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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.  

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