The first part of this article is based on a study of sixteen ethnocentric multinational corporations (MNC's) and discusses six major sources of morale problems that are characteristic of this type of firm. They relate to issues of promotion, adaptation, managerial patterns, rewards, and political factors. The findings reveal that existing management development programs do not equip the expatriates in such corporations with the proper tools to solve these problems. Thus, the author reviews various methods of management development that can limit—to a great extent—the negative impact of the ethnocentric staffing policy on organizational effectiveness.
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