What policy focuses on hiring within the specific local context of a subsidiary?

The correct choice reflects a polycentric policy, which emphasizes hiring practices that are tailored to the specific local context of each subsidiary. This approach recognizes the importance of local knowledge and cultural nuances in managing operations effectively. Companies that adopt this policy prefer to employ local managers for their subsidiaries, as these individuals typically have a better understanding of the local market, consumer preferences, and regulatory environments.

By utilizing a polycentric approach, organizations can foster better relationships with local stakeholders and enhance their ability to navigate the complexities of the local business landscape. This strategy can lead to increased trust and cooperation from local employees, and often results in more effective decision-making that aligns closely with local consumer behavior.

In contrast, other policies such as ethnocentric, regiocentric, and geocentric approaches focus on different strategies for personnel selection and management. Ethnocentric policies tend to favor staffing positions with individuals from the home country, while regiocentric policies focus on regional hiring rather than purely local. Geocentric approaches aim to hire the best talent from around the world, regardless of nationality; however, they may not always take into account the local context as closely as a polycentric strategy does.