Many Japanese companies utilize ethnocentric staffing policies in international operations.

Why do you think Japanese companies prefer to have Japanese in top management positions? Would you recommend a change in this policy?

Ethnocentric staffing. This is where a company with branches or other offices in foreign countries hires management that is of the same nationality as the parent company.

Reasons why Japanese companies prefer Japanese in top management

1. To maintain the companies culture. With a Japanese in senior management, the culture of a parent company can be quickly adopted in the company that is based in a foreign country.
2. To ensure effective communication between the parent company and the branch company in the foreign land.
3. To maintain control over decision making. When Japanese is in management, there will be smooth coordination between the host and the parent company.

It is recommendable to have a change in this policy since it may lead to disagreements and misunderstanding between the top management and other employees due to a difference in cultural beliefs and practices.