Deck 9: Staffing Training and Compensation for Global Operations

Question 1

Sears Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Sears has been particularly successful in Mexico, and the firm's executives believe Sears should expand into other Latin American countries. As a result, plans are underway for the construction of a new Sears store in Managua, Nicaragua. Construction should be complete within three months, so staff selection needs to begin soon. Sears' executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following questions is LEAST relevant to the decision to fill management positions in Sears' Nicaragua store with parent-country nationals?

A) What are the relocation and compensation expenses associated with using expatriates in Nicaragua?
B) What form of sales promotions would be used by Sears in Nicaragua to attract new customers?
C) What level of control does Sears' headquarters need to have over the Sears store in Nicaragua?
D) How important is it for the Sears manager in Nicaragua to be familiar with local culture?

Answer 1

B

Question 2

All of the following are disadvantage of an ethnocentric staffing approach EXCEPT ________.

A) fewer opportunities for local staff's advancement
B) poor adaptation of expatriates in foreign countries
C) lack of managerial effectiveness of parent-country nationals
D) time spent training expatriates on the firm's policies and technologies

Answer 2

D

Question 3

Which of the following international staffing approaches is more likely to be effective when implementing a multinational strategy?

A) ethnocentric
B) polycentric
C) subcentric
D) global

Answer 3

B

Question 4

Which of the following is the most common staffing choice for a foreign subsidiary when proprietary technology is used extensively?

A) independent contractors
B) host-country nationals
C) third-country nationals
D) parent-country nationals

Question 5

Firms with successful operations in emerging markets most likely attract and retain talent by offering all of the following EXCEPT ________.

A) a global name brand
B) global policies and procedures
C) career development opportunities
D) an organizational culture of openness

Question 6

Sears Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Sears has been particularly successful in Mexico, and the firm's executives believe Sears should expand into other Latin American countries. As a result, plans are underway for the construction of a new Sears store in Managua, Nicaragua. Construction should be complete within three months, so staff selection needs to begin soon. Sears' executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following, if true, undermines the argument that parent-country nationals should manage the Sears store in Nicaragua?

A) Sears is implementing a multinational strategy of global expansion.
B) Decision-making authority stems primarily from Sears' top executives
C) Managers must stay in close communication with Sears' headquarters.
D) Sears' HR department recently developed new repatriation policies.

Question 7

Local managers are hired to fill key positions in their own company under the ________ staffing approach.

A) global
B) polycentric
C) ethnocentric
D) regiocentric

Question 8

In which of the following countries would a chief finance officer most likely earn the largest salary?

A) Thailand
B) Malaysia
C) India
D) China

Question 9

Which staffing approach will most likely be effective when implementing a global strategy of "acting local"?

A) polycentric
B) regiocentric
C) ethnocentric
D) global

Question 10

Which of the following is the most appropriate staffing choice when a high level of technical capability is required and close control is desired?

A) parent-country nationals
B) host-country nationals
C) independent contractors
D) third-country nationals

Question 11

Ideally, the ________ of the firm should dictate the organizational structure and staffing needs of the firm.

A) customers
B) size
C) strategy
D) management philosophy

Question 12

Which of the following is most likely an advantage of the polycentric staffing approach?

A) Home-country managers gain valuable overseas management experience.
B) Coordination between the subsidiary and the parent company is simplified.
C) Managers are familiar with local customs, languages, and business practices.
D) Firms save time because managers are fully knowledgeable about practices and procedures.

Question 13

Sears Department Store has over 900 stores in the U.S. and over 300 stores in Mexico and Canada. Sears has been particularly successful in Mexico, and the firm's executives believe Sears should expand into other Latin American countries. As a result, plans are underway for the construction of a new Sears store in Managua, Nicaragua. Construction should be complete within three months, so staff selection needs to begin soon. Sears' executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following, if true, best supports the argument that parent-country nationals should manage the Sears in Nicaragua?

A) Sears encourages employees to participate in community outreach programs.
B) Sears' computerized testing for employee recruitment is only available in English.
C) Sears wants to maintain close control of the Nicaragua store for at least three years.
D) Sears' managers in Nicaragua will choose what items to stock based on local customs.

Question 14

According to surveys, what is the primary problem for foreign firms with businesses in China and South-East Asia?

A) lack of skilled local managers
B) monetary cost of trade restrictions
C) lack of modern infrastructure
D) misunderstandings with locals

Question 15

A global firm's success or failure is increasingly dependent upon ________, which cannot be duplicated.

A) human resources
B) raw materials
C) technology
D) capital

Question 16

Which staffing approach is best when a firm has been structured around a centralized approach to globalization and is at the internationalization stage of strategic expansion?

A) polycentric
B) regiocentric
C) global
D) ethnocentric

Question 17

Fred, an American, works as a manager at his firm's headquarters in New York. He recently learned that he has been assigned to manage the firm's subsidiary office in Tokyo and that he will be relocating to Japan within the next six weeks. This is an example of the ________ staffing approach.

A) polycentric
B) regiocentric
C) global
D) ethnocentric

Question 18

Which of the following terms refers to employees who work and live in a foreign country but remain citizens of the country where the employing organization is headquartered?

A) independent contractors
B) temporary workers
C) local employees
D) expatriates

Question 19

Which of the following best explains why China has a surplus of entry-level managers but very few upper-level managers?

A) The Chinese culture holds that women should not work in business.
B) The Chinese government limits the age at which people may work.
C) Many Chinese attended college in the U.S. and never returned.
D) Most Chinese prefer to attend trade school rather than college.

Question 20

Which staffing approach is most appropriate when a foreign subsidiary suffers from an inadequate supply of skilled local managers and close communication is needed between the subsidiary and headquarters?

A) global
B) regiocentric
C) polycentric
D) ethnocentric

Question 21

Hsi-An Shih' s study of MNE's in five different countries found that performance appraisal feedback was provided in a one-way format by managers in ________.

A) Netherlands
B) South Korea
C) Japan
D) U.S.A.

Question 22

According to Tye and Chen, which of the following is the greatest predictive value of expatriate success?

A) gender
B) social skills
C) international experiences
D) domestic work experience

Question 23

In the ________ staffing approach, the best managers are recruited from within or outside of the company, regardless of nationality.

A) regiocentric
B) global
C) ethnocentric
D) polycentric

Question 24

Which of the following is NOT one of the common factors frequently mentioned in research as a major cause of expatriate failure?

A) problems with spouse and children
B) alienation from headquarters
C) selection based on assignment needs
D) inability to adapt to local culture

Question 25

All of the following are major causes of expatriate failure EXCEPT ________.

A) selection based on headquarters' criteria
B) host government intervention
C) insufficient compensation
D) inadequate training

Question 26

According to Kopp, which of the following is an IHRM problem associated with Japanese firms that use the ethnocentric staffing approach?

A) high turnover among expatriates
B) low number of top level managers
C) employee repatriation difficulties
D) insufficient projection of HR needs

Question 27

Historically, personnel directors select potential expatriates on the basis of a candidate's ________.

A) foreign language skills
B) adaptation capabilities
C) cross-cultural awareness
D) domestic track records

Question 28

Hsi-An Shih' s study of MNE's in five different countries found that goals were set by individual employees and finalized by host-country managers in all of the following countries EXCEPT ________.

A) Netherlands
B) South Korea
C) Japan
D) U.S.A.

Question 29

Which of the following staffing approaches has the broadest geographical pool from which to recruit?

A) regiocentric
B) polycentric
C) ethnocentric
D) global

Question 30

Recruiting managers from Latin America for a position in Brazil is an example of which staffing approach?

A) global
B) ethnocentric
C) regiocentric
D) polycentric

Question 31

Which of the following is NOT one of the reasons that most MNCs shift from an ethnocentric to a polycentric or regiocentric staffing approach?

A) Staffing with expatriates is costly to MNCs.
B) Local governments pressure MNCs to hire locals.
C) Technical competence among local managers has improved.
D) Using local managers enables MNCs to maintain tight strategic control.

Question 32

According to research, which of the following is NOT a category of success for expatriate managers?

A) job factors
B) country factors
C) cultural empathy
D) family situation

Question 33

The ________ staffing approach usually results in a higher level of authority and decision making in headquarters compared to the ________ approach.

A) ethnocentric; polycentric
B) polycentric; ethnocentric
C) geocentric; ethnocentric
D) regiocentric; polycentric

Question 34

All of the following are advantages of using third country nationals to manage foreign subsidiaries EXCEPT ________.

A) having personal connections with local suppliers and distributors
B) reducing resentment between headquarters and locals
C) exhibiting cultural flexibility and adaptability
D) saving firms money in salary and benefits

Question 35

Most MNCs start their operations in a particular region using a(n) ________ staffing approach and then move to a ________ staffing approach.

A) polycentric; ethnocentric
B) regiocentric; polycentric or ethnocentric
C) regiocentric; ethnocentric
D) ethnocentric; polycentric or regiocentric

Question 36

Unlike most Japanese firms, Matsushita selects staff for its overseas operations based on all of the following criteria EXCEPT ________.

A) years with firm
B) language facility
C) motivational abilities
D) international adaptability

Question 37

According to research, most U.S. firms fail to include ________ in their assessment of potential candidates for international assignments.

A) technical expertise
B) educational background
C) human relational skills
D) overseas travel experience

Question 38

Which of the following international staffing approaches will most likely produce a specific mix of PCNs, HCNs, and TCNs?

A) ethnocentric
B) polycentric
C) subcentric
D) regiocentric

Question 39

According to research, ________ has been the most frequently cited reason for the failure of expatriate managers who work in foreign subsidiaries of U.S. or European companies.

A) inability of the spouse to adjust
B) lack of training at the beginning of the process
C) lack of training during the repatriation part of the process
D) cultural incompatibility and insufficient language skills

Question 40

The term ________ is increasingly replacing the term ________ due to the global staffing approach.

A) subsidiary, transnational
B) ethnocentric, polycentric
C) transpatriate, expatriate
D) global manager, line manager

Question 41

A state of disorientation and anxiety that results from not knowing how to behave in an unfamiliar culture is called ________.

A) culture shock
B) assimilation
C) cultural contingency
D) integration

Question 42

Training during the export stage of globalization will most likely focus on ________.

A) parent-country products
B) global conduct policies
C) product and service systems
D) production and service procedures

Question 43

Which of the following is most likely a characteristic of the irritation and hostility stage of culture shock?

A) hyperactivity
B) disorientation
C) social anxiety
D) memory loss

Question 44

During the MDC stage of a firm's globalization process, management training should emphasize all of the following EXCEPT ________.

A) interpersonal skills
B) technology transfer
C) global competitors
D) local culture

Question 45

During which stage of a firm's globalization are the training needs of host-country nationals most likely the highest?

A) MNC
B) MDC
C) export
D) global

Question 46

Which of the following factors will most likely hinder the integration of expatriate staff with local staff?

A) exhibiting deep financial knowledge
B) delegating a small number of responsibilities
C) transferring business and technical knowledge
D) having previous assignments in the same region

Question 47

Which of the following terms refers to an approach to the compensation of expatriates that equalizes the standard of living between the host and home countries, plus compensation for inconvenience?

A) ethnocentric approach
B) global staffing approach
C) balance sheet approach
D) tax differential approach

Question 48

All of the following are potential problem areas related to expatriate assignments EXCEPT ________.

A) inadequate cultural training
B) performance appraisal feedback
C) career needs of expatriate's spouse
D) coordination with headquarters

Question 49

Expatriates from which nation seem to have the highest probability of success in their overseas assignment?

A) United States
B) Great Britain
C) Italy
D) Japan

Question 50

Which of the following factors will most likely improve the integration of expatriate staff with local staff?

A) exhibiting a different way of thinking
B) teaching locals about market economy
C) having a short expatriate assignment
D) being an autocratic manager

Question 51

The concept of "keeping the expatriate whole" in terms of compensation most likely means ensuring that the expatriate's ________.

A) family is prepared for the overseas assignment
B) health insurance coverage is globally accepted
C) foreign and domestic taxes are paid in a timely manner
D) standard of living equates to colleagues at home plus additional costs

Question 52

According to surveys of expatriates, which of the following countries is considered the most challenging assignment?

A) China
B) Mexico
C) South Korea
D) Saudi Arabia

Question 53

Which of the following most likely occurs when a manager is transferred to another part of a country where there are significant cultural differences?

A) subculture shock
B) culture shock
C) power distance
D) repatriation

Question 54

The direct cost alone of a failed expatriate assignment is estimated to be ________.

A) $50,000-$75,000
B) $100,000-$150,000
C) $200,000-$1.2 million
D) $1.5-$3.0 million

Question 55

Which of the following methods is used by Colgate-Palmolive to prepare junior employees for top-level global management positions?

A) on-the-job training
B) role playing opportunities
C) regular language training
D) mentoring techniques

Question 56

Which of the following methods is used by many firms to reduce the overall costs of expatriate assignments?

A) extending the expatriate's tour
B) allowing expatriates more trips home
C) standardizing global compensation
D) implementing global benefits policies

Question 57

Which of the following is the most likely reason that Japanese expatriates are successful?

A) Japanese executives are generally posted for a longer time, thus allowing them more time to adjust.
B) Japanese companies provide better training and support from headquarters.
C) Japanese executives are not usually accompanied by their families.
D) all of the above

Question 58

When the expatriate manager and his or her family are able to function effectively in two cultures, it is known as the ________ stage.

A) gradual adjustment
B) honeymoon
C) biculturalism
D) irritation and hostility

Question 59

All of the following are training techniques classified by Tung EXCEPT ________.

A) sensitivity training
B) host-family surrogates
C) field experiences
D) cultural assimilators

Question 60

Which of the following is the LEAST critical area of expatriate preparation?

A) cultural training
B) language instruction
C) repatriation procedures
D) familiarity with everyday matters

Question 61

To ensure that expatriates do not lose out through their overseas assignment, the ________ approach is often used to equalize the standard of living between the host country and the home country and to add some compensation for inconvenience or qualitative loss.

A) income statement
B) balance sheet
C) cafeteria
D) revenue generation

Question 62

What are the advantages of the global staffing approach?

Question 63

Briefly define the ethnocentric, polycentric, regiocentric, and global staffing approaches. Which do you consider the best method? Why?

Question 64

What are the advantages of using expatriates to manage foreign subsidiaries?

Question 65

According to surveys of SME managers, which of the following is the top training priority for e-business development?

A) addressing security and privacy concerns
B) understanding electronic payment methods
C) understanding mobile commerce
D) devising a sustainable revenue model

Question 66

Which of the following is one of the tenets of the Toyota Way?

A) exclusive decision-making by top management
B) mutual ownership of problems and solutions
C) concealment of problems and difficulties
D) emphasis on individual achievement

Question 67

What is the relationship between strategy, structure, and staffing?

Question 68

According to the "Best International Human Resource Management Practices Project," which of the following is a skill sought universally in the selection process?

A) communicating clearly
B) getting along with others
C) exhibiting technical capability
D) having appropriate experience

Question 69

Which of the following has been the LEAST effective way for Starbucks to motivate its Beijing managers?

A) giving managers many opportunities to learn
B) compensating managers better than other firms do
C) providing managers with a good working environment
D) offering managers opportunities to exercise initiative and authority

Question 70

All of the following are HRM changes being made by many Japanese firms to help them compete in a global economy EXCEPT ________.

A) requiring workers to compete for jobs
B) placing more emphasis on lifetime employment
C) basing pay on performance rather than seniority
D) requiring workers to make retirement fund decisions

Question 71

What is the difference between PCNs, HCNs, and TCNs?

Question 72

According to the "Best International Human Resource Management Practices Project," which country places a heavy emphasis on a person's potential and little emphasis on experience?

A) Canada
B) Mexico
C) Japan
D) U.S.

Question 73

All of the following are most likely components of an expatriate's total compensation package EXCEPT ________.

A) health insurance
B) housing allowance
C) relocation expenses
D) performance based pay

Question 74

It has been a challenge for Starbucks in China to recruit good local managers because ________.

A) many local managers prefer to work for Chinese rather than U.S. firms
B) many local managers are not interested in working for Western firms
C) Starbucks has a bad reputation among experienced managers in China
D) the demand for local managers by foreign companies exceeds the supply

Question 75

According to the "Best International Human Resource Management Practices Project," the majority of training and development practices are intended to ________.

A) prepare employees for overseas assignments
B) improve employees' technical skills
C) teach soft management practices
D) facilitate team building

Question 76

Chinese recruits at Starbucks have stated that they are primarily interested in ________.

A) leaving China and living permanently in the United States
B) training and career opportunities at global firms
C) earning high salaries and competitive benefits
D) working for high-tech global firms

Question 77

According to the "Best International Human Resource Management Practices Project," the most important selection tool in Korea is ________, but in Taiwan the most important selection tool is ________.

A) an employment test; the job interview
B) technical skill; work experience
C) work experience; technical skill
D) the job interview; an employment test

Question 78

According to the "Best International Human Resource Management Practices Project," employers in Anglo countries believe that ________ are the most important selection criteria.

A) education level, job interview, and global experience
B) seniority level, technical skills, and interpersonal skills
C) employment test, work experience, and education level
D) job interview, technical skills, and work experience

Question 79

What is the primary concern of Western managers in China according to a study by Bjorkman and Lu?

A) competing with Chinese firms
B) handling nepotism issues
C) compensating expatriates
D) compensating HCNs

Question 80

Managerial training in ________ is becoming increasingly important among firms in emerging markets as a way to capitalize on new strategic opportunities.

A) e-business development
B) HR management policies
C) cultural adaptation
D) accounting practices