What defines an ethnocentric approach in international operations?

Boost your success rate for the SHRM Talent Acquisition Test. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready for your exam!

An ethnocentric approach in international operations is characterized by a tight control of international operations with little autonomy given to local subsidiaries. This strategy typically involves the belief that the home country's practices and management styles are superior and should be replicated across international locations. Under this model, the parent company in the home country retains significant decision-making authority and tends to appoint key management positions in foreign subsidiaries from the home country, rather than from the local workforce. This approach may arise from a desire to maintain consistent corporate standards and practices across various markets.

The other options reflect different strategic approaches that focus on local autonomy or preferences, which would not align with an ethnocentric perspective. For instance, having local personnel drive operational decisions or promoting candidates based on local preferences would indicate a more polycentric or geocentric approach, where there is greater emphasis on adapting to local circumstances and incorporating local talent into management roles. Similarly, independent management of subsidiaries suggests a decentralized approach, which contrasts with the centralized control typical of an ethnocentric strategy.

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