Principles of Management CLEP Practice Exam

Which approach utilizes locals of the host country to manage operations?

1. Geocentric approach

2. Political approach

3. Satisficing approach

4. Polycentric approach

The correct answer is: Polycentric approach

The polycentric approach is characterized by the practice of using local managers from the host country to oversee operations and make decisions. This approach recognizes that local managers possess valuable insights into the culture, consumer behavior, and business environment of their own country, which can lead to more effective management and successful operations. By empowering local talent, organizations can create a management style that is more aligned with local practices and expectations, fostering better relationships with employees and customers. This approach contrasts with others like the geocentric approach, which seeks to find the best managers regardless of nationality, or the political approach, which might focus on influencing government officials and navigating political landscapes rather than on internal management practices. The satisficing approach, on the other hand, involves making decisions that are satisfactory and sufficient rather than optimal, and it does not emphasize management structure or the use of local expertise. Thus, the polycentric approach stands out for its focus on utilizing local knowledge and talent in the management of operations in a specific host country.