Exam 10: Compensation for a Global Workforce

Which of the following objectives of an effective overall competitive strategy for managing a global workforce relates most closely to external equity?

Four variable contextual factors for determining the appropriate degree of emphasis on a global versus local perspective in designing compensation systems include heterogeneity, pervasiveness, strength of enforcement, and

According to the Milkovich and Bloom model of global reward system design, the crafted set of rewards provides clear encouragement for a common company mind-set and support of identified priorities for success, and which underlie and reinforce a common MNC global culture.

Since compensation has such a potentially powerful influence on individuals at the local level, this particular HR function is unable to contribute much to integration, coordination, and cooperation at the global level.

Despite recent developments in more standardized models of expatriate compensation, it is recommended that companies maintain flexibility in considering each expatriate's unique needs and situation and fine-tune the actual compensation arrangements through open discussion and negotiation.

A comprehensive, total reward system perspective likely would include these major forms of compensation: direct and indirect financial, job-related, and

The purpose of the __________ approach is to help expatriates avoid personal sacrifice in standard of living or financial loss due to the expatriate assignment, as well as provide an attractive incentive for accepting the assignment.

Compensation practices in countries and subcultures registering high in femininity (such as those in Italy, Switzerland, Mexico, USA, and Germany) may emphasize individual and group competition in pay, promotions, and recognition, with a clear emphasis on performance-based pay.

To fit country cultures that tend to be high in the cultural dimension of femininity (e.g., low masculinity), such as in __________, reward plans might appropriately reflect a strong emphasis in the total compensation package on social benefits, quality of work life, work/life balance, and job security.

Notwithstanding the increased interest and use of employee incentives, there remains a virtually universal interest, based on employee expectations and demands, for the total compensation package to

Which of the following ultimately determines whether an employee will want to continue his or her level and quality of effort?

__________ to fit individual employee needs is increasingly recognized as one of the most commonly described forms of rewards for all levels of employees throughout the world.

Senior executives, whose individual leadership performance is often associated with organizational performance, will likely continue to have their pay based more on organizational performance targets, such as stock price.

The practice of "pay-for-performance" focuses on financial incentives to motivate individual work performance, not group or organizational performance.

To fit country cultures that are relatively high in individualism, such as in __________, effective compensation practices might emphasize rewards based on individual performance.

This is by far the most common expatriate compensation model used by U.S. and European MNCs:

Tax law for expatriates around the world is fairly standard, making tax-related compensation planning relatively simple.

Compensation ultimately involves an individual determination of __________ in exchange for work effort.

There is a general trend that the higher the employee level, the less of one's total direct financial compensation is at risk with individual, group, and organizational incentives.

That which can effectively reward and motivate employee performance is not limited to direct financial compensation.