Deck 15: Managing Human Resources Globally

Question 1

Compared with other countries,the United States does not allow employers much latitude in reducing their workforce,the emphasis being more on protecting jobs.

Answer 1

False
Explanation: Compared with other countries, the United States allows employers wide latitude in reducing their workforce, giving U.S. employers the option of hiring for peak needs, then laying off employees if needs decline. Other governments place more emphasis on protecting workers' jobs. European countries, and France in particular, tend to be very strict in this regard.

Question 2

The trends and arrangements that encourage international trade also increase and change the demands on human resource management.

Answer 2

True
Explanation: The environment in which organizations operate is rapidly becoming a global one for various reasons. The trends and arrangements that encourage international trade also increase and change the demands on human resource management.

Question 3

While international companies build one or a few facilities in another country,multinational companies go overseas on a broader scale.

Answer 3

True
Explanation: While international companies build one or a few facilities in another country, multinational companies go overseas on a broader scale. They build facilities in a number of different countries as a way to keep production and distribution costs to a minimum.

Question 4

Third-country nationals are employees from a country other than the parent country or the host country.

Question 5

In the context of the effects of culture on training design,trainers are expected to be authoritarian and controlling of session in cultures low in power distance.

Question 6

In countries with low uncertainty avoidance,people seem to take each day as it comes.

Question 7

The most important influence on international HRM is the economic system of the country in which a facility is located.

Question 8

Culture shock is the first emotional stage an expatriate experiences upon starting a foreign assignment.

Question 9

Job design aimed at empowerment is likely to be difficult in cultures with high power distance.

Question 10

Companies usually prefer hiring parent-country nationals for filling positions in host-countries.

Question 11

In general,spending on education is lesser per pupil in high-income countries than in poorer countries.

Question 12

The usual way that a company begins to enter foreign markets is by setting up operations in those countries.

Question 13

In countries with large power distances,people try to eliminate inequalities.

Question 14

Expanding opportunities in fast-developing nations such as China and India has limited the ability of organizations to tap into the immigrant workforce.

Question 15

The host country is the country in which the organization's headquarters is located.

Question 16

Capitalist economic systems provide ample opportunities for educational development because the education system is free to students.

Question 17

A global organization uses cultural differences as an advantage.

Question 18

Research has found successful completion of overseas assignments to be most likely among employees who are extroverted,agreeable,and conscientious.

Question 19

A country's political system does not usually affect human resource management.

Question 20

In the context of the effects of culture on training design,a culture with a long-term orientation will have trainees who are likely to accept development plans and assignments.

Question 21

A _____ is a country (other than the country in which the organization's headquarters is located)in which an organization operates a facility.

A) host country
B) parent country
C) first country
D) third country
E) guest country

Question 22

The usual way that a company begins to enter foreign markets is by:

A) importing.
B) offshoring.
C) exporting.
D) outsourcing.
E) relocating.

Question 23

U.S.companies usually link stock options to specific performance goals,such as the increase in a company's share price compared with that of its competitors.

Question 24

Canada,Mexico,and the United States have encouraged trade among themselves with the:

A) CSN.
B) NAFTA.
C) PICTA.
D) APEC.
E) TAFTA.

Question 25

A TexasCorp (an American company)employee,who was born in India and is working at the company's facilities in India,is a:

A) host-country national.
B) parent-country national.
C) first-country national.
D) third-country national.
E) guest-country national.

Question 26

In comparison with European organizations,U.S.organizations exert more centralized control over labor relations in the various countries where they operate.

Question 27

Maria Celio,who was born in Spain,works at the headquarters of a Spanish company.She is a:

A) host-country national.
B) expatriate.
C) governing-country national.
D) third-country national.
E) parent-country national.

Question 28

Which of the following is a characteristic of global organizations?

A) They are rigid.
B) They keep costs of products as high as possible.
C) They use cultural differences as a challenge.
D) Their decisions are decentralized.
E) Their HRM practices do not treat different cultures as equals.

Question 29

A firm that is currently shipping domestically produced items to other countries to be sold there is engaging in:

A) exporting.
B) offshoring.
C) importing.
D) outsourcing.
E) relocating.

Question 30

An organization that has just started setting up one or a few facilities in one or a few foreign countries is a(n):

A) global organization.
B) international organization.
C) multinational organization.
D) foreign subsidiary.
E) expatriate.

Question 31

John,an American who works for a U.S.-based company,has been assigned to work in Japan.He is known as a(n):

A) expatriate.
B) inpatriate.
C) host-country national.
D) third-country national.
E) guest-country national.

Question 32

The balance sheet approach for determining expatriate compensation adjusts a manager's compensation so that it equals the host country's standard of living,further ensuring assimilation into the local culture.

Question 33

A country that is neither the parent country nor the host country for a company is referred to as a:

A) first country.
B) facilitating country.
C) governing country.
D) third country.
E) guest country.

Question 34

The general principles of performance management may apply in most countries,but the specific methods that work in one country may fail in another.

Question 35

Apart from developing an appreciation of the host-country's culture,cross-cultural training requires developing a greater awareness of one's own culture too.

Question 36

An organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs is a(n):

A) international organization.
B) multinational company.
C) foreign subsidiary.
D) global organization.
E) outsourcing partner.

Question 37

At the highest level of involvement in the worldwide marketplace are organizations that choose to locate a facility based on the ability to effectively,efficiently,and flexibly produce a product or service,using cultural differences as an advantage.Such organizations are referred to as:

A) foreign subsidiaries.
B) international organizations.
C) multinational organizations.
D) global organizations.
E) universal organizations.

Question 38

The _____ of a company is the country in which the organization's headquarters is located.

A) host country
B) parent country
C) governing country
D) third country
E) second country

Question 39

An individual who was born in the United States and is currently working in Spain for a company headquartered in Japan is a _____ in Spain.

A) parent-country national
B) host-country national
C) third-country national
D) home-country national
E) guest-country national

Question 40

A company is headquartered in Germany,has offices in the U.S.,and has a Vietnamese manager working in a facility in the U.S.In this case,Germany is the _____ country,the U.S.is the _____ country,and Vietnam is the _____ country.

A) parent, host, third
B) expatriate, inpatriate, repatriate
C) host, guest, third
D) third, first, host
E) parent, guest, second

Question 41

Individualistic cultures often exhibit:

A) flatter pay structures.
B) greater differences between the highest and lowest pay in the organization.
C) emphasis on organizational rather than individual performance.
D) collective decision making.
E) compensation systems based on fixed pay according to seniority.

Question 42

How does a collectivist culture influence the HRM decisions related to job design?

A) It gives more importance to skills, resources, and personality to succeed on the job.
B) It encourages employees to make their own decisions.
C) It gives emphasis to person-organization fit.
D) It focuses on long-term rewards.
E) It relies heavily on person-job fit.

Question 43

Which of the following is true of pay structures in collectivist cultures?

A) They appreciate great differences in pay between the organization's highest- and lowest-paid employees.
B) They see compensation tied to individual performance as fair.
C) They tend to have much flatter pay structures.
D) They get motivated with individual performance awards.
E) They value person-job fit more than person-organization fit.

Question 44

Which one of the following is true of global organizations?

A) All of their managers come from the host country.
B) They increasingly emphasize standardization of products across market segments.
C) They tend to have centralized, parent-country decision-making structures.
D) HRM practices at such companies tend to be uniform across cultures.
E) Managers at such companies must be able to get results across national boundaries.

Question 45

According to Hofstede's dimensions of culture,_____ refers to a strong cultural preference for structured situations.

A) low power distance
B) individualism
C) masculinity
D) high uncertainty avoidance
E) long-term orientation

Question 46

Which of the following terms refers to a type of HRM system that makes decisions from a global perspective,includes managers from many countries,and is based on ideas contributed by people representing a variety of cultures?

A) Host country-based HRM system
B) Parent country-based HRM system
C) Transnational HRM system
D) International HRM system
E) Multinational HRM system

Question 47

According to Hofstede's dimensions of culture,which of the following is true of cultures with a short-term orientation?

A) They value saving and persistence.
B) They protect people in a particular group.
C) They maintain large differences in power.
D) They have a preference for structured situations.
E) They promote respect for fulfilling social obligations in the present.

Question 48

In the context of Hofstede's dimensions of culture,which of the following is a characteristic of cultures with a long-term orientation?

A) They value achievement, money making, and assertiveness more than anything else.
B) They value saving and persistence.
C) They expect people to think and act as members of a group..
D) They maintain large differences in power.
E) They have a preference for structured situations.

Question 49

Values such as success,achievement,assertiveness,and competition are associated with:

A) short-term oriented cultures.
B) masculine cultures.
C) high-power-distance cultures.
D) low uncertainty avoidance cultures.
E) collectivist cultures.

Question 50

Which of the following is true of selecting employees in a global labor market?

A) A host-country national can more easily understand the local values and customs.
B) Employees are usually very eager to take a foreign assignment.
C) Host-country nationals are usually more skilled than expatriates.
D) Training for and transporting families to foreign assignments is less expensive than hiring people in the foreign country.
E) Organizations generally fill all key foreign positions with host-country nationals.

Question 51

According to Hofstede's cultural dimensions,a culture in which people are expected to look after their own interests is high in:

A) power distance.
B) femininity.
C) individualism.
D) uncertainty avoidance.
E) long-term orientation.

Question 52

Which of the following is a benefit of having a wide latitude in reducing workforce?

A) It gives the option of hiring for peak needs and laying off employees if needs decline.
B) It helps in protecting workers' jobs.
C) It helps employees to adjust to a new culture.
D) It allows workers to keep more of their earnings regardless of the taxes they pay.
E) It gives employers the advantage to choose from local workers or immigrant workers according to the work requirement.

Question 53

In cultures high in _____,people think of themselves mainly as group members.

A) power distance
B) individualism
C) masculinity
D) short-term orientation
E) collectivism

Question 54

Which of the following is true about the influence of economic systems on human resource practices in international markets?

A) Socialist economic systems provide ample opportunities for educational development.
B) In developed countries with great wealth, labor costs are relatively low.
C) In capitalist economic systems, education is free for students.
D) Capitalism may not provide economic rewards for increasing one's education.
E) In socialist systems, students bear more of the cost of their education.

Question 55

Which one of the following statements is true of transnational HRM systems?

A) To ensure fairness, they make decisions that are uniform and rigid.
B) The participants from various countries and cultures contribute ideas from a position of equality.
C) They emphasize the use of managers from the parent country.
D) They feature decision making from a parent-country perspective.
E) The host-country culture dominates the decision making process.

Question 56

In which country would one experience the greatest latitude in reducing one's company's workforce in response to a forecasted oversupply of workers?

A) The United States
B) Germany
C) The United Kingdom
D) France
E) Sweden

Question 57

By far the most important influence on international HRM is the _____ of the country in which a facility is located.

A) politics
B) educational system
C) culture
D) economic system
E) currency

Question 58

Which of the following is true of countries with small power distance?

A) People address one another with titles
B) People try to eliminate inequalities
C) People tend to rely heavily on religion
D) People seem to take each day as it comes
E) People value money making more than relationships

Question 59

Mark,an American national,is visiting Mexico for a business meeting.Since he is used to addressing people by their first name,he calls his host,the Chairman of the company,by his first name rather than his title.The Chairman and the other Mexican board members get offended.This reveals differences in the cultural dimension of _____ between Mark and his Mexican hosts.

A) individualism/collectivism
B) uncertainty avoidance
C) power distance
D) long-term/short-term orientation
E) masculinity/femininity

Question 60

According to Hofstede's dimensions of culture,_____ defines the amount of inequality that is normal.

A) individualism
B) uncertainty avoidance
C) power distance
D) collectivism
E) masculinity

Question 61

Which of the following is true about decisions related to a global compensation strategy?

A) They affect a company's costs and ability to compete.
B) They focus more on flexibility than on fairness to account for differences across cultures.
C) They are made on the basis of the cost of living in the home country.
D) They focus only on comparing wages across countries.
E) They are determined only by labor costs.

Question 62

Which of the following terms describe the disillusionment and discomfort that occur during the process of adjusting to a new culture?

A) Culture shock
B) Honeymoon
C) Euphoria
D) Acculturation
E) Acclimatization

Question 63

Which of the following is a challenge specially associated with the training and development of a global workforce?

A) Effective programs for all participating employees, regardless of their country of origin
B) Making employees aware of the training content
C) Linking training objectives to performance management
D) Making employees aware of the development plans
E) Deciding the duration of the training program

Question 64

Training to make employees and their family members ready for an assignment in a foreign country is called:

A) acculturation.
B) international education.
C) cross-cultural preparation.
D) community training.
E) biculturalism.

Question 65

For which phase of an international assignment does the preparation involve providing information about the employee's community and home-country workplace?

A) Preparation for departure from the home-country
B) Preparation during the assignment itself
C) Preparation for the culture shock phase in the host country
D) Preparation for the return to the home-country
E) Preparation for the honeymoon phase in the host country

Question 66

In the context of the effects of culture on training design,a culture high in _____ expects participation in exercises and questioning to be determined by status in the company or culture.

A) collectivism
B) femininity
C) power distance
D) time orientation
E) individualism

Question 67

Employees from cultures high in uncertainty avoidance expect a training session where:

A) trainers adopt an impromptu style of instruction.
B) a formal instructional environment exists.
C) trainers are flexible and open to schedule and activity changes.
D) trainees are allowed to determine the pace of the programs.
E) relationships with fellow trainees are emphasized.

Question 68

In the context of the effects of culture on training design,a culture low in _____ values relationships with fellow trainees.

A) collectivism
B) femininity
C) uncertainty avoidance
D) time orientation
E) masculinity

Question 69

Which of the following is a reason for big pay differences between jobs?

A) Shortage of talent in local labor markets
B) Government rules regarding minimum wages for different jobs
C) Low rates of employee turnover in certain jobs
D) Low power distance
E) High uncertainty avoidance

Question 70

Which of the following is true of cross-cultural preparation for the different phases of an international assignment?

A) Training consists only of lectures.
B) Preparation ends once the employees have adjusted to the host-country's environment.
C) Preparation is only required for the employees, not their families.
D) Preparation for departure includes language instruction.
E) Employees and their families should be insulated from the locals.

Question 71

Which of the following is the first emotional stage associated with a foreign assignment?

A) Culture shock
B) Learning
C) Adjustment
D) Honeymoon
E) Acculturation

Question 72

The day-to-day decisions about labor relations are usually handled by foreign subsidiaries because:

A) labor costs in industrialized countries are far lower than in newly industrialized countries.
B) the control over labor relations is centralized in most countries.
C) labor relations on an international scale involve differences in laws and economic systems.
D) this reduces the power distance across countries.
E) the host governments require them to do so.

Question 73

Which of the following is true of the performance management process across national boundaries?

A) The specific methods of performance management work the same way in almost every country.
B) U.S. employees are much more used to indirect feedback than are employees in other countries.
C) Which behaviors are rated, how and the extent to which performance is measured, who performs the rating, and how feedback is provided are usually uniform across countries.
D) While the measures used may vary from country to country, the legal requirements remain the same as those in the United States.
E) In rapidly changing regions, the organization may have to update its performance plans more often than once a year.

Question 74

The labor supply of _____ is useful when needed skills are scarce in a particular location,but the ability to tap it is limited by government paperwork and delays,as well as by expanding opportunities in fast-developing nations.

A) host-country nationals
B) immigrant workers
C) parent-company nationals
D) local contract workers
E) local temporary workers

Question 75

Employees from cultures high in power distance expect a training session where:

A) they are able to discuss and ask questions about the training content.
B) an informal, unstructured agenda exists.
C) trainers are viewed as experts and are authoritarian and controlling of the sessions.
D) trainees are allowed to determine the pace of the programs.
E) there is an equal relationship with the trainer.

Question 76

Which of the following statements is true of international labor relations?

A) In comparison with U.S. organizations, European organizations exert more centralized control over labor relations in the various countries where they operate.
B) The day-to-day decisions about labor relations are usually handled by each foreign subsidiary.
C) Governments never get involved to protect workers who immigrate to other countries.
D) Most U.S. organizations, in contrast to European organizations, bargain with a union representing an entire industry's employees, rather than with the local union.
E) Companies that operate across national boundaries mostly work only with unions in the home-country.

Question 77

Which of the following is true of employee benefits?

A) In both the U.S. and Europe, the awarding of stock options is linked to specific performance goals.
B) Pension plans are more widespread in the U.S. and Japan than in Western Europe.
C) Unlike in the U.S., compensation plans in other countries are less likely to include benefits.
D) Paid vacation tends to be more generous in Western Europe than in the United States.
E) Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade.

Question 78

In the context of the effect of culture on training,a culture with long-term orientation has trainees who:

A) expect trainers to be authoritarian and controlling of session.
B) value relationships with fellow trainees.
C) are likely to accept development plans and assignments.
D) have less tolerance for impromptu style.
E) expect formal instructional environments.

Question 79

Successful completion of overseas assignments is most likely among employees who are:

A) agreeable and conscientious.
B) more knowledgeable about their job.
C) more technically qualified.
D) higher in the managerial hierarchy.
E) introverted.

Question 80

According to expatriates,the most important qualities for an international assignment are,in order of importance:

A) family situation, flexibility and adaptability, job knowledge and motivation, relational skills, and openness to other cultures.
B) openness to other cultures, flexibility and adaptability, relational skills, job knowledge and motivation, and family situation.
C) job knowledge and motivation, flexibility and adaptability, relational skills, openness to other cultures, and family situation.
D) self-confidence, a sense of advantage, technical know-how, and family situation.
E) adaptability, job knowledge and motivation, relational skills, family situation, and openness to other cultures.