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Culture plurality model (poly-centric business culture), which is a compromise model, and its goal is to enable every daughter company (branch) to apply the dimensions of national and business cultures of the given country. Universalistic features are applied only in a limited way. The reasons for introducing this model are usually following:

  • organization operates in so different regions in terms of culture that the model of cultural dominance is unreal,

  • goals of organization can be realized only using a full creative involvement of employees and branches in particular countries, which can be reached by accepting their cultures,

  • mother organization wants to get to know the positive dimensions of particular national cultures, and use them later on for the benefits of the development of the whole organization.

This model has certain disadvantages for the mother organization based on higher level of independence of particular branches, due to which there can appear separative tendencies, emphasizing the importance and strengthening local branches to the prejudice of the mother organization. Therefore mother organizations often realize rotations of managers in particular countries within this model, create international teams for solution of common problems, etc. Personnel management mostly belongs to the authority of daughter companies.
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Talking about advantages polycentric approach seeks to eliminate high cost

of relocating expatriate managers and families. Secondly this approach offers a degree of autonomy in decision making to subsidiary heads. Subsidiary heads are in a better position to adapt to local needs and tastes. Third, since host country citizens are used, training costs may not be high. Fourth, host country nationals are less expensive than deputing home country citizens as expatriates to work in subsidiaries. (Aswathappa, 2010)


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