Deck 18: Global Human Resource Management

Question 1

A firm with an ethnocentric staffing policy will fill all key management positions with parent-country nationals.

Answer 1

True

Question 2

An organization's norms and value systems are known as its corporate culture.

Answer 2

True

Question 3

A citizen of Japan who moves to the United States to work at Microsoft would be classified as an inpatriate.

Answer 3

True

Question 4

An expatriate needs to have language fluency to show willingness to communicate.

Question 5

Equal employment legislation is strongly pursued in all countries.

Question 6

A geocentric approach tends to reduce local responsiveness.

Question 7

A firm that adopts a polycentric approach to staffing is likely to suffer from cultural myopia.

Question 8

Firms may choose an ethnocentric approach to staffing as opposed to a polycentric approach because of the cost savings it promotes.

Question 9

A geocentric staffing policy seeks the best people for key jobs throughout the organization,regardless of nationality.

Question 10

Research into expatriate failure revealed that consistently one of the reasons for the premature return of employees for U.S.multinationals was the inability of the spouse to adjust.

Question 11

In the case of an ethnocentric approach,it is possible that managers may make decisions that are ethically suspect because they do not understand the culture in which they are managing.

Question 12

Many firms adopt a geocentric policy toward staffing because it is a relatively inexpensive staffing policy.

Question 13

For European firms,the top reason for expatriate failure was the inability of the manager to cope with larger overseas responsibilities.

Question 14

An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.

Question 15

The ability to understand why people of other countries behave the way they do is perceptual ability.

Question 16

A firm following a polycentric approach to staffing believes that the host country lacks qualified individuals to fill senior management positions.

Question 17

According to Mendenhall and Oddou,poorly-adjusted expatriates tend to be nonjudgmental and nonevaluative in interpreting the behavior of host-country nationals.

Question 18

A company that is successful at a localization strategy will realize experience curve and location economies.

Question 19

The most attractive staffing policy is the ethnocentric approach.

Question 20

An executive who performs well in a domestic setting will be able to adapt to managing in a different cultural setting.

Question 21

It is not possible to conduct business nearly all over the world using only English.

Question 22

When a reciprocal tax treaty is in force,the firm typically pays the expatriate's income tax in the host country.

Question 23

In ethnocentric firms,the lack of managers' mobility among national operations implies that pay can and should be kept country-specific.

Question 24

If a firm is serious about building an international cadre,it may have to pay its international executives the same basic salary irrespective of their country of origin or assignment.

Question 25

Historically,most international businesses have been more concerned with management development than with training.

Question 26

There is now a trend toward greater decentralized control.

Question 27

Most expatriates believe that more weight should be given to an on-site manager's appraisal than to an off-site manager's appraisal.

Question 28

A foreign service premium is offered as an inducement to accept foreign postings.

Question 29

A manager might be sent on several foreign postings over a number of years to build his /her cross-cultural sensitivity and experience as part of a management development program.

Question 30

From a strategic perspective,the key issue in international labor relations is the degree to which organized labor can limit the choices of an international business.

Question 31

Most benefits that are tax deductible for the firm in the home country are deductible out of the country.

Question 32

Many expatriate managers believe that headquarters management evaluates them unfairly and does not fully appreciate the value of their skills and experience.

Question 33

The international trade secretariats have had tremendous success.

Question 34

Labor unions generally prefer it if an international business keeps highly skilled tasks in its home country and farms out only low-skilled tasks to foreign plants.

Question 35

Base pay in most firms is set with regard to global market conditions.

Question 36

In many cases,firms fail to plan for an expatriate's repatriation.

Question 37

An expatriate's base salary normally varies from the base salary for a similar position in the home country.

Question 38

Cultural toughness can be assessed by comparing cultures.

Question 39

Where an expatriate community exists,firms often devote lesser effort to ensuring that the new expatriate family is quickly integrated into that group.

Question 40

Bringing managers together in one location for extended periods and rotating them through different jobs in several countries helps the firm build a formal management network.

Question 41

A citizen of France who moves to Germany to work at BMW is a(n):

A)host-country national.
B)local.
C)inpatriate.
D)acquired citizen.

Question 42

A polycentric approach to staffing is one in which:

A)all key management positions are filled by parent company nationals.
B)host-country nationals are recruited to manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters.
C)the best people,regardless of nationality,are recruited to fill key positions throughout the organization.
D)parent-company nationals are recruited to manage subsidiaries while host-country nationals occupy key positions.

Question 43

Which of the following is a problem that limits a firm's ability to pursue a geocentric policy?

A)The lack of management transfers from home to host countries,and vice versa,can lead to a lack of integration between corporate headquarters and foreign subsidiaries.
B)The higher pay managers on an international fast track enjoy may be a source of resentment within a firm.
C)The firm fails to understand host-country cultural differences that require different approaches to marketing and management.
D)It limits advancement opportunities for host-country nationals.

Question 44

What is the most important advantage of using a geocentric staffing policy?

A)It enables the firm to build a cadre of international executives who feel at home working in a number of cultures.
B)It may be less expensive to implement than other policies,reducing the costs of value creation.
C)The higher pay managers on an international fast track enjoy is a source of inspiration within a firm.
D)It involves no costs of training and relocation when transferring managers from country to country.

Question 45

What is the advantage of using an ethnocentric staffing approach?

A)Uses human resources efficiently
B)Alleviates cultural myopia
C)Inexpensive to implement
D)Helps transfer core competencies

Question 46

Which of the following is mainly concerned with the selection of employees for particular jobs?

A)Retention policy
B)Staffing policy
C)Incentive policy
D)Appraisal policy

Question 47

Firms should build a strong corporate culture and an informal management network for transmitting information and knowledge within the organization if they are pursuing a(n):

A)transnational strategy.
B)localization strategy.
C)global standardization strategy.
D)international strategy.

Question 48

_____ is/are the linchpin of a firm's organization architecture.

A)People
B)Strategy
C)Business processes
D)Organizational structure

Question 49

Mendenhall and Oddou's "others-orientation" dimension,in their study on what predicts success in foreign jobs postings,refers to:

A)the expatriate's self-esteem,self-confidence,and mental well-being.
B)the expatriate's ability to interact effectively with host-country nationals.
C)the expatriate's ability to understand why people of other countries behave the way they do.
D)the relationship between the country of the assignment and how well an expatriate adjusts to a particular posting.

Question 50

Food and detergents giant Unilever had foreign subsidiaries that had evolved into quasi-autonomous operations,each with its own strong national identity.They objected strenuously to corporate headquarters' attempts to limit their autonomy.Thus,Unilever found it very difficult to shift from a strategic posture that emphasized localization to a transnational posture because of:

A)difficulty in achieving the coordination required to pursue experience curve and location economies.
B)the difficulty in achieving coordination required to transfer core competencies.
C)the federation that resulted from a polycentric approach.
D)expensive implementation and increased costs of value creation.

Question 51

According to research,American companies experience an expatriate failure rate that is:

A)similar to that of Japanese firms.
B)similar to that of European companies.
C)higher than both European and Japanese enterprises.
D)lower than both European and Japanese multinationals.

Question 52

For American multinationals,the biggest impediment to expatriate success is:

A)the inability of the spouse to adjust.
B)the manager's inability to adjust.
C)the manager's inability to cope with larger overseas responsibilities.
D)the manager's personal or emotional maturity.

Question 53

Many Japanese firms prefer expatriate Japanese managers to head their foreign operations because these managers have been socialized into the firm's culture while employed in Japan.This implies that:

A)the firm may believe that such managers cannot progress beyond senior positions in their parent company.
B)the firm may see an ethnocentric staffing policy as the best way to maintain a unified corporate culture.
C)the firm is trying to create value by transferring core competencies to a foreign operation.
D)the firm requires host-country nationals to be recruited to manage subsidiaries.

Question 54

Which of the following is a drawback of the polycentric approach to staffing?

A)Firms are likely to suffer from cultural myopia.
B)Host-country nationals are vulnerable to cultural misunderstandings.
C)This approach increases the cost of value creation.
D)Host-country nationals have limited opportunities for advancement beyond senior positions in their subsidiary.

Question 55

_____ refers to the activities an organization carries out to utilize its human resources effectively.

A)Organizational behavior
B)Strategic management
C)Human resource management
D)Labor relations

Question 56

Cultural myopia refers to a firm's failure to:

A)adapt to certain ethnocentric cultures through the expatriate.
B)permanently implement parent-company culture in the host country.
C)understand host-country cultural differences that require different approaches to marketing and management.
D)identify countries which are much tougher postings than others because their cultures are more unfamiliar and uncomfortable.

Question 57

An ethnocentric approach to staffing is appropriate for firms that are pursuing a(n):

A)international strategy.
B)localization strategy.
C)global standardization strategy.
D)transnational strategy.

Question 58

If a company recruits host-country nationals to manage subsidiaries while parent-country nationals occupy key positions at corporate headquarters,the firm is following a(n):

A)ethnocentric staffing policy.
B)regiocentric staffing policy.
C)polycentric staffing policy.
D)geocentric staffing policy.

Question 59

A polycentric approach may be effective for firms pursuing a(n):

A)international strategy.
B)localization strategy.
C)transnational strategy.
D)global standardization strategy.

Question 60

The premature return of an expatriate manager to his/her home country is known as:

A)repatriation.
B)expatriate failure.
C)inpatriate failure.
D)foreign manager failure.

Question 61

Which of the following statements is true regarding practical training?

A)Practical training is provided to foster an appreciation for the host country's culture.
B)The local community is a significant source of support in helping an expatriate family adapt to a foreign culture.
C)Expatriates should delay the process of establishing a routine as it increases the likelihood of premature return on account of monotony.
D)Where an expatriate community exists,firms often devote considerable effort to ensuring that the new expatriate family is quickly integrated into that group.

Question 62

Which of the following is the most common approach to expatriate pay?

A)Balance sheet approach
B)Net-to-net approach
C)Host-country approach
D)Higher of host or home

Question 63

Mendenhall and Oddou identified cultural toughness as one of the dimensions in their study on dimensions that predict success in foreign jobs postings.This dimension refers to:

A)the expatriate's self-esteem,self-confidence,and mental well-being.
B)the expatriate's ability to interact effectively with host-country nationals.
C)the expatriate's ability to understand why people of other countries behave the way they do.
D)the relationship between the country of the assignment and how well an expatriate adjusts to a particular posting.

Question 64

Which among the following allowances is paid when the expatriate is sent to a location where basic amenities such as health care,schools,and retail stores are grossly deficient by the standards of the expatriate's home country?

A)Housing
B)Hardship
C)Cost-of-living
D)Education

Question 65

Labor unions generally try to get better pay,greater job security,and better working conditions for their members through _____ with management.

A)collective bargaining
B)arbitration
C)conciliation
D)expert determination

Question 66

Which dimension of Mendenhall and Oddou's study suggests that an expatriate with high self-esteem,self-confidence,and mental well-being is likely to succeed in a foreign job posing?

A)Self-orientation
B)Others-orientation
C)Cultural toughness
D)Perceptual ability

Question 67

Expatriate managers who lack this dimension of predicting success in a foreign posting tend to treat foreign nationals as if they were home-country nationals.

A)Others-orientation
B)Self-orientation
C)Perceptual ability
D)Cultural toughness

Question 68

_____ makes it difficult to evaluate the performance of expatriate managers objectively.

A)Feedback
B)Hard data
C)Knowledge
D)Bias

Question 69

International trade secretariats (ITSs)have not enjoyed much success for all of the following reasons except:

A)national unions compete with each other to attract investment from international businesses.
B)the structure and ideology of unions tend to vary significantly from country to country.
C)organized labor has had only limited success in its efforts to get national and international bodies to regulate multinationals.
D)the codes of conduct developed by International Labor Organization and the Organization for Economic Cooperation and Development prevented the ITSs from exercising absolute power.

Question 70

Unions' bargaining power is derived largely from their:

A)ability to threaten to disrupt production.
B)ability to change the organizational culture.
C)willingness to adapt to new employment practices.
D)ability to show restraint in negotiations.

Question 71

Which among the following is seen as the final link in an integrated,circular process that connects good selection and cross-cultural training of expatriate managers with completion of their term abroad and reintegration into their national organization?

A)Residency
B)Visitation
C)Repatriation
D)Homecoming

Question 72

Which among the following is a concern of organized labor regarding multinational firms?

A)A company can counter a union's bargaining power with the power to move production to another country.
B)An international business will keep low-skilled tasks in its home country and farm out only highly skilled tasks to foreign plants.
C)An international business can attempt to export employment practices and contractual agreements to its home country.
D)A multinational company is more likely to receive government support in the case of hostile labor relations.

Question 73

When evaluating expatriates,home-country managers usually rely on:

A)the manager's ability to develop cross-cultural awareness.
B)hard data such as market share.
C)the ability of the expatriate to work with local managers.
D)their own international experience.

Question 74

What is the long-term goal of international trade secretariats (ITSs)?

A)To reduce the competition between national unions.
B)To be able to bargain transnationally with multinational firms.
C)To reduce the ideological gap between union leaders in different countries.
D)To get national and international bodies to regulate multinationals.

Question 75

Steve is a manager at a multinational technology firm and is being sent to Japan to head the company's operations there.As a part of training,a familiarization trip to Japan has been planned for him before his formal transfer.What type of training is Steve receiving?

A)Language training
B)Cultural training
C)Practical training
D)Transfer training

Question 76

Which component of a typical expatriate compensation package compensates the expatriate for having to live in an unfamiliar country isolated from family and friends,deal with a new culture and language,and adapt to new work habits and practices?

A)Benefit
B)Cost-of-living allowance
C)Base salary
D)Foreign service premium

Question 77

Which of the following statements is true regarding management development?

A)Management development programs attempt to increase skill levels by focusing mainly on providing management education.
B)Management development programs help build a unifying corporate culture by socializing new managers into the norms and value systems of the firm.
C)Rotating managers through different jobs in several countries as a part of management development programs leads to adaptation problems.
D)Management development programs can be used to foster esprit de corps but is rarely used for developing technical competencies.

Question 78

According to some researchers,which of the following is a fundamental attribute of a global manager and is characterized by cognitive complexity and a cosmopolitan outlook?

A)A global mind-set
B)Cultural toughness
C)High self-esteem
D)Perceptual ability

Question 79

Which among the following should be done in order to reduce bias in the performance appraisal process for expatriates?

A)More weight should be given to an off-site manager's appraisal than to an on-site manager's appraisal.
B)The on-site manager should be of a different nationality as the expatriate manager.
C)When the policy is for foreign on-site managers to write performance evaluations,home-office managers should be consulted before an on-site manager completes a formal termination evaluation.
D)A former expatriates who served in the same location as a current expatriate should not be allowed to participate in the appraisal.

Question 80

What is the main difference in the way international businesses approach international labor relations?

A)The degree to which organized labor can limit the choices of an international business
B)The way work is organized within a plant
C)The degree to which labor relations activities are centralized or decentralized
D)The way staffing,management development,and compensation activities are organized