Chap 015

Chapter 15 - Managing Human Resources Globally
Chapter 15 Managing Human Resources Globally

True / False Questions
1. The trends and arrangements that encourage international trade also increase and change the demands on human resource management. True False
2. Third-country nationals are employees rom a country other than the parent country or host country! but "ho "or# in the host country. True False
$. The host country is the country in "hich the organi%ation&s head'uarters is located. True False
(. The usual "ay that a company begins to enter oreign mar#ets is by setting up operations in those countries. True False
5. )hile international companies build one or a e" acilities in another country! multinational companies go o*erseas on a broader scale. True False
+. , global organi%ation uses cultural di erences as an ad*antage. True False
-. .y ar the most important in luence on international HRM is the economic system o the country in "hich a acility is located. True False
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/. 0n countries "ith large po"er distances! people try to eliminate ine'ualities. True False
1. 0n cultures "ith lo" uncertainty a*oidance! people seem to ta#e each day as it comes. True False
12. 3ob design aimed at empo"erment is li#ely to be di icult in cultures "ith high po"er distance. True False
11. 0n general! spending on education is lesser per pupil in high-income countries than in poorer countries. True False
12. Capitalist economic systems pro*ide ample opportunities or educational de*elopment because the education system is ree to students! but ail to pro*ide economic re"ards or increasing one&s education. True False
1$. The 4nited 5tates has led the "orld in eliminating discrimination in the "or#place. True False
1(. Compared "ith other countries! the 4nited 5tates does not allo" employers much latitude in reducing their "or# orce! the emphasis being more on protecting 6obs. True False
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15. Companies mostly pre er to use parent-country nationals or illing positions in hostcountries because training or and transporting amilies to oreign assignments is usually less e7pensi*e than hiring people in a oreign country. True False
1+. 87panding opportunities in ast-de*eloping nations such as China and 0ndia has limited the ability o organi%ations to tap into the immigrant "or# orce. The ability to tap this labor supply is limited by go*ernment paper"or# and delays! "hich deter some immigrant "or#ers! as "ell as by e7panding opportunities in ast-de*eloping nations such as China and 0ndia. True False
1-. ,ccording to research! the actor most strongly in luencing "hether an employee completed a oreign assignment "as the com ort o the employee&s spouse and amily. True False
1/. Culture shoc# is the irst emotional stage an e7patriate e7periences upon starting a oreign assignment. True False
11. 0n the conte7t o the e ects o culture on training design! a culture "ith a long-term orientation "ill ha*e trainees "ho are li#ely to accept de*elopment plans and assignments. True False
22. Generally! inpatriates9 oreign employees "ho come to the 4nited 5tates9need no crosscultural preparation since most o them are already e7posed to 4.5. culture through tele*ision and mo*ies. True False
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21. The general principles o per ormance management may apply in most countries! but the speci ic methods that "or# in one country may ail in another. :i erences may include "hich beha*iors are rated! ho" and the e7tent to "hich per ormance is measured! "ho per orms the rating! and ho" eedbac# is pro*ided. True False
22. 4.5. companies usually lin# stoc# options to speci ic per ormance goals! such as the increase in a company&s share price compared "ith that o its competitors. True False
2$. ,t least in comparison "ith 8uropean organi%ations! 4.5. organi%ations e7ert more centrali%ed control o*er labor relations in the *arious countries "here they operate. True False
2(. ,part rom de*eloping an appreciation o the host-country&s culture! cross-cultural training re'uires de*eloping a greater a"areness o one&s o"n culture too. True False
25. The balance sheet approach or determining e7patriate compensation ad6usts a manager&s compensation so that it e'uals the host country&s standard o li*ing! urther ensuring assimilation into the local culture. True False
Multiple Choice Questions
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2+. Canada! Me7ico! and the 4nited 5tates ha*e encouraged trade among themsel*es "ith the; ,. C5<. .. <,FT,. C. =0CT,. :. ,=8C. 8. T,FT,
2-. , country that ser*es as the home or a corporation&s head'uarters is re erred to as its; ,. host country. .. parent country. C. go*erning country. :. third country. 8. irst country.
2/. ,n 0.M employee "ho "as born in the 4.5. and "or#s at 0.M o ices in <e" >or# is a?n@; ,. host-country national. .. e7patriate. C. go*erning-country national. :. third-country national. 8. parent-country national.
21. , country! other than the parent country! in "hich an organi%ation operates a acility! is the; ,. host country. .. parent country. C. irst country. :. third country. 8. guest country.
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$2. ,n 0.M employee "ho "as born in 0ndia and is "or#ing at the company&s acilities in 0ndia is a; ,. host-country national. .. parent-country national. C. irst-country national. :. third-country national. 8. guest-country national.
$1. , country that is neither the parent country nor the host country or a company is re erred to as a; ,. irst country. .. acilitating country. C. go*erning country. :. third country. 8. guest country.
$2. ,n indi*idual "ho "as born in the 4nited 5tates and is currently "or#ing in 5pain or a company head'uartered in Germany "ould be considered a; ,. parent-country national. .. host-country national. C. third-country national. :. home-country national. 8. guest-country national
$$. 3ohn! an ,merican "ho "or#s or a 4.5.-based company! is on assignment or his company in 3apan. He is #no"n as a?n@; ,. e7patriate. .. inpatriate. C. host-country national. :. third-country national. 8. guest-country national.
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$(. , company is head'uartered in Germany! has o ices in the 4.5.! and has a Aietnamese manager "or#ing in a acility in the 4.5. 0n this case! Germany is the BBBBB country! the 4.5. is the BBBBB country! and Aietnam is the BBBBB country. ,. parent! host! third .. e7patriate! inpatriate! repatriate C. host! guest! third :. third! irst! host 8. parent! guest! second
$5. The usual "ay that a company begins to enter oreign mar#ets is by; ,. importing. .. o shoring. C. e7porting. :. outsourcing. 8. relocation.
$+. , irm that is currently shipping domestically produced items to other countries to be sold there is engaging in; ,. e7port. .. o shoring. C. import. :. outsourcing. 8. relocation.
$-. ,n organi%ation that sets up one or a e" acilities in one or a e" oreign countries is a?n@; ,. global organi%ation. .. international organi%ation. C. multinational organi%ation. :. uni*ersal organi%ation. 8. outsourcing organi%ation.
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$/. ,n organi%ation that builds acilities in a number o di erent countries in an e ort to minimi%e production and distribution costs is a?n@; ,. international organi%ation. .. multinational company. C. chain organi%ation. :. global organi%ation. 8. uni*ersal company.
$1. ,n organi%ation that chooses to locate a acility based on the ability to e ecti*ely! e iciently! and le7ibly produce a product or ser*ice! using cultural di erences as an ad*antage is re erred to as a?n@; ,. domestic organi%ation. .. international organi%ation. C. multinational organi%ation. :. global organi%ation. 8. uni*ersal organi%ation.
(2. )hich o the ollo"ing types o organi%ations unctions at the highest le*el o in*ol*ement in the global mar#etplaceC ,. :omestic organi%ation .. 0nternational organi%ation C. Multinational organi%ation :. Global organi%ation 8. 4ni*ersal organi%ation
(1. )hich one o the ollo"ing is true o global organi%ationsC ,. They compete by o ering lo"-'uality products at the lo"est costs possible. .. They increasingly emphasi%e standardi%ation o products across mar#et segments. C. They tend to ha*e centrali%ed! parent-country decision-ma#ing structures. :. HRM practices at such companies tend to be uni orm across cultures. 8. Managers at such companies must be able to get results across national boundaries.
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(2. )hich o the ollo"ing terms re ers to a type o HRM system that ma#es decisions rom a global perspecti*e! includes managers rom many countries! and is based on ideas contributed by people representing a *ariety o culturesC ,. Global HRM system .. =arent country-based HRM system C. Transnational HRM system :. 0nternational HRM system 8. Multinational HRM system
($. )hich one o the ollo"ing statements is true about transnational HRM systemsC ,. To ensure airness! decisions in this system must be uni orm and rigid across countries. .. The participants rom *arious countries and cultures contribute ideas rom a position o e'uality. C. HRM practices must emphasi%e the use o managers rom the parent country. :. They eature decision ma#ing rom a parent-country perspecti*e. 8. HRM practices must not re lect cultural di erences.
((. .y ar the most important in luence on international HRM is the BBBBB o the country in "hich a acility is located. ,. politics .. educational system C. culture :. economic system 8. currency
(5. ,ccording to Ho stede&s cultural dimensions! a culture "here people are e7pected to loo# a ter their o"n interests is high in; ,. po"er distance. .. emininity. C. indi*idualism. :. uncertainty a*oidance. 8. long-term orientation.
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(+. 0n Colombia! people thin# o themsel*es mainly as group members. and are e7pected to de*ote themsel*es to the interests o the community! and the community is e7pected to protect them "hen they are in trouble. This indicates that they are a culture high in; ,. po"er distance. .. indi*idualism. C. masculinity. :. short-term orientation. 8. collecti*ism.
(-. ,ssume that you are *isiting Me7ico or a business meeting and you call your host! the Chairman o the company! by his irst name rather than his title. He seems o ended. , di erence in "hich o the ollo"ing cultural dimensions bet"een the t"o countries is li#ely to ha*e caused the misunderstandingC ,. 0ndi*idualismDcollecti*ism .. 4ncertainty a*oidance C. =o"er distance :. Eong-termDshort-term orientation 8. MasculinityD emininity
(/. Aalues such as success! achie*ement! asserti*eness! and competition are associated "ith; ,. short-term oriented cultures. .. masculine cultures. C. high-po"er-distance cultures. :. lo" uncertainty a*oidance cultures. 8. collecti*ist cultures.
(1. The Ho stede dimension that deals "ith the degree to "hich a culture pre ers structured conditions is; ,. po"er distance. .. indi*idualismDcollecti*ism. C. masculinityD emininity. :. uncertainty a*oidance. 8. long-termDshort-term orientation.
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52. The Chinese greatly *alue the 'ualities o tHRi t and belie*e in sa*ing money and persisting in their e orts. From this in ormation! it can be in erred that China; ,. has lo" po"er distance. .. is highly indi*idualistic. C. has a long-term orientation. :. is a eminine culture. 8. are lo" in uncertainity a*oidance.
51. The cultural dimension o BBBBB promotes respect or past tradition! and or ul illing social obligations in the present. ,. emininity .. short-term orientation C. large po"er distance :. uncertainty a*oidance 8. masculinity
52. 0ndi*idualistic cultures o ten e7hibit; ,. latter pay structures. .. greater di erences bet"een the highest and lo"est pay in the organi%ation. C. emphasis on organi%ational rather than indi*idual per ormance. :. collecti*e decision ma#ing. 8. compensation systems based on i7ed pay according to seniority.
5$. 3ob design aimed at employee empo"erment can be problematic in cultures "ith high BBBB. ,. indi*idualism. .. masculinity. C. emininity. :. long-term orientation. 8. po"er distance.
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5(. )hich o the ollo"ing is true o education and s#ill le*els as a actor a ecting HRM in international mar#etsC ,. The need or #no"ledge "or#ers is no" on the decline. .. The labor mar#et in the 4.5. is *ery attracti*e because it o ers high s#ills and lo" "ages. C. 0n general! spending on education is greater per pupil in high-income countries than in poorer countries. :. 0ndia&s large pool o "ell-trained technical "or#ers is one reason that the country has become a popular location or outsourcing lo"-s#ill 6obs. 8. The 4nited 5tates has a large orce o s#illed "or#ers in all occupations.
55. )hich o the ollo"ing is true o the economic systems in di erent countries being a actor a ecting HRM in international mar#etsC ,. 5ocialist economic systems pro*ide ample opportunities or educational de*elopment. .. 0n de*eloped countries "ith great "ealth! labor costs are relati*ely lo". C. 0n capitalist economic systems! students& education is pro*ided ree. :. Capitalism may not pro*ide economic re"ards or increasing one&s education. 8. 0n socialist systems! students bear more o the cost o their education.
5+. )hich o the ollo"ing countries has led the "orld in eliminating discrimination in the "or#placeC ,. Germany .. 3apan C. The 4nited 5tates :. China 8. The 4nited Fingdom
5-. ,s an HR specialist in human resource planning! in "hich country "ould you e7perience the greatest latitude in reducing your company&s "or# orce in response to a orecasted o*ersupply o "or#ersC ,. The 4nited 5tates .. Germany C. The 4nited Fingdom :. France 8. 5"eden
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5/. )hich o the ollo"ing is true about selecting employees in a global labor mar#etC ,. , host-country national can more easily understand the local *alues and customs. .. 8mployees are in*ariably eager to ta#e a oreign assignment. C. Host-country nationals are usually more s#illed than e7patriates. :. Training or and transporting amilies to oreign assignments is more e7pensi*e. 8. Grgani%ations generally ill all #ey oreign positions "ith host-country nationals.
51. This labor supply is use ul "hen needed s#ills are scarce in a particular location! but the ability to tap it is limited by go*ernment paper"or# and delays! as "ell as by e7panding opportunities in ast-de*eloping nations. ,. Host-country nationals .. 0mmigrant "or#ers C. =arent-company nationals :. Eocal contract "or#ers 8. Eocal temporary "or#ers
+2. ,ccording to research! the actor that most strongly in luences "hether an employee completed a oreign assignment is; ,. the employee&s moti*ation to succeed. .. the employee&s 6ob #no"ledge. C. the com ort o the employee&s spouse and amily. :. the compensation being o ered. 8. the employee&s le7ibility and tolerance o ambiguity.
+1. Research has ound success ul completion o o*erseas assignments to be most li#ely among employees "ho e7hibit all o the ollo"ing personality characteristics! 8HC8=T; ,. e7tro*ersion. .. ethnocentricity. C. tolerance. :. conscientiousness. 8. cooperati*eness.
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+2. )hich o the ollo"ing is the irst emotional stage associated "ith a oreign assignmentC ,. Culture shoc# .. Eearning C. ,d6ustment :. Honeymoon 8. ,cculturation
+$. The disillusionment and discom ort that occur during the process o ad6usting to a ne" culture is re erred to as; ,. culture shoc#. .. the learning period. C. the ad6ustment period. :. the honeymoon period. 8. acculturation.
+(. , ter mo*ing to a oreign assignment! an employee e*entually reaches a stage o BBBBB in "hich he or she accepts and en6oys the host country&s culture. ,. culture shoc# .. learning C. ad6ustment :. honeymoon 8. resignation
+5. 0n the conte7t o the e ects o culture on training design! a culture high in BBBBB e7pects participation in e7ercises and 'uestioning to be determined by status in the company or culture. ,. collecti*ism .. emininity C. po"er distance :. time orientation 8. indi*idualism
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++. 0n the conte7t o the e ects o culture on training design! a culture lo" in BBBBB *alues relationships "ith ello" trainees. ,. collecti*ism .. emininity C. uncertainty a*oidance :. time orientation 8. masculinity
+-. 8mployees rom cultures high in po"er distance "ould e7pect a training session "here; ,. they are able to discuss and as# 'uestions about the training content. .. an in ormal! unstructured agenda e7ists. C. trainers are *ie"ed as e7perts and are authoritarian and controlling o the sessions. :. trainees are allo"ed to determine the pace o the programs. 8. there is an e'ual relationship "ith the trainer.
+/. 8mployees rom cultures high in uncertainty a*oidance "ould e7pect a training session "here; ,. trainers adopt an impromptu style o instruction. .. a ormal instructional en*ironment e7ists. C. trainers are le7ible and open to schedule and acti*ity changes. :. trainees are allo"ed to determine the pace o the programs. 8. relationships "ith ello" trainees are emphasi%ed.
+1. Training to prepare employees and their amily members or an assignment in a oreign country is called; ,. acculturation. .. international education. C. cross-cultural preparation. :. community training. 8. cultural management.
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-2. )hich o the ollo"ing is true regarding the cross-cultural preparation needed during the di erent phases o an international assignmentC ,. Training consists only o lectures. .. =reparation ends once the employees ha*e ad6usted to the host-country&s en*ironment. C. =reparation is only re'uired or the employees! not their amilies. :. =reparation or departure includes language instruction. 8. 8mployees and their amilies are largely insulated rom the locals.
-1. For "hich phase o an international assignment does the preparation in*ol*e pro*iding in ormation about the employee&s community and home-country "or#placeC ,. =reparation or departure rom the home-country. .. =reparation during the assignment itsel . C. =reparation or the culture shoc# phase in the host country. :. =reparation or the return to the home-country. 8. =reparation or the honeymoon phase in the host country.
-2. ,ccording to the Global Relocation Trends 2222 5ur*ey Report! "hich o the ollo"ing countries "as listed among the tHRee countries "ith the highest rate o assignment ailureC ,. 3apan .. Germany C. The 4nited Fingdom :. The 4.5. 8. France
-$. Foreign employees "ho come to the 4nited 5tates are re erred to as; ,. e7patriates. .. home-country nationals. C. inpatriates. :. emigrants. 8. host-country nationals.
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-(. )hich o the ollo"ing statements regarding the per ormance management process across national boundaries is trueC ,. The speci ic methods o per ormance management apply in most countries. .. 4.5. employees are much more used to indirect eedbac# than are employees in other countries. C. )hich beha*iors are rated! ho" and the e7tent to "hich per ormance is measured! "ho per orms the rating! and ho" eedbac# is pro*ided are usually uni orm across countries. :. )hile the measures used may *ary rom country to country! the legal re'uirements remain the same as those in the 4nited 5tates. 8. 0n rapidly changing regions! the organi%ation may ha*e to update its per ormance plans more o ten than once a year.
-5. ,ccording to the te7t! among the ollo"ing countries! "hich country has the highest a*erage hourly labor costC ,. Germany .. Me7ico C. Hong Fong :. 5outh Forea 8. .ra%il
-+. ,ccording to the te7t! among the ollo"ing countries! "hich country has the highest a*erage "or# hours per yearC ,. 3apan .. 5outh Forea C. The 4.5. :. <etherlands 8. France
--. )hich o the ollo"ing is true o global incenti*e pay and employee bene itsC ,. 0n both the 4.5. and 8urope! the a"arding o stoc# options is lin#ed to speci ic per ormance goals. .. =ension plans are more "idespread in the 4.5. and 3apan than in )estern 8urope. C. 4nli#e in the 4.5.! compensation plans in other countries are less li#ely to include bene its. :. =aid *acation tends to be more generous in )estern 8urope than in the 4nited 5tates. 8. ,lthough stoc# options became a common orm o incenti*e pay in 8urope during the 1112s! ,merican businesses did not begin to adopt them until the end o that decade.
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-/. )hich o the ollo"ing statements about international labor relations is trueC ,. 4.5. organi%ations! in comparison "ith 8uropean organi%ations! e7ert more decentrali%ed control o*er labor relations in the *arious countries "here they operate. .. :ay-to-day decisions about labor relations are usually handled by each oreign subsidiary. C. 0n Germany! "here "or#er participation in management is lo"! there is less incenti*e to build cooperati*e relationships. :. Most 4.5. organi%ations! in contrast to 8uropean organi%ations! bargain "ith a union representing an entire industry&s employees! rather than "ith the local union. 8. Companies that operate across national boundaries mostly "or# only "ith unions in the home-country.
-1. ,ccording to e7patriates! the most important 'ualities or an international assignment are! in order o importance; ,. amily situation! le7ibility and adaptability! 6ob #no"ledge and moti*ation! relational s#ills! and openness to other cultures. .. openness to other cultures! le7ibility and adaptability! relational s#ills! 6ob #no"ledge and moti*ation! and amily situation. C. 6ob #no"ledge and moti*ation! le7ibility and adaptability! relational s#ills! openness to other cultures! and amily situation. :. sel -con idence! a sense o ad*antage! technical #no"-ho"! and amily situation. 8. adaptability! 6ob #no"ledge and moti*ation! relational s#ills! amily situation! and openness to other cultures.
/2. )hich o the ollo"ing is a 'uestion that is suitable or assessing the moti*ation o candidates or o*erseas assignmentsC ,. Can the candidate "or# "ithout super*isionC .. 0n*estigate reasons and degree o interest in "anting to be considered. C. :etermine "hether any medical problems o the candidate or his or her amily might be critical to the success o the assignment. :. :etermine potential or learning a ne" language. 8. :oes she ha*e the intellectual capacity to deal "ith se*eral dimensions simultaneouslyC
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/1. )hich o the ollo"ing is a typical 'uestion as#ed or assessing the adaptability o candidates or o*erseas assignmentsC ,. 0s the candidate independent! can he ma#e and stand by his decisions and 6udgmentsC .. :etermine "hether he or she is in good physical and mental health! "ithout any oreseeable change. C. )hat are his reactions to ne" situations! and e orts to understand and appreciate di erencesC :. Can the candidate "or# "ithout super*isionC 8. )hat is the spouse&s goal in this mo*eC
/2. )hich o the ollo"ing is true about preparing e7patriates or an international assignmentC ,. Communication in another country mostly does not re'uire learning a ne" language. .. =reparation o the e7patriate should include career de*elopment acti*ities. C. The preparation process ends "hen the employee lea*es or the assignment. :. Cross-cultural training is to create an appreciation o the host country&s culture and not o the home culture. 8. 5uccess ul e7patriates tend to de*elop an ethnocentric point o *ie".
/$. This approach to determining the compensation o e7patriates ad6usts the manager&s compensation so that it gi*es the manager the same standard o li*ing as in the home country plus e7tra pay or the incon*enience o locating o*erseas. ,. The scorecard approach .. The balance-sheet approach C. The e'uali%ation approach :. The parity approach 8. The correspondence approach
/(. 0n practice! the total cost o an international assignment is roughly BBBBB the employee&s salary in the host country. ,. the same as .. hal that o C. double :. our times 8. ten times
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/5. )hich o the ollo"ing is true o the our components o a total pay pac#age or e7patriatesC ,. 4sually! the employer o an e7patriate "ithholds the amount o ta7 to be paid in the host country! then pays the ta7es due in the parent country. .. Housing allo"ances ensure that the e7patriate can maintain the same standard o li*ing as o other employees in the host country. C. 87patriates& salaries are mostly lo"er than pay or staying at head'uarters. :. :etermining the base salary is simple because e7change rates rarely luctuate. 8. Most bene its issues ha*e to do "ith "hether an employee can use the same bene its in the oreign country.
/+. The process o preparing e7patriates to return home rom a oreign assignment is called; ,. reorientation. .. e7patriation. C. repatriation. :. dissolution. 8. inpatriation
/-. T"o acti*ities are used by companies in the process o helping employees repatriate; communication and BBBB. ,. *alidation .. e'uali%ation C. dissolution :. resolution 8. rationali%ation
//. 0n the conte7t o the acti*ities that an organi%ation uses to help repatriated employees through the transition to the home-country! "hich o the ollo"ing acti*ities in*ol*es the e7patriate recei*ing in ormation and recogni%ing changes "hile abroadC ,. Aalidation .. 8'uali%ation C. Communication :. Resolution 8. Rationali%ation
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/1. )hich o the ollo"ing is <GT help ul in easing the repatriation o employees a ter an o*erseas assignmentC ,. Grgani%ation staying in touch "ith the employee during his stay abroad .. 87patriates maintaining important contacts in the company and industry C. Communicating career de*elopment plans be ore and during the o*erseas assignment :. Gi*ing e7patriates praise and recognition or their o*erseas ser*ice 8. Eimiting all pro essional ties in the home country "hile o*erseas
12. 0n the conte7t o the acti*ities that an organi%ation uses to help repatriated employees through the transition to the home-country! "hich o the ollo"ing acti*ities in*ol*es gi*ing the e7patriate recognition or the o*erseas ser*ice "hen the person returns home and planning or ho" the returning employee "ill contribute to the organi%ationC ,. Resolution .. :issolution C. Rationali%ation :. Communication 8. Aalidation
Essay Questions
11. )hat are the reasons behind the trend to"ard e7pansion into global mar#etsC
12. :escribe the terms parent country! parent-country national! host country! host-country national! third country! and third-country nationals! gi*ing e7amples o each.
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1$. :istinguish bet"een international! multinational! and global organi%ations. ,lso brie ly outline the HR issues associated "ith each type o organi%ation.
1(. Eist and describe Geert Ho stede&s i*e cultural dimensions.
15. :iscuss ho" economic systems impact HRM in international mar#ets.
1+. :iscuss ho" di erences among countries a ect HR planning at organi%ations "ith international operations.
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1-. Eist the criteria or selection o employees or oreign assignments that ha*e been associated "ith success in "or#ing o*erseas. )hich o these criteria most strongly in luences "hether an employee completes a oreign assignment or notC
1/. )hat is cross-cultural preparationC )hat are methods used in this processC 0n "hich phases o an international assignment is cross-cultural preparation re'uiredC
11. :iscuss the challenges related to ma#ing decisions regarding employee pay across countries in a global organi%ation.
122. Ho" can companies help e7patriates return to the home country a ter completing a oreign assignmentC
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Chapter 15 Managing Human Resources Globally ,ns"er Fey
True / False Questions
1. (p. 458) The trends and arrangements that encourage international trade also increase and change the demands on human resource management. TRUE The en*ironment in "hich organi%ations operate is rapidly becoming a global one or *arious reasons. The trends and arrangements that encourage international trade also increase and change the demands on human resource management.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: -R. in a /lobal n%ironment
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2. (p. 458) Third-country nationals are employees rom a country other than the parent country or host country! but "ho "or# in the host country. TRUE Third-country nationals are employees rom a country other than the parent country or host country! but "ho "or# in the host country.
AACSB: Analytic Bloom's: 0n1erstan1 Difficulty: .e1ium !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: mployees in an 2nternational 3or4force
$. (p. 458) The host country is the country in "hich the organi%ation&s head'uarters is located. F !"E , host country is a country ?other than the parent country@ in "hich an organi%ation operates a acility. The parent country is the country in "hich the organi%ation&s head'uarters is located.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: mployees in an 2nternational 3or4force
(. (p. 45() The usual "ay that a company begins to enter oreign mar#ets is by setting up operations in those countries. F !"E The usual "ay that a company begins to enter oreign mar#ets is by e7porting! or shipping domestically produced items to other countries to be sold there. 8*entually! it may become economically desirable to set up operations in one or more oreign countries.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: mployers in t*e /lobal .ar4etplace
15-25
5. (p. 45() )hile international companies build one or a e" acilities in another country! multinational companies go o*erseas on a broader scale. TRUE )hile international companies build one or a e" acilities in another country! multinational companies go o*erseas on a broader scale. They build acilities in a number o di erent countries as a "ay to #eep production and distribution costs to a minimum.
+. (p. 45&) , global organi%ation uses cultural di erences as an ad*antage. TRUE , global organi%ation locates each acility based on the ability to e ecti*ely! e iciently! and le7ibly produce a product or ser*ice! using cultural di erences as an ad*antage. Rather than treating di erences in other countries as a challenge to o*ercome! a global organi%ation treats di erent cultures as e'uals.
-. (p. 456) .y ar the most important in luence on international HRM is the economic system o the country in "hich a acility is located. F !"E .y ar the most important in luence on international HRM is the culture o the country in "hich a acility is located. 0n act! culture o ten determines the other three international in luences9political-legal systems! economic systems! and education.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: 7actors Affectin" -R. in 2nternational .ar4ets
15-2+
/. (p. 456) 0n countries "ith large po"er distances! people try to eliminate ine'ualities. F !"E =o"er distance concerns the "ay the culture deals "ith une'ual distribution o po"er and de ines the amount o ine'uality that is normal. 0n countries "ith large po"er distances! the culture de ines it as normal to maintain large di erences in po"er. 0n countries "ith small po"er distances! people try to eliminate ine'ualities.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: Culture
1. (p. 458) 0n cultures "ith lo" uncertainty a*oidance! people seem to ta#e each day as it comes. TRUE 4ncertainty a*oidance describes ho" cultures handle the act that the uture is unpredictable. High uncertainty a*oidance re ers to a strong cultural pre erence or structured situations. 0n countries "ith lo" uncertainty a*oidance! people seem to ta#e each day as it comes.
12. (p. 458) 3ob design aimed at empo"erment is li#ely to be di icult in cultures "ith high po"er distance. TRUE =o"er distance concerns the "ay the culture deals "ith une'ual distribution o po"er and de ines the amount o ine'uality that is normal. 0n countries "ith large po"er distances! the culture de ines it as normal to maintain large di erences in po"er. 3ob design aimed at employee empo"erment can be problematic in cultures "ith high Ipo"er distance.I
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: Culture
15-2-
11. (p. 454) 0n general! spending on education is lesser per pupil in high-income countries than in poorer countries. F !"E 8ducational opportunities also *ary rom one country to another. 0n general! spending on education is greater per pupil in high-income countries than in poorer countries.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: 1ucation an1 S4ill !e%els
12. (p. 455) Capitalist economic systems pro*ide ample opportunities or educational de*elopment because the education system is ree to students! but ail to pro*ide economic re"ards or increasing one&s education. F !"E 5ocialist economic systems pro*ide ample opportunities or educational de*elopment because the education system is ree to students. ,t the same time! socialism may not pro*ide economic re"ards ?higher pay@ or increasing one&s education. 0n capitalist systems! students bear more o the cost o their education! but employers re"ard those "ho in*est in education.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: conomic System
1$. (p. 455) The 4nited 5tates has led the "orld in eliminating discrimination in the "or#place. TRUE The 4nited 5tates has led the "orld in eliminating discrimination in the "or#place. .ecause this *alue is important in 4.5. culture! the nation has legal sa eguards! such as e'ual employment opportunity la"s! "hich a ect hiring and other HRM decisions.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: 9olitical'!e"al System
15-2/
1(. (p. 45:) Compared "ith other countries! the 4nited 5tates does not allo" employers much latitude in reducing their "or# orce! the emphasis being more on protecting 6obs. F !"E Compared "ith other countries! the 4nited 5tates allo"s employers "ide latitude in reducing their "or# orce! gi*ing 4.5. employers the option o hiring or pea# needs! then laying o employees i needs decline. Gther go*ernments place more emphasis on protecting "or#ers& 6obs. 8uropean countries! and France in particular! tend to be *ery strict in this regard.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(8 Discuss *o+ 1ifferences amon" countries affect -R plannin" at or"ani)ations +it* international operations. ,opic: -uman Resource 9lannin" in a /lobal conomy
15. (p. 45:) Companies mostly pre er to use parent-country nationals or illing positions in hostcountries because training or and transporting amilies to oreign assignments is usually less e7pensi*e than hiring people in a oreign country. F !"E To be e ecti*e! employees in a oreign location must understand that region&s business and social culture. Grgani%ations o ten meet this need by hiring host-country nationals to ill most o their oreign positions. Gne o the reasons or this is that training or and transporting amilies to oreign assignments is more e7pensi*e than hiring people in the oreign country.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(4 Describe *o+ companies select an1 train *uman resources in a "lobal labor mar4et. ,opic: Selectin" mployees in a /lobal !abor .ar4et
15-21
1+. (p. 458) 87panding opportunities in ast-de*eloping nations such as China and 0ndia has limited the ability o organi%ations to tap into the immigrant "or# orce. The ability to tap this labor supply is limited by go*ernment paper"or# and delays! "hich deter some immigrant "or#ers! as "ell as by e7panding opportunities in ast-de*eloping nations such as China and 0ndia. TRUE ,t organi%ations located "here needed s#ills are in short supply! hiring immigrant employees may be part o an e ecti*e recruitment and selection strategy.
1-. (p. 458) ,ccording to research! the actor most strongly in luencing "hether an employee completed a oreign assignment "as the com ort o the employee&s spouse and amily. TRUE 0n research conducted a number o years ago! the actor most strongly in luencing "hether an employee completed a oreign assignment "as the com ort o the employee&s spouse and amily.
15-$2
1/. (p. 458'45;) Culture shoc# is the irst emotional stage an e7patriate e7periences upon starting a oreign assignment. F !"E For a month or so a ter arri*ing! the oreign "or#er en6oys a IhoneymoonI o ascination and euphoria as the employee en6oys the no*elty o the ne" culture. .e ore long! the employee&s mood declines as he or she notices more unpleasant di erences and e7periences eelings o isolation! criticism! stereotyping! and e*en hostility. ,s the mood reaches bottom! the employee e7periences culture shoc#! the disillusionment and discom ort that occur during the process o ad6usting to a ne" culture.
11. (p. 4:() 0n the conte7t o the e ects o culture on training design! a culture "ith a long-term orientation "ill ha*e trainees "ho are li#ely to accept de*elopment plans and assignments. TRUE The plan or the training program must consider international di erences among trainees. 0n the conte7t o the e ects o culture on training design! a culture "ith a long-term orientation "ill ha*e trainees "ho are li#ely to accept de*elopment plans and assignments.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(4 Describe *o+ companies select an1 train *uman resources in a "lobal labor mar4et. ,opic: ,rainin" 9ro"rams for an 2nternational 3or4force
15-$1
22. (p. 4:() Generally! inpatriates9 oreign employees "ho come to the 4nited 5tates9need no cross-cultural preparation since most o them are already e7posed to 4.5. culture through tele*ision and mo*ies. F !"E Foreign employees "ho come to the 4nited 5tates ?IinpatriatesI@ need cross-cultural preparation as much as do 4.5. employees sent on oreign assignments. 0n spite o the many bene its o li*ing in the 4nited 5tates! relocation can be challenging or inpatriates due to an7ieties about the culture and a signi icant change in li estyle. 0n act! in the 2212 Global Relocation Trends 5ur*ey Report! the 4nited 5tates had the third highest rate o assignment ailure! a ter China and 0ndia.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(4 Describe *o+ companies select an1 train *uman resources in a "lobal labor mar4et. ,opic: Cross'Cultural 9reparation
21. (p. 4:&) The general principles o per ormance management may apply in most countries! but the speci ic methods that "or# in one country may ail in another. :i erences may include "hich beha*iors are rated! ho" and the e7tent to "hich per ormance is measured! "ho per orms the rating! and ho" eedbac# is pro*ided. TRUE The general principles o per ormance management may apply in most countries! but the speci ic methods that "or# in one country may ail in another. There ore! organi%ations ha*e to consider legal re'uirements! local business practices! and national cultures "hen they establish per ormance management methods in other countries.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 9erformance .ana"ement across <ational Boun1aries
15-$2
22. (p. 4:4) 4.5. companies usually lin# stoc# options to speci ic per ormance goals! such as the increase in a company&s share price compared "ith that o its competitors. F !"E The 4nited 5tates and 8urope di er in the "ay they a"ard stoc# options. 8uropean companies usually lin# the options to speci ic per ormance goals! such as the increase in a company&s share price compared "ith that o its competitors.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 2ncenti%e 9ay
2$. (p. 4:5) ,t least in comparison "ith 8uropean organi%ations! 4.5. organi%ations e7ert more centrali%ed control o*er labor relations in the *arious countries "here they operate. TRUE ,t least in comparison "ith 8uropean organi%ations! 4.5. organi%ations e7ert more centrali%ed control o*er labor relations in the *arious countries "here they operate. 4.5. management there ore must recogni%e di erences in ho" *arious countries understand and regulate labor relations.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 2nternational !abor Relations
15-$$
2(. (p. 4:8) ,part rom de*eloping an appreciation o the host-country&s culture! cross-cultural training re'uires de*eloping a greater a"areness o one&s o"n culture too. TRUE The general purpose o cross-cultural training is to create an appreciation o the host country&s culture so e7patriates can beha*e appropriately. =arado7ically! this re'uires de*eloping a greater a"areness o one&s o"n culture! so that the e7patriate manager can recogni%e di erences and similarities bet"een the cultures and! perhaps! home-culture biases.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(5 =plain *o+ employers prepare mana"ers for international assi"nments an1 for t*eir return *ome. ,opic: 9reparin" =patriates
25. (p. 48() The balance sheet approach or determining e7patriate compensation ad6usts a manager&s compensation so that it e'uals the host country&s standard o li*ing! urther ensuring assimilation into the local culture. F !"E The balance sheet approach or determining e7patriate compensation ad6usts the manager&s compensation so that it gi*es the manager the same standard o li*ing as in the home country plus e7tra pay or the incon*enience o locating o*erseas.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(5 =plain *o+ employers prepare mana"ers for international assi"nments an1 for t*eir return *ome. ,opic: Compensatin" =patriates
Multiple Choice Questions
15-$(
2+. (p. 45:) Canada! Me7ico! and the 4nited 5tates ha*e encouraged trade among themsel*es "ith the; ,. C5<. #$ <,FT,. C. =0CT,. :. ,=8C. 8. T,FT, Global acti*ities are simpli ied and encouraged by trade agreements among nations. Canada! Me7ico! and the 4nited 5tates ha*e encouraged trade among themsel*es "ith the <orth ,merican Free Trade ,greement ?<,FT,@.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: -R. in a /lobal n%ironment
2-. (p. 458) , country that ser*es as the home or a corporation&s head'uarters is re erred to as its; ,. host country. #$ parent country. C. go*erning country. :. third country. 8. irst country. The parent country o a company is the country in "hich the organi%ation&s head'uarters is located.
15-$5
2/. (p. 458) ,n 0.M employee "ho "as born in the 4.5. and "or#s at 0.M o ices in <e" >or# is a?n@; ,. host-country national. .. e7patriate. C. go*erning-country national. :. third-country national. E$ parent-country national. The parent country o a company is the country in "hich the organi%ation&s head'uarters is located. ,n employee o a company "ho is a nati*e o the parent country and also "or#s in a acility located in the same country is re erred to a parent-country national.
21. (p. 458) , country! other than the parent country! in "hich an organi%ation operates a acility! is the; $ host country. .. parent country. C. irst country. :. third country. 8. guest country. , host country is a country ?other than the parent country@ in "hich an organi%ation operates a acility.
15-$+
$2. (p. 458) ,n 0.M employee "ho "as born in 0ndia and is "or#ing at the company&s acilities in 0ndia is a; $ host-country national. .. parent-country national. C. irst-country national. :. third-country national. 8. guest-country national. , host country is a country ?other than the parent country@ in "hich an organi%ation operates a acility. 8mployees "ho "or# in company acilities located in the host country and are citi%ens o the host country are re erred to as host-country nationals.
$1. (p. 458) , country that is neither the parent country nor the host country or a company is re erred to as a; ,. irst country. .. acilitating country. C. go*erning country. %$ third country. 8. guest country. , third country re ers to a country that is neither the parent country nor the host country. The organi%ation may or may not ha*e a acility in the third country.
15-$-
$2. (p. 458) ,n indi*idual "ho "as born in the 4nited 5tates and is currently "or#ing in 5pain or a company head'uartered in Germany "ould be considered a; ,. parent-country national. .. host-country national. C$ third-country national. :. home-country national. 8. guest-country national , third country re ers to a country that is neither the parent country nor the host country. , third-country national "ould be an employee "ho "or#s at a host country but is neither rom the parent country nor rom the host country.
$$. (p. 458) 3ohn! an ,merican "ho "or#s or a 4.5.-based company! is on assignment or his company in 3apan. He is #no"n as a?n@; $ e7patriate. .. inpatriate. C. host-country national. :. third-country national. 8. guest-country national. 0n general! employees assigned to "or# in another country are called e7patriates.
15-$/
$(. (p. 458) , company is head'uartered in Germany! has o ices in the 4.5.! and has a Aietnamese manager "or#ing in a acility in the 4.5. 0n this case! Germany is the BBBBB country! the 4.5. is the BBBBB country! and Aietnam is the BBBBB country. $ parent! host! third .. e7patriate! inpatriate! repatriate C. host! guest! third :. third! irst! host 8. parent! guest! second The parent country is the country in "hich the organi%ation&s head'uarters is located. , host country is a country ?other than the parent country@ in "hich an organi%ation operates a acility. , third country re ers to a country that is neither the parent country nor the host country. The organi%ation may or may not ha*e a acility in the third country.
$5. (p. 45() The usual "ay that a company begins to enter oreign mar#ets is by; ,. importing. .. o shoring. C$ e7porting. :. outsourcing. 8. relocation. ,s organi%ations gro"! they o ten begin to meet demand rom customers in other countries. The usual "ay that a company begins to enter oreign mar#ets is by e7porting! or shipping domestically produced items to other countries to be sold there.
15-$1
$+. (p. 45() , irm that is currently shipping domestically produced items to other countries to be sold there is engaging in; $ e7port. .. o shoring. C. import. :. outsourcing. 8. relocation. ,s organi%ations gro"! they o ten begin to meet demand rom customers in other countries. The usual "ay that a company begins to enter oreign mar#ets is by e7porting! or shipping domestically produced items to other countries to be sold there.
$-. (p. 45() ,n organi%ation that sets up one or a e" acilities in one or a e" oreign countries is a?n@; ,. global organi%ation. #$ international organi%ation. C. multinational organi%ation. :. uni*ersal organi%ation. 8. outsourcing organi%ation. ,n organi%ation that does so becomes an international organi%ation. The decision to participate in international acti*ities raises a host o HR issues! including the basic 'uestion o "hether a particular location pro*ides an en*ironment "here the organi%ation can success ully ac'uire and manage human resources.
15-(2
$/. (p. 45() ,n organi%ation that builds acilities in a number o di erent countries in an e ort to minimi%e production and distribution costs is a?n@; ,. international organi%ation. #$ multinational company. C. chain organi%ation. :. global organi%ation. 8. uni*ersal company. )hile international companies build one or a e" acilities in another country! multinational companies go o*erseas on a broader scale. They build acilities in a number o di erent countries as a "ay to #eep production and distribution costs to a minimum.
$1. (p. 45&) ,n organi%ation that chooses to locate a acility based on the ability to e ecti*ely! e iciently! and le7ibly produce a product or ser*ice! using cultural di erences as an ad*antage is re erred to as a?n@; ,. domestic organi%ation. .. international organi%ation. C. multinational organi%ation. %$ global organi%ation. 8. uni*ersal organi%ation. ,t the highest le*el o in*ol*ement in the global mar#etplace are global organi%ations. These le7ible organi%ations compete by o ering top products tailored to segments o the mar#et "hile #eeping costs as lo" as possible. , global organi%ation locates each acility based on the ability to e ecti*ely! e iciently! and le7ibly produce a product or ser*ice! using cultural di erences as an ad*antage.
15-(1
(2. (p. 45&) )hich o the ollo"ing types o organi%ations unctions at the highest le*el o in*ol*ement in the global mar#etplaceC ,. :omestic organi%ation .. 0nternational organi%ation C. Multinational organi%ation %$ Global organi%ation 8. 4ni*ersal organi%ation ,t the highest le*el o in*ol*ement in the global mar#etplace are global organi%ations. These le7ible organi%ations compete by o ering top products tailored to segments o the mar#et "hile #eeping costs as lo" as possible. , global organi%ation locates each acility based on the ability to e ecti*ely! e iciently! and le7ibly produce a product or ser*ice! using cultural di erences as an ad*antage.
(1. (p. 45&) )hich one o the ollo"ing is true o global organi%ationsC ,. They compete by o ering lo"-'uality products at the lo"est costs possible. .. They increasingly emphasi%e standardi%ation o products across mar#et segments. C. They tend to ha*e centrali%ed! parent-country decision-ma#ing structures. :. HRM practices at such companies tend to be uni orm across cultures. E$ Managers at such companies must be able to get results across national boundaries. Global organi%ations compete by o ering top products tailored to segments o the mar#et "hile #eeping costs as lo" as possible. They may ha*e multiple head'uarters spread across the globe! so decisions are more decentrali%ed. This type o an organi%ation needs HRM practices that encourage le7ibility and are based on an in-depth #no"ledge o di erences among countries. Global organi%ations must be able to recruit! de*elop! retain! and use managers "ho can get results across national boundaries.
AACSB: Analytic Bloom's: 0n1erstan1 Difficulty: .e1ium !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: mployers in t*e /lobal .ar4etplace
15-(2
(2. (p. 45&) )hich o the ollo"ing terms re ers to a type o HRM system that ma#es decisions rom a global perspecti*e! includes managers rom many countries! and is based on ideas contributed by people representing a *ariety o culturesC ,. Global HRM system .. =arent country-based HRM system C$ Transnational HRM system :. 0nternational HRM system 8. Multinational HRM system , global organi%ation needs a transnational HRM system + that eatures decision ma#ing rom a global perspecti*e! managers rom many countries! and ideas contributed by people rom a *ariety o cultures.
($. (p. 45&'456) )hich one o the ollo"ing statements is true about transnational HRM systemsC ,. To ensure airness! decisions in this system must be uni orm and rigid across countries. #$ The participants rom *arious countries and cultures contribute ideas rom a position o e'uality. C. HRM practices must emphasi%e the use o managers rom the parent country. :. They eature decision ma#ing rom a parent-country perspecti*e. 8. HRM practices must not re lect cultural di erences. , global organi%ation needs a transnational HRM system that eatures decision ma#ing rom a global perspecti*e. :ecisions that are the outcome o a transnational HRM system balance uni ormity "ith le7ibility. The participants rom *arious countries and cultures contribute ideas rom a position o e'uality! rather than the parent country&s culture dominating.
AACSB: Analytic Bloom's: 0n1erstan1 Difficulty: .e1ium !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: mployers in t*e /lobal .ar4etplace
15-($
((. (p. 456) .y ar the most important in luence on international HRM is the BBBBB o the country in "hich a acility is located. ,. politics .. educational system C$ culture :. economic system 8. currency .y ar the most important in luence on international HRM is the culture o the country in "hich a acility is located. Culture is a community&s set o shared assumptions about ho" the "orld "or#s and "hat ideals are "orth stri*ing or.
(5. (p. 456) ,ccording to Ho stede&s cultural dimensions! a culture "here people are e7pected to loo# a ter their o"n interests is high in; ,. po"er distance. .. emininity. C$ indi*idualism. :. uncertainty a*oidance. 8. long-term orientation. Ho stede&s cultural dimension o indi*idualismDcollecti*ism describes the strength o the relation bet"een an indi*idual and other indi*iduals in the society. 0n cultures that are high in indi*idualism! people tend to thin# and act as indi*iduals rather than as members o a group. =eople in these countries are e7pected to stand on their o"n t"o eet! rather than be protected by the group.
15-((
(+. (p. 456) 0n Colombia! people thin# o themsel*es mainly as group members. and are e7pected to de*ote themsel*es to the interests o the community! and the community is e7pected to protect them "hen they are in trouble. This indicates that they are a culture high in; ,. po"er distance. .. indi*idualism. C. masculinity. :. short-term orientation. E$ collecti*ism. 0n cultures that are high in collecti*ism! such as Colombia! =a#istan! and Tai"an! people thin# o themsel*es mainly as group members. They are e7pected to de*ote themsel*es to the interests o the community! and the community is e7pected to protect them "hen they are in trouble.
AACSB: Analytic Bloom's: 0n1erstan1 Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: Culture
(-. (p. 456) ,ssume that you are *isiting Me7ico or a business meeting and you call your host! the Chairman o the company! by his irst name rather than his title. He seems o ended. , di erence in "hich o the ollo"ing cultural dimensions bet"een the t"o countries is li#ely to ha*e caused the misunderstandingC ,. 0ndi*idualismDcollecti*ism .. 4ncertainty a*oidance C$ =o"er distance :. Eong-termDshort-term orientation 8. MasculinityD emininity =o"er distance concerns the "ay the culture deals "ith une'ual distribution o po"er and de ines the amount o ine'uality that is normal. 0n countries "ith large po"er distances! the culture de ines it as normal to maintain large di erences in po"er. 0n countries "ith small po"er distances! people try to eliminate ine'ualities.
AACSB: Reflecti%e ,*in4in" Bloom's: 0n1erstan1 Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: Culture
15-(5
(/. (p. 458) Aalues such as success! achie*ement! asserti*eness! and competition are associated "ith; ,. short-term oriented cultures. #$ masculine cultures. C. high-po"er-distance cultures. :. lo" uncertainty a*oidance cultures. 8. collecti*ist cultures. Ho stede&s cultural dimensions o masculinityD emininity re ers to the emphasis a culture places on practices or 'ualities that ha*e traditionally been considered masculine or eminine. , ImasculineI culture is a culture that *alues achie*ement! money ma#ing! asserti*eness! and competition.
(1. (p. 458) The Ho stede dimension that deals "ith the degree to "hich a culture pre ers structured conditions is; ,. po"er distance. .. indi*idualismDcollecti*ism. C. masculinityD emininity. %$ uncertainty a*oidance. 8. long-termDshort-term orientation. 4ncertainty a*oidance describes ho" cultures handle the act that the uture is unpredictable. High uncertainty a*oidance re ers to a strong cultural pre erence or structured situations.
15-(+
52. (p. 458) The Chinese greatly *alue the 'ualities o tHRi t and belie*e in sa*ing money and persisting in their e orts. From this in ormation! it can be in erred that China; ,. has lo" po"er distance. .. is highly indi*idualistic. C$ has a long-term orientation. :. is a eminine culture. 8. are lo" in uncertainity a*oidance. Ho stede&s cultural dimension o long-termDshort-term orientation suggests "hether the ocus o cultural *alues is on the uture ?long term@ or the past and present ?short term@. Cultures "ith a long-term orientation *alue sa*ing and persistence! "hich tend to pay o in the uture. Many ,sian countries! including 3apan and China! ha*e a long-term orientation.
AACSB: Reflecti%e ,*in4in" Bloom's: 0n1erstan1 Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: Culture
51. (p. 458) The cultural dimension o BBBBB promotes respect or past tradition! and or ul illing social obligations in the present. ,. emininity #$ short-term orientation C. large po"er distance :. uncertainty a*oidance 8. masculinity Eong-termDshort-term orientation suggests "hether the ocus o cultural *alues is on the uture or the past and present. 5hort-term orientations! as in the cultures o the 4nited 5tates! Russia! and )est , rica! promote respect or past tradition and or ul illing social obligations in the present.
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52. (p. 458) 0ndi*idualistic cultures o ten e7hibit; ,. latter pay structures. #$ greater di erences bet"een the highest and lo"est pay in the organi%ation. C. emphasis on organi%ational rather than indi*idual per ormance. :. collecti*e decision ma#ing. 8. compensation systems based on i7ed pay according to seniority. Compensation tied to indi*idual per ormance may be seen as airer and more moti*ating by members o an indi*idualist culture! a culture a*oring indi*idualism "ill be more accepting o great di erences in pay bet"een the organi%ation&s highest- and lo"est-paid employees. Collecti*ist cultures tend to ha*e much latter pay structures.
5$. (p. 458) 3ob design aimed at employee empo"erment can be problematic in cultures "ith high BBBB. ,. indi*idualism. .. masculinity. C. emininity. :. long-term orientation. E$ po"er distance. =o"er distance concerns the "ay the culture deals "ith une'ual distribution o po"er and de ines the amount o ine'uality that is normal. There ore! 6ob design aimed at employee empo"erment can be problematic in cultures "ith high Ipo"er distance.I
15-(/
5(. (p. 455) )hich o the ollo"ing is true o education and s#ill le*els as a actor a ecting HRM in international mar#etsC ,. The need or #no"ledge "or#ers is no" on the decline. .. The labor mar#et in the 4.5. is *ery attracti*e because it o ers high s#ills and lo" "ages. C$ 0n general! spending on education is greater per pupil in high-income countries than in poorer countries. :. 0ndia&s large pool o "ell-trained technical "or#ers is one reason that the country has become a popular location or outsourcing lo"-s#ill 6obs. 8. The 4nited 5tates has a large orce o s#illed "or#ers in all occupations. 0n general! spending on education is greater per pupil in high-income countries than in poorer countries. The 4nited 5tates su ers rom a shortage o s#illed "or#ers in many occupations! and the problem is e7pected to increase. For e7ample! the need or #no"ledge "or#ers is e7pected to gro" almost t"ice as ast as the o*erall rate o 6ob gro"th in the 4nited 5tates.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: 1ucation an1 S4ill !e%els
55. (p. 455) )hich o the ollo"ing is true o the economic systems in di erent countries being a actor a ecting HRM in international mar#etsC $ 5ocialist economic systems pro*ide ample opportunities or educational de*elopment. .. 0n de*eloped countries "ith great "ealth! labor costs are relati*ely lo". C. 0n capitalist economic systems! students& education is pro*ided ree. :. Capitalism may not pro*ide economic re"ards or increasing one&s education. 8. 0n socialist systems! students bear more o the cost o their education. 5ocialist economic systems pro*ide ample opportunities or educational de*elopment because the education system is ree to students. ,t the same time! socialism may not pro*ide economic re"ards ?higher pay@ or increasing one&s education. 0n capitalist systems! students bear more o the cost o their education! but employers re"ard those "ho in*est in education. 0n de*eloped countries "ith great "ealth! labor costs are relati*ely high.
15-(1
5+. (p. 455) )hich o the ollo"ing countries has led the "orld in eliminating discrimination in the "or#placeC ,. Germany .. 3apan C$ The 4nited 5tates :. China 8. The 4nited Fingdom The 4nited 5tates has led the "orld in eliminating discrimination in the "or#place. .ecause this *alue is important in 4.5. culture! the nation has legal sa eguards such as the e'ual employment opportunity la"s that a ect HRM decisions.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(6 21entify t*e factors t*at most stron"ly influence -R. in international mar4ets. ,opic: 9olitical'!e"al System
5-. (p. 45:) ,s an HR specialist in human resource planning! in "hich country "ould you e7perience the greatest latitude in reducing your company&s "or# orce in response to a orecasted o*ersupply o "or#ersC $ The 4nited 5tates .. Germany C. The 4nited Fingdom :. France 8. 5"eden Human resource planning includes decisions to hire and lay o "or#ers to prepare or the organi%ation&s e7pected needs. Compared "ith other countries! the 4nited 5tates allo"s employers "ide latitude in reducing their "or# orce! gi*ing 4.5. employers the option o hiring or pea# needs! then laying o employees i needs decline. Gther go*ernments place more emphasis on protecting "or#ers& 6obs. 8uropean countries and France in particular! tend to be *ery strict in this regard.
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5/. (p. 45:) )hich o the ollo"ing is true about selecting employees in a global labor mar#etC $ , host-country national can more easily understand the local *alues and customs. .. 8mployees are in*ariably eager to ta#e a oreign assignment. C. Host-country nationals are usually more s#illed than e7patriates. :. Training or and transporting amilies to oreign assignments is more e7pensi*e. 8. Grgani%ations generally ill all #ey oreign positions "ith host-country nationals. To be e ecti*e! employees in oreign acilities o international companies must understand that region&s business and social culture. Grgani%ations o ten meet this need by hiring hostcountry nationals to ill most o their oreign positions. , #ey reason is that a host-country national can more easily understand the *alues and customs o the local "or# orce than someone rom another part o the "orld can.
51. (p. 458) This labor supply is use ul "hen needed s#ills are scarce in a particular location! but the ability to tap it is limited by go*ernment paper"or# and delays! as "ell as by e7panding opportunities in ast-de*eloping nations. ,. Host-country nationals #$ 0mmigrant "or#ers C. =arent-company nationals :. Eocal contract "or#ers 8. Eocal temporary "or#ers ,t organi%ations located "here needed s#ills are in short supply! hiring immigrant employees may be part o an e ecti*e recruitment and selection strategy. Ho"e*er! the ability to tap this labor supply is limited by go*ernment paper"or# and delays! "hich deter some immigrant "or#ers! as "ell as by e7panding opportunities in ast-de*eloping nations such as 0ndia and China.
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+2. (p. 458) ,ccording to research! the actor that most strongly in luences "hether an employee completed a oreign assignment is; ,. the employee&s moti*ation to succeed. .. the employee&s 6ob #no"ledge. C$ the com ort o the employee&s spouse and amily. :. the compensation being o ered. 8. the employee&s le7ibility and tolerance o ambiguity. 0n research conducted a number o years ago! the actor most strongly in luencing "hether an employee completed a oreign assignment "as the com ort o the employee&s spouse and amily.
+1. (p. 458) Research has ound success ul completion o o*erseas assignments to be most li#ely among employees "ho e7hibit all o the ollo"ing personality characteristics! 8HC8=T; ,. e7tro*ersion. #$ ethnocentricity. C. tolerance. :. conscientiousness. 8. cooperati*eness. =ersonality may be an important actor most strongly in luencing "hether an employee completed a oreign assignment. Research has ound success ul completion o o*erseas assignments to be most li#ely among employees "ho are e7tro*erted ?outgoing@! agreeable ?cooperati*e and tolerant@! and conscientious ?dependable and achie*ement oriented@.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(4 Describe *o+ companies select an1 train *uman resources in a "lobal labor mar4et. ,opic: Selectin" mployees in a /lobal !abor .ar4et
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+2. (p. 458'45;) )hich o the ollo"ing is the irst emotional stage associated "ith a oreign assignmentC ,. Culture shoc# .. Eearning C. ,d6ustment %$ Honeymoon 8. ,cculturation For a month or so a ter arri*ing! the oreign "or#er en6oys a IhoneymoonI o ascination and euphoria as the employee en6oys the no*elty o the ne" culture and compares its interesting similarities to or di erences rom the employee&s o"n culture.
+$. (p. 45;) The disillusionment and discom ort that occur during the process o ad6usting to a ne" culture is re erred to as; $ culture shoc#. .. the learning period. C. the ad6ustment period. :. the honeymoon period. 8. acculturation. 5oon a ter the honeymoon stage o a oreign assignment! the employee&s mood declines as he or she notices more unpleasant di erences and e7periences eelings o isolation! criticism! stereotyping! and e*en hostility. ,s the mood reaches bottom! the employee is e7periencing culture shoc#! the disillusionment and discom ort that occur during the process o ad6usting to a ne" culture and its norms! *alues! and perspecti*es.
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+(. (p. 45;) , ter mo*ing to a oreign assignment! an employee e*entually reaches a stage o BBBBB in "hich he or she accepts and en6oys the host country&s culture. ,. culture shoc# .. learning C$ ad6ustment :. honeymoon 8. resignation 0n the course o a oreign assignment! as the employee&s language s#ills and com ort increase! the employee&s mood should impro*e as "ell. 8*entually! the employee reaches a stage o ad6ustment in "hich he or she accepts and en6oys the host country&s culture.
+5. (p. 4:() 0n the conte7t o the e ects o culture on training design! a culture high in BBBBB e7pects participation in e7ercises and 'uestioning to be determined by status in the company or culture. ,. collecti*ism .. emininity C. po"er distance :. time orientation E$ indi*idualism Culture high in indi*idualism e7pects participation in e7ercises and 'uestioning to be determined by status in the company or culture.
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++. (p. 4:() 0n the conte7t o the e ects o culture on training design! a culture lo" in BBBBB *alues relationships "ith ello" trainees. ,. collecti*ism .. emininity C. uncertainty a*oidance :. time orientation E$ masculinity , culture lo" in masculinity *alues relationships "ith ello" trainees. ,lso! emale trainers are less li#ely to be resisted in lo"-masculinity cultures.
+-. (p. 4:() 8mployees rom cultures high in po"er distance "ould e7pect a training session "here; ,. they are able to discuss and as# 'uestions about the training content. .. an in ormal! unstructured agenda e7ists. C$ trainers are *ie"ed as e7perts and are authoritarian and controlling o the sessions. :. trainees are allo"ed to determine the pace o the programs. 8. there is an e'ual relationship "ith the trainer. Cultures high in po"er distance e7pect trainers to be e7pert. Trainers are e7pected to be authoritarian and controlling o session.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(4 Describe *o+ companies select an1 train *uman resources in a "lobal labor mar4et. ,opic: ,rainin" 9ro"rams for an 2nternational 3or4force
15-55
+/. (p. 4:() 8mployees rom cultures high in uncertainty a*oidance "ould e7pect a training session "here; ,. trainers adopt an impromptu style o instruction. #$ a ormal instructional en*ironment e7ists. C. trainers are le7ible and open to schedule and acti*ity changes. :. trainees are allo"ed to determine the pace o the programs. 8. relationships "ith ello" trainees are emphasi%ed. , culture high in uncertainty a*oidance e7pects ormal instructional en*ironments. There is less tolerance or an impromptu style.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(4 Describe *o+ companies select an1 train *uman resources in a "lobal labor mar4et. ,opic: ,rainin" 9ro"rams for an 2nternational 3or4force
+1. (p. 4:() Training to prepare employees and their amily members or an assignment in a oreign country is called; ,. acculturation. .. international education. C$ cross-cultural preparation. :. community training. 8. cultural management. )hen an organi%ation selects an employee or a position in a oreign country! it must prepare the employee or the oreign assignment. This #ind o training is called cross-cultural preparation! preparing employees to "or# across national and cultural boundaries! and it o ten includes amily members "ho "ill accompany the employee on the assignment.
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-2. (p. 4:() )hich o the ollo"ing is true regarding the cross-cultural preparation needed during the di erent phases o an international assignmentC ,. Training consists only o lectures. .. =reparation ends once the employees ha*e ad6usted to the host-country&s en*ironment. C. =reparation is only re'uired or the employees! not their amilies. %$ =reparation or departure includes language instruction. 8. 8mployees and their amilies are largely insulated rom the locals. =reparation or departure can in*ol*e language instruction and an orientation to the oreign country&s culture.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(4 Describe *o+ companies select an1 train *uman resources in a "lobal labor mar4et. ,opic: Cross'Cultural 9reparation
-1. (p. 4:() For "hich phase o an international assignment does the preparation in*ol*e pro*iding in ormation about the employee&s community and home-country "or#placeC ,. =reparation or departure rom the home-country. .. =reparation during the assignment itsel . C. =reparation or the culture shoc# phase in the host country. %$ =reparation or the return to the home-country. 8. =reparation or the honeymoon phase in the host country. =reparation or the return home a ter completing the oreign assignment can in*ol*e pro*iding in ormation about the employee&s community and home-country "or#place ? rom company ne"sletters! local ne"spapers! and so on@.
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-2. (p. 4:() ,ccording to the Global Relocation Trends 2222 5ur*ey Report! "hich o the ollo"ing countries "as listed among the tHRee countries "ith the highest rate o assignment ailureC ,. 3apan .. Germany C. The 4nited Fingdom %$ The 4.5. 8. France 0n spite o the many bene its o li*ing in the 4nited 5tates! relocation can be challenging or inpatriates. 0n act! in the 2212 Global Relocation Trends 5ur*ey Report! the 4nited 5tates had the third highest rate o assignment ailure! a ter China and 0ndia.
-$. (p. 4:() Foreign employees "ho come to the 4nited 5tates are re erred to as; ,. e7patriates. .. home-country nationals. C$ inpatriates. :. emigrants. 8. host-country nationals. 4.5.-based companies sometimes need to be reminded that oreign employees "ho come to the 4nited 5tates ?IinpatriatesI@ need cross-cultural preparation as much as do 4.5. employees sent on oreign assignments.
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-(. (p. 4:6) )hich o the ollo"ing statements regarding the per ormance management process across national boundaries is trueC ,. The speci ic methods o per ormance management apply in most countries. .. 4.5. employees are much more used to indirect eedbac# than are employees in other countries. C. )hich beha*iors are rated! ho" and the e7tent to "hich per ormance is measured! "ho per orms the rating! and ho" eedbac# is pro*ided are usually uni orm across countries. :. )hile the measures used may *ary rom country to country! the legal re'uirements remain the same as those in the 4nited 5tates. E$ 0n rapidly changing regions! the organi%ation may ha*e to update its per ormance plans more o ten than once a year. The general principles o per ormance management may apply in most countries! but the speci ic methods that "or# in one country may ail in another. The e7tent to "hich managers measure per ormance may also *ary rom one country to another. 0n rapidly changing regions! such as 5outheast ,sia! the organi%ation may ha*e to update its per ormance plans more o ten than once a year.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 9erformance .ana"ement across <ational Boun1aries
-5. (p. 4:8) ,ccording to the te7t! among the ollo"ing countries! "hich country has the highest a*erage hourly labor costC $ Germany .. Me7ico C. Hong Fong :. 5outh Forea 8. .ra%il The a*erage hourly labor costs in industriali%ed countries such as the 4nited 5tates! Germany! and 3apan are ar higher than these costs in ne"ly industriali%ed countries such as Me7ico! Hong Fong! and .ra%il.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 9ay Structure
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-+. (p. 4:4) ,ccording to the te7t! among the ollo"ing countries! "hich country has the highest a*erage "or# hours per yearC ,. 3apan #$ 5outh Forea C. The 4.5. :. <etherlands 8. France G these countries! only in 5outh Forea and =oland do "or#ers put in more hours than 4.5. "or#ers. 0n the other countries! the norm is to "or# e"er hours than a 4.5. "or#er o*er the course o a year.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: mployee Benefits
--. (p. 4:5) )hich o the ollo"ing is true o global incenti*e pay and employee bene itsC ,. 0n both the 4.5. and 8urope! the a"arding o stoc# options is lin#ed to speci ic per ormance goals. .. =ension plans are more "idespread in the 4.5. and 3apan than in )estern 8urope. C. 4nli#e in the 4.5.! compensation plans in other countries are less li#ely to include bene its. %$ =aid *acation tends to be more generous in )estern 8urope than in the 4nited 5tates. 8. ,lthough stoc# options became a common orm o incenti*e pay in 8urope during the 1112s! ,merican businesses did not begin to adopt them until the end o that decade. ,s in the 4nited 5tates! compensation pac#ages in other countries include bene its. =aid *acation tends to be more generous in )estern 8urope than in the 4.5. =ension plans are more "idespread in parts o )estern 8urope than in the 4.5. and 3apan. ,lthough stoc# options became a common orm o incenti*e pay in the 4.5. during the 1112s! 8uropean businesses did not begin to embrace this type o compensation until the end o that decade. Ho"e*er! the 4.5. and 8urope di er in the "ay they a"ard stoc# options. 8uropean companies usually lin# the options to speci ic per ormance goals.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 2ncenti%e 9ay> mployee Benefits
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-/. (p. 4:5) )hich o the ollo"ing statements about international labor relations is trueC ,. 4.5. organi%ations! in comparison "ith 8uropean organi%ations! e7ert more decentrali%ed control o*er labor relations in the *arious countries "here they operate. #$ :ay-to-day decisions about labor relations are usually handled by each oreign subsidiary. C. 0n Germany! "here "or#er participation in management is lo"! there is less incenti*e to build cooperati*e relationships. :. Most 4.5. organi%ations! in contrast to 8uropean organi%ations! bargain "ith a union representing an entire industry&s employees! rather than "ith the local union. 8. Companies that operate across national boundaries mostly "or# only "ith unions in the home-country. Companies that operate across national boundaries o ten need to "or# "ith unions in more than one country. The day-to-day decisions about labor relations are usually handled by each oreign subsidiary. The reason is that labor relations on an international scale in*ol*e di erences in la"s! attitudes! and economic systems! as "ell as di erences in negotiation styles. ,t least in comparison "ith 8uropean organi%ations! 4.5. organi%ations e7ert more centrali%ed control o*er labor relations in the *arious countries "here they operate.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 2nternational !abor Relations
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-1. (p. 4:5) ,ccording to e7patriates! the most important 'ualities or an international assignment are! in order o importance; $ amily situation! le7ibility and adaptability! 6ob #no"ledge and moti*ation! relational s#ills! and openness to other cultures. .. openness to other cultures! le7ibility and adaptability! relational s#ills! 6ob #no"ledge and moti*ation! and amily situation. C. 6ob #no"ledge and moti*ation! le7ibility and adaptability! relational s#ills! openness to other cultures! and amily situation. :. sel -con idence! a sense o ad*antage! technical #no"-ho"! and amily situation. 8. adaptability! 6ob #no"ledge and moti*ation! relational s#ills! amily situation! and openness to other cultures. 0n a study that dre" on the e7perience o people holding international assignments! e7patriates told researchers that the most important 'ualities or an e7patriate manager are! in order o importance! amily situation! le7ibility and adaptability! 6ob #no"ledge and moti*ation! relational s#ills! and openness to other cultures.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: Selectin" =patriate .ana"ers
/2. (p. 4::) )hich o the ollo"ing is a 'uestion that is suitable or assessing the moti*ation o candidates or o*erseas assignmentsC ,. Can the candidate "or# "ithout super*isionC #$ 0n*estigate reasons and degree o interest in "anting to be considered. C. :etermine "hether any medical problems o the candidate or his or her amily might be critical to the success o the assignment. :. :etermine potential or learning a ne" language. 8. :oes she ha*e the intellectual capacity to deal "ith se*eral dimensions simultaneouslyC )hen assessing the moti*ation o a candidate or an o*erseas assignment! it is important to in*estigate reasons and degree o interest in "anting to be considered! determine desire to "or# abroad! determine "hether the candidate has a realistic understanding o "hat "or#ing and li*ing abroad re'uire! and to determine the basic attitudes o the spouse to"ard an o*erseas assignment.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 =plain *o+ employers prepare mana"ers for international assi"nments an1 for t*eir return *ome. ,opic: 9reparin" =patriates
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/1. (p. 4::) )hich o the ollo"ing is a typical 'uestion as#ed or assessing the adaptability o candidates or o*erseas assignmentsC ,. 0s the candidate independent! can he ma#e and stand by his decisions and 6udgmentsC .. :etermine "hether he or she is in good physical and mental health! "ithout any oreseeable change. C$ )hat are his reactions to ne" situations! and e orts to understand and appreciate di erencesC :. Can the candidate "or# "ithout super*isionC 8. )hat is the spouse&s goal in this mo*eC The adaptability o a candidate or an o*erseas assignment can be assessed! among other things! by determining i the candidate sensiti*e to others! open to the opinions o others! cooperati*e! and able to compromise and determining his reactions to ne" situations! and e orts to understand and appreciate di erences.
/2. (p. 4:8) )hich o the ollo"ing is true about preparing e7patriates or an international assignmentC ,. Communication in another country mostly does not re'uire learning a ne" language. #$ =reparation o the e7patriate should include career de*elopment acti*ities. C. The preparation process ends "hen the employee lea*es or the assignment. :. Cross-cultural training is to create an appreciation o the host country&s culture and not o the home culture. 8. 5uccess ul e7patriates tend to de*elop an ethnocentric point o *ie". ,long "ith cross-cultural training! preparation o the e7patriate should include career de*elopment acti*ities. .e ore lea*ing or a oreign assignment! e7patriates should discuss "ith their managers ho" the oreign assignment its into their career plans and "hat types o positions they can e7pect upon their return. This prepares the e7patriate to de*elop *aluable s#ills during the o*erseas assignment and eases the return home "hen the assignment is complete.
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/$. (p. 48() This approach to determining the compensation o e7patriates ad6usts the manager&s compensation so that it gi*es the manager the same standard o li*ing as in the home country plus e7tra pay or the incon*enience o locating o*erseas. ,. The scorecard approach #$ The balance-sheet approach C. The e'uali%ation approach :. The parity approach 8. The correspondence approach Gne o the greatest challenges o managing e7patriates is determining the compensation pac#age. Most organi%ations use a balance sheet approach to determine the total amount o the pac#age. This approach ad6usts the manager&s compensation so that it gi*es the manager the same standard o li*ing as in the home country plus e7tra pay or the incon*enience o locating o*erseas.
/(. (p. 48&) 0n practice! the total cost o an international assignment is roughly BBBBB the employee&s salary in the host country. ,. the same as .. hal that o C. double %$ our times 8. ten times 0n practice! the total cost o an international assignment is roughly our times the employee&s salary in the host country. To restrain spending! some organi%ations are sending e7patriates on shorter assignments.
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/5. (p. 486) )hich o the ollo"ing is true o the our components o a total pay pac#age or e7patriatesC ,. 4sually! the employer o an e7patriate "ithholds the amount o ta7 to be paid in the host country! then pays the ta7es due in the parent country. .. Housing allo"ances ensure that the e7patriate can maintain the same standard o li*ing as o other employees in the host country. C. 87patriates& salaries are mostly lo"er than pay or staying at head'uarters. :. :etermining the base salary is simple because e7change rates rarely luctuate. E$ Most bene its issues ha*e to do "ith "hether an employee can use the same bene its in the oreign country. Most bene its issues ha*e to do "ith "hether an employee can use the same bene its9 pension plans! health bene its! and so on9in the oreign country.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 =plain *o+ employers prepare mana"ers for international assi"nments an1 for t*eir return *ome. ,opic: Compensatin" =patriates
/+. (p. 486) The process o preparing e7patriates to return home rom a oreign assignment is called; ,. reorientation. .. e7patriation. C$ repatriation. :. dissolution. 8. inpatriation The process o preparing e7patriates to return home rom a oreign assignment is called repatriation.
AACSB: Analytic Bloom's: Remember Difficulty: asy !earnin" #b$ecti%e: &5'(5 =plain *o+ employers prepare mana"ers for international assi"nments an1 for t*eir return *ome. ,opic: -elpin" =patriates Return -ome
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/-. (p. 488) T"o acti*ities are used by companies in the process o helping employees repatriate; communication and BBBB. $ *alidation .. e'uali%ation C. dissolution :. resolution 8. rationali%ation Companies are increasingly ma#ing e orts to help e7patriates through this transition. T"o acti*ities help the process along; communication and *alidation. Communication re ers to the e7patriate recei*ing in ormation and recogni%ing changes "hile abroad. Aalidation means gi*ing the e7patriate recognition or the o*erseas ser*ice "hen this person returns home. Aalidation should also include planning or ho" the returning employee "ill contribute to the organi%ation.
//. (p. 488) 0n the conte7t o the acti*ities that an organi%ation uses to help repatriated employees through the transition to the home-country! "hich o the ollo"ing acti*ities in*ol*es the e7patriate recei*ing in ormation and recogni%ing changes "hile abroadC ,. Aalidation .. 8'uali%ation C$ Communication :. Resolution 8. Rationali%ation Companies are increasingly ma#ing e orts to help e7patriates through this transition. T"o acti*ities help the process along; communication and *alidation. Communication re ers to the e7patriate recei*ing in ormation and recogni%ing changes "hile abroad.
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/1. (p. 488) )hich o the ollo"ing is <GT help ul in easing the repatriation o employees a ter an o*erseas assignmentC ,. Grgani%ation staying in touch "ith the employee during his stay abroad .. 87patriates maintaining important contacts in the company and industry C. Communicating career de*elopment plans be ore and during the o*erseas assignment :. Gi*ing e7patriates praise and recognition or their o*erseas ser*ice E$ Eimiting all pro essional ties in the home country "hile o*erseas 87patriates "ill ind the transition bac# to the home-country easier i the organi%ation has #ept in touch "ith them during the period! and i they themsel*es ha*e "or#ed at maintaining important contacts in the company and industry.
12. (p. 488) 0n the conte7t o the acti*ities that an organi%ation uses to help repatriated employees through the transition to the home-country! "hich o the ollo"ing acti*ities in*ol*es gi*ing the e7patriate recognition or the o*erseas ser*ice "hen the person returns home and planning or ho" the returning employee "ill contribute to the organi%ationC ,. Resolution .. :issolution C. Rationali%ation :. Communication E$ Aalidation 0n the conte7t o the acti*ities that an organi%ation uses to help repatriated employees through the transition to the home-country! *alidation means gi*ing the e7patriate recognition or the o*erseas ser*ice "hen this person returns home. Aalidation should also include planning or ho" the returning employee "ill contribute to the organi%ation.
Essay Questions
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11. (p. 45:) )hat are the reasons behind the trend to"ard e7pansion into global mar#etsC Foreign countries can pro*ide a business "ith ne" mar#ets in "hich there are millions or billions o ne" customers. 0n addition! companies set up operations o*erseas because they can operate "ith lo"er labor costs. Finally! than#s to ad*ances in telecommunications and in ormation technology! companies can more easily spread "or# around the globe! "here*er they ind the right mi7 o labor costs and abilities. Teams "ith members in di erent time %ones can #eep pro6ects mo*ing around the cloc#! or pro6ects can be assigned according to regions "ith particular areas o e7pertise. ,lso! global acti*ities are simpli ied and encouraged by trade agreements among nations. For e7ample! most countries in )estern 8urope belong to the 8uropean 4nion and share a common currency! the euro. Canada! Me7ico! and the 4nited 5tates ha*e encouraged trade among themsel*es "ith the <orth ,merican Free Trade ,greement ?<,FT,@. The )orld Trade Grgani%ation ?)TG@ resol*es trade disputes among more than 122 participating nations.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: -R. in a /lobal n%ironment
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12. (p. 458) :escribe the terms parent country! parent-country national! host country! hostcountry national! third country! and third-country nationals! gi*ing e7amples o each. )hen organi%ations operate globally! their employees are *ery li#ely to be citi%ens o more than one country. 8mployees may come rom the employer&s parent country! a host country! or a third country. The parent country is the country in "hich the organi%ation&s head'uarters is located. ,n indi*idual born in the parent country and "or#ing in the same country is #no"n as a parent-country national. For e7ample! the 4nited 5tates is the parent country o General Motors! because GM&s head'uarters is in Michigan. , GM employee "ho "as born in the 4nited 5tates and "or#s at GM&s head'uarters or one o its 4.5. actories is there ore a parent-country national. , host country is a country ?other than the parent country@ in "hich an organi%ation operates a acility. , host-country national is one "ho is a nati*e o the host country and also "or#s in that country. Great .ritain is a host country o General Motors because GM has operations there. ,ny .ritish "or#ers hired to "or# at GM&s .ritish acility "ould be host-country nationals! that is! employees "ho are citi%ens o the host country. , third country re ers to a country that is neither the parent country nor the host country. The organi%ation may or may not ha*e a acility in the third country. , third country national is one "ho is a nati*e o the third country and "or#s in the host country. 0n the e7ample o GM&s operations in Great .ritain! the company could hire an ,ustralian manager to "or# there. The ,ustralian manager "ould be a third-country national because the manager is neither rom the parent country ?the 4nited 5tates@ nor rom the host country ?Great .ritain@.
AACSB: Reflecti%e ,*in4in" Bloom's: Remember Difficulty: -ar1 !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: mployees in an 2nternational 3or4force
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1$. (p. 45('45&) :istinguish bet"een international! multinational! and global organi%ations. ,lso brie ly outline the HR issues associated "ith each type o organi%ation. ,n organi%ation that sets up one or a e" acilities in one or a e" oreign countries is #no"n as an international organi%ation. The decision to participate in international acti*ities raises se*eral HR issues! including the basic 'uestion o "hether a particular location pro*ides an en*ironment "here the organi%ation can success ully ac'uire and manage human resources. )hile international companies build one or a e" acilities in another country! multinational companies go o*erseas on a broader scale. They build acilities in a number o di erent countries as a "ay to #eep production and distribution costs to a minimum. 0n general! "hen organi%ations become multinationals! they mo*e production acilities rom relati*ely highcost locations to lo"er-cost locations. The HRM challenges aced by a multinational company are similar to but larger than those o an international organi%ation! because more countries are in*ol*ed. More than e*er! the organi%ation needs to hire managers "ho can unction in a *ariety o settings! gi*e them necessary training! and pro*ide le7ible compensation systems that ta#e into account the di erent pay rates! ta7 systems! and costs o li*ing rom one country to another. ,t the highest le*el o in*ol*ement in the global mar#etplace are global organi%ations. These le7ible organi%ations compete by o ering top products tailored to segments o the mar#et "hile #eeping costs as lo" as possible. , global organi%ation locates each acility based on the ability to e ecti*ely! e iciently! and le7ibly produce a product or ser*ice! using cultural di erences as an ad*antage. Rather than treating di erences in other countries as a challenge to o*ercome! a global organi%ation treats di erent cultures as e'uals. 0t may ha*e multiple head'uarters spread across the globe! so decisions are more decentrali%ed. This type o organi%ation needs HRM practices that encourage le7ibility and are based on an in-depth #no"ledge o di erences among countries. Global organi%ations must be able to recruit! de*elop! retain! and use managers "ho can get results across national boundaries. , global organi%ation needs a transnational HRM system that eatures decision ma#ing rom a global perspecti*e! managers rom many countries! and ideas contributed by people rom a *ariety o cultures.
AACSB: Analytic Bloom's: Remember Difficulty: -ar1 !earnin" #b$ecti%e: &5'(& Summari)e *o+ t*e "ro+t* in international business acti%ity affects *uman resource mana"ement. ,opic: mployers in t*e /lobal .ar4etplace
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1(. (p. 456'458) Eist and describe Geert Ho stede&s i*e cultural dimensions. The i*e dimensions o culture that Geert Ho stede identi ied in his classic study o culture are; 1@ 0ndi*idualismDcollecti*ism; This describes the strength o the relation bet"een an indi*idual and other indi*iduals in the society. 0n cultures that are high in indi*idualism! people tend to thin# and act as indi*iduals rather than as members o a group. =eople in these countries are e7pected to stand on their o"n t"o eet! rather than be protected by the group. 0n cultures that are high in collecti*ism! people thin# o themsel*es mainly as group members. They are e7pected to de*ote themsel*es to the interests o the community! and the community is e7pected to protect them "hen they are in trouble. 2@ =o"er distance; This concerns the "ay the culture deals "ith une'ual distribution o po"er and de ines the amount o ine'uality that is normal. 0n countries "ith large po"er distances! the culture de ines it as normal to maintain large di erences in po"er. 0n countries "ith small po"er distances! people try to eliminate ine'ualities. $@ 4ncertainty a*oidance; This describes ho" cultures handle the act that the uture is unpredictable. High uncertainty a*oidance re ers to a strong cultural pre erence or structured situations. 0n countries "ith lo" uncertainty a*oidance! people seem to ta#e each day as it comes. (@ MasculinityD emininity; This is the emphasis a culture places on practices or 'ualities that ha*e traditionally been considered masculine or eminine. , ImasculineI culture is a culture that *alues achie*ement! money ma#ing! asserti*eness! and competition. , I eminineI culture is one that places a high *alue on relationships! ser*ice! care or the "ea#! and preser*ing the en*ironment. 5@ Eong-termDshort-term orientation; This suggests "hether the ocus o cultural *alues is on the uture ?long term@ or the past and present ?short term@. Cultures "ith a long-term orientation *alue sa*ing and persistence! "hich tend to pay o in the uture. 5hort-term orientations! promote respect or past tradition and or ul illing social obligations in the present.
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15. (p. 455'455) :iscuss ho" economic systems impact HRM in international mar#ets. , country&s economic system! "hether capitalist or socialist! as "ell as the go*ernment&s in*ol*ement in the economy through ta7es or compensation! price controls! and other acti*ities! in luences human resource management practices in a number o "ays. ,s "ith all aspects o a region&s or country&s li e! the economic system and culture are li#ely to be closely tied! pro*iding many o the incenti*es or disincenti*es or de*eloping the *alue o the labor orce. 5ocialist economic systems pro*ide ample opportunities or educational de*elopment because the education system is ree to students. ,t the same time! socialism may not pro*ide economic re"ards ?higher pay@ or increasing one&s education. 0n capitalist systems! students bear more o the cost o their education! but employers re"ard those "ho in*est in education. The health o an economic system a ects human resource management. 0n de*eloped countries "ith great "ealth! labor costs are relati*ely high. 5uch di erences sho" up in compensation systems and in recruiting and selection decisions. 0n general! socialist systems ta#e a higher percentage o each "or#er&s income as the "or#er&s income increases. Capitalist systems tend to let "or#ers #eep more o their earnings. This impacts the ta#e-home pay o employees in di erent countries "ho are paid the same salaries. 5uch di erences ma#e pay structures more complicated "hen they cross national boundaries! and they can a ect recruiting o candidates rom more than one country.
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1+. (p. 45:) :iscuss ho" di erences among countries a ect HR planning at organi%ations "ith international operations. )hen organi%ations decide to operate internationally or globally! human resource planning in*ol*es decisions about "here and ho" many employees are needed or each international acility. :ecisions about "here to locate include HR considerations such as the cost and a*ailability o 'uali ied "or#ers. 0n addition! HR specialists must "or# "ith other members o the organi%ation to "eigh these considerations against inancial and operational re'uirements. Gther location decisions in*ol*e outsourcing! "hich may or may not in*ol*e contracting speci ic unctions to "or#ers outside the 4nited 5tates in lo"er-"age countries. Human resource planning includes decisions to hire and lay o "or#ers to prepare or the organi%ation&s e7pected needs. Compared "ith other countries! the 4nited 5tates allo"s employers "ide latitude in reducing their "or# orce! gi*ing 4.5. employers the option o hiring or pea# needs! then laying o employees i needs decline. Gther go*ernments place more emphasis on protecting "or#ers& 6obs. 8uropean countries! and France in particular! tend to be *ery strict in this regard.
1-. (p. 458) Eist the criteria or selection o employees or oreign assignments that ha*e been associated "ith success in "or#ing o*erseas. )hich o these criteria most strongly in luences "hether an employee completes a oreign assignment or notC 5election o employees or oreign assignments should re lect criteria that ha*e been associated "ith success in "or#ing o*erseas;
0n research conducted a number o years ago! the actor most strongly in luencing "hether an employee completed a oreign assignment "as the com ort o the employee&s spouse and amily. =ersonality may also be important. Research has ound success ul completion o o*erseas assignments to be most li#ely among employees "ho are e7tro*erted ?outgoing@! agreeable ?cooperati*e and tolerant@! and conscientious ?dependable and achie*ement oriented@.
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1/. (p. 4:() )hat is cross-cultural preparationC )hat are methods used in this processC 0n "hich phases o an international assignment is cross-cultural preparation re'uiredC Cross-cultural preparation re ers to training to prepare employees and their amily members or an assignment in a oreign country. Methods or pro*iding this training may range rom lectures or employees and their amilies to *isits to culturally di*erse communities. 8mployees and their amilies may also spend time *isiting a local amily rom the country "here they "ill be "or#ing. The training is necessary or all three phases o an international assignment; 1@ =reparation or departure 9language instruction and an orientation to the oreign country&s culture. 2@ The assignment itsel 9some combination o a ormal program and mentoring relationship to pro*ide ongoing urther in ormation about the oreign country&s culture. $@ =reparation or the return home9pro*iding in ormation about the employee&s community and home-country "or#place ? rom company ne"sletters! local ne"spapers! and so on@.
15--(
11. (p. 4:6'4:8) :iscuss the challenges related to ma#ing decisions regarding employee pay across countries in a global organi%ation. Mar#et pay structures can di er substantially across countries in terms o both pay le*el and the relati*e "orth o 6obs. Gne reason or such di erences is the supply o 'uali ied labor. :i erences such as these create a dilemma or global companies; 5hould pay le*els and di erences re lect "hat "or#ers are used to in their o"n countriesC Gr should they re lect the earnings o colleagues in the country o the acility! or earnings at the company head'uartersC 0 the standard is that o the higher rates in the home country! the employees in the host country "ill li#ely see the e7patriate&s pay as un air. 0 the standard is that o the lo"er pay in the host country! the company "ill li#ely ind it impossible to persuade an e7patriate to ta#e an assignment in the host country. :ilemmas such as these ma#e a global compensation strategy important as a "ay to sho" employees that the pay structure is designed to be air and related to the *alue that employees bring to the organi%ation. These decisions a ect a company&s costs and ability to compete. Ho"e*er! that conclusion o*ersimpli ies the situation or many companies. Merely comparing "ages ignores di erences in education! s#ills! 'uality! and producti*ity.
AACSB: Analytic Bloom's: Remember Difficulty: .e1ium !earnin" #b$ecti%e: &5'(5 Discuss c*allen"es relate1 to mana"in" performance an1 compensatin" employees from ot*er countries. ,opic: 9ay Structure
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122. (p. 488) Ho" can companies help e7patriates return to the home country a ter completing a oreign assignmentC Companies are increasingly ma#ing e orts to help e7patriates through the transition o returning to the home country a ter completing a oreign assignment. T"o acti*ities help the process along; communication and *alidation. Communication re ers to the e7patriate recei*ing in ormation and recogni%ing changes "hile abroad. The more the organi%ation #eeps in contact "ith the e7patriate! the more e ecti*e and satis ied the person "ill be upon return. ,lso! the e7patriates themsel*es should "or# at maintaining important contacts in the company and industry. Communication related to career de*elopment be ore and during the o*erseas assignment also should help the employee return to a position that is challenging and interesting. Aalidation means gi*ing the e7patriate recognition or the o*erseas ser*ice "hen this person returns home. 87patriates "ho recei*e praise and recognition rom colleagues and top managers or their o*erseas ser*ice and uture contribution ha*e e"er troubles "ith reentry than those "hose contributions are disregarded. Aalidation should also include planning or ho" the returning employee "ill contribute to the organi%ation. This in*ol*es ans"ering 'uestions such as I)hat s#ills "ill this person bring bac#CI and I)hat position "ill he or she illCI
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Chapter 15 - Managing Human Resources Globally

Chapter 15 Managing Human Resources Globally

+. , global organi%ation uses cultural di erences as an ad*antage. True False

Chapter 15 - Managing Human Resources Globally

Chapter 15 - Managing Human Resources Globally

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Multiple Choice Questions

Chapter 15 - Managing Human Resources Globally

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1(. Eist and describe Geert Ho stede&s i*e cultural dimensions.

15. :iscuss ho" economic systems impact HRM in international mar#ets.

Chapter 15 - Managing Human Resources Globally

Chapter 15 - Managing Human Resources Globally

Chapter 15 Managing Human Resources Globally ,ns"er Fey

True / False Questions

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Multiple Choice Questions

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