Murphy Enterprises recently acquired a controlling interest in Mexico's leading clothing retailer.Murphy plans to open additional retail stores in the next three years.Some of Murphy's top executives advocate the idea of transferring U.S.managers to Mexico to oversee the construction and opening of the new stores.Another group of Murphy executives believe that host-country nationals should manage the project.
-Which of the following best supports a decision to fill management positions in Mexico with host-country nationals?
A) Murphy's marketing department created a new advertising campaign for the Mexican audience.
B) Murphy's HR department is translating the firm's e-learning programs from English to Spanish.
C) Murphy plans to direct operations in Mexico from the firm's U.S. headquarters.
D) Murphy is establishing a fully functioning HR department in Mexico.

Question

Quizplus · Accepted Answer

D)Organizations that use the polycentric approach and primarily hire host-country nationals will usually have a fully functioning human resource department in each foreign subsidiary responsible for managing all local human resource issues.Corporate human resource managers focus primarily on coordinating relevant activities with their counterparts in each foreign operation.Marketing plans and e-learning are less relevant to the decision.If the firm wants to control operations from headquarters then expatriates would be better than locals.

Murphy Enterprises Recently Acquired a Controlling Interest in Mexico's Leading