Flor-Restore, a U.S. dental products company, follows a polycentric staffing approach, and key positions at the company's U.S. headquarters are staffed by U.S. nationals while foreign subsidiaries are managed by locals. While the company's international business has grown exponentially in the past five years, greater competition in the United States has caused this office to see a decline in sales and many top U.S. managers are leaving the company. What drawback to a polycentric approach might explain this?

Question

Quizplus · Accepted Answer

A polycentric approach can limit advancement opportunities for managers from the headquarters, as key positions in foreign subsidiaries are filled by locals, potentially leading to dissatisfaction and turnover among headquarters staff.