MNE Staffing Policies: The Polycentric Approach
Polycentric staffing policy: uses host-country nationals to manage local subsidiaries
A polycentric policy views the effectiveness of the business practices of host country operations as equivalent to those in the home country.
The use of host country managers to pursue a multi-domestic strategy helps to maintain local motivation and morale and also to improve the firm’s local image.
A polycentric policy can result in a gap between local and global operations because of issues of accountability, allegiance, and mobility.