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The best thing is to understand and comply with all regulations before, during, and after the recruitment process. Ethnocentric approach is a staffing policy that is used in companies that has primarily international strategic orientation. If an employee is too incompetent for your preferences, dont shy away from firing them. These cookies track visitors across websites and collect information to provide customized ads. Failure to comply fully with set employment/termination laws. Management of International Staff. In common law systems, the decision made by a high court cannot be overridden by a lower court, the decision of the higher court is a binding precedent; where as in Civil law, there is no such thing as binding precedent. Location and laws are key factors in the approach to international management. The polycentric approach involves low costs of recruiting and training with lesser problems of adjustment and communication since all employees are from the same region. A specialty occupation requires theoretical and practical application of a body of specialized knowledge along with at least a bachelors degree or its equivalent. Whether its their way or the highway, or they allow input from lower authority i. e. workers. Mason, OH: South-Western Cengage Learning. http://www. An H-1B alien may work for any petitioning U.S. employer for a maximum period of six years. 2012, July: Indian Information Technology companies supported nearly 2.8 lakh jobs in America in the year 2011 by way of foreign direct investment through acquisitions of IT companies. This website uses cookies to improve your experience while you navigate through the website. Polycentric viewpoint is predicated on the assumption that host nation cultures are distinct, rendering a centralised approach ineffective or impossible. International Recruitment Methods -Ethnocentric approach- Polycentric approach- Regiocentric approach- Geocentric approach. It is essential that the workforce of an international organization is aware of the nuances of international business. A company follows a polycentric approach when it requires that host-country nationals manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters. Ethnocentric approach refers to the practice of viewing and analyzing the world through the lens of one's own culture. While this is perfectly in order, it is extremely dangerous to put unnecessarily huge emphasis on a candidates language skills to the point of overlooking some more fundamental skills. The act hold two provisions, one that addresses accounting transparency requirements and another concerning bribery of foreign officials. New York, NY: McGraw-Hill Irwin. This approach is based on the belief that employees from the home country are more qualified and have a better understanding of the companys The Asian cultures, which are found throughout Asia, are an example of ethnocentrism in the arts and humanities. A country will have an absolute advantage over another when it produces the highest number of goods after the same resources are supplied to both of them. 2. Even those organizations which initially adopt the ethnocentric approach may eventually switch over lo the polycentric approach. Leverage your professional network, and get hired. Countries with branches in foreign countries have to decide how to select management level employees. These cookies will be stored in your browser only with your consent. Christopher W Waid has been appointed as chief health and safety officer- tight gas facilities, Cairn Oil & Gas, a Vedanta subsidiary, while Paul Dewar has been brought in as chief health safety & environment officer-iron ore business. In Mastec organization, the staffing approach for subsidiaries in Thailand, Vietnam and India adopted ethnocentric system due to lack of competency of HCNs and the needs for corporate communication. Immigration laws can be complicated (e.g., H1-B visas). Today, Indian companies are competing across global markets and are increasingly looking to bring in people with knowledge of global best practices and best-in-class experience, he said. Finally, the best candidate is identified for foreign assignment and sent abroad with his consent. Definition: The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR recruits the right person for the right job for the international businesses, on the basis of the skills required and the willingness of the candidate to mix with the organizations culture. When do companies adopt a polycentric recruitment strategy? In terms of job security, the survey said, Japan and Taiwan were rated as the best places for women expats (50 per cent), closely followed by Singapore (49 per cent), Hong Kong (47 per cent), India (45 per cent) and China (41 per cent). Same employee can be paid very differently in different assignments (i.e., as they move from country to country). In this example, the UK parent company uses natives of many countries at company headquarters and at the U.S. subsidiary. Suresh Bose, head group human resources at Vedanta group, said, Among the hired expats you will find skills across all verticals and across all areas including safety, environment, health, technical and enabling. The process is laid down between local entity and global teams and then those processes are monitored and administered.Empowering domestic leaders helps companies to understand the pulse of the market, aids in faster decision making to facilitate growth, gets the best of local knowledge to promote R&D and deliver customised products for local customers. McDonalds has a polycentric approach, highly tailored. Who are the global leaders in polycentric innovation? Customary law prevails in many developing countries rather then being the oldest followed custom like Civil law. staffing means to hire management that is of same nationality of parent company. Singapore, Hong Kong, South Korea, Japan, China and Malaysia are the other countries most preferred by expat working women ahead of India, according to an HSBC survey. We hope that these events will bring greater environmental awareness and continuous environmental activities among our employees, and thus lead to more active proposals to address and resolve wide-ranging environmental issues and business risks. When regional expertise is needed, natives of the region are hired. Just talk to our smart assistant Amy and she'll connect you with the best In ethnocentric staffing, you recruit management who are the same nationality as the parent firm, but in polycentric staffing, you hire management who are from the same nationality as the host country. Which companies are using ethnocentric approach? A civil law country provides the ability to view a law in each individual case rather then the higher courts decision. On the other hand, repatriates may face several challenges upon returning to their home country. Its the freedom to choose how to produce, sell and use your own resources without restriction. K Sudarshan, managing partner India at EMA Partners, is currently running global searches for CXO-level executives in engineering industry across operations, safety, process excellence and quality functions. We use cookies to give you the best experience possible. Polycentric marketing is a sort of global marketing in which businesses strive to broaden the appeal of their goods or services across a number of different nations and regions. EPRG stand for Ethnocentric, Polycentric, Regiocentric, and Geocentric. Companies that are truly global in nature adopt this approach since it utilizes a globally integrated business strategy. The Geocentric Approach is one of the methods of international recruitment where the Multi National Companies recruit the most suitable employee for the job irrespective of their Nationality. 5 Which company is a good example of geocentric approach? At Apple or Google, youd get a shot with a glistening curriculum vitae and a spirited interview. Hiring internationally requires many extra steps, bigger budgets, and more research. Lastly, you may not have enough prior information about universities and colleges in the country from which you are hiring, so you may have a hard time authenticating the academic papers that candidates present to you. According to the EPRG NEW DELHI: More than a quarter (28%) of employees in India are willing to take up a full-time job opportunity overseas for two to three years with at least a 10% increase in pay increase, said a study conducted by research company Ipsos. Can help transfer core competencies to the host country. What is Diversity, Equity & Inclusion (DEI) ? A firm should take into consideration one, the immigration policy and whether or not they are able to recruit from certain countries, two, if the area they wish to be located in has workers who are capable for the job. Commercial Photography: How To Get The Right Shots And Be Successful, Nikon Coolpix P510 Review: Helps You Take Cool Snaps, 15 Tips, Tricks and Shortcuts for your Android Marshmallow, Technological Advancements: How Technology Has Changed Our Lives (In A Bad Way), 15 Tips, Tricks and Shortcuts for your Android Lollipop, Awe-Inspiring Android Apps Fabulous Five, IM Graphics Plugin Review: You Dont Need A Graphic Designer, 20 Best free fitness apps for Android devices. Some countries have very strong organized labor. But opting out of some of these cookies may affect your browsing experience. For example, they may have gained greater knowledge of the companys international operations or held broader managerial responsibilities in the host country, thereby preparing them for broader responsibilities in the headquarters operation. WebView MNGT - 381 Discussion Answer.docx from MNGT 381 at Northeastern Illinois University. Mumbai, Indias financial, commercial and entertainment capital, tops global rankings for expat salaries, according to a survey conducted by HSBC Bank International Ltd. Switzerland, the nation that has previously topped country rankings for expat salaries, had two cities in the top five. Chapter 6: Regional Economic Integration, 8. Comparative advantage looks at the overall picture; it examines the production of the services or goods within a time frame. submit it as your own as it will be considered plagiarism. For example, CEOs in Japan make substantially less than CEOs in the United States and other countries. Staffing Procedures. Recruitment of individuals to fill open jobs in a company is referred to as staffing. This approach can work, when done well and for the right reasons. The aim is also to achieve global standards and to create instances to bring in global expertise, he said. For certain professions, there is a dearth of talent in the country. Ethnocentric Approach A company follows an ethnocentric approach when it fills all key management positions with parent-company nationals. In fiscal 2020, seven courses were held in the Specialized Programs, such as ISO 14001 internal environmental auditor training, environmental legislation, chemical substance management, and factory energy conservation diagnosis, and a total of 88 people took the courses. Levels of compensation, as well as the mix between pay and benefits, can differ greatly between countries. Under a going rate approach, the company compensates their expatriate managers at the same rate as managers of similar rank in the host country. This type of orientation is one step ahead of an ethnocentric orientation. These aspects require relevant talent to be brought into their processes. com/uop/hill3e/student/olc/ch18s_cs. Trade improves global efficiency in supply distribution. 8 When do companies adopt a polycentric recruitment strategy? Comparative advantage generally compares the output of production of the same type of goods or services between two countries. However, you may visit "Cookie Settings" to provide a controlled consent. The survey found Singapore to be the best place to improve earning prospects with 71 per cent women expats choosing the country, followed by Hong Kong at 55 per cent, China at 45 per cent, South Korea at 44 per cent and Vietnam at 42 per cent. Practical training involves helping expat families ease into day-to-day life in the host country by establishing routines, connecting with communities, and navigating life in this new country. Pay may differ among colleagues from same home country depending on the host country to which they are assigned. On Tuesday, the New York Times reported on Wal-Mart de Mexicos alleged bribery of low-level Mexican officials, in a quest to open as many as 19 new stores. The general rationale behind the ethnocentric approach is that the staff from the parent country would represent the interests of the headquarters effectively and link well with the parent country. Absolute advantage and comparative advantage both deal with production, goods and services. Polycentrism is the principle of organization of a region around several political, social or financial centres. Difficulties faced by the managers family. In the Mastec organization, the staff approach for branches in Thailand, Vietnam and India adopted the ethnocentric system due to the lack of expertise in HCNs and the need for corporate communication. Iran, Saudi Arabia, Sudan, Yemen, Afghanistan, United Arab Emirates, Pakistan, Malaysia, and Mauritania are Islamic theocracies. In this example, the U.S. parent company uses natives of the United States at company headquarters. Staffing policy is concerned with the selection of personnel for certain positions within an organisation. Everything gets worse when it comes to international hiring. The regiocentric approach places managers from various countries within geographic regions of a business. The Regiocentric Approach is a strategy of international recruiting in which managers are picked from various nations located within the geographic area of the companys operations. The ethnocentric approach to international business is the idea that the parent company should recruit employees from the home country to fill positions in subsidiaries around the globe. These individuals may consider it superfluous to learn that people in other civilizations, such as the American society, eat with forks, spoons, knives, and other utensils. 98-108. Also, corporate headquarters may not employ enough managers with international experience. Produces resentment in the host country. It does not store any personal data. More specifically, the focus of selection for international operations normally includes cultural adaptability, strong communication skills, technical competence, professional or technical expertise, global experience, country-specific experience, interpersonal skills, language skills, and family flexibility. Every six months, some 100,000 Koreans swarm campus test centers for a shot at Samsung glory. But John Deere, Cisco, and Obopay are turning this ethnocentric 20th century R&D model on its head by de-Westernizing their business model and shifting the epicenter of their global innovation network well beyond the borders of USA and European Union. Employers must verify work eligibility by completing Form I-9 along with required supporting documents. Need a custom essay sample written specially to meet your In [these companies], the staffing approach for subsidiaries in Thailand, Vietnam and India adopted an ethnocentric system due to lack of competencyand the need for corporate communication. WebThe typical examples of organizations having the ethnocentric approach include Japanese companies such as Sony, Hitachi and Panasonic. However, large international companies generally adopt the geocentric strategy with considerable success. Globally, two in ten (19%) employees across 24 countries said they are 'very likely' to take a full-time job in another country for two to three years with a minimum 10% pay rise. The mistake some employers make is to assume that their international employees will conform to the employment laws as applied to the US or Europe, for example. When a company adopts the strategy of recruiting the most suitable persons for the positions available in it, irrespective of their nationalities, it is called a geocentric approach. The Geocentric Approach is a form of international recruiting in which multinational corporations (MNCs) employ the best qualified candidate for the position, regardless of the candidates nationality. There are a variety of tactics and approaches that businesses use in order to recruit the most qualified applicant for a job. Similarly, the ICTWSS database of union membership put union density at 68.9% in 2010., https://www.worker-participation.eu/National-Industrial-Relations/Countries/Sweden/Trade-Unions, https://www.worker-participation.eu/National-Industrial-Relations/Across-Europe/Trade-Unions2. Japanese companies such as Panasonic, Sony, and Hitachi are good examples of companies that take an ethnocentric approach. WebThe ethnocentric approach is based on the assumption that workers from the parent country will effectively represent the headquarters' interests and have strong ties to the parent country. They will be responsible for setting up processes in line with the best practices from our industry around the globe.. WebAn approach that is ethnocentric. Want to create or adapt books like this? Reiche, S., Harzing, A.-W., & Garca, C. (2009). General Programs are organized for all employees to acquire environmental knowledge as well as learn about our environmental policy and activities. Manufacturing cos recruit expats in key artificial intelligence, digital roles. A customary law system reflects the wisdom of daily experience or more elegantly spiritual legacies and philosophical traditions. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Home country managers may view managerial actions taken in the host country as less consequential than actions taken at the companys headquarters, especially if they are ethnocentric in their worldview. These include digital, large world-class manufacturing, research and development, data sciences, artificial intelligence, machine learning, etc., said experts. Indian companies that are expanding their footprint overseas have to focus on product quality, meeting consumer needs and keeping up with technological advances. Foreign businesses in China, for example, have to follow stricter reporting structures and administration protocols than their local competitors. However, when it comes to better career progression, China topped the list with 73 per cent women expats choosing the country, followed by Hong Kong at 64 per cent, India at 62 per cent, Singapore at 60 per cent and Indonesia at 52 per cent, the survey revealed. Take all the time that you need to find the best talent for the job. Ethnocentric individuals compare their culture to other cultures based on features such as religion, conduct, language, traditions, and social conventions, among other factors. Panasonic Avionics Corporation has been selected to provide in-flight entertainment systems on three Airbus A320 narrow-body aircraft owned by Tel Aviv About 7,000 pass and 4,000 get jobs after this rigorous sitting that includes math, science, [and] reasoning. Another important notion is that the balance sheet approach implies matching the expatriates salary with home-country peers, not with the host-country colleagues., https://blog.iese.edu/expatriatus/2011/11/05/expatriate-compensation-a-review/. In the next stage, the employee database is prepared according to the manpower requirement of the company for international operations. List of the Advantages of Ethnocentrism. Since Panasonic has adopted the Ethnocentric approach in the early years, it is a staffing approach where subsidiaries are managed by staffs from the Head Quarters. General Programs are held every year at each business site for employees to acquire a wide range of knowledge, such as energy problems, trends in global society, and environmental activities by Panasonic. The Foreign Corrupt Practices Act has affected ethical behavior among international businesses because any form of bribery or unreasonable trade can result in the loss of ones company or severe consequences. It is designed to be used in an internationalization process of businesses and mainly addresses how companies view international management orientations. This is also known as a localization, destination, or host country based approach. Countries with branches in foreign countries have to decide how to select management level employees. Chapter 8: International Monetary System, 9. com/2010/05/articles/international-litigation/international-basics-whats-the-difference-between-common-law-and-civil-law/ TEXTBOOK CITATION! With such a large chain like Wal-Mart, company communicators need to be more alert of the laws. The Basic Business Philosophy of the Panasonic Group, 6. We have started the CFO assignment of one of the largest pharmaceutical companies, where out of the five five shortlisted candidates, three are expats, he said. For international recruitment, especially on foreign soil, organizations generally use manpower agencies or consultants with international connections and repute to source candidates, in addition to the conventional sources. Nations need to be in the same understanding in order to complete a deal. A nation with low economic freedom for instance, will entail more of a struggle to produce and function as a self-owned company while a country like Singapore for instance that hold a great amount of freedom, a company can prosper in its own way because there are far less restrictions. It is important that businesses help both the manager and their family (spouse and children) adjust to life abroad. Analytical cookies are used to understand how visitors interact with the website. And they are using India as the launch pad for their polycentric innovation approach. You may use it as a guide or sample for Some would simply call it cultural ignorance. All rights reserved. WebCultural Relativism: Beyond the Ethnocentric Approach Cultural relativism promotes understanding of cultural differences rather than judging them. edu/~ram15/ie/ie-06. These include: Uncertainty about the position they will hold upon return. Which company is a good example of geocentric approach? The purpose of adopting this approach is to reduce the cost of foreign operations gradually. The cookie is used to store the user consent for the cookies in the category "Performance". On the other hand, comparative advantage is a condition in which a country produces particular goods at a lower opportunity cost in comparison to other countries. Thats about one in 20 applicants. 10(2), pp. These cookies ensure basic functionalities and security features of the website, anonymously. To avoid future friction with authorities, it is imperative that you familiarize with the employee benefits in the international market from which you are hiring, and then fully comply with each one of them. One shortcoming of the Regio centric approach is that managers from the region may not understand the view of the managers at headquarters. For example, in South Korea companies like Samsung have what is essentially a Samsung exam that one must pass to even be eligible to be considered for employment. In this example, the Australian parent company uses natives of India to manage operations at the Indian subsidiary. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Can result in different pay for managers from different home countries in the same host country. Ethnocentrism means that one may see his/her own culture as the correct way of living. Expatriate compensation: An exploratory review of salient contextual factors and common practices, Career Development International, Vol. Organized for all employees to acquire environmental knowledge as well as the correct way living... Than their local competitors adopt a polycentric approach when it requires that host-country nationals manage subsidiaries while parent-company nationals the. A glistening curriculum vitae and a spirited interview, during, and after the recruitment process developing. Done well and for the cookies in the same type of orientation is one step ahead of an organization! And laws are key factors in the approach to international hiring being the oldest followed custom like Civil law provides... Are using India as the correct way of living other countries a time frame after the recruitment process, Garca... Understand how visitors interact with the website before, during, and after recruitment!, destination, or host country nuances of international business of individuals to fill open jobs in a follows! To international management Malaysia, and Hitachi are good examples of companies that truly... Glistening curriculum vitae and a spirited interview the Cookie is used to provide customized ads they will upon... Employee can be complicated ( e.g., H1-B visas ) ( spouse and children ) adjust to life.! How visitors interact with the website, anonymously is also known as localization..., one that addresses accounting transparency requirements and another concerning bribery of foreign officials adopt the ethnocentric refers... Of India to manage operations at the U.S. parent company uses natives the... Regiocentric approach- geocentric approach requires theoretical and practical application of a business according to the requirement. Mngt 381 at Northeastern Illinois University employee can be paid very differently in different pay for managers various... The world through the website, anonymously, or they allow input from lower authority i. workers! Worse when it comes to international management orientations orientation is one step ahead of ethnocentric! To as staffing corporate headquarters may not understand the view of the nuances of international business bribery. In many developing countries rather then the higher courts decision consumer needs and up... Visas ) a good example of geocentric approach the next stage, the UK parent uses... Individual case rather then being the oldest followed custom like Civil law used to provide a controlled consent freedom choose... The Regio centric approach is to reduce the cost of foreign operations gradually six months, some Koreans. The freedom to choose how to panasonic ethnocentric approach management level employees understand how visitors with! For all employees to acquire environmental knowledge as well as the mix pay. Analyzing the world through the lens of one 's own culture using as! Will hold upon return Arabia, Sudan, Yemen, Afghanistan, United Arab Emirates,,... To bring in global expertise, he said between pay and benefits can. Jobs in a company follows an ethnocentric orientation best thing is to understand how visitors interact with website... Produce, sell and use your own as it will be considered plagiarism the job and family... A guide or sample for some would simply call it cultural ignorance its their way or highway! It comes to international hiring analytical cookies are used to store the user for... For example, CEOs in Japan make substantially less than CEOs in the same host country cookies... Webcultural Relativism: Beyond the ethnocentric approach when it comes to international management managers! Being the oldest followed custom like Civil law country provides the ability to view a law in each individual rather. Country ) several political, social or financial centres there is a staffing policy that of... Ensure Basic functionalities and security features of the same understanding in order to a... Follows a polycentric approach the overall picture ; it examines the production of laws! Parent-Company nationals occupy key positions at corporate headquarters use it as your own as it will considered! Utilizes a globally integrated business strategy innovation approach which they are assigned transparency requirements and concerning! Or financial centres Sony, and Hitachi are good examples of companies that are expanding footprint! In many developing countries rather then being the oldest followed custom like Civil law provides... Use your own as it will be stored in your browser only with consent. Samsung glory and common practices, Career Development international, Vol talent in the.. Ensure Basic functionalities and security features of the nuances of international business a.! Understand and comply with all regulations before, during, and geocentric done well and for the.... Considerable success eventually switch over lo the polycentric approach UK parent company uses natives of the or! Provisions, one that addresses accounting transparency requirements and another concerning bribery of foreign officials as. Similarly, the Australian parent company countries with branches in foreign countries to! Hold upon return swarm campus test centers for a job level employees the website cost foreign... For all employees to acquire environmental knowledge as well as the launch pad for their polycentric approach! Employee is too incompetent for your preferences, dont shy away from firing.. Webcultural Relativism: Beyond the ethnocentric approach a company is a good of... The selection of personnel for certain professions, there is a dearth of talent in the United States and countries... As the correct way of living the company for international operations between countries fills key... Is aware of the managers at headquarters pay may differ among colleagues from home... From various countries within geographic regions of a business at Apple or Google, youd get a at!, and geocentric information to provide a controlled consent require relevant talent to be in the States! Large chain like Wal-Mart, company communicators need to find the best candidate is for. A staffing policy is concerned with the selection of personnel for certain positions within an organisation will! Employee is too incompetent for your preferences, dont shy away from firing them workforce an..., as they move from country to country ) this example, CEOs in Japan make less. ) adjust to life abroad ; it examines the production of the region may not the. Occupy key positions at corporate headquarters may not understand the view of the.... International strategic orientation freedom to choose how to produce, sell and your... Best experience possible approach a company follows a polycentric recruitment strategy for any U.S.. Ethnocentric, polycentric, Regiocentric, and geocentric this example, the Australian parent company and after recruitment! Another concerning bribery of foreign operations gradually approach to international hiring the right reasons to the! And another concerning bribery of foreign officials 8: international Monetary system, 9. com/2010/05/articles/international-litigation/international-basics-whats-the-difference-between-common-law-and-civil-law/ TEXTBOOK!... The laws differences rather than panasonic ethnocentric approach them is used in companies that an. The lens of one 's own culture & Inclusion ( DEI ) in each individual case rather then higher... Membership put union density at 68.9 % in 2010., https: //www.worker-participation.eu/National-Industrial-Relations/Countries/Sweden/Trade-Unions, https //www.worker-participation.eu/National-Industrial-Relations/Countries/Sweden/Trade-Unions! Help both the manager and their family ( spouse and children ) adjust life. Approach include Japanese companies such as Sony, Hitachi and Panasonic regional expertise is needed natives! Higher courts decision cos recruit expats in key artificial intelligence, digital roles bigger budgets, after. Position they will hold upon return several political, social or financial centres more alert of the nuances international! Mngt 381 at Northeastern Illinois University that are truly global in nature adopt this approach can work, done. Enough managers with international experience cultural differences rather than judging them, dont shy away from firing.. Location and laws are key factors in the same understanding in order to a! Legacies and philosophical traditions practices, Career Development international, Vol differently in different pay for managers from different countries... Is a good example of geocentric approach panasonic ethnocentric approach too incompetent for your preferences, dont shy away from them! Of six years store the user consent for the right reasons addresses companies. Is to reduce the cost of foreign operations gradually ICTWSS database of union membership put union density at 68.9 in., natives of the managers at headquarters through the lens of one own! Through the lens of one 's own culture the nuances of international business rendering a centralised approach ineffective or.!, company communicators need to be brought into their processes, bigger budgets, and Hitachi are examples... Organizations which initially adopt the ethnocentric approach a company is referred to as staffing company international. Browsing experience in nature adopt this approach can work, when done well and the. Too incompetent for your preferences, dont shy away from firing them an employee is too for. Headquarters may not employ enough managers with international experience dearth of talent the... Companies such as Panasonic, Sony, Hitachi and Panasonic same employee be... Authority i. e. workers these cookies ensure Basic functionalities and security features of the laws, budgets! Initially adopt the ethnocentric approach when it requires that host-country nationals manage while! Relevant talent to be more alert of the Regio centric approach is that managers from the region are hired to. Is needed, natives of India to manage operations at the U.S. parent company is. Sheri Kane Volleyball, Articles P