Deck 14: Human Resource Selection and Development Across Cultures

Question 1

An ethnocentric MNC puts host-office people in charge of key international management positions.

Answer 1

False
Explanation: An ethnocentric MNC puts home-office people in charge of key international management positions.

Question 2

Base salary is the amount of money that an expatriate normally receives in the home country plus a cost-of-living adjustment.

Answer 2

False
Explanation: Base salary is the amount of money that an expatriate normally receives in the home country.

Question 3

Home-country nationals are managers who are citizens of the country where the MNC is headquartered.

Answer 3

True
Explanation: Home-country nationals are managers who are citizens of the country where the MNC is headquartered. In fact, sometimes the term headquarters nationals are used.

Question 4

One of the reasons why there has been a decline in the number of expats in recent years is that MNCs have found that the expense can be prohibitive.

Question 5

Many countries exert real and subtle pressures to staff the upper-management ranks with expatriates.

Question 6

There are three major types of adjustments that an expatriate must make when going on an overseas assignment: anticipatory adjustment, in-country adjustment, and new-job-skill adjustment.

Question 7

An approach to developing an expatriate compensation package that is based on ensuring the expat is "made whole" and does not lose money by taking the assignment is referred to as the balance-sheet approach.

Question 8

The primary reason for training overseas managers is to improve their ability to interact effectively with local people in general and their personnel in particular.

Question 9

In the new millennium, MNCs' learning focus applied to human resource development may go beyond learning organizations to "teaching organizations."

Question 10

Repatriation agreements typically promise an expatriate a specific position and salary when he/she returns to the home office.

Question 11

Managers who live and work outside their home country are called expatriates.

Question 12

Historically, MNCs have staffed key positions in their foreign affiliates with host-country nationals.

Question 13

For expatriates, a cost-of-living allowance is a payment for differences between the home country and the overseas assignment.

Question 14

Anticipatory and in-country factors will influence the expatriate's mode and degree of adjustment to an overseas assignment.

Question 15

Home-country nationals are local managers who are hired by the MNC.

Question 16

An approach to developing an expatriate compensation package that involves giving the expat a predetermined amount of money and letting the individual make his/her own decisions regarding how to spend it is referred to as localization.

Question 17

The hardest training, in terms of preparation time is to place a cultural integrator in each foreign operation.

Question 18

Though politically controversial, outsourcing can save companies significant costs and is very profitable for firms that specialize in providing these services on a contract basis.

Question 19

For most overseas managers, repatriation occurs within five years of the time they leave.

Question 20

Most MNCs strive for a balance between age and experience in their expatriate employees.

Question 21

Headquarters nationals are another term used for:

A)Third-country nationals
B)Home-country nationals
C)Inpatriates
D)Host-country nationals

Question 22

Many MNCs use _______ at the middle- and lower-level ranks.

A)Inpatriates
B)Third-country nationals
C)Host-country nationals
D)Home-country nationals

Question 23

________ are most effective when they were in charge of larger subsidiaries or those with a marketing theme similar to that at headquarters.

A)Inpatriates
B)Third-country nationals
C)Expatriates
D)Multipatriates

Question 24

This is the primary language of international business and most expatriates from all countries can converse in it.

A)French
B)German
C)Spanish
D)English

Question 25

The two most common selection procedures used by MNCs are:

A)Assessment centers and tests
B)References and interviews
C)Application forms and assessment centers
D)Tests and interviews

Question 26

Borstorff and her associates examined the factors associated with employee willingness to work overseas and concluded that:

A)Married couples with teenage children are probably the most willing to move
B)Prior international experience appears associated with willingness to work as an expatriate
C)Unmarried employees are least willing, compared to any other group, to accept expat assignments
D)Careers and attitudes of spouses have an insignificant impact on employee willingness to move overseas

Question 27

________ concerns have been cited as the most common reason for assignment refusal.

A)Spousal career
B)Job performance
C)Family
D)Lack of relevance to future career progress

Question 28

The organizational input into anticipatory adjustment is most directly related and concerned with the:

A)Motivation process
B)Selection process
C)Compensation plan
D)Quality of leadership

Question 29

There are four basic sources that MNCs can tap for positions.These are:

A)Host-country nationals, third-country nationals, United Nations placements, and IMF placements
B)Home-country nationals, IMF placements, inpatriates, and multipatriates
C)Home-country nationals, host-country nationals, IMF placements, and multipatriates
D)Home-country nationals, host-country nationals, third-country nationals, and inpatriates

Question 30

_______ are managers who are citizens of countries other than the one in which the MNC is headquartered or the one in which they are assigned to work by the MNC.

A)Multipatriates
B)Home-country nationals
C)Inpatriates
D)Third-country nationals

Question 31

An individual from a host-country or a third-country national who is assigned to work in the home country is a(n):

A)Expatriate
B)Multipatriate
C)Inpatriate
D)Quasi-patriate

Question 32

All of the following are correct with regard to the impact of age, experience, and education on expatriate managers except:

A)There is universal agreement that degrees in marketing or engineering are the most desirable for expatriate managers
B)Most MNCs strive for a balance between age and experience
C)Many companies consider an academic degree, preferably a graduate degree, to be of critical importance to an international executive
D)There is evidence that younger managers are more eager for international assignments than older managers

Question 33

The adjustment model of the selection procedure for international assignments would include:

A)Training and previous experience
B)Education and modification
C)Work experience and exposure
D)Abilities and behavior

Question 34

Which of the following is not a reason to use home-country nationals?

A)To satisfy host-country requirements
B)To start up operations
C)To provide technical expertise
D)To help the MNC maintain financial control over the operation

Question 35

Factors used to choose personnel for international assignments are referred to as:

A)Global placement criteria
B)International selection criteria
C)Global selection heuristics
D)International recruitment and selection heuristics

Question 36

One study found that ______ were most effective in subsidiaries located in developing countries or those that relied on a local customer base.

A)IMF placements
B)Local managers
C)Expatriates
D)Third-country nationals

Question 37

In general, some evidence suggests that testing is:

A)Extremely popular among MNCs
B)Not extremely popular among MNCs
C)Used more in the selection of overseas managers than domestic managers
D)Used by a high percentage of MNCs in selecting expatriate managers

Question 38

The process of evaluating how well a family is likely to stand up to the stress of overseas life is referred to as:

A)Suitability assessment
B)Selection fitness
C)Adaptability screening
D)Expatriate fitness

Question 39

Which of the following statements about third-country nationals are false?

A)TCN managers can often achieve corporate objectives more effectively than do expatriates
B)During periods of rapid expansion, TCNs can substitute for expatriates in well-established operations
C)During rapid expansion, TCNs can offer different perspectives that can expand on the narrowly focused viewpoints of local nationals
D)In joint ventures, TCNs can demonstrate a global image and bring unique cross-cultural skills to the relationship

Question 40

In recent years, international human resources management scholars have developed theoretical models that help to explain the factors involved in effectively adjusting to overseas assignments.These models are called:

A)Adjustment models
B)Adaptation theorems
C)Alignment models
D)Congruence theorems

Question 41

This type of MNC seeks to integrate diverse regions of the world through a global approach to decision making.

A)Polycentric
B)Ethnocentric
C)Geocentric
D)Unicentric

Question 42

An approach to developing an expatriate compensation package that involves giving the expat a predetermined amount of money and letting the individual make his/her own decisions regarding how to spend it is referred to as the:

A)Localization approach
B)Cafeteria approach
C)Lump-sum method
D)Balance-sheet approach

Question 43

A number of thorny issues surround compensation for expatriates, including all of the following except:

A)Whether third-country benefits programs should be available to local nationals
B)Whether the home or host country is responsible for the expatriates' social security benefits
C)Whether benefits should be subject to the requirements of the home or host country
D)Which country should pay for benefits?

Question 44

Which of the following approaches is used to develop an expatriate compensation package that involves setting a compensation system for all expats who are assigned to a particular region and paying everyone in accord with that system?

A)Regional system
B)Balance-sheet approach
C)Cafeteria approach
D)Lump-sum method

Question 45

These are an expensive feature of expatriate compensation packages.

A)Base salaries
B)Allowances
C)Incentives
D)Taxes

Question 46

This approach to developing an expatriate compensation package entails giving the individual a series of options and letting the person decide how to spend the available funds.

A)Lump-sum method
B)Cafeteria approach
C)Localization approach
D)Balance-sheet approach

Question 47

This is the process of altering employee behavior and attitudes in a way that increases the probability of goal attainment.

A)Organizing
B)Planning
C)Training
D)Controlling

Question 48

Traditionally, what was the only selection criterion MNCs relied on for overseas assignments?

A)Training
B)Technical competence
C)Previous experience
D)Education

Question 49

The four basic philosophical positions that multinationals can assume and influence a company's training program are:

A)Polycentric, geocentric, multicentric, and ultracentric
B)Ethnocentric, globalcentric, regiocentric, and unicentric
C)Multicentric, globalcentric, geocentric, and unicentric
D)Ethnocentric, polycentric, regiocentric, and geocentric

Question 50

An approach to developing an expatriate compensation package that involves paying the expat a salary comparable to that of local nationals are referred to as:

A)The cafeteria approach
B)The balance-sheet approach
C)Localization
D)The lump-sum method

Question 51

An allowance may cover a variety of expenses, including all of the following except:

A)Relocation
B)Housing
C)Education
D)Salary

Question 52

Which of the following MNCs places local nationals in key positions and allows these managers to appoint and develop their own people?

A)Globalcentric
B)Polycentric
C)Regiocentric
D)Ethnocentric

Question 53

The most common elements in the typical expatriate compensation package include:

A)Base salary, benefits, allowances, incentives, and taxes
B)Base salary, bonuses, stock options, and free housing
C)Base salary, benefits, free housing, and free education for the expatriate's children
D)Base salary, benefits, free travel, free housing, and taxes

Question 54

An individual who is responsible for ensuring that a firm's business systems are in accord with those of the local culture is a(n):

A)Cultural integrator
B)Global facilitator
C)International transition specialist
D)Global socialization specialist

Question 55

Strategies used to help smooth the adjustment from an overseas to a stateside assignment are:

A)Readjustment strategies
B)Transition strategies
C)Changeover strategies
D)Progression strategies

Question 56

Expatriate salaries typically are set according to the base pay of:

A)An index of firms maintained by the United Nations
B)The home country
C)The host-country
D)A neutral third-country determined by the expatriate and his/her company

Question 57

A(n) _____ MNC puts home-office people in charge of key international management positions.

A)Ethnocentric
B)Polycentric
C)Multicentric
D)Geocentric

Question 58

This type of MNC relies on local managers from a particular geographic region to handle operations in and around that area.

A)Ethnocentric
B)Geocentric
C)Ultracentric
D)Regiocentric

Question 59

The ________ approach involves working out a special, ad hoc arrangement that is acceptable to both the company and the expat.

A)Negotiation
B)Balance-sheet
C)Localization
D)Cafeteria

Question 60

An agreement whereby the firm tells the individual how long she/he will be posted overseas and promises to give the individual, on return, a job that is mutually acceptable is a:

A)Strategic plan
B)Human resource plan
C)Labor-contract agreement
D)Repatriation agreement

Question 61

The belief that one's own way of doing things is superior to that of others is:

A)Polycentrism
B)Geocentrism
C)Ethnocentrism
D)Regiocentrism

Question 62

Which of the following terms refer to the quality of being effective and producing the desired results?

A)Capacity
B)Validity
C)Reliability
D)Stability

Question 63

These MNCs do all of their training at their headquarters.

A)Multicentric
B)Regiocentric
C)Polycentric
D)Ethnocentric

Question 64

What is a cultural assimilator? What do cultural assimilators try to accomplish?

Question 65

Describe what is meant by the term training.What factors influence a company's approach to training?

Question 66

Research shows that small firms undertaking international business generally rely on:

A)Standard training programs
B)Strategic alliances
C)Trade zones
D)Uniform commercial codes

Question 67

This is the acquisition of skills, knowledge, and abilities that results in a relatively permanent change in behavior.

A)Learning
B)Development
C)Motivation
D)Controlling

Question 68

This is common in many large MNCs where managers believe that the home office's approach to doing business can be exported intact to all other countries because this approach is superior to anything at the local level.

A)Regiocentrism
B)Ethnocentrism
C)Geocentrism
D)Polycentrism

Question 69

Discuss the various approaches that can be used to formulate a compensation package.

Question 70

"Learning organizations" continually focus on activities such as:

A)Planning and development
B)Organizing and controlling
C)Training and development
D)Planning and organizing

Question 71

Training programs are useful in preparing people for overseas assignments for many reasons.These reasons can be put into two general categories which are:

A)Organizational and personal
B)Economic and philosophical
C)Personal and impersonal
D)Financial and psychological

Question 72

A(n) _____ is a programmed learning technique that is designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs, and values of another.

A)Cultural assimilator
B)Ethnocentric regulator
C)Educational regulator
D)Developmental assimilator

Question 73

Identify and explain the different sources that multinational corporations can use in their recruiting and selection procedures.

Question 74

Which of the following training programs are created for the specific needs of the participants?

A)Generic
B)Standardized
C)Tailor-made
D)Universal

Question 75

Identify the criteria that would influence a multinational corporation in the selection of an individual for an international assignment.