If a company recruits host-country nationals to manage subsidiaries while parent-country nationals occupy key positions at corporate headquarters, the firm is following a(n):
A) polycentric staffing policy
B) ethnocentric staffing policy
C) geocentric staffing policy
D) internal staffing policy

Question

Quizplus · Accepted Answer

In a polycentric staffing policy, host-country nationals are recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. In this staffing policy, local autonomy is given to subsidiaries, which can help in adapting to the local market environment, culture, and language. The parent company retains control over strategic decisions but allows subsidiaries more flexibility in tactical decisions.

If a Company Recruits Host-Country Nationals to Manage Subsidiaries While