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 applicable to all other locations. What principle underlies Novo's control system?

Question

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Novo's control system is based on the assumption that the culture at the home office (located in the country of origin) is applicable to all other locations, which reflects the principle of ethnocentrism. This approach assumes that the values, beliefs, and management practices of the home country are superior or more effective than those of other countries, and thus tries to impose them on other locations without adapting to local conditions. This approach may result in cultural clashes, resistance, and inefficiencies, especially in diverse and complex global environments.

Novo Limited Uses the Same Management Control System in All