Deck 12: Human Resource Management and Organizational Structures

Question 1

Human resource management activities include identifying staffing needs, writing detailed job descriptions, and recruiting the right people.

Answer 1

True

Question 2

In a centralized organization, many decisions are made by the managers at the subsidiary level.

Answer 2

False

Question 3

Decentralized organizations are used to exert control over subsidiary operations.

Answer 3

False

Question 4

Most international companies try first to find internally qualified people to fill open positions, before recruiting from outside the company.

Question 5

Expatriates are citizens of the country in which they are working.

Question 6

Expatriates typically fill clerical and assembly line jobs.

Question 7

One major drawback of placing expatriates is the costs that are associated with such assignments.

Question 8

Job specification describes in detail the various tasks that the person hired should accomplish, to whom the person should report, and the skills that are required to complete the assigned tasks.

Question 9

One of the main causes of expatriate burnout is the difficulty encountered by these personnel in adjusting to the local cultures.

Question 10

Use of expatriates allows international companies to have better control of their subsidiary operations as well as provide training for developing future senior executives.

Question 11

Expatriate personnel are selected on the basis of their interest in history and geography.

Question 12

When cultural issues, language considerations, and local laws play a critical role, hiring local staff is more advantageous than placing expatriates in these positions.

Question 13

Because hourly wage rates across countries do not differ, it is easy to establish a uniform salary and wage policies among the various subsidiaries of an international company.

Question 14

Improvement in working conditions and enactment of labor laws have led to a decline in union membership.

Question 15

It is easy for an international company to deal with unions as they are organized similarly.

Question 16

International organizational structures are designed to look presentable in annual reports.

Question 17

Organizational structures normally reflect where the level of authority and control is vested.

Question 18

The organizational structures of most international companies are static and hardly changes.

Question 19

The organizational structure of a global company need to integrate three type of knowledge: area knowledge, product knowledge, and functional knowledge.

Question 20

Depending on the industry and size of the firm, each company develops its own organizational design.

Question 21

Among international companies that practice centralized approach in managing their subsidiaries, the main reason for adapting such an approach is

A) To provide flexibility to the international operations
B) To have strong control over the international operations
C) To improve competitiveness
D) To reduce costs

Question 22

Human resource management functions include

A) Recruiting, training, and placement
B) Finance, marketing, production
C) Selling, retailing, and warehousing
D) Investment, financing, and working capital management

Question 23

In identifying staffing needs, HRM departments have to

A) Visit college campuses
B) Put advertisements in business newspapers
C) Check with legal department
D) Ascertain from the functional department(s) their individual needs for additional personnel

Question 24

One of the key factors in hiring new staff is

A) The age of the prospective employee
B) Availability of funding
C) Approval of the government
D) Approval of the dominant political party

Question 25

Expatriates are citizens of

A) Host country
B) The United States
C) Japan
D) Any country other than the host country

Question 26

Expatriates are hired to

A) Fill positions in host countries that does not have qualified people
B) Help the host government
C) Engage in trade talks
D) Spy on host country staff

Question 27

The key disadvantage of hiring expatriates for positions in overseas operations is

A) Time it takes to ship household items for use by the expatriate family
B) Time it takes to get visa for entry into the host country
C) The high cost of placing an expatriate
D) Obtaining the approval of the spouse of the expatriate

Question 28

The high failure rate among expatriates could be traced to

A) Not being able to pay the bills
B) Difficulty in adjusting to local culture and business practices
C) Missing familiar entertainment programs
D) Getting not enough exercise

Question 29

The advantage of hiring local staff is

A) Familiarity with and knowledge of the host country
B) They are easy to get along with
C) They have very high expectations
D) None of the above

Question 30

The disparity in wage rates between countries is one reason for

A) The increase in outsourcing
B) Increase in labor strikes
C) Higher taxes
D) More regulations

Question 31

Organizational structures allow international companies to

A) Reduce cost of operations
B) Improve productivity
C) Raise quality standards
D) Arrange business activities in an orderly fashion

Question 32

Organizational structures adapted by international companies are quite often the result of

A) The size of the company and the industry it is in
B) The preference of the CEO
C) Academic research
D) Public opinion

Question 33

The driving force in changing organizational structures often is

A) To adapt to changes in the competitive environment
B) To improve efficiency
C) To improve decision making
D) All of the above

Question 34

The major organizational designs used by international companies include

A) Ralph Lauren, DKNY, and Chanel
B) Product, functional, and geographic
C) Structured and nonstructured
D) None of the above

Question 35

In a divisional structure, an international company is able to

A) Focus solely on the external environment
B) Develop expertise in both the domestic and international areas.
C) Focus solely on international operations
D) Develop industry specific expertise

Question 36

International product structure forces managers to

A) Develop an ethnocentric philosophy
B) Develop a geocentric philosophy
C) Develop a polycentric philosophy
D) None of the above.

Question 37

Geographic structures are found in companies that

A) Sell a single product
B) Have managers with language skills
C) Have managers who are well versed in many cultures
D) Sell a wide variety of products

Question 38

The philosophy behind functional structures is

A) It is more efficient to manage functions than product or geographic groupings
B) Companies can react quicker to changing market conditions
C) Companies can exercise more control
D) None of the above

Question 39

The strength of matrix structure is that it is

A) Simple and easy to develop
B) Able to build team consensus
C) A good add on in annual reports
D) Helpful in decision making

Question 40

Hybrid structures are developed to

A) Combat terrorism
B) Improve cultural understanding of various societies
C) Improve organizational effectiveness when facing new challenges
D) Improve decision making at the headquarters

Question 41

What is the human resource function in an international company?

Question 42

Why is the human resource function important for an international company?

Question 43

Enumerate and discuss the various human resource functions.

Question 44

Discuss the differences between centralized and decentralized organizations.

Question 45

Who is an expatriate?

Question 46

Discuss the merits of sending expatriates to manage overseas organizations.

Question 47

When is it appropriate to hire local managers?

Question 48

What is an organizational structure?

Question 49

Discuss the various organizational designs.

Question 50

Discuss the contributing factors in the choice of an organizational design.