Question 1

Felix Department Store has over 900 stores in the U.S.and over 300 stores in Mexico and Canada.Felix has been particularly successful in Mexico,and the firm's executives believe Felix should expand into other Latin American countries.As a result,plans are underway for the construction of a new Felix store in Managua,Nicaragua.The construction,once started,is expected to be completed within a year,so staff selection needs to begin soon.Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following,if true,best supports the argument that parent-country nationals should manage the Felix store in Managua,Nicaragua?

Accepted Answer

The fact that Felix wants to maintain close control of the Nicaragua store for at least three years supports the argument that parent-country nationals should manage the store. Parent-country nationals are likely to be more familiar with the company's policies and procedures, and may also have more experience operating in foreign markets, which could be beneficial for maintaining control and ensuring consistency across all of Felix's stores.

Question 2

Local managers are hired to fill key positions in their own country under the ________.

Accepted Answer

The polycentric staffing approach emphasizes the localization of subsidiary management, meaning that local managers are hired to fill key positions in their own country. This approach can be particularly useful for companies operating in culturally diverse environments where adaptation to local conditions and customs is crucial for success.

Question 3

Which staffing approach will most likely be effective when implementing a global strategy of "acting local"?

Accepted Answer

The polycentric staffing approach involves hiring local employees to fill managerial positions in different countries, which aligns with the "acting local" global strategy. This approach allows for a better understanding of local culture, customs, and laws, and promotes local responsiveness. Talent-intensive and cost-intensive approaches do not specifically target the "acting local" strategy, and the ethnocentric approach prioritizes hiring from the parent country and may not be effective in understanding and responding to local needs.

Question 4

In addition to the global war for talent,there are considerable strategic competitive challenges for firms.Which of the following is one such challenge?

Accepted Answer

The answer of In addition to the global war for...

Question 5

________ are familiar with company goals,products,technology,policies,and procedures; they know how to get things accomplished through headquarters.

Accepted Answer

Parent-country nationals are employees who are citizens of the country where the company is headquartered. As such, they are familiar with the company's goals, products, technology, policies, and procedures and are well-equipped to get things accomplished through headquarters.

Question 6

In which of the following staffing approaches,are the best managers recruited from within or outside of the company,regardless of nationality?

Accepted Answer

The answer of In which of the following staffing approaches,are...

Question 7

Felix Department Store has over 900 stores in the U.S.and over 300 stores in Mexico and Canada.Felix has been particularly successful in Mexico,and the firm's executives believe Felix should expand into other Latin American countries.As a result,plans are underway for the construction of a new Felix store in Managua,Nicaragua.The construction,once started,is expected to be completed within a year,so staff selection needs to begin soon.Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua. Which of the following,if true,undermines the argument that parent-country nationals should manage the Felix store in Nicaragua?

Accepted Answer

Using parent-country nationals contradicts the strategy of acting local, which suggests hiring local managers who understand the local market and culture.

Question 8

A(n)________ staffing approach is more likely to be effective when implementing a multinational strategy.

Accepted Answer

A polycentric staffing approach is more likely to be effective when implementing a multinational strategy. This approach emphasizes the importance of hiring and promoting local employees to top positions within the company, allowing for a better understanding of local cultures and customs. This can improve communication, decrease cultural conflicts, and ensure that the company aligns with local laws and regulations. In contrast, an ethnocentric staffing approach favors employees from the home country of the company, and a regional or local approach may not provide a broad enough perspective for a multinational strategy.

Question 9

Kelly Roberts,an American,is a senior manager at her firm's headquarters in New York.Kelly is a(n)________.

Accepted Answer

Kelly Roberts is an American, meaning she is a citizen of the parent country of her company's headquarters where she holds a senior management position. Therefore, she is a parent-country national.

Question 10

________ staffing approach serves to perpetuate particular personnel selections and other decision-making processes because the same types of people are making the same types of decisions.

Accepted Answer

The ethnocentric staffing approach typically involves bringing in personnel from the home country to fill key positions abroad. This approach can perpetuate particular personnel selections and decision-making processes because the same types of people with similar cultural backgrounds are making decisions for the foreign operation.

Question 11

Fred Sanders,an American,works as a manager at his firm's headquarters in New York.He recently learned that he has been assigned to manage the firm's subsidiary office in Tokyo,and he will be relocating to Japan within the next six weeks.Which of the following staffing approaches is being employed in this scenario?

Accepted Answer

In this scenario, the ethnocentric staffing approach is being employed as the company is sending an American manager to manage the subsidiary office in Tokyo. This approach involves filling key management positions of a subsidiary with parent-company nationals. The focus is on maintaining an alignment in corporate culture and values between the parent and the subsidiary.

Question 12

________ are usually preferable when a high level of technical capability is required and maintenance of close control is desired.

Accepted Answer

The answer of ________ are usually preferable when a high...

Question 13

________ are employees assigned to a country other than their own.

Accepted Answer

Expatriates are employees who are assigned to a country other than their own. Host-country nationals are employees who are from the country where the multinational company operates, while inpatriates are employees who are transferred from a foreign subsidiary to the parent company. Third-country nationals are employees who are from a country other than the home country or the host country.

Question 14

________ are the most preferred staffing choice for a foreign subsidiary where proprietary technology is used extensively.

Accepted Answer

The answer of ________ are the most preferred staffing choice...

Question 15

Which of the following is an advantage of the polycentric staffing approach?

Accepted Answer

Local managers tend to be more familiar with the local culture, customs, and language, thus they can be instrumental in staving off or more effectively dealing with problems in sensitive political situations. They have a better understanding of the local market and can provide insight and knowledge that an expatriate manager may lack.

Question 16

________ is increasingly being recognized as a major determinant of success or failure in international business.

Accepted Answer

International human resource management is critical in ensuring the success of a business in an international setting. Managing cultural differences, language barriers, and hiring and retaining talented employees who possess a global mindset are all crucial factors in international business success. Procurement of raw materials from abroad, outsourcing, and insourcing are important aspects of international business but may not necessarily be the most significant determinant of success or failure.

Question 17

A(n)________ policy is likely to be used where a company notes the inadequacy of local managerial skills and determines a high need to maintain close communication and coordination with headquarters.

Accepted Answer

An ethnocentric policy is one where headquarters maintains control over decision-making and management of the company's foreign subsidiaries. This is likely to be used when the company believes that local managerial skills are inadequate and close communication and coordination with headquarters are needed. In an ethnocentric policy, key positions in foreign subsidiaries may be filled by expatriate managers from headquarters who can ensure that the subsidiary is aligned with the company's overall objectives. This approach may not be suitable for companies that require a greater level of local responsiveness and adaptability, which may be better served by a polycentric or regiocentric policy.

Question 18

Which of the following is a disadvantage of the ethnocentric staffing approach?

Accepted Answer

The ethnocentric staffing approach gives priority to PCNs and may result in a lack of managerial effectiveness of PCNs in foreign countries. This can be a disadvantage as it may affect organizational performance in overseas markets. Additionally, it may lead to a lack of diversity and global perspective in the organization. Option A is incorrect because the ethnocentric staffing approach favors PCNs, which may limit opportunities for local managers. Option B is incorrect because expatriate adaptation is not a disadvantage of the ethnocentric staffing approach. Option D is incorrect because the managerial effectiveness of PCNs in the parent country is not a significant disadvantage of this approach.

Question 19

When the company is at the internationalization stage of strategic expansion and has a centralized structure,it will likely use a(n)________ staffing approach to fill key managerial positions with PCNs.

Accepted Answer

When a company is at the internationalization stage of strategic expansion and has a centralized structure, it will likely use the ethnocentric staffing approach to fill key managerial positions with PCNs. This approach involves bringing in executives from the parent company to fill key positions in foreign subsidiaries, as they have a strong understanding of the company's culture, values, and goals.

Question 20

Which of the following should ideally dictate the organizational structure and staffing needs of the firm?

Accepted Answer

The firm's strategy should ideally dictate the organizational structure and staffing needs of the firm. This is because the strategy defines the direction, goals, and objectives of the firm, which in turn determine the type and number of employees, departments, and functions needed to achieve them. The other options, such as the firm's customers, size, or short-term objectives, may influence the organizational structure and staffing needs to some extent, but they should not be the sole or primary factor in decision-making.

Quiz 9: Staffing,Training,and Compensation for Global Operations