Under polycentric staffing, which statement is true?

Under polycentric staffing, which statement is true?

• A. Key leadership roles are always filled by parent-country nationals.
• B. Local subsidiaries are managed by expatriates from HQ.
• C. Global operations rely on host-country nationals from multiple regions.
• D. Host-country nationals manage local subsidiaries, providing local knowledge.

Answer: (D)

In polycentric staffing, local people run the subsidiaries to fit the local market, culture, and regulations, while the home office keeps core corporate roles filled by its own nationals. This means the leadership of the local subsidiary is held by host-country nationals who bring essential local knowledge to the operation. That’s why the statement recognizing that host-country nationals manage local subsidiaries and provide local knowledge is the correct one. The other ideas conflict with this approach: relying on expatriates from headquarters to run the subsidiary goes against the polycentric model, and using parent-country nationals for local leadership resembles an ethnocentric approach rather than polycentric.

In polycentric staffing, local people run the subsidiaries to fit the local market, culture, and regulations, while the home office keeps core corporate roles filled by its own nationals. This means the leadership of the local subsidiary is held by host-country nationals who bring essential local knowledge to the operation. That’s why the statement recognizing that host-country nationals manage local subsidiaries and provide local knowledge is the correct one. The other ideas conflict with this approach: relying on expatriates from headquarters to run the subsidiary goes against the polycentric model, and using parent-country nationals for local leadership resembles an ethnocentric approach rather than polycentric.