Question 1

The balance sheet approach to compensation refers to designing pay systems that equalize the purchasing power of employees at comparable position levels living overseas and in the home country.

Accepted Answer

The statement accurately describes the balance sheet approach to compensation.

Question 2

Expressions such as "tabling a subject" and "it is inconvenient" may have meanings in other cultures that are very different from their North American meanings.

Accepted Answer

In British English, "tabling a subject" means to bring it up for discussion, whereas in American English, it means to postpone or set aside the discussion. Similarly, saying something is "inconvenient" in some cultures can imply a significant problem, not just a minor hassle as it often does in North American contexts.

Question 3

Culture shock refers to the disorientation people experience adjusting to a new culture.

Accepted Answer

Culture shock is the feeling of disorientation experienced by someone when they are suddenly subjected to an unfamiliar culture, way of life, or set of attitudes.

Question 4

Performance evaluations of expatriates should occur in both the home and the host countries.

Accepted Answer

Performance evaluations of expatriates should indeed occur in both the home and host countries to ensure a comprehensive assessment that takes into account the diverse challenges and achievements experienced in the international assignment. This approach helps in understanding the expatriate's performance from multiple perspectives and contexts.

Question 5

Expatriates should not be expected to evaluate their own performance.

Accepted Answer

Expatriates can provide valuable self-assessments, but these should be complemented with evaluations from their superiors and peers to ensure a comprehensive performance review.

Question 6

Lack of training is one of the principal causes of failure among employees working internationally.

Accepted Answer

Lack of training, especially in cultural sensitivity, language, and understanding of local business practices, can lead to misunderstandings, ineffective communication, and ultimately failure in achieving business objectives for employees working internationally.

Question 7

English is almost universally accepted as the language for international business.

Accepted Answer

English has become the common language for international communication and is widely used in both formal and informal contexts, including business.

Question 8

A localization approach to compensation in global settings is the same as the balance sheet approach.

Accepted Answer

The localization approach adapts an employee's compensation to match the local standards and cost of living of the host country, whereas the balance sheet approach aims to keep an expatriate's purchasing power at par with their home country, often involving adjustments for differences in taxes, cost of living, and housing.

Question 9

Managers in Latin American countries can encourage performance by using personal influence and working through individual members of a group.

Accepted Answer

In collectivist cultures like Latin America, building relationships and using personal influence can be a more effective way to encourage performance than using formal authority or directives. Working through individual members of a group can also be more effective than addressing the group as a whole.

Question 10

In some countries, unions are part of alliances between political parties, churches, or governments.

Accepted Answer

Unions often form alliances with political parties, churches, or governments to advance their goals, influence policy, and protect the interests of their members. These alliances can help unions gain political leverage and support for labor rights and social issues.

Question 11

Repatriation is usually a planned and positive experience for employees returning from an international assignment.

Accepted Answer

Repatriation can often be challenging and stressful for employees due to difficulties in readjusting to their home country's culture, changes in their professional roles, and potential lack of recognition for their international experience.

Question 12

Cultural differences have little impact on international compensation.

Accepted Answer

Cultural differences significantly impact international compensation strategies as they influence factors like negotiation styles, benefits preferences, and perceptions of equity and motivation, requiring tailored approaches for each cultural context.

Question 13

Labour courts can be used in Australia to impose wages and employment conditions in workplaces.

Accepted Answer

In Australia, labour courts, such as the Fair Work Commission, have the authority to impose wages and employment conditions in workplaces through mechanisms like modern awards and enterprise agreements.

Question 14

In appraising the performance of an employee on an international assignment, many appraisers resort to using criteria that are easy to measure rather than criteria that capture all responsibilities.

Accepted Answer

Appraisers often rely on easily quantifiable metrics for performance evaluation, which may not fully encompass the diverse responsibilities of an employee on an international assignment.

Question 15

Pay plans in Japan tend to focus on individual performance and achievement.

Accepted Answer

In Japan, pay plans often emphasize seniority and group performance over individual achievement, reflecting the cultural value placed on teamwork and long-term employment.

Question 16

Managers' attitudes and behaviours are influenced by the society in which they received their education and training.

Accepted Answer

Managers' attitudes and behaviors are significantly shaped by the cultural, social, and educational environments in which they were educated and trained, as these factors influence their values, decision-making processes, and leadership styles.

Question 17

Learning how people think and act in their relations with others is a part of cultural training that prepares employees for working internationally.

Accepted Answer

Cultural training includes learning about how people think and act in their interactions with others, which is essential for employees to effectively work and communicate in international settings.

Question 18

Production manager Jim McIntyre has been successful in his Canadian assignment using a participative management style. If he uses this same style in some other countries, he may be regarded as an incompetent manager.

Accepted Answer

Cultural differences in leadership expectations mean that a participative management style, while successful in one country like Canada, may not be well-received in countries where a more hierarchical or autocratic leadership style is expected, leading to perceptions of incompetence.

Question 19

North American managers tend to have highly autocratic decision-making styles.

Accepted Answer

North American managers are generally known for having a more participative or democratic decision-making style, encouraging team input and collaboration rather than making decisions in a strictly top-down, autocratic manner.

Question 20

Repatriation refers to the training a manager receives before taking an international assignment.

Accepted Answer

Repatriation refers to the process of returning an employee to their home country after an international assignment, not the training they receive before it.

Quiz 15: International Human Resources Management