If an organization adopts a polycentric approach to its glob

If an organization adopts a polycentric approach to its glob - SHRM-CP Practice Questions

Question

If an organization adopts a polycentric approach to its global offices this means:

Answers

The parent company retains strict control over the global offices.
The parent company retains no control over the global offices.
correct

The subsidiaries retain control over how to run its operations based on local practices.
The parent company retains control over how to run its operations but is strongly encouraged to follow the directives from the various global offices.

Explanation

If an organization adopts a polycentric approach to its global offices, this means that the subsidiaries retain control over how to run their operations based on local practices. In a polycentric model, each subsidiary operates independently, allowing them to adapt their strategies and practices to fit the local culture, market conditions, and regulatory environment. This approach empowers local management to make decisions that best suit their specific context, fostering responsiveness and flexibility. While the parent company may provide overarching guidelines, the emphasis is on local autonomy, which can enhance effectiveness and improve relationships with local stakeholders, ultimately benefiting the organization as a whole.

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