Deck 4: The Key Role of International Hr Management in Successful Mnc Strategy

Question 1

It is not an exaggeration to say that the international success of most companies will be determined largely by how well __________ issues are handled.

A)Wage
B)Hiring
C)Human Resource
D)Demand

Answer 1

Human Resource

Question 2

Top managers believe that the effectiveness of transferring __________ is the most important factor for transferring an MNC's performance

A)Human knowledge, expertise, and critical capabilities
B)Employees
C)Workforce Self-Identity
D)Regional Culture

Answer 2

Human knowledge, expertise, and critical capabilities

Question 3

Much of the knowledge transferred between the units of an MNC is:

A)Domestic
B)International
C)Explicit, Tacit
D)Implicit, Tacit

Answer 3

Implicit, Tacit

Question 4

In order to transfer knowledge or critical capabilities across borders effectively, managers need to develop not only an in-depth knowledge in specific functional areas but also:

A)An ability to effectively plan for cultural issues in the host country.
B)An ability to effectively communicate with people who have different cultural values and norms.
C)Hiring practices of the host country.
D)International areas.

Question 5

Managers with a __________ mindset understand intuitively that different cultural norms have value and meaning to those who practice them.

A)Individualistic
B)Domestic
C)Cosmopolitan
D)Masculine

Question 6

__________ refers to an MNC's ability to ensure that its various operating units around the world act in accordance with its overall policy in a systematic, coordinated, and consistent manner.

A)Operational control
B)Management control
C)Strategic control
D)Administrative control

Question 7

Coca Cola's strategy of "think local, act local" represents a __________ approach.

A)transnational
B)global
C)regional
D)multidomestic

Question 8

All of the following are major strategies that MNCs use to overcome challenges and compete on an international and global scale except:

A)Multidomestic
B)Domestic
C)Transnational
D)Regional

Question 9

To deal with differences effectively, MNCs can adopt a __________ strategy that emphasizes local responsiveness:

A)Multidomestic
B)Transnational
C)Regional
D)Global

Question 10

Recent changes in the global marketplace suggest that MNCs can sacrifice neither global integration nor:

A)Local responsiveness
B)International responsiveness
C)Domestic competition
D)Competitive prices

Question 11

Transnational strategy emphasizes global learning that the flow of skills and product offerings should flow not only from headquarters to the foreign subsidiary but also from the foreign subsidiary to __________:

A)Other subsidiaries
B)International subsidiaries
C)Headquarters
D)Other companies

Question 12

A global product division structure means that:

A)All products are domestic.
B)All products are international.
C)All products are diversified.
D)All functional activities tend to be controlled by a product group.

Question 13

All of the following are critical elements of the transnational structure except:

A)Local managers overseas and headquarters managers at home share a global perspective.
B)There exists a frequent and extensive one-way flow of ideas, information, resources, and personnel between the two locations.
C)The relationship between the two is balanced without one dominating the other.
D)Significant linkages are established across the various operating units and with headquarters.

Question 14

The idealized form of a transnational structure seems to share the important characteristics of a matrix organizational structure in which local subsidiaries report to:

A)Area and product managers
B)Area managers
C)Product managers
D)Regional managers

Question 15

__________ represents an organizational form intended to overcome the potential tension between headquarters' pull for global efficiency and local operating units' push for national effectiveness.

A)Global area division structure
B)Global product division structure
C)Global transnational division structure
D)Regional headquarters structure

Question 16

Under ethnocentrism, related to a sense of cultural universalism, it is believed that the headquarters home country's way of doing business is __________ to any approach followed outside the home country.

A)Superior
B)Inferior
C)Integrated
D)Alternative

Question 17

An ethnocentric orientation can lead to __________, or an overall failure of a firm to understand host country differences that may require different approaches to marketing and management.

A)Cultural Insensitivity
B)Cultural Myopia
C)Cultural Drain
D)Cultural Failure

Question 18

Overall, a __________ is a relatively inexpensive alternative for companies that want to expand globally but lack sufficient skill in upper management positions compared to an ethnocentric orientation.

A)Regional Orientation
B)International Orientation
C)Ethnocentric Orientation
D)Polycentric Orientation

Question 19

Unlike the previous two approaches, this orientation lies on the assumption that the most qualified and well-trained candidates are sought to occupy important management positions within both corporate headquarters and international corporations, regardless of nationality.

A)Ethnocentric Orientation
B)Geocentric Orientation
C)Regional Orientation
D)International Orientation

Question 20

Firms following a transnational strategy and matrix division structure are likely to adopt the __________.

A)Regiocentric orientation
B)Ethnocentric orientation
C)Geocentric orientation
D)Polycentric orientation

Question 21

Ideally, organizations should maintain a cadre of __________ managers who possess a high degree of both functional and environmental competence.

A)Regional
B)International
C)Cosmopolitan
D)Foreign

Question 22

Rather than attempting to hire nationals from a specific country, a __________ expands the candidate pool by seeking people from within a specific region.

A)Ethnocentric Orientation
B)Regiocentric Orientation
C)International Orientation
D)Regional Orientation

Question 23

Which of the following is the LEAST LIKELY reason why international HR management has taken on more strategic importance?

A)Knowledge transfer
B)Cultural and behavioral control
C)Cost reduction
D)Leadership training and development

Question 24

__________ leads to a strong unified corporate culture and an informal management network because people no longer feel bound by local cultural ties and national loyalties.

A)Regiocentric orientation
B)Ethnocentric orientation
C)Polycentric orientation
D)Geocentric orientation

Question 25

For a successful M&A, HR management should be involved in the following activities except:

A)Effective communication
B)Financial due diligence
C)Retention of key employees
D)Blending corporate cultures

Question 26

According to one survey, top managers believe that the effectiveness of transferring human knowledge, expertise, and critical capabilities is the most important factor for transferring an MNC's performance.

Question 27

Explicit knowledge can be codified (i.e., expressed in words and numbers), and easily communicated and shared in the form of hard data, manuals, codified procedures, or universal principals.

Question 28

In other words, tacit knowledge has to do with information that can be derived from books or manuals.

Question 29

Much of the knowledge transferred between the units of an MNC is not implicit but explicit.

Question 30

Given that tacit knowledge cannot be codified or explained in manuals, a company should not rely on personnel transfer for knowledge dissemination.

Question 31

International assignments are increasingly considered a mechanism for vital transfer of knowledge and capabilities needed for success.

Question 32

Difficulties in understanding behavioral characteristics and in properly interpreting various verbal and non-verbal signals pose great challenges to managers as they are exposed to a new and different environment.

Question 33

Indeed, the most effective way to fundamentally change how people think about doing business globally is by having them work abroad.

Question 34

Four major strategies that MNCs use to overcome challenges and compete on an international and global scale are global cost-leadership, multi-domestic, transnational, and regional.

Question 35

MNCs should not only be cost competitive but also be capable of delivering products that satisfy the needs and preferences of local customers, which often differ from one country or region to another.

Question 36

In firms that pursue a global strategy, the lower levels of coordination and interdependence required between foreign affiliates and parent company operations lead to the need for the company to be globally integrated.

Question 37

With different national and regional laws and cultures, attempts to use a standard promotional message or product are best.

Question 38

To a great extent, consumers continue to demand locally differentiated products reflecting substantial divergence in standards, tastes, and perceived needs, except across countries within a regional bloc like the European Union that purports to be integrated and one large market.

Question 39

Competitive pressures in an increasing number of industries indicate that firms pursue globalization and localization at the same time.

Question 40

As an alternative to balancing the trade-off between global strategy and multi-domestic strategy, many MNCs have employed a so-called regional strategy.

Question 41

When benefits from global integration are significant and local differences are minor, firms establish a global product division structure.

Question 42

A global area division structure is not adopted when local adaptation of the firm's products and services is critical to its business success.

Question 43

The idealized form of a transnational structure seems to share the important characteristics of a matrix organizational structure in which local subsidiaries report to both area and product managers.

Question 44

Organizations with a global strategy along with a global product division structure are usually not required to maintain a higher level of control at headquarters so that they ensure the effective coordination and integration among different overseas units.

Question 45

A polycentric approach also prevents both host country and parent company nationals from gaining experience outside their respective countries.

Question 46

A geocentric orientation leads to a strong unified corporate culture and an informal management network because people no longer feel bound by cultural ties and national loyalties.

Question 47

The subsidiaries under a transnational strategy have greater autonomy than those under a global strategy, yet they are not as independent as those under a multidomestic strategy.

Question 48

It makes sense that a regional strategy goes hand-in-hand with regional headquarters structure.

Question 49

The current global financial crisis makes the HR due diligence process less important since acquired companies are likely to bring less risk to the M&A.

Question 50

A cross-border M&A is the preferred entry mode for MNCs into new markets because it provides them with a high level of control while eliminating many of the performance and relational risks traditionally associated with strategic alliances.

Question 51

Explain how different types of human resource management practices will support the most effective implementation of MNCs' competitive strategies.

Question 52

What are the differences among a global, regional, multi-domestic and transnational strategy?

Question 53

Explain why a geocentric orientation is most likely adopted by firms following a transnational strategy and matrix division structure.

Question 54

Unfortunately, MNCs have overlooked the role of HR management in conducting M&A
transactions. What do you think are the key roles HR managers can play in ensuring a successful integration?

Question 55

Explain how the paradigm of international HRM has shifted from a contingency model to process development.