Which staffing policy primarily uses parent-country nationals to fill key positions in overseas subsidiaries?
A. Polycentric
B. Ethnocentric
C. Regiocentric
D. Geocentric
Answer (2)
The correct answer is B. Ethnocentric, as this staffing policy primarily uses parent-country nationals to fill key positions in overseas subsidiaries. Companies using this approach believe that their home country's employees best represent their corporate culture and practices. Other staffing policies include polycentric, regiocentric, and geocentric, which utilize different nationalities based on specific strategies.
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The staffing policy that primarily uses parent-country nationals to fill key positions in overseas subsidiaries is the Ethnocentric policy, corresponding to option (B).
In an ethnocentric staffing policy, a company uses employees from the parent country (where the company's headquarters is located) to manage and key positions in its foreign subsidiaries. This approach is often used by multinational companies when setting up new international operations or when there is a need to align the subsidiary with the parent company's practices and culture.
Who : Ethnocentric policies are typically adopted by companies that wish to maintain a strong central control over their international operations. The managers, often from the home country, are in charge of replicating the company's successful strategies abroad.
What : The main focus is on staffing key positions with the company's own nationals to ensure consistency and control.
Why :
Familiarity with the company culture and processes is ensured.
Easier communication and alignment with headquarters.
Better control over the operations and strategy.
Management expertise at headquarters is utilized across international locations.
Where : This policy is applied in the company's foreign subsidiaries or international branches.
When : It is typically adopted when a company is at the early stages of international expansion, has limited international experience, or needs to impose a uniform organizational culture.
How : The company selects qualified individuals from the parent country to transfer their knowledge and practices to the overseas operations, ensuring that the subsidiary stays in line with global corporate policies and goals.
