Correct option is A
The ethnocentric staffing approach involves filling key positions in an international subsidiary primarily with employees from the parent (home) country. This approach is preferred when the company believes that home-country nationals best represent the company’s interests and values, can maintain control, and ensure alignment with headquarters.
"Hiring host country nationals eliminates language barriers" is incorrect in the context of the ethnocentric approach, because ethnocentric staffing actually involves hiring parent country nationals, not host country nationals. Hiring host country nationals is characteristic of the polycentric approach, which often helps overcome language and cultural barriers in the host country.
Information Booster:
Ethnocentric approach means staffing key roles with home country nationals.
It does not involve hiring host country nationals, so it cannot help eliminate language barriers at the subsidiary level.
This approach is often used to maintain tight control over foreign operations.
Key justifications include lack of qualified local staff, unified corporate culture, and smooth communication with headquarters.
Language barriers are often a challenge in this approach, rather than something it solves.
Additional Knowledge:
(b) Perceived lack of qualified host country nationals
One key reason for ethnocentric staffing is the belief that local staff may lack necessary skills or experience, justifying reliance on parent country employees.
(c) United corporate culture can be maintained
Ethnocentric staffing helps maintain consistent corporate culture and values across international units, supporting strategic control.
(d) Good communication, coordination and control links with headquarters
Employing home-country nationals facilitates better communication and coordination between headquarters and subsidiaries due to shared language and cultural background.
English
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