Which approach to managing people in MNEs places emphasis on the norms and practices of the parent company?

Which approach to managing people in MNEs places emphasis on the norms and practices of the parent company?

• A. Polycentric
• B. Geocentric
• C. Ethnocentric
• D. Adaptive

Answer: (C)

The emphasis on the norms and practices of the parent company is characteristic of the ethnocentric approach to managing people in multinational enterprises (MNEs). In this approach, the parent company's culture, values, and practices are prioritized when managing operations in foreign subsidiaries. This often means that key managerial positions in the subsidiaries are filled by individuals from the parent company, ensuring that corporate headquarters' policies and practices are implemented consistently across all locations. This approach can be beneficial because it helps to maintain a unified corporate culture and ensures that the MNE’s strategies are aligned across different markets. However, it can also lead to challenges, such as neglecting local customs and practices, which might create friction in host countries. Other approaches, like polycentric, geocentric, and adaptive, focus more on local responsiveness or a blend of global and local practices rather than emphasizing the parent company's norms exclusively, which differentiates the ethnocentric approach.

The emphasis on the norms and practices of the parent company is characteristic of the ethnocentric approach to managing people in multinational enterprises (MNEs). In this approach, the parent company's culture, values, and practices are prioritized when managing operations in foreign subsidiaries. This often means that key managerial positions in the subsidiaries are filled by individuals from the parent company, ensuring that corporate headquarters' policies and practices are implemented consistently across all locations.

This approach can be beneficial because it helps to maintain a unified corporate culture and ensures that the MNE’s strategies are aligned across different markets. However, it can also lead to challenges, such as neglecting local customs and practices, which might create friction in host countries.

Other approaches, like polycentric, geocentric, and adaptive, focus more on local responsiveness or a blend of global and local practices rather than emphasizing the parent company's norms exclusively, which differentiates the ethnocentric approach.