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Definition: Regiocentrism

Regiocentrism can be defined as a process in which the selection staffing and recruitment of personnel is done from population that is residing in that particular country of a region for running the business in some other country of the same region. For e.g. - A multinational company like HUL recruiting people of Indian origin for operating the Bangladeshi business unit.

Advantage of using Regiocentrism approach

1. It helps organization to select people that are more culturally fit and related to that particular region and hence better aware of business and problem of people in that particular region.

2. It helps in cost cutting if a costs of hiring talent in the host country are significantly higher

3. It helps in knowledge sharing which can be used to better train the personnel in knowledge of business.

Disadvantage of using Regiocentrism Approach

1. Regiocentrism can be a problem if the people in host country are hostile towards the people of other country

2. Sometime the managers may lack the expertise to deal with people of other origin and therefore situation could turn grave.

3. Communication barrier may arise due to different language which may be problem in doing business. At times this problem is counteracted by providing training to the employees.

Hence, this concludes the definition of Regiocentrism along with its overview.


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