Question 1

During which phase does an employee returning from a foreign assignment experience culture shock in reverse?

Accepted Answer

The phase during which an employee returning from a foreign assignment experiences culture shock in reverse is repatriation. This phase refers to the process of reintegrating back into the home culture and workplace after living and working in a foreign country for an extended period. It is common for employees to experience reverse culture shock during this phase and struggle to readjust to their old ways of living and working. This can result in feelings of disorientation, frustration, and alienation. Therefore, organizations must provide appropriate support to their repatriating employees to ensure a smooth transition back to the home culture and workplace.

Question 2

Identify three reasons behind the trend toward expansion into global markets.

Accepted Answer

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Question 3

The ________ begins by determining how much a person can buy, after taxes, in terms of housing, goods and services, and a reserve for savings when taking a foreign work assignment.

Accepted Answer

The balance sheet approach is commonly used in international compensation to determine how much a person can spend, after taxes, on housing, goods/services, and savings when they take a foreign work assignment. The approach involves calculating the difference between a person's cost of living at home and in the foreign location and adjusting their compensation accordingly to maintain their standard of living. This approach is usually seen as the most comprehensive and accurate way of ensuring that a person can maintain their relative buying power across borders.

Question 4

Antonio is sent on a foreign assignment to London. On his return, he is rewarded with a flattering story about his experiences in the company newsletter and a meeting with executives to discuss opportunities for using what he learned in key assignments. The firm's recognition of Antonio's service can be best described as a form of

Accepted Answer

The firm's recognition of Antonio's service can be best described as validation, which is the act of recognizing and affirming someone's worth or value.

Question 5

The four components of a total pay package are ________, tax equalization allowance, benefits, and allowances to make a foreign assignment more attractive.

Accepted Answer

The four components of a total pay package are salary or base pay, tax equalization allowance, benefits, and allowances to make a foreign assignment more attractive. Option E (base salary) is the correct choice. Option A (salary allowance) is incorrect because it is essentially the same as base salary. Option B (exchange rates) is not a component of a total pay package but rather a factor that may affect the pay package. Option C (health plans) is a type of benefit included in the total pay package, but it is not one of the four components specified in the question. Option D (uprooting fees) is not a commonly used term in the context of expatriate compensation and is not one of the four components specified in the question.

Question 6

Describe the impact that economic systems have on HRM in international markets.

Accepted Answer

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Question 7

Discuss how the differences among countries influence HR planning in organizations that operate internationally.

Accepted Answer

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Question 8

Brandon, an American, works for a company that manufactures electronics. His managers select him for an assignment to lead the launch of a new product line in Germany. Which topic will be the most important during training to prepare him for the assignment?

Accepted Answer

In order for Brandon to successfully launch the new product line in Germany, it is crucial that he understands the cultural differences and expectations in Germany. This will help him communicate effectively with his German colleagues and potential customers. Options A and E are not as important for this specific assignment, while marketing skills and details about the product line are important, they are not as critical as understanding the cultural differences.

Question 9

How do international, multinational, and global organizations differ from each other? Briefly summarize the HR issues associated with each type of organization.

Accepted Answer

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Question 10

Communication and ________ are the activities used by companies in the process of helping employees repatriate.

Accepted Answer

Validation is a key activity in the repatriation process, as it involves recognizing and appreciating the knowledge and experience gained by employees during their international assignments. This helps in their reintegration into their home country's operations.

Question 11

Which activity involves giving the expatriate recognition for the overseas service when the person returns home?

Accepted Answer

This activity involves giving the expatriate recognition for their overseas service when they return home. Validation refers to the process of recognizing and acknowledging the achievements and contributions of an expatriate during their time abroad. This can include public recognition ceremonies, awards, and/or promotions that acknowledge the experience and skills gained while working overseas.

Question 12

Francesca, a human resource professional in the United States, is reviewing the plans to send a U.S.-born production manager to Argentina to oversee the opening of a new factory. What should Francesca most likely do about the potential for language barriers with this assignment?

Accepted Answer

The best choice would be to select a manager who can learn Spanish and cope with language barriers. While it may be helpful to provide language training, it's not a guarantee that the manager will become fluent in a short period of time. Selecting a manager who is open to learning the language and can handle potential language barriers would be the most effective solution.

Question 13

Grant, an employee of Reiker Co., an American company, was sent to Turkey for an assignment. HR specialists at Reiker Co. have been preparing Grant for his return to the United States after three years. Which term describes the process being undertaken by the HR team at Reiker Co.?

Accepted Answer

The process being described is repatriation, which is the process of preparing and reintegrating employees who have been on international assignments back into their home country's work culture.

Question 14

Roger, an American, is selected by his firm to undertake a temporary assignment in Russia. Roger's compensation is determined and adjusted in accordance with the standard of living in Russia. He is also paid relocation expenses to ensure he is not inconvenienced by the transfer. Which approach has been used to determine Roger's compensation?

Accepted Answer

The balance sheet approach has been used to determine Roger's compensation. This approach involves calculating the cost of maintaining the employee's standard of living in the host country and adjusts the compensation accordingly. The approach also takes into account the expenses incurred in relocating the employee to the host country, ensuring that the employee is not inconvenienced by the transfer.

Question 15

Briefly elaborate on the challenges that companies face when compensating employees from other countries.

Accepted Answer

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Question 16

Once a foreign assignment is completed, how can companies help expatriates return to their home countries?

Accepted Answer

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Question 17

What is the main objective of a company using the balance sheet approach to determine compensation for expatriate managers?

Accepted Answer

The main objective of using the balance sheet approach is to give the expatriate manager the same standard of living as in the home country, plus extra compensation for the inconvenience of moving to a new country. This approach takes into account factors such as cost of living, taxes, and exchange rates to ensure that the manager's compensation is fair and equitable.

Question 18

To help Paul, an expatriate, prepare for his eventual return home, his employer sends him information that will help him recognize the changes that have been happening at home. What type of repatriation support is this?

Accepted Answer

The type of repatriation support provided by the employer is communication, as it involves sending information that will help the expatriate recognize the changes that have been happening at home. This type of support is important for expatriates to prepare for their eventual return home and to avoid culture shock.

Question 19

Agger Inc. is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Zac, Agger Inc.'s human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Zac that he include the manager's spouse in the training. Should Zac follow the advice of his colleague?

Accepted Answer

Including the spouse in the cross-cultural training is important because the family's adjustment can greatly affect the success of the assignment. A happy and comfortable family can lead to a more productive and motivated employee, while a struggling family can lead to distractions and decreased performance. Additionally, including the spouse shows that the company cares about the well-being of their employees and their families. The cost of including the spouse in the training is small compared to the potential benefits.

Question 20

Adam, a human resource professional, is preparing for Marianne, a U.S. production manager, to take an assignment at a new facility in Vietnam. Adam wants to measure Marianne's success in establishing high productivity, so he uses the excellent productivity numbers Marianne achieved in her current assignment as a basis for setting performance goals for the Vietnamese position. How could this method of measuring performance be improved?

Accepted Answer

Adjusting the measure for local factors that could affect productivity would provide a more accurate assessment of Marianne's success in establishing high productivity in a new facility in Vietnam. Factors such as cultural differences, language barriers, and differences in resources could impact productivity and should be considered in setting performance goals. Using past performance numbers from a different location may not be relevant to the new location, and adjustments need to be made to measure success accurately.

Quiz 16: Managing Human Resources Globally