Deck 15: Managing Human Resources Globally

Question 1

An ethnocentric approach emphasizes the norms and practices of the parent company and the parent country of the MNE.

Answer 1

True

Question 2

MNEs hire only host-country nationals to work at a local subsidiary.

Answer 2

False

Question 3

Integrating individuals from two (parent and host) countries is a lot more complex than molding managers from a variety of nationalities.

Answer 3

False

Question 4

Returning expatriates may experience a loss of status.

Question 5

PCNs generally stay in their positions longer and thus provide more continuity of management.

Question 6

An MNE with transnational strategy typically staffs host-country nationals.

Question 7

The majority of an MNE's employees are typically parent-country nationals.

Question 8

Expatriates act as daily managers to run operations and to build local capabilities.

Question 9

The advantage of hiring employees who are parent-country nationals is that they bridge the gap between headquarters and the subsidiary.

Question 10

Staffing,training and development,compensation and performance appraisal,and labor relations are main areas of HRM.

Question 11

The staffing choices in an MNE are always random.

Question 12

Global standardization or transnational strategies often necessitate an ethnocentric approach,resulting in a mix of HCNs,PCNs,and TCNs.

Question 13

Ethnocentrism continues to characterize many MNEs: knowledge transfer is typically one way-from headquarters to subsidiaries via expatriates.

Question 14

The advantage of hiring employees who are host-country nationals is that it facilitates control by headquarters.

Question 15

Repatriation,if not managed well,can be traumatic for expatriates and their families,but not for the firm.

Question 16

The term "HRM" indicates that people are key resources of the firm to be actively managed and developed.

Question 17

A psychological contract is a written contract signed by the employer and the expatriation candidate.

Question 18

In general,the failure rates of expatriates are very low.

Question 19

Middle-aged expatriates are the most expensive,because the employer often has to provide a heavy allowance for children's education.

Question 20

The best way to reduce expatriate turnover is a career development plan.

Question 21

The leading US union,the AFL-CIO,expanded into Mexico in the 1990s.

Question 22

Performance appraisals are given only when an employee is not performing well.

Question 23

To reach the top at most MNEs today,international experience is considered optional.

Question 24

The going rate approach is the most widely used method in expatriate compensation.

Question 25

Proponents of the "best practices" school argue that firms should adopt "best practices" with respect to certain contexts.

Question 26

In the United States,unionized employees earn less than non-unionized employees.

Question 27

Inpatriation is sometimes used for filling skill shortages at headquarters.

Question 28

Externally,HRM is shaped by national and industry contexts.

Question 29

Non-native employees who work and reside in a foreign country are known as _____.

A) host-country nationals 
B) expatriates 
C) multinationals 
D) repatriates

Question 30

The "best fit" school argues that a firm needs to search for the best external and internal fit.

Question 31

In developed economies,a firm's key concern is to enhance competitiveness to fight off low-cost rivals from emerging economies.

Question 32

Low-level host-country nationals,especially those in developing countries,have little bargaining power when negotiating compensation.

Question 33

The process of selecting,managing,and motivating non-native employees to work abroad is called _____.

A) nepotism 
B) onboarding 
C) diasporization 
D) expatriation

Question 34

Most inpatriates are expected to eventually return to their home country to replace expatriates.

Question 35

European MNEs are more likely to appoint PCNs to lead subsidiaries.

Question 36

The majority of a multinational enterprise's employees would typically comprise of _____.

A) host-country nationals 
B) parent-country nationals 
C) third-country nationals 
D) multinationals

Question 37

MNEs intend to eventually replace even top-level expatriates with TCNs,in part to save cost.

Question 38

The initial compensation of an expatriate is determined by performance appraisal.

Question 39

_____ refers to HRM activities associated with hiring employees and filling positions.

A) Rostering 
B) Sourcing 
C) Staffing 
D) Benchmarking

Question 40

Which of the following types of employees in MNEs are often known as locals? 

A) Multinationals 
B) Third-country nationals 
C) Parent-country nationals 
D) Host-country nationals

Question 41

MNEs interested in a _____ strategy are typically polycentric in nature when staffing.

A) home replication 
B) localization 
C) global standardization 
D) transnational

Question 42

In staffing,elimination of language and cultural barriers is an advantage of hiring _____.

A) multinationals 
B) third-country nationals 
C) parent-country nationals 
D) host-country nationals

Question 43

Which of the following is an advantage of hiring parent-country nationals? 

A) Lesser international exposure for managers 
B) Eliminates cultural and language barriers 
C) Bridges gap between headquarters and subsidiary 
D) Facilitates control and coordination by headquarters

Question 44

_____ is specific preparation to do a particular job.

A) Appraisal 
B) Onboarding 
C) Tracking 
D) Training

Question 45

An MNE following a _____ strategy is more likely to hire a mix of parent-,host-,and third-country nationals as managers in their local subsidiary.

A) home replication 
B) global standardization 
C) regionalization 
D) localization

Question 46

An informal understanding of expected delivery of benefits in the future for current services is referred to as a(n) _____.

A) psychological contract 
B) collective bargain 
C) indorsement 
D) social contract

Question 47

A(n) _____ emphasizes the norms and practices of the parent company relying on parent-country nationals.

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

Question 48

Which of the following staffing approaches is said to be color blind (the "color" refers to the color of the manager's passport)? 

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

Question 49

In an MNE,a perceived lack of talent and skills of HCNs often necessitates a(n) _____ approach.

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

Question 50

MNEs with a _____ strategic orientation follow an ethnocentric staffing approach.

A) home replication 
B) localization 
C) global standardization 
D) transnational

Question 51

MNEs pursuing home replication strategy typically hire _____ as top managers at local subsidiaries.

A) third-country nationals 
B) host-country nationals 
C) multinationals 
D) parent-country nationals

Question 52

MNEs with a _____ strategic orientation follow a geocentric staffing approach.

A) home replication 
B) localization 
C) transnational 
D) regionalization

Question 53

_____ refers to longer term,broader preparation to improve managerial skills for a better career.

A) Benchmarking 
B) Nepotism 
C) Outplacement 
D) Development

Question 54

Disregarding nationality,a(n) _____ approach focuses on finding the most suitable managers,who can be PCNs,HCNs,or TCNs.

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

Question 55

Which of the following is an advantage of hiring parent-country nationals (PCNs)? 

A) Increases opportunities for HCNs 
B) Opportunities for host-country nationals will be abundant. 
C) Adaptation will take lesser time. 
D) Managers are given international experience.

Question 56

In HRM,_____ refers to the determination of salary and benefits.

A) negotiation 
B) benchmarking 
C) cost-per-hire 
D) compensation

Question 57

MNEs pursuing localization strategy typically hire _____ as top managers at local subsidiaries.

A) parent-country nationals 
B) multinationals 
C) host-country nationals 
D) third-country nationals

Question 58

Returning expatriates are referred to as _____.

A) crossovers 
B) inbounds 
C) repatriates 
D) inpatriates

Question 59

A _____ approach is the opposite of an ethnocentric approach.

A) telocentric 
B) polycentric 
C) geocentric 
D) regiocentric

Question 60

Which of the following staffing approaches focuses on the norms and practices of the host country? 

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

Question 61

Identify the four Cs of the Human Resource Manager.

Question 62

Briefly describe going rate and balance sheet approach used to properly compensate,motivate,and retain expatriates.

Question 63

What are the potential issues that arise during repatriation?

Question 64

Identify different staffing approaches for subsidiaries.

Question 65

How do institutions and resources affect human resource management?

Question 66

Which of the following is an advantage of using the balance sheet approach of compensation? 

A) It does not create disparity in pay between expatriates and HCNs. 
B) It creates less fluctuation between overseas and parent country pay during repatriation. 
C) It is organizationally less complex to administer. 
D) It is the cheapest method of managerial compensation for expatriation.

Question 67

Bristall Inc.is a steel manufacturing company headquartered in the United States with subsidiaries in India,China,and the United States.To create a global mind-set for its subsidiary employees,Bristall Inc.relocated its employees in India to the United States.This employee relocation is an example of _____.

A) inpatriation 
B) benchmarking 
C) collusion 
D) expatriation

Question 68

What are the problems related with inpatriation?

Question 69

_____ is leading the world in managerial compensation.

A) United States 
B) Japan 
C) China 
D) Germany

Question 70

Analyze managing labor relations at home and abroad.

Question 71

Which country is now Manpower's largest market ahead of the United States? 

A) France 
B) Germany 
C) China 
D) India

Question 72

_____ entails the evaluation of employee's work for promotion,retention,or termination purposes.

A) Benchmarking 
B) Replacement chart 
C) Performance appraisal 
D) Open-book management

Question 73

The most widely used method in expatriate compensation is _____.

A) going rate approach 
B) balance sheet approach 
C) pay-per-impression 
D) employee's request approach

Question 74

Describe the different roles of expatriates.

Question 75

Compensation with a _____ makes locations,where pay is higher than in their home country,a more attractive place to work for PCNs and TCNs.

A) going rate approach 
B) balance sheet approach 
C) pay-per-impression 
D) merit rate

Question 76

A compensation approach that pays expatriates the prevailing rate for comparable positions in a host country is called the _____ approach.

A) pay-per-impression 
B) balance sheet 
C) merit rate 
D) going rate

Question 77

When expatriates evaluate HCNs,cultural difference may create problems.In ____ countries,performance appraisals based on statements made by subordinates could potentially undermine the power and status of supervisors.

A) high individualism 
B) high power-distance 
C) high uncertainty avoidance 
D) high masculinity

Question 78

Relocating employees of a foreign subsidiary to the MNE's headquarters for the purposes of filling skill shortages at headquarters and developing a global mind-set for such employees is called _____.

A) onboarding 
B) orientation 
C) nepotism 
D) inpatriation