnos", meaning “nation” or “people,” and the English word centre or centrism. • Ethnocentrism is the view that a particular ethnic group’s system of beliefs and values is morally superior to all others. Ethnocentrism is characterized by or based on the attitude that one’s own group is superior to others. • The ethnocentric attitude is found in many companies that have many nationalities and culture groups working together. It is a natural tendency for people to act ethnocentrically because it is what they feel comfortable with. • The ethnocentric attitude is seen often when home nationals of various countries believe they are superior to, more trustworthy and more reliable than their foreign counterparts. • This policy is generally adopted by headquarters by sending employees from the home or parent countries to the host country. • The benefit of having staffs from home country abroad is that employees may gain experiences worldwide in order to become higher level in management of their headquarters

5. POLYCENTRIC APPROACH • One which recognizes the existence of many different cultures and therefore markets. • It is a management style which lays emphasis on local responsiveness, puts local nationals in key positions and allows strategic decisions to be taken in line with the cultures of different countries. • Polycentric is the policy involved hiring and promoting employees who are citizens of the host countries that the subsidiary is operated. • This policy is best used when companies want to keep hiring cost low. • Moreover, employees who are hired at subsidiary level would not have any problem adapting to the culture. Communication is smooth within the operation.

6. GEOCENTRIC APPROACH • The main difference of geocentrism compared to ethno and polycentrism is that is does not show a bias to either home or host country preferences but rather spotlights the significance of doing whatever it takes to better serve the organization. • Geocentric staffing approach is used when companies adopt a transnational orientation. It is best used when companies need the best personnel to work at subsidiary. • Employees are selected regardless where they come from. • This staffing strategy is reliable for all subsidiaries because best employees are selected and sent from the company’s worldwide network.

7. REGIOCENTRIC APPROACH • Regiocentric staffing policy involves hiring and promoting employees based on specific regional context where subsidiary is located. • This approach is used when regional employees are needed for important positions. However, both employees from host countries and a third country are employed. • The disadvantage of using this type of policy is that sometimes employees from home or host countries are not unselected. • Instead, employees from a third are selected to subsidiary in which they may face cultural differences.