Chapter 10 Developing a Global Management Cadre

Multiple Choice Questions

1. Reverse culture shock occurs primarily because of the difficulty of ____________. a. reintegration into the home society b. reintegration with friends and family members c. reintegration into the organization (moderate, page 417) d. lack of formal training within the organization Which of the following are components of developing an international cadre? a. preparation b. adaptation c. repatriation d. All of the selections are correct. (moderate, page 417) Many companies do little to minimize the potential effects of ____________. a. overseas assignments b. culture shock c. reverse culture shock (moderate, page 417) d. projected cognitive similarity Successful repatriation is important to the parent company because ____________. a. they have spent so much developing each expatriate b. it signals to the other members that expatriates can be successful c. it improves the ability to recruit new expatriate managers d. All of the selections are correct. (difficult, page 417) ____________ occurs primarily because of the difficulty of reintegration into the organization. a. Reverse culture shock (moderate, page 418) b. Culture shock c. Virtual culture shock d. Assimilation All of the following are examples of support systems recommended by Tung for a successful repatriation program EXCEPT: a. mentor program. b. special career planning unit. c. system to supply information to expatriates. d. repatriation compensation program. (difficult, page 418) All of the following are stages in the expatriate transition process EXCEPT: a. home country exit transition. b. compensation adjustment. (moderate, page 419) c. new country entry transition. d. culture shock. Research on 321 American expatriate spouses shows that effective cross-cultural adjustment by spouses is more likely when ____________. a. firms seek the spouses opinion about the assignment b. the spouse initiates his or her own predeparture training c. firms seek the spouses opinion on the expected standard of living d. All of the selections are correct. (difficult, page 418) 33

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____________ and ____________ are examples of the home country exit transition. a. Host cultural sensitivity training; predeparture training (difficult, page 419) b. Compensation adjustment; predeparture training c. Host cultural sensitivity training; compensation adjustment d. language training; vertical integration ____________ and ____________ are examples of host country adjustment. a. Acculturation; repatriation b. Acculturation; failure or success (difficult, page 419) c. Acculturation; reverse culture shock d. Repatriation; reverse culture shock Common host country entry issues include all of the following EXCEPT: a. motivation adjustment. (moderate, page 419) b. departure and travel. c. arrival and orientation. d. on-site briefing. ____________ is a management skill that is likely to be learned abroad. a. Technical skills b. Information systems management c. Tolerance for ambiguity (moderate, page 422) d. Office politics When a manager says I learned what it feels like to be a foreigner, he or she is demonstrating what management skill? a. technical skills b. tolerance for ambiguity c. ability to work with others d. multiple perspective (difficult, page 422) Booz-Allen & Hamilton use the intranet to support a wide variety of global applications, including all of the following EXCEPT: a. expert skills directory. b. firmwide knowledge repository. c. country studies expert system. (moderate, page 423) d. employee directories. The term _____________ describes collections of managers from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement. a. global management teams (moderate, page 424) b. specialized management teams c. virtual management teams d. objective management teams Increasingly, advances in communication now facilitate ____________, with people around the world conducting meetings and exchanging information via the Internet, enabling the organization to capitalize on 24-hour productivity. a. virtual global teams (moderate, page 426) b. transitional global teams c. specialized global teams d. assimilated global teams

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The disadvantages of synergy include all of the following EXCEPT: a. language. b. communication. c. varying managerial styles. d. exposure to different viewpoints. (easy, page 426) Among older Japanese women, a management position ____________. a. was a great honor b. caused her husband loss of face (moderate, page 427) c. was common for college educated women d. All of the selections are correct. Overall, more managerial opportunities are available for ____________ women than for women in most other countries. a. German b. Chinese c. Japanese d. American (easy, page 427) The most difficult challenge for women working overseas seems to be ____________. a. learning how to adjust to men they must work with b. learning how to accept the role of women in the culture they work in c. getting the overseas assignment in the first place (difficult, page 428) d. receiving adequate compensation for the overseas assignment In Japan, what is a gaijin? a. a female worker b. a female manager c. a male who works for a female d. a woman who is a foreigner (moderate, page 428) Having studied businesses operating overseas, Adler recommends that businesses avoid assuming that ____________. a. women do not want to go b. women will fail because of the way they are received abroad c. women will fail because of problems with the expatriates spouse d. All of the selections are correct. (moderate, page 428) The benefits of managing diversity for competitive advantage can be realized in all of the following ways EXCEPT: a. increasing costs of high levels of turnover and absenteeism. (difficult, page 428) b. facilitating recruitment of scarce labor. c. promoting team creativity. d. enhancing organization flexibility. All of the following are examples of General Electric diversity practices EXCEPT: a. integrated diversity strategy. b. campus recruiting. c. managerial capitalism. (moderate, page 431) d. community outreach.

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Which of the following is NOT an example of General Electric diversity practices? a. career management b. communications c. management of work/family issues d. All of the selections are examples of GE diversity practices. (moderate, page 431) Wang Laboratories diversity training program is built on all of the following basic building blocks EXCEPT: a. an awareness of ones own behavior. b. a recognition of ones own biases and stereotypes. c. a focus on job performance. d. a commitment to assumptions. (moderate, page 432) According to the former Deputy Chairman of Pirelli, if you want to close a plant in Italy, France, Spain, or Germany, you need to notify which of the following groups of even the possibility of closure a. the state b. the local community c. the trade unions d. All of the selections are correct (difficult, page 432) The process through which managers and workers determine their workplace relationship is known as ____________. a. codetermination b. collective bargaining c. international human resources management (IHRM) d. labor relations (moderate, page 432) One of the main dimensions an international manager must consider is the role of labor in ____________. a. decisions concerning employee well-being (moderate, page 433) b. new international supplier talks c. advertising and promotional strategy d. All of the selections are correct. One of the constraints organized labor places on management is ____________. a. limits on the repatriation of capital b. limits on the firms ability to vary employment levels (difficult, page 433) c. requirement to work with unions worldwide once one union contract is signed d. limits on hiring workers from other unions In ____________, most unions are national and represent specific groups of workersfor example truck drivers or airline pilotsso a company may have to deal with several different national unions. a. the United States (moderate, page 433) b. Japan c. China d. Europe Which of the following is NOT recognized as a source of origin of unions? a. government regulation of unions b. economic and unemployment factors c. technological issues d. All of the selections are sources of origin of unions. (moderate, page 433)

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In ___________, collective bargaining takes place between a labor union local and management. a. Japan b. the U.S. and Canada (moderate, page 433) c. Europe d. the U.S. and Europe In ____________, collective bargaining takes place between the employers organization and a trade union at the industry level. a. Japan b. the U.S. c. Europe (moderate, page 434) d. China In the U.S., union membership ____________. a. has been increasing and is now over 18% of the population b. has been decreasing and is now only 11% of the population c. is higher than in Europe, although it has decreased to 18% d. has declined about 50% in the last 20 years (difficult, page 434) All of the following are causes of convergence in labor relation practices EXCEPT: a. external competitive forces. b. increased world trade. c. frequent moves of MNCs. d. the great success of codetermination. (difficult, page 435) ____________ occurs as the migration of management and workplace practices around the world results in the reduction of workplace disparities from one country to another. a. Convergence (moderate, page 435) b. Divergence c. Diversification d. Contradiction All of the following are members of the International Labor Organization EXCEPT: a. union leaders. b. employers. c. government representatives. d. church representatives. (moderate, page 437) Currently, the only labor issues that are subject to formal tri-national review are ____________. a. minimum wages, child labor, safety issues (difficult, page 438) b. environmental pollution, minimum wages, child labor c. environmental pollution, child labor, safety issues d. infant industry protection, environmental pollution, child labor Which of the following is NOT a trait of codetermination? a. labor participation in the management of the firm b. union representation on the board c. union veto power over CEO appointments (moderate, page 439) d. Unions make positive contributions to corporate competitiveness.

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Short Essay Questions

41. What are the long-term consequences of an ineffective repatriation program? Few good managers will be willing to take international assignments because they will see what happened to their colleagues. If a certain manager lost out on promotion opportunities while overseas and is now in fact worse off than before he or she left, the only people willing to take on foreign assignments in the future will be those who have not been able to succeed on the home front or those who think that a stint abroad will be like a vacation. In fact, research has shown that employees commonly see overseas assignments as negative career moves in many U.S. multinational companies. (moderate, page 417) Discuss three of Tungs support systems to ensure a successful repatriation. Tung notes the following recommendations: 1) a mentor program to monitor the expatriates career path while abroad and upon repatriation; 2) as an alternative to the mentor program, the establishment of a special organizational unit for the purposes of career planning and continuing guidance for the expatriate; and, 3) a system of supplying information and maintaining contacts with the expatriate so that he or she may continue to feel a part of the home organization. (moderate, page 418) What elements must a successful repatriation program address? A mentor program to monitor the expatriates career path and repatriation; and/or the establishment of a special organization unit for career planning for expatriates; and, a system for supplying information and maintaining contact with expatriates. (moderate, page 418) What three transitions must a company manage if its expatriate managers are to be successful? The exit transition from the home country, the entry transition to the host country, and the entry transition back to the home country. (moderate, page 419) List three specific practices that were used by U.S., European, and Japanese companies which reported a high degree of job satisfaction and strong performance based on research by Black and Gregersen. (1) They focus on knowledge creation and global leadership development, (2) they assign overseas posts to people whose technical skills are matched or exceeded by their cross-cultural abilities, and (3) they end expatriate assignments with a deliberate repatriation process. (moderate, page 422) List three disadvantages of synergy according to Morans research. The disadvantages of synergy include problems resulting from differences in language, communication, and varying managerial styles; complex decision-making processes; fewer promotional opportunities; personality conflicts, often resulting from stereotyping and prejudice; and greater complexity in the workplace. (moderate, page 426) What can companies do to take more advantage of women as a resource for international management? Primarily, companies should avoid three assumptions: They should not assume that the assignment of a female will not work out successfully; they should not assume that a woman will not want to go overseas; they should give female managers every chance to succeed through giving her an adequate title, status, and compensation. (easy, page 428)

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List five ways in which the benefits of managing diversity for competitive advantage can be realized. (1) Reducing costs of high levels of turnover and absenteeism; (2) facilitating recruitment of scarce labor; (3) increasing sales to members of minority culture groups; (4) promoting teams creativity and innovation: (5) improving problem solving; and (6) enhancing organizational flexibility. (moderate, page 428) To what extent are Western Europeans covered by labor agreements? Compare this to the U.S. Most Europeans are covered by labor agreements while most Americans are not. U.S. membership in labor unions has declined 50% in the last 20 years, while in Europe, overall union membership is quite high. (difficult, page 434) What are the three main dimensions of the international labor-management relationship? The three main dimensions of the labor-management relationship which the manager will consider are: (1) the participation of labor in the affairs of the firm, especially as this affects performance and well-being; (2) the role and impact of unions in the relationship; and (3) specific human-resource policies in terms of recruitment, training, and compensation. (moderate, page 433) What constraints does organized labor place on an international manager? Constraints take the form of (1) wage levels which are set by union contracts and leave the foreign firm little flexibility to be globally competitive; (2) limits on the ability of the foreign firm to vary employment levels when necessary; (3) limitations on the global integration of operations of the foreign firm because of incompatibility and the potential for industrial conflict. (moderate, page 433) Discuss the differences in collective bargaining in the U.S. and Canada and Europe? In the U.S. and Canada, collective bargaining refers to negotiations between a local labor union and management, but in Europe, collective bargaining takes place between the employers organization and a trade union at the industry level. (moderate, page 433) Discuss the issues of convergence vs. divergence in labor systems. Convergence is the phenomenon of increasing similarity in labor relations practices across borders as a result of common external practices and the moves of MNCs across national borders. Divergence is the phenomenon of increasing differences in labor relations practices as a result of national, political, economic, or cultural considerations. (moderate, page 435)

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Comprehensive Essay Questions

54. Discuss the role of reverse culture shock in the repatriation process. What can companies do to avoid this problem? Management of the reentry phase of the career cycle is as vital as management of the cross-cultural entry and training. Many expatriates and their families have a difficult time readjusting to their old culture and its different behavioral expectations. The longer the person is away, the more difficult it is for them to reintegrate into the organization and get back into the swing of things. The family may have lost social contacts or jobs and feel out of step with their contemporaries. There may be feelings of alienation from what was perceived as home. A mentor-mentee program is perhaps the best method for companies to use in avoiding the reverse culture problem. (moderate, page 417)

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What are the skills a manager learns abroad? In your opinion, why wouldnt U.S. managers learn these skills at the home office? Exhibit 10-2 notes four general sets of skills that are likely to be learned abroad: management rather than technical skills; tolerance for ambiguity; multiple perspectives; and, ability to work with and manage others. Two of those skills, tolerance for ambiguity and multiple perspectives seem best suited to overseas assignments. Few companies have the diversity in-house that an employee would encounter overseas. This in-depth immersion into cultural diversity requires a major adjustment on the part of the expatriate manager. In the home country, managers may be able to succeed without making this adjustment. In an overseas assignment, there is no option managers adjust or they fail. (moderate, page 422) Discuss the five guidelines to developing a corporate diversity program. (1) Develop and communicate a broad definition of workplace diversity, including all kinds of differences, such as race, gender, age, work, and family issues; (2) Attain visible commitment from top managers to support programs, and communicate to employees the importance of diversity to the firms competitive stance; (3) Avoid stereotyping groups of employees by suing titles for them; (4) Set up a broad, diverse pool of talented people to be trained and eligible for job promotion or selection; and (5) Set up regular training programs with the goal to gradually change the corporate culture by educating workers about employee similarities as well as differences and the value those differences bring to the firm. (difficult, page 430)

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