Do you think IBM (and similar companies) should stick to a global approach, or maybe move to a regio-centric, polycentric, or even ethnocentric approach regarding management? Why or why not? Please justify your opinion!
IBM should continue leveraging the global approach due to its lucrative benefits. Firstly, the global approach enables am organization to implement a diversified work culture which gives an organization a competitive advantage. A diversified culture marked by mixed employees on the basis of ethnic, language, regional, and religious differences, is the heart-borne for innovation and creativity(Scullion & Collings, 2011). Additionally, it improves an organization’s reputation since the availability of different employees serves customers of the same ethic, thus increasing an organization’s branding. The global approach is popularly used by multinational companies including BMW since it promotes the existence of a conducive working environment: innovation and equality.
Alternatively, IBM should consider the essence of incorporating mixed aspects of region-centric, polycentric, and ethnocentric approaches. Region-centric will improve company communication and decision-making efficiency (Gaan,2014). It encourages multinational organizations such as IBM to recruit talented employees belonging to a subsidiary county purposely for the managerial seat. As a result, the new managers will aid the management to pass key information and also guide the patent management in formulating favorable work policies as the managers have deep knowledge of the employees’ culture. On the other polycentric will enable the company to improves employees‘ morale in the foreign land via work promotion. Lastly, ethnocentric will enable the company to reduces cultural diversity issues, such as discrimination by recruiting the majority of employees in the subsidiary country.
References
Scullion, H., & Collings, D. (2011). Global talent management. Routledge.
Gaan, N. (2014). Is Transformational Leadership Region-Centric in Nature?. International Journal of Business and Management, 9(8), 108.