To appoint a managing director that can suit and work in the Peru’s political turmoil.
Because of the political turmoil in Peru , which at times has bordered on being a full-scale war , the company had to appoint a managing director that can do the works that had been done by the current managing which had succeed to manage the operation with good and improving sales and profitability.
1) The Geocentric Approach
With geocentric approach , unlike the ethnocentric and polycentric variation , OEC’s decision to appoint managing director is not tied to U.S national of Peru national .Rather , OEC scans the five short-listed colleagues looking for ...view middle of the document...
OEC faces cost that extremely expensive to implement.
2) The Polycentric Approach
This approach has its own pros and cons when they decide to appoint Juan Moreno . The benefit by using this approach is that the OEC will have a lower labour cost , they give an expressions that the company has a trust in the citizen .But the most significance one , is that the OEC increases acceptance of the company by the local community and maximizes the number of options available in local environment .The disadvantages of this approach is that the OEC company may find that it is difficult to balance local demands and global priorities .Moreover , the company faces a leads to postponement of difficult local decisions until they are unavoidable ,and when the employees unavoidable , more difficulty, costly and painfully than they would have been if implemented earlier.
Selecting the Best Alternative Strategy
Using a Polycentric approach much be better, by using this approach a OEC will appoint Juan Moreno as the replacement of current managing director that will leave within a month .Carolyn Moyer might be a best amongst all of the five short-listed colleagues , but Juan Moreno is already familiar with the local culture , values , attitudes, and will be effective immediately in his coming director post as he already working in Peru’s operation .
Juan Moreno might be lack in experience but he is competent in employee relations and this assures that the will be able to manage the current employees and he also has the connection in sales of OECs equipments. Other than that, his estimated compensation package is the lowest amongst all the selected colleagues and this can save cost for OEC.By appointing Juan Moreno for managing director , they will save all the cost sending him for the Expatriate Preparation and Development Training which consist of General Country Understanding(informational briefing about the way in the host country-political structures , job design ,compensation norms , and salary distribution ).Cultural sensitivity (best preparation for dealing with the challenges of culture shock) and Practical Skills Training (familiarize...