Novo Limited uses the same management control system in all of its 100 facilities throughout the world on the assumption that the culture at the home office is transferable to all other locations. What principle underlies Novo's control system?

Question

Quizplus · Accepted Answer

Novo Limited's management control system assumes that the culture at the home office is transferable to all other locations, which reflects an ethnocentric approach to management. Ethnocentrism is the belief that one's own culture or organizational values are superior to others, and that they should be used as a standard for judging the behavior and attitudes of others. This approach may lead to a lack of sensitivity and understanding of local norms and practices in different locations, which can impede effective management control.

Novo Limited Uses the Same Management Control System in All