A major disadvantage of a __________ staffing policy may be the lack of effective flow of information and productive interaction between MNC headquarters and the foreign subsidiary due to language and cultural differences as well as the growth of unfavorable "us versus them" stereotypes caused by a lack of local meaningful interaction and common experience between PCNs and HCNs.

Question

Quizplus · Accepted Answer

The disadvantage described in the statement is a characteristic of a polycentric staffing policy. This policy favors the hiring of host country nationals (HCNs) for upper-level positions in the subsidiary, which can lead to a lack of effective communication and cooperation between HCNs and parent country nationals (PCNs). Ethnocentric staffing policies favor PCNs for these positions, while culturally sensitive and transnational policies aim for more balance and integration between PCNs and HCNs.

A Major Disadvantage of a __________ Staffing Policy May Be