What is an advantage of the geocentric staffing policy?
A) It enables the firm to grow its human resources department.
B) It enables the firm to build a cadre of international executives who feel at home working in a number of cultures.
C) It enables the firm to build a cadre of home-country executives.
D) Firms may be better able to create value despite adverse experience curves and poor location economies.

Question

Quizplus · Accepted Answer

A geocentric staffing policy has a number of advantages. First, it enables the firm to make the best use of its human resources. Second, a geocentric policy enables the firm to build a cadre of international executives who feel at home working in a number of cultures. Creation of such a cadre may be a critical first step toward building a strong unifying corporate culture and an informal management network, both of which are required for global standardization and transnational strategies. Firms pursuing a geocentric staffing policy may be better able to create value from the pursuit of experience curve and location economies and from the multidirectional transfer of core competencies than firms pursuing other staffing policies. In addition, the multinational composition of the management team that results from geocentric staffing tends to reduce cultural myopia and to enhance local responsiveness.

What Is an Advantage of the Geocentric Staffing Policy