Deck 15: Human Resource Management in the Global Firm

Question 1

International human resource managers provide managers with guidelines regarding the hiring, training, and evaluating of employees for overseas operations.

Answer 1

True

Question 2

In most cases, the majority of employees that a firm hires abroad are categorized as third-country nationals.

Answer 2

False

Question 3

One of the challenging tasks involved with international human resource management is avoiding nepotism and cultural bias when staffing overseas offices.

Answer 3

True

Question 4

International managers are encouraged by human resource departments to limit gender diversity in the workforce in order to minimize sexual harassment situations and cross-cultural misunderstandings.

Question 5

International laws determine the proportion of domestic and foreign employees that a firm can employ at any given time.

Question 6

MNEs prefer to maximize control of foreign operations by employing host-country nationals.

Question 7

Educating expatriate managers about the history, politics, and economy of a host country can improve company performance and management effectiveness.

Question 8

Typically, a standardized diagnostic tool is used to evaluate the performance of all firm employees and subsidiaries, both domestic and international, to ensure that the firm upholds consistent standards and policies.

Question 9

Employees sent to work for an extended time at a foreign site expect to maintain their normal standard of living, which can considerably increase the firm's expenses.

Question 10

Expatriate employees of MNEs often receive allowances to pay for health benefits, which typically cannot be transferred to personnel working abroad.

Question 11

Global sourcing of manufacturing and business activities to foreign suppliers has led to a declining number of union members in many advanced economies.

Question 12

In North America, the United States has seen a dramatic rise in union membership and labor actions.

Question 13

Just cause, unlike the United States, has to be considered when hiring large numbers of employees in certain countries because it makes it difficult to terminate individuals.

Question 14

Female managers seeking long-term positions abroad can help overcome obstacles by learning a second language or participating in short-term international projects.

Question 15

Employees that are citizens of a country where an MNEs subsidiary or affiliate is located are known as which of the following?

A) third-country nationals
B) primary-country nationals
C) host-country nationals
D) parent-country nationals

Question 16

Which of the following typically constitutes the largest proportion of workers hired abroad?

A) primary-country nationals
B) parent-country nationals
C) third-country nationals
D) host-country nationals

Question 17

Employees that are citizens of the country where a focal firm is headquartered are known as which of the following?

A) host-country nationals
B) parent-country nationals
C) third-country nationals
D) primary-country nationals

Question 18

Which of the following is an example of an expatriate?

A) an employee assigned to live and work in a foreign country for two years
B) an employee banned from working in a foreign country for six months
C) an employee who works in a foreign country and changes citizenship status
D) an employee who is permanently transferred to a foreign subsidiary office

Question 19

Which of the following is a challenge for international human resource managers?

A) justifying high salaries to focal firm board members
B) calculating minimum wages for hourly employees
C) involving international banks in employee payments
D) compensating employees for double taxation issues

Question 20

Which of the following is most likely a benefit of diversity in the international workforce?

A) different approaches to problems and solutions
B) involvement with international labor unions
C) unique perspectives regarding firm policies
D) integration of expatriates with local employees

Question 21

Under which of the following circumstances would an MNE most likely hire a parent-country national?

A) Headquarters wants to maintain strong control over its foreign operations.
B) Top management seeks unique perspectives for managing host-country operations.
C) The country is distant in terms of culture or language.
D) Local operations emphasize downstream value-chain activities.

Question 22

For which of the following value-chain activities would parent-country nationals most likely be employed?

A) marketing
B) data entry
C) R & D
D) sales

Question 23

An MNE will most likely employ a host-country national when ________.

A) managers want to create an integrated global corporation
B) local managers need to be trained in organizational policies
C) the focal firm wants to maintain control of local operations
D) the firm needs specialized knowledge about the local market

Question 24

Which of the following is an initial consideration of international human resource managers as they find and develop employees?

A) How many domestic employees will be willing to relocate to foreign facilities?
B) What positions are needed in order for the firm to accomplish its growth strategies?
C) Does the firm currently employ personnel with bilingual skills and global experience?
D) What salary and benefits would be required to entice employees to work overseas?

Question 25

All of the following are most likely characteristics of employees who would succeed as expatriates except ________.

A) strict
B) healthy
C) adaptable spouse
D) independent

Question 26

Expatriate assignment failure typically ends in ________.

A) premature end of assignment
B) troubled careers
C) family problems
D) all of the above

Question 27

The way in which an employee adopts verbal and non-verbal behaviors to cross-cultural situations is known as which of the following elements of cultural intelligence?

A) strategy
B) knowledge
C) behavioral flexibility
D) motivation

Question 28

Which of the following most likely occurs as a result of expatriate failure?

A) employee culture shock
B) setbacks in employee careers
C) employer tax problems
D) increased employer success

Question 29

Expatriate failure is most likely related to which of the following?

A) additional hours spent working in a new facility
B) difference in time, climate, and working conditions
C) inability to function well in a foreign environment
D) inadequate food, health care, and housing conditions

Question 30

Which of the following topics would most likely be taught during a training session titled "Practical Information for Working and Living in Japan"?

A) "How to Work with Japanese Engineers"
B) "How to Use Japanese Public Transportation"
C) "The History of Japan and Its People"
D) "The Primary Religions of Japan"

Question 31

How do international human resource managers minimize culture shock for expatriates?

A) permit personnel to vacation in the foreign location prior to beginning employment
B) train personnel to understand the host country's government, culture, and language
C) invite foreign employees into the homes of future expatriates for cultural awareness
D) allow international personnel to connect with family and friends via video conferences

Question 32

Which of the following best summarizes the goal of cross-cultural awareness training for expatriates?

A) Employees will interact with local citizens and bring awareness of corporate culture to host-country employees.
B) Employees will work with third-country nationals to train them in the customs of the host-country.
C) Employees will become well versed in the political, economic, and religious aspects of the host-country.
D) Employees will communicate with local customers and employees and be sensitive to the host-country's culture.

Question 33

If an employee is unprepared for repatriation, which of the following might cause problems?

A) being treated differently by coworkers
B) reverse culture shock
C) higher living costs
D) all of the above

Question 34

Which of the following most likely complicates international performance appraisals?

A) insufficient communications networks
B) separation from headquarters
C) testing methods ill-suited to foreign settings
D) cost of doing business abroad

Question 35

Which of the following elements for compensation packagers is not a consideration of firm managers?

A) performance goals
B) benefits
C) base remuneration
D) incentives

Question 36

An MNE posts an Internet classified for a field manager in Austria. One of the perquisites is a tax compensation package for this EU country. This is an example of a(n) ________.

A) tax relief
B) benefit
C) incentive
D) remuneration

Question 37

Which of the following terms is used to refer to bonuses intended to motivate employees to undertake extraordinary efforts to accomplish company goals abroad?

A) stipend
B) incentives
C) base remuneration
D) allowance

Question 38

Which of the following is true about the taxation of expatriates?

A) not required to pay any taxes while working overseas
B) most employers will not reimburse for double taxation
C) may face fines from the home country for working abroad
D) may receive a tax bill from both the host and home country

Question 39

In nations where union membership is high, such as Belgium, most union members are employed by which of the following?

A) computer software firms
B) automobile manufacturers
C) government agencies
D) pharmaceutical companies

Question 40

Labor unions most often organize strikes for which of the following reasons?

A) to settle disputes regarding offshore unions
B) to pressure firms into meeting union demands
C) to address labor union political positions
D) to create public awareness of labor unions

Question 41

Which of the following terms is used to refer to a third-party expert who makes a judgment on the arguments presented by both sides of a strike?

A) negotiator
B) arbitrator
C) labor leader
D) conciliator

Question 42

Which of the following is most important for managers to consider when calculating the cost of outsourced labor?

A) What is the prevalence and impact of labor unions in the foreign market?
B) How much time will it take for managers to be trained in the foreign market?
C) What is the difference in wages between domestic and foreign employees?
D) What is the expected level of productivity in comparison to the wage rate?

Question 43

All of the following are international labor trends except ________.

A) increase in immigration
B) more mobile labor force
C) improved worker benefits
D) rise of global labor unions

Question 44

Which of the following is a recent trend regarding women in business?

A) More women are getting foreign assignments.
B) The majority of international managers are female.
C) Most Latin American SMEs are owned by women.
D) Fewer Asian women are going on foreign assignments.

Question 45

Which of the following measures would a progressive firm most likely take to ensure female equality in international business?

A) requiring newly hired female managers to learn a foreign language
B) limiting the number of male executives sent on foreign assignments
C) mandating the promotion of females to international managerial positions
D) pairing female executives with young women for mentoring purposes

Question 46

International Management Qualifications
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because a variety of problems that have arisen. CCC managers believe that a representative from headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.

-Which of the following questions would be more important for human resources managers to evaluate before deciding who should manage the New Delhi facility?

A) Which candidate possesses the ability to be a flexible and diplomatic leader?
B) Which candidate best understands CCC corporate culture in Texas?
C) Which candidate is most knowledgeable about CCC's products?
D) Which candidate has mentored the most CCC interns and new employees?

Question 47

International Management Qualifications
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because a variety of problems that have arisen. CCC managers believe that a representative from headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.

-Which of the following questions should most likely be considered in making the decision regarding which man should manage the Indian facility?

A) What will happen to the vacant Houston home of the expatriate?
B) How will the expatriate's family adapt to life in India for one year?
C) What type of housing facility will be available for the expatriate?
D) What are the tax ramifications for CCC in sending a manager to India?

Question 48

International Management Qualifications
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because a variety of problems that have arisen. CCC managers believe that a representative from headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.

-Which of the following most likely supports hiring Craig Springer?

A) Craig handles stress by exercising and spending time with friends.
B) Craig recently returned from two years in China.
C) Craig learned to speak fluently in Spanish and French.
D) Craig is able to work independently with little direction.

Question 49

International Management Qualifications
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because a variety of problems that have arisen. CCC managers believe that a representative from headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.

-Which of the following most likely supports hiring Devon Parks?

A) Devon speaks French, so he might have other language abilities too.
B) Devon is unmarried and has no family.
C) Devon telecommutes and rarely interacts with other CCC employees.
D) Devon recently transferred from the sales division of CCC.

Question 50

International Management Position
Global Choppers is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods.

-Which of the following should most likely be considered when preparing Conrad for his time abroad?

A) When will Conrad be able to visit his friends and family who live in Vancouver?
B) What information will Conrad need in order to function effectively in Romania?
C) Who will be available in Romania to assist Conrad with language translation?
D) How will Conrad handle reverse culture shock when he returns to Vancouver?

Question 51

International Management Position
Global Choppers is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods.

-Which of the following will most likely be included as a basic element of Conrad's training program?

A) tickets to a Romanian festival
B) a fictional movie based in Romania
C) an introduction to Romanian food
D) assigned reading about Romanian culture

Question 52

International Management Position
Global Choppers is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods.

-Conrad was most likely chosen for the Romanian management position because of which of the following?

A) previous field experience
B) an internship with Global Choppers
C) his mother is of Romanian ancestry
D) interest in other cultures

Question 53

In a short essay, discuss the key factors that complicate the job of international human resource managers.

Question 54

In a short essay, discuss three key tasks in international human resource management.

Question 55

In a short essay, describe the three employee categories of international firms-host-country nationals, parent-country nationals and third-country nationals-and discuss the rationales for staffing foreign subsidiaries with each type of employee.

Question 56

What are four characteristics of personnel who will most likely be successful working abroad? Explain your answer in a short essay.

Question 57

In a short essay, discuss the connection between expatriate assignment failure and culture shock. What three key features of preparation and training programs for international workers can managers use to help employees better understand, adapt, and perform well in foreign environments?

Question 58

In a short essay, discuss some of the difficulties faced by repatriated employees. How can human resource managers assist repatriated employees?

Question 59

In a short essay, describe the three factors that make performance evaluations more complex in the international context, and explain the use of incentives in the compensation of employees.

Question 60

In a short essay, discuss the main elements of a compensation package. Why are taxes a concern for expatriates?