Question 5

The company is practicing an ethnocentric approach to workforce management.

In an ethnocentric approach, a company fills key positions in its overseas offices with expatriates from its home country. This strategy emphasizes the importance of the home country's culture and practices in managing international operations.

A) Polycentric

The polycentric approach involves hiring local nationals to fill key positions in the foreign offices, which contrasts with the ethnocentric approach. This strategy recognizes the importance of local culture and practices, making it incorrect in this context.

B) Ethnocentric

This is the correct option as it describes the practice of staffing key positions in overseas offices with expatriates from the home country. This approach is often used to maintain control over international operations and ensure alignment with the company's core values.

C) Geocentric

A geocentric approach focuses on hiring the best people for key positions regardless of their nationality, promoting a more diverse and globally integrated workforce. This is not applicable here since the company is specifically using expatriates from the home country.

D) Technocentric

The technocentric approach prioritizes technology and technical skills over nationality or location in staffing decisions. This does not align with the scenario described, where leadership roles are filled specifically by expatriates from the home country.

Conclusion

The ethnocentric approach is clearly the most applicable in this scenario, as it directly aligns with the company's strategy of staffing its overseas offices with home country expatriates. The other options, including polycentric, geocentric, and technocentric, do not accurately reflect this staffing strategy, reinforcing that B is the definitive correct answer.