Deck 16: Managing Human Resources in an International Context

Question 1

One reason for using home country citizens overseas is to prepare them for high-level positions at headquarters.

Answer 1

True

Question 2

The effectiveness of every organization is totally controlled by the effectiveness of its workforce.

Answer 2

False

Question 3

Sources of successful managers for IC activities include the home country,the host country,or a third country.

Answer 3

True

Question 4

Because of the importance of the workforce to the effectiveness of organizational operations,a company's approach to international human resource management should drive its competitive strategy.

Question 5

Managerial positions in overseas operations require more and different skills than do purely domestic executive jobs.

Question 6

The combination of an openness to and awareness of diversity across cultures and markets with a propensity and ability to synthesize across this diversity has been termed a "transnational mindset."

Question 7

When a company's primary strategic orientation is multidomestic,an ethnocentric orientation is particularly appropriate.

Question 8

An expatriate is a person living outside his or her country of birth.

Question 9

Companies with a regional strategic approach can use a polycentric staffing policy,employing a variety of HCNs and TCNs.

Question 10

According to Heenan and Perlmutter,the nationality of a company determines whether the organization's approach to international human resource management should be ethnocentric,polycentric,regiocentric,or geocentric.

Question 11

Parent company nationals commonly encounter difficulty overcoming the biases of their own cultural experience and being able to understand and perform effectively within a new operating context.

Question 12

Parent-country nationals usually are not knowledgeable about the host country culture and language,but many such expatriates have adapted,learned the language,and become thoroughly accepted in the host country,which allows them to avoid any biases of their own cultural experience and in being able to understand and perform effectively within the new operating context.

Question 13

The effectiveness of every organization depends,to a great extent,on how well its human resources are used.

Question 14

To achieve global objectives the selection and training of IC managers is the same whether the candidate is from the home country,the host country,or a third country.

Question 15

Under a polycentric staffing orientation,ICs primarily hire HCNs for subsidiaries and PCNs for headquarters' positions and movement from the local subsidiaries to headquarters' positions is common.

Question 16

Companies with a transnational strategic orientation follow a global staffing policy,selecting the best person for each job without considering national origin and generally having consistent HRM strategy across all subsidiaries.

Question 17

The use of third country nationals has become particularly prevalent in the LDCs because they provide substantial cost savings over the use of home country nationals.

Question 18

Companies with a primarily international strategic orientation may adopt an ethnocentric staffing policy.

Question 19

The disadvantages of using employees from the home or host countries can sometimes be avoided by sending third country nationals to fill management posts.

Question 20

A disadvantage of hiring local managers is that they are often unfamiliar with the home country of the IC and with its policies and practices.

Question 21

The same general criteria for selecting home-country employees apply to host-country nationals.

Question 22

When managers are assigned and move abroad with their families,the most difficult adjustments are frequently for the children.

Question 23

Expatriate children who lived in a foreign country for a period of time while in their impressionable adolescent years often have attributes of "third-world kids."

Question 24

The use of TCNs has become particularly prevalent in the developing countries.

Question 25

Relatively few expatriate failures are family-related.Most relate to the expatriate's lack of technical skills.

Question 26

As international companies increasingly take the geocentric view,we can be certain to see less use of third country nationals.

Question 27

Hiring personnel who are third country nationals can be advantageous,especially in developing countries,because they may accept lower wages and benefits than will employees from the home country,and they may come from a culture similar to that of the host country.

Question 28

Employees hired in the host country are sometimes called flexpatriates.

Question 29

In developing countries,third country nationals are often preferred by the host country than are nationals of the home country.

Question 30

Worldwide,nearly 50 percent of expatriate positions are held by women.

Question 31

Employees hired in the host country are sometimes called inpatriates.

Question 32

Approximately 15 percent of expatriates leave their firms during the course of their overseas assignment,and an additional 28 percent leave their companies within a year of their return from abroad.

Question 33

A recent study reported that 77 percent of companies considered that cross-cultural training was highly valuable and required such training for their expats or their families.

Question 34

Family adjustment is not critical in the job performance of expats.

Question 35

There is reverse culture shock when an expatriate returns to the home country and company.

Question 36

Generally,the host government will understand that a third country national is better for the parent company than a local executive would be.

Question 37

Expatriate assignments have been reported to lead to faster promotions.

Question 38

When in two-career families,one accepts a foreign assignment and the spouse goes along,that spouse is referred to as a trailing spouse.

Question 39

Failure rates for expatriate assignments have been reported to range from 25 to 45 percent.

Question 40

If a company feels that it probably will send parent country nationals abroad,it will frequently encourage them to study the language and culture of the country to which they are going.

Question 41

A geocentric staffing policy:

A)enables the practices used at headquarters to be transferred worldwide.
B)tends to be used with a global strategic orientation.
C)selects the best person for each job,without considering national origin.
D)selects the best person for each job,considering national origin of the person.
E)tends to be used with a local strategic orientation.

Question 42

A polycentric staffing policy is appropriate when:

A)there are low levels of pressure for cost reduction and high levels for localization.
B)information technology is of increasing importance.
C)there are high levels of pressure for cost reduction and low levels for localization.
D)international companies are entering India,where there are more women in management.
E)information technology is not of very important for the organization.

Question 43

There is a trend toward treating third country nationals the same as home country expatriates in terms of their compensation plans.

Question 44

Bonuses are payments made to compensate expatriates for the extra costs they must incur to live as well abroad as they did in the home country.

Question 45

A candidate's fluency in the host country's language is a strong indicator of his or her ability to effectively adjust within the host country.

Question 46

A global mind-set:

A)is a "prerequisite for global industry dominance."
B)combines an openness to and awareness of diversity across cultures and markets with a propensity and an ability to synthesize across this diversity.
C)results from a combination of training and language skills.
D)is a "prerequisite for regional industry dominance."
E)set is a "prerequisite for global industry dominance." and combines an openness to and awareness of diversity across cultures and markets with a propensity and an ability to synthesize across this diversity.

Question 47

Some firms promote host-country employees to international status without transferring them abroad.

Question 48

An advantage of using home-country citizens abroad is:

A)they have expertise in the host country culture.
B)they expand their experience,enhancing their potential for promotion at home.
C)they have lower cost salaries and benefits than HCNs or TCNs.
D)they have expertise in the host country's economic scenario.
E)they have very high salaries and benefits than HCNs or TCNs.

Question 49

Qualifications for a good manager of an overseas operation should include:

A)being bicultural and bilingual,knowing business practices in the home and host countries,and having more and different skills than domestic managers.
B)being bicultural and bilingual.
C)knowing business practices in the home and host countries.
D)having more and different skills than domestic managers.
E)knowing the best ways to travel faster and in time.

Question 50

Perks are symbols of rank in the corporate hierarchy and are used to compensate executives while minimizing taxes.

Question 51

Allowances are paid by firms in recognition that expatriates and their families undergo hardship and make sacrifices while living abroad.

Question 52

The effectiveness of every organization depends to a great extent on how well its:

A)human resources are utilized.
B)production facilities are operated.
C)financial resources are planned.
D)human resources are utilized,how production facilities are operated,and how financial resources are planned.
E)ads it designs persuade the customer to try its products.

Question 53

A regiocentric staffing policy:

A)involves human resources policies that are created at the local level for the specific context in which the local operations operate.
B)may send TCNs to fill management posts,to avoid problems from using PCNs or HCNs.
C)selects the best person for each job,without considering national origin.
D)selects the best person for each job,considering national origin of the person.
E)always involves human resources policies that are created at the global level for the specific context in which the global operations operate.

Question 54

Planning for an expatriate's return should begin while they are still on their overseas assignment.

Question 55

An ethnocentric staffing policy:

A)utilizes host country nationals in key foreign management and technical positions.
B)assigns expatriates who have learned the language and culture of the country of their assignment.
C)is required in order to prepare home country citizens for high-level managerial positions at headquarters.
D)evaluation and control are determined locally.
E)it is often seen that rewards are high in headquarters,low in subsidiaries.

Question 56

A polycentric staffing policy:

A)involves human resources policies that are created at the local level for the specific context in which the local operations operate.
B)results in the company hiring local managers who are familiar with the home country of the IC and with its corporate culture,policies,and practices.
C)may confront the problem of having the best people pirated away by local firms or other IC subsidiaries.
D)involves human resources policies created at local level for specific context in which local operations operate,and results hiring local managers who are familiar with the home country of the IC and with its corporate culture,policies,and practices.
E)always involves human resources policies that are created at the global level for the specific context in which the global operations operate.

Question 57

Hiring and promoting employees on the basis of the specific local context in which the subsidiary operates refers to:

A)an ethnocentric orientation.
B)a polycentric orientation.
C)a regiocentric orientation.
D)a geocentric orientation.
E)a sociocentric orientation.

Question 58

In the method favored by the majority of American ICs,the salary part of an expatriate employee's compensation package will generally be governed by the employees' level in the organization and will not be higher because of the foreign assignment.

Question 59

Japanese attitudes toward Western women expats assigned to Japan suggest that these women would be ineffective in their assignments.

Question 60

Being from another country qualifies expatriates for international status.

Question 61

Knowledge of foreign languages:

A)requires too much work to be worth the effort.
B)can be of great assistance in making export sales.
C)is useless if you know English.
D)is of academic but not business value.
E)is of no use in making export sales.

Question 62

According to the text,about ____ percent of medium and large-sized companies have employees working abroad.

A)23
B)47
C)55
D)76
E)80

Question 63

Which of the following are true about the spouses of expatriates?

A)Many are unable to legally work in the host nation.
B)Nearly one-quarter were employed during the course of the expat assignment.
C)Many experience stages of grief,similar to the loss of a loved one,due to career effects of the assignment.
D)Most able to legally work in the host nation.
E)All most all experience stages of immense happiness,due to career effects of the assignment.

Question 64

When an IC hires and trains local,host country people,the IC often:

A)pays them too much and creates inflation.
B)over-trains them to IC culture-based standards.
C)may lose them to local firms or other ICs once they are trained.
D)encourages their transfer,causing brain drain.
E)leads to theft of intellectual property.

Question 65

According to the text,the proportion of expatriates who are women has increased to _____ percent.

A)15
B)21
C)29
D)35
E)over 50

Question 66

Home country nationals may be used in host country management because:

A)host country nationals are unavailable,home country nationals are being groomed for IC headquarters,and IC headquarters wants one of its nationals in the host country.
B)host country nationals are unavailable.
C)home country nationals are being groomed for IC headquarters.
D)IC headquarters wants one of its nationals in the host country.
E)IC headquarters wants to control the rewarding system in host country.

Question 67

Which of the following dimensions have been identified as being associated with cross-cultural adjustment?

A)work context
B)gender
C)general environment
D)linguistic basis
E)governmental agencies.

Question 68

According to the text,approximately ______ of expatriates leave their firms during the course of their overseas assignment.

A)10 percent
B)25 percent
C)31 percent
D)nearly 40 percent
E)81 percent

Question 69

When host county nationals are employed:

A)training costs are a minimum.
B)they are familiar with local customs,culture,and language.
C)they are already familiar with the home country.
D)any conflict of interest is removed.
E)they have to acclimatize themselves to social skills compatible with the home country.

Question 70

According to the text,approximately ______ percent of the companies surveyed required cross-cultural training for their expats or their families.

A)21 percent
B)27 percent
C)nearly half
D)77 percent
E)90 percent

Question 71

Parent company nationals might be concerned with:

A)the rate at which industrial skills are learned by host-country nationals.
B)how quickly they can learn the local language in their host country.
C)the exchange rate movement of their host country's currency.
D)the rate at which industrial skills are learned by host-country nationals,how quickly they can learn the local language in their host country,and the exchange rate movement of their host country's currency.
E)the rate at which the host-country nationals learn social skills compatible with the home country.

Question 72

Regarding repatriation:

A)expatriates often struggle with the higher autonomy of their work context when they return home.
B)planning for an expat's return should start while the employee is abroad.
C)49 percent of expatriates report that they do not have any guaranteed position in their IC after the end of their international assignment.
D)97 percent of expatriates report that they do not have any guaranteed position in their IC after the end of their international assignment.
E)planning for an expat's return should start well before the overseas assignment even begins.

Question 73

Training and development of potential candidates for expatriate assignments:

A)is unnecessary with host country nationals.
B)is unnecessary with home country nationals.
C)depends on whether the candidate is a home,host or third country national.
D)wastes company resources because management is an art form,not a skill.
E)is highly dependent on the infrastructure facilities provided in the host country.

Question 74

The use of third country nationals as IC executives in LDCs is a growing practice because:

A)they tend to prefer working in LDCs.
B)there is frequently a shortage of skilled host country nationals.
C)they can become arbitrators when conflicts arise.
D)they often already have host country work permits and knowledge of its language and culture.
E)there is frequently a shortage of skilled host country nationals,and they often already have host country work permits and knowledge of its language and culture.

Question 75

Generalizations about TCNs are difficult because:

A)the IC usually does not know enough about their backgrounds.
B)the geocentric staffing policy prohibits these generalizations.
C)there is frequently a shortage of skilled host country nationals and TCNs always fill-in immediately.
D)people achieve the TCN status in different ways.
E)the Luxembourg Council prohibits these generalizations.

Question 76

According to the text,the failure rate for expatriate assignments,including failing to achieve performance targets for an international assignment or prematurely returning from the assignment,range from _______ percent.

A)6 to 10
B)15 to 25
C)25 to 45
D)30 to 55
E)41 to 65

Question 77

According to the text,approximately ______ of expatriate failures are family related.

A)25 percent
B)40 percent
C)half
D)nearly 75 percent
E)90 percent

Question 78

Which of the following are true about assistance provided to the spouses of expatriates?

A)Over half of companies provide education or training assistance to spouses.
B)Nearly 70 percent of companies provide language training to spouses.
C)About one-quarter of the companies sponsor work permits.
D)No company provides language training to spouses.
E)Most companies sponsor work permits.

Question 79

Before accepting a foreign posting and becoming an expatriate,an executive should:

A)arrange with someone fairly high in the home country company to be your mentor and look out for your interests.
B)insist that the bosses tell you exactly what the company expects you to accomplish.
C)try to assess how your family will adopt to the major changes involved.
D)arrange with someone fairly high in the home country company to be the mentor,insist that the bosses tell exactly what the company expects,and try to assess how your family will adopt to the major changes involved.
E)insist on being sent unofficially on a month long tour to the host country to get acclimatized with the culture.

Question 80

An advantage of hiring personnel who are citizens of neither the home country nor the host country may be that they:

A)may accept lower wages and benefits.
B)may come from a culture similar to that of the host country.
C)may accept lower wages and benefits and may also have international experience.
D)have international experience.
E)can become arbitrators when conflicts arise.