Question 1

KayLeaf Inc.wants to set up a unit in China.To facilitate this,it sends its manager to China to gather information.Which of the following is most likely to be a suggestion from its manager?

Accepted Answer

A hierarchical pay structure is most likely to be suggested by the manager as China has a high power distance culture where superiors are expected to have a higher status and be better paid than their subordinates. This aligns with the idea of respecting hierarchy and authority. Option B is incorrect as even though people in China have a long-term orientation, stock options may still be an attractive option for them. Option C is incorrect as China has a collectivistic culture where group goals are given priority over individual goals, but individual performance-based incentives may still be used. Option D is incorrect as the level of uncertainty avoidance is not a relevant factor when it comes to the structure of the unit in China.

Question 2

In Japan,internal alignment based on _____ is far more important than other factors.

Accepted Answer

In Japan, internal alignment based on seniority is highly valued and considered more important than other factors such as skills, jobs, or accountabilities. This is because seniority is seen as a reflection of an individual's loyalty, dedication, and commitment to the company. As a result, promotions and salary increases are often based on an employee's length of service rather than their job performance or qualifications.

Question 3

Uncertainty avoidance is _____.

Accepted Answer

Uncertainty avoidance refers to the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations.

Question 4

Which of the following statements about ownership and financial markets is true?

Accepted Answer

Recent tax law changes in various countries have indeed made stock options more attractive as a form of compensation, encouraging broader ownership among employees and investors. However, despite these changes, the ownership of many companies often remains concentrated among a smaller group of major shareholders.

Question 5

Which of the following is NOT true of the tariff agreements in Germany?

Accepted Answer

Managerial jobs are typically not covered by tariff agreements in Germany. These agreements usually apply to workers and employees below the managerial level, focusing on wages, working hours, and working conditions rather than the roles and responsibilities of management positions.

Question 6

Individualism is _____.

Accepted Answer

Individualism refers to the degree to which people in a society are integrated into groups or expected to look after themselves independently, often contrasting with collectivism where there's a stronger emphasis on group cohesion and family ties.

Question 7

According to Hofstede's cultural dimensions,in Malaysia and Mexico,where there is high power distance,_____ pay structures are appropriate.

Accepted Answer

In cultures with high power distance, such as Malaysia and Mexico, there is a greater acceptance and expectation of hierarchy and unequal distribution of power. Therefore, hierarchical pay structures that reflect and reinforce the organizational hierarchy are appropriate. Equitable or egalitarian pay structures may be perceived as disrespectful or inappropriate in such cultures. Parallel pay structures are typically used in more egalitarian cultures.

Question 8

Slow growth and competition has led Japanese companies to

Accepted Answer

Slow growth and competition have put pressure on Japanese companies to improve performance and productivity. Therefore, they have resorted to using more performance-based pay as a way to incentivize employees to work harder and increase productivity. This is in contrast to seniority-based pay, which was a traditional practice in Japan, but is no longer practical in today's competitive economy. Similarly, offering benefits such as gyms, dating services, and exotic vacations may be good for employee morale but do not address the underlying issue of productivity and competitiveness. Therefore, the best choice is A, which focuses on improving employee performance through performance-based pay.

Question 9

Which of the following statements about evolution and change in the traditional German model is true?

Accepted Answer

The statement "Many of the changes in Germany are the result of global competitive pressures and technological changes" is true. The article discusses how traditional German industries, such as automotive and manufacturing, are facing pressure from global competition and technological advancements, leading to changes in the traditional German model. Options A, B, and C are not correct as they either do not relate to evolution and change in the traditional German model or are not supported by the article.

Question 10

In the comparison of the pay systems of two well-known Japanese companies Toyota and Toshiba,Toyota _____.

Accepted Answer

The answer of In the comparison of the pay systems...

Question 11

A Korean citizen working for Toshiba,a Japanese company,in Canada is a _____.

Accepted Answer

The Korean citizen is not from Canada or Japan, which are the home countries of the company, making them a third-country national.

Question 12

The degree of discretion managers have to make total compensation a strategic tool is referred to as _____.

Accepted Answer

Managerial autonomy refers to the degree of discretion managers have in making decisions regarding total compensation. A high degree of autonomy allows managers to use total compensation as a strategic tool to attract, motivate, and retain employees, while a low degree of autonomy limits their ability to do so. Choices A, B, and D are not related to the degree of discretion managers have regarding total compensation.

Question 13

Which of the following is a factor determining base pay in the Japanese traditional national system?

Accepted Answer

In the Japanese traditional national system, base pay is determined by the career category of an employee rather than factors such as job evaluation or specific job title. This means that employees in the same career category with similar levels of experience and qualifications receive the same base pay, regardless of their specific job title or job duties. Market pricing is not generally used in this system.

Question 14

An Indian citizen working for a Japanese company in India is a _____.

Accepted Answer

Since the individual is an Indian citizen working in India, they are considered a local country national, regardless of the company's origin.

Question 15

A(n)_____ approach to compensation involves designing a total pay system at headquarters and applying it globally.

Accepted Answer

The term "exporter" refers to a compensation approach in which a total pay system is designed at headquarters and applied globally. This means that there is no adaptation or localization of the compensation system to fit the specific needs or market conditions of each country. This approach may be efficient in terms of cost and consistency, but may not be effective in motivating and retaining employees in different cultural and economic contexts.

Question 16

Which of the following countries has the highest number of people in the workforce belonging to unions?

Accepted Answer

Sweden has the highest number of people in the workforce belonging to unions, with over 70% of workers being unionized. Japan, Italy, and South Korea have lower rates of unionization.

Question 17

_____ is an example of a country with a highly decentralized approach to pay setting with higher wage felxibility.

Accepted Answer

The United States of America is known for having a highly decentralized approach to pay setting with higher wage flexibility compared to other countries. This means that individual companies or industries have more control over setting salaries and wages for their employees rather than a centralized government setting a universal minimum wage.

Question 18

Bonuses paid in Japan are _____.

Accepted Answer

The answer of Bonuses paid in Japan are _____.
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Question 19

A Japanese citizen working for Toyota in Georgetown,Kentucky,is a _____.

Accepted Answer

Since the person is a Japanese citizen working for a Japanese company, they would be considered a parent-country national.

Question 20

Traditionally,Japan's employment relationships were supported by _____.

Accepted Answer

Japan's employment relationships were traditionally supported by lifetime security within the company. This means that once an employee was hired, they could expect to work for the same company for their entire career and receive job security and benefits. Performance-based pay and promotion systems were also present, but the emphasis was on long-term employment and loyalty to the company. Centralized unions representing workers across several companies within an industry were not as prevalent in Japan's employment system.

Quiz 16: International Pay Systems