Deck 16: Managing Human Resources Globally

Question 1

Power distance concerns the way the culture deals with unequal distribution of power.

Answer 1

True

Question 2

A culture with a long-term orientation will have trainees who are likely to accept development plans and assignments.

Answer 2

True

Question 3

Cross-cultural training requires developing a greater awareness of one's own culture, too.

Answer 3

True

Question 4

A host country is a country, other than the parent country, in which an organization operates a facility.

Question 5

The most important influence on international HRM is the culture of the country in which a facility is located.

Question 6

In countries with large power distances, people address one another with first names.

Question 7

Cultural differences are a disadvantage to global organizations.

Question 8

Ample opportunities for educational development are provided in capitalist economic systems because education is free for students.

Question 9

Expatriates are employees from a country other than the parent country or the host country.

Question 10

Hiring employees from outside the host country is an option many companies take when the local labor market does not offer enough qualified people.

Question 11

According to research, employees who are extroverted, agreeable, and conscientious are most successful at completing overseas assignments.

Question 12

U.S. organizations exert more centralized control over labor relations in the various countries where they operate when compared with European organizations.

Question 13

Compared with other countries, the United States allows employers much latitude in reducing their workforce.

Question 14

A country's political system does not usually affect human resource management.

Question 15

High uncertainty avoidance refers to a strong cultural preference for structured situations.

Question 16

The usual way that a company begins to enter foreign markets is by exporting, or shipping, domestically produced items to other countries to be sold there.

Question 17

The specific methods of performance management that work in one country may fail in another, while general principles of performance management may apply in most countries.

Question 18

Even if employees persist and continue learning about their host country's culture, they rarely recover from culture shock.

Question 19

While training expatriates, trainers are expected to be authoritarian and controlling of the session in cultures low in power distance.

Question 20

Companies usually prefer hiring third-country nationals for filling positions in host-countries.

Question 21

Christopher, a U.S. businessman, visits India for a corporate meeting. While interacting with the board members, he addresses them by their first names, as he does with board members in the United States. However, the board members in India are offended by this gesture. Which difference in culture does this scenario reveal?

A) individualism/collectivism
B) uncertainty avoidance
C) power distance
D) long-term/short-term orientation
E) masculinity/femininity

Question 22

What is the usual way in which companies first enter foreign markets?

A) importing
B) offshoring
C) exporting
D) outsourcing
E) relocating

Question 23

Sean's company lays down stringent rules for employees to follow at work. Employees are expected to set goals for each day and week and share those goals on the company intranet. This way, Sean and his co-workers can be aware of the progress of departmental projects and prepare far in advance to meet deadlines. These qualities best describe a company that rates high on

A) individualism.
B) long-term orientation.
C) femininity.
D) uncertainty avoidance.
E) power distance.

Question 24

Jose, a Spanish national, is an employee at a U.S. company. He works at the company's branch in Spain. This would imply that Jose is a

A) host-country national.
B) parent-country national.
C) first-country national.
D) third-country national.
E) guest-country national.

Question 25

Which organizations are most likely to locate a facility based on the ability to effectively, efficiently, and flexibly produce a product or service, using cultural differences as an advantage?

A) foreign subsidiaries
B) international organizations
C) multinational organizations
D) global organizations
E) domestic organizations

Question 26

Which agreement was adopted by Canada, Mexico, and the United States to encourage trade between the three countries?

A) CSN
B) NAFTA
C) PICTA
D) APEC
E) TAFTA

Question 27

Vineet, an Indian, is employed by a pharmaceutical company whose headquarters are in Philadelphia. Vineet, however, operates out of the firm's production facility in New Delhi, India. Vineet is considered to be a(n)

A) parent-country national.
B) third-country national.
C) host-country national.
D) repatriate.
E) expatriate.

Question 28

Which description best defines an international organization?

A) an organization that builds facilities in a number of different countries in an effort to minimize distribution costs
B) an organization that builds facilities in a number of different countries in an effort to minimize production costs
C) an organization that sets up one or a few facilities in one or a few foreign countries
D) an organization that exports goods to more than a few countries
E) an organization that exports goods to a number of different countries

Question 29

Jocelyn works at a retail store in Los Angeles. She addresses her Indian manager, Anika, by her first name. Jocelyn's colleague advises against addressing Anika by her name, as she might find it disrespectful. The colleague is most likely right if Anika's cultural beliefs align with a

A) long-term orientation.
B) collectivist nature.
C) high power distance.
D) low uncertainty avoidance.
E) short-term orientation.

Question 30

Ashlee hails from a country whose legal system is based on religious scriptures. Social and business behaviors are judged based on religious laws and legal codes to a great extent. Which aspect of culture do these conditions represent?

A) masculinity
B) time orientation
C) high uncertainty avoidance
D) individualism
E) power distance

Question 31

Rite Inc., a company headquartered in the United States, opens an overseas facility in China. In this scenario, the Chinese facility is located in a

A) host country.
B) parent country.
C) first country.
D) third country.
E) guest country.

Question 32

A beverage company headquartered in Miami selects a Brazilian manager to run its Mexican operations. In this example, the Brazilian manager is a

A) parent-country national.
B) host-country national.
C) third-country national.
D) home-country national.
E) first-country national.

Question 33

Which description best defines a multinational company?

A) an organization that builds facilities within the same country to facilitate large-scale exports to various countries
B) an organization that builds facilities in a number of different countries in an effort to minimize production and distribution costs
C) an organization that sets up one or a few facilities in one or a few foreign countries
D) an organization that operates from one country and has customers from all over the globe
E) a domestic organization that chooses to locate a facility using cultural differences as an advantage

Question 34

Which term refers to a country that is neither the parent country nor the host country of a company?

A) first country
B) facilitating country
C) governing country
D) third country
E) guest country

Question 35

Quin believes that the key to effective management is to involve his team members in the firm's decision-making processes. He surmises that this will allow him and his team to work as one unit, making choices that will benefit them all in addition to the firm. In this case, Quin's thoughts reflect that of a person with

A) an individualistic nature.
B) a collectivist nature.
C) high power distance.
D) low uncertainty avoidance.
E) a short-term orientation.

Question 36

Kristen and Haley are employees of a publishing house and work together on the same team. Kristen believes that Haley hails from an individualistic culture. Which statement, if true, strengthens Kristen's belief?

A) Haley prioritizes helping her team members attain their career advancement goals.
B) Haley focuses on self-development and puts her needs before those of the group.
C) Haley places emphasis on achieving upward social mobility by fulfilling common goals.
D) Haley prefers decision making through her team members' participation in management.
E) Haley's traits are typical of those from cultures that expect protection from the community.

Question 37

Which term accurately describes Corina, who was born in the United States and is currently working in Germany for a company headquartered in China?

A) parent-country national
B) host-country national
C) third-country national
D) home-country national
E) guest-country national

Question 38

Owen, a British citizen, and Trevor, a U.S. citizen, are employees of an electronics manufacturing company headquartered in London. While Owen works out of the London office, Trevor operates out of New York. Which statement is true in this scenario?

A) Owen is a host-country national.
B) Owen is a parent-country national.
C) Owen and Trevor are expatriates.
D) Trevor is a third-country national.
E) Trevor is a home-country national.

Question 39

Pablo, an American who works for a U.S.-based company, has been sent to England for a work assignment. Pablo would be known as a(n)

A) expatriate.
B) repatriate.
C) host-country national.
D) third-country national.
E) guest-country national.

Question 40

A company, which has its headquarters in Japan, has branches in the United States. A Pakistani manager works in a facility in the United States. In this scenario, Japan is the ________ country, and Pakistan is the ________ country.

A) parent; third
B) expatriate; host
C) host; guest
D) third; first
E) parent; host

Question 41

Which statement is true about cultures with a long-term orientation?

A) They have a tendency to look down upon those who invest in savings.
B) They prefer jobs that are relaxed, easy, and do not involve hard work.
C) They focus primarily on cultural values that fulfill obligations in the present.
D) They promote respect for those who are good at achieving immediate results.
E) They focus primarily on cultural values that tend to pay off in the future.

Question 42

When Carlton Construction, a maker of construction equipment, needs supervisors for its factories in China, it recruits Chinese workers before it looks in other countries. Which statement best explains Carlton Construction's recruiting practices in China?

A) Any Chinese workers Carlton Construction hires must be eligible to work in the United States.
B) The United States ranks among the most challenging destinations for expatriate assignments.
C) Sometimes third-party nationals have better technical and human relations skills.
D) Chinese employees work harder and are better motivated than expatriate employees.
E) Hiring locally is much less expensive than training and transporting expatriate employees.

Question 43

Brenda, an American, works for an automobile manufacturer in Maine. Her manager, Roy, sends her on an overseas assignment to handle operations at the company's newly acquired plant in Germany. Which statement, if true, most likely led to Brenda being chosen for the assignment?

A) Brenda lacks tolerance to ambiguity and resists change.
B) Brenda prefers to work in a less challenging work environment.
C) Brenda works best with those from feminine cultures with low power distance.
D) Brenda is insensitive to differences in cultures and norms.
E) Brenda possesses the motivation to succeed and is achievement-oriented.

Question 44

Identify an advantage of having wide latitude in reducing a company workforce.

A) It gives employers the option of hiring for peak needs and laying off employees if needs decline.
B) It helps in protecting workers' jobs.
C) It helps employees adjust to a new culture.
D) It allows workers to keep more of their earnings regardless of the taxes they pay.
E) It gives employees the advantage of accumulating many years of work experience in an organization.

Question 45

The ________ of a country's labor force affect how and the extent to which foreign companies want to operate there.

A) population
B) HR practices
C) education and skill levels
D) cultural differences
E) collectivism and potential for unionization

Question 46

What is a feature of a company with an individualistic culture?

A) It has flatter pay structures.
B) It exhibits greater differences between the highest and lowest pay in the organization.
C) It emphasizes on organizational rather than individual performance.
D) It involves employees in collective decision making.
E) It has compensation systems based on fixed pay according to seniority.

Question 47

What is the best way for an internationally expanding organization to gain expertise in a host country's legal requirements?

A) gather advice from a third-country national, since they are a neutral party
B) hire one or more host-country nationals
C) increase the number of parent-country lawyers
D) open a facility based on the parent-country's legal system and adjust operations as the need arises
E) interview host-country nationals to learn how they would like facilities in their countries to be run

Question 48

Lillian and Thomas are employees of a software development firm in San Francisco. Thomas believes that Lillian exhibits behaviors that resemble those of individuals from masculine cultures. Which statement, if true, supports Thomas's beliefs?

A) Lillian places more emphasis on a harmonious working relationship between members in her team.
B) Lillian places more emphasis on creating an atmosphere of competition among her team members.
C) Lillian places more emphasis on undertaking initiatives aimed at mobilizing funds for the underprivileged.
D) Lillian places more emphasis on undertaking initiatives aimed at preventing environmental degradation.
E) Lillian places more emphasis on achieving social mobility through collectivist means.

Question 49

Several years ago, America Money Bank set up a large customer service facility in India and hired English-speaking operators to handle questions from customers. Now, although the bank forecasts continued growth, the human resource department is planning for fewer workers in India. What changes in its customer service facility is America Money Bank most likely implementing in this situation?

A) The bank will switch to exporting these services to customers from its home office.
B) The facility is moving to a higher-wage country.
C) The bank does not intend to continue this service to customers.
D) The bank is expecting the workers to handle each call faster.
E) The facility is automating the process of answering routine questions.

Question 50

Ray works as an accountant in the headquarters of a fast-food chain. He encourages his colleagues to participate in an initiative he started that involves planting trees and flowers on the office's grounds. Ray's initiative most likely reflects a ________ culture.

A) collectivist
B) short-term
C) feminine
D) high power distance
E) low uncertainty avoidance

Question 51

What is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions?

A) They are familiar with the parent-country's customs.
B) They can easily understand the values of the local workforce.
C) They cost more to train, showing the company invests in its workers.
D) The company will not be required to transport the employee's spouse.
E) These employees are far more open to taking on new job responsibilities.

Question 52

Alexis, the marketing manager of a mobile phone company, is achievement-oriented and exhibits high levels of assertiveness. She creates marketing plans that will maximize financial returns and enjoys competing against other managers in the company. Alexis is most likely to be an individual whose culture reflects

A) masculine traits.
B) a short-term orientation.
C) high power distance.
D) low uncertainty avoidance.
E) collectivist views.

Question 53

A&P Inc. is setting up production and distribution facilities in Mexico to meet the growing demand there. The company's executives want the human resource department to identify one of its U.S. managers to lead the operations there, so he or she can ensure that the company culture is maintained. They ask the HR vice president to recommend a person with strong financial skills. The HR vice president agrees but adds that they also should use psychological testing to identify candidates who are highly flexible and conscientious. Which statement best supports the HR vice president's advice?

A) These traits will replace the need for support from family members.
B) These traits will help the manager be extroverted in the new environment.
C) These traits are associated with a high degree of financial skills.
D) These traits will prevent the manager from noticing cultural differences.
E) These traits will help the manager persevere through culture shock.

Question 54

Whitman Tech forecasts a sales increase in several product lines, so management is planning how to expand production capacity at its three factories in Mississippi, Poland, and Thailand. The HR department prepares estimates of local labor costs and availability of workers in each location. What else should the decision makers take into account when planning labor needs?

A) calculating of the total number of floating holidays each employee will receive
B) the probability that newly hired employees at each location will suffer culture shock
C) whether the country in which the factory operates has an individualistic culture
D) if the company can put a greater emphasis on protecting workers' jobs
E) how these considerations weigh against financial and operational requirements

Question 55

Ronda, a sales executive, believes that her hard work and persistence will reap rewards in the future. She is not very assertive, prefers to be instructed, and awaits her team's approval before taking decisions. Ronda's attitudes and behavior are consistent with a culture that

A) is highly individualistic.
B) has high power distance.
C) is low on uncertainty avoidance.
D) is feminine.
E) is long-term oriented.

Question 56

Morgan, a consultant, was assigned to an overseas project in China for a period of two years. After only seven months, Morgan's manager decides to bring Morgan back to the home country and replace him with someone else in China. Which statement, if true, is most likely to have caused this decision?

A) Morgan exhibited the ability to effectively communicate in Mandarin.
B) Morgan exhibited a sense of intolerance toward collectivist ideals.
C) Morgan exhibited high levels of extroversion that were required for the job.
D) Morgan exhibited high levels of cohesiveness.
E) Morgan exhibited lower levels of disillusionment than other employees.

Question 57

Becky and Dave are expatriates working for different companies in two different countries. Becky's company is very structured, follows rigid rules for security, and expects employees to behave in a certain manner. Dave's company is a little more relaxed, and they tend to take each day as it comes. Which cultural difference contributes to this difference in the way these corporations operate?

A) Becky's company is in a country high in feminine culture, whereas Dave's company is in a country high in masculine culture.
B) The culture of Becky's company functions with a low power distance, whereas the culture of Dave's functions with high power distance.
C) Becky's host country functions at an individualistic level, whereas Dave's host country functions at a collectivist level.
D) Becky is in a company with a short-term orientation culture, whereas Dave is in a company with a long-term orientation culture.
E) Becky's company's culture functions with a high uncertainty avoidance, whereas Dave's company's culture functions with a low uncertainty avoidance.

Question 58

U.S.-based Pearly People introduced a line of accessories that have been very popular in France, leading the company to want to open a distribution facility there. The marketing manager is optimistic and wants to scale up fast, but the HR manager advises proceeding with caution. What difference between the countries best explains the HR manager's advice?

A) If the company replaces French workers in the future, they will have to develop new skills.
B) HR planning addresses hiring but cannot prepare the company for a possible slowdown.
C) French companies are developing computer systems to automate distribution facilities.
D) French laws encourage layoffs when business slows, which is bad for morale.
E) U.S. laws give employers wide latitude for workforce reductions, but French laws do not.

Question 59

When an expatriate is sent on a foreign assignment and begins experiencing feelings of isolation, criticism, stereotyping, and even hostility, this person is said to be experiencing

A) validation.
B) adjustment.
C) recovery.
D) culture shock.
E) repatriation.

Question 60

________ promote respect for past tradition and for fulfilling social obligations in the present.

A) Short-term orientations
B) Masculine cultures
C) Feminine cultures
D) Individual orientations
E) Capitalist orientations

Question 61

Kaitlin, a human resource professional, is evaluating some of the company's managers to select one for an overseas assignment. She knows she may not discriminate based on age or sex, but she also doesn't want to send someone on an assignment that will cause personal difficulties, disrupt family relations, and cause complications for the manager's success. How can she best avoid discrimination while selecting a candidate who can thrive in the assignment?

A) by maintaining a positive view of the assignment so all candidates will be interested
B) by inviting candidates to a frank, but private, conversation about family-related issues
C) by interviewing only candidates without spouses or children
D) by asking each candidate to describe his or her family situation
E) by giving candidates a complete, accurate preview of the assignment and the host country's culture

Question 62

Dwight, Dane & Associates, a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which consideration is most affected by the international nature of the workforce?

A) the need to measure training outcomes
B) the need to have training objectives
C) management's interest in the topic
D) the employees' motivation level
E) cultural differences

Question 63

While training and developing a global workforce, what is a challenge that an organization is most likely to face?

A) creating a comprehensive training program for employees from different cultures
B) making employees aware of the training content and the method of evaluation
C) linking training objectives to performance management
D) making employees aware of the development plans
E) deciding the duration of the training program

Question 64

Sebastian has been selected to work at his firm's manufacturing plant in India. The training department divides the cross-cultural preparation into three phases. What is the training team likely to do during the departure phase of cross-cultural preparation?

A) They will conduct training sessions that include language instructions.
B) They will arrange a mentoring program for the assignment overseas.
C) They will provide information about changes in the home-country workplace.
D) They will provide the company's newsletters and local newspapers.
E) They will provide a formal program for the actual assignment.

Question 65

Musician Productions, a maker of musical instruments based in Michigan, is preparing to open a branch office in Paris, France. Its benefits package in the United States includes the benefits most commonly offered in this country. What additional benefits are the French employees likely to expect?

A) two weeks of paid vacation and national health insurance
B) unpaid family leave and paid vacation time
C) health insurance and unpaid maternity leave
D) pensions and flexible work schedules
E) pensions and more paid vacation time

Question 66

Identify a true statement about employee benefits.

A) In both the United States and Europe, the awarding of stock options is linked to specific performance goals.
B) Pension plans are more widespread in the United States and Japan than in Western Europe.
C) Unlike in the United States, compensation plans in other countries are less likely to include benefits.
D) Paid vacation tends to be more generous in Western Europe than in the United States.
E) Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade.

Question 67

Which statement best describes a difference of giving performance feedback outside the United States?

A) In contrast to U.S. practices, performance feedback outside the United States includes repayment of obligations.
B) Performance feedback is expected in the United States but is forbidden by many other countries' laws.
C) U.S. workers are more interested than other workers in other countries in hearing about their performance.
D) Employees in other countries seek out direct feedback more readily than U.S. employees do.
E) Employees in other countries are less likely to be comfortable with direct statements about their performance.

Question 68

In Ireland, the pay structure includes high pay for managers relative to nonmanagement employees. Which statement best explains the wide pay difference in Ireland?

A) Market structures are consistent across countries.
B) Ireland does not have good recruiting systems for identifying talented managers.
C) Irish managers tend not to be loyal, so companies are constantly replacing them.
D) Multinational companies have been leaving Ireland because of falling demand.
E) The demand for managers with technical expertise has been outstripping the supply.

Question 69

Shannon, a Canadian citizen, has been working in the United States for two years. Shannon's manager, Eric, believes she possesses the skills required for adaptation and is ideal for an overseas managerial assignment in India. Which statement, if true, strengthens Eric's belief?

A) Shannon can take criticism only from positions above hers.
B) Shannon needs time to develop a positive self-image in a new place.
C) Shannon has the ability to foster relationships with people in a host country.
D) Shannon does not understand and value her own culture very well.
E) Shannon is very assertive and resistant to change.

Question 70

Identify a true statement about the balance sheet approach used for expatriate compensation.

A) It includes planning for how the returning employee will contribute to the organization.
B) It ensures managers receive extra pay for the inconvenience of locating overseas.
C) It refers to the expatriate receiving information and recognizing changes while abroad.
D) It withholds the amount of tax to be paid in the host country.
E) It constantly changes in response to a host of economic forces.

Question 71

Which statement is true regarding decisions related to the global compensation strategy?

A) They affect a company's costs and abilities to compete.
B) They focus more on flexibility than on fairness to account for differences across cultures.
C) They are made on the basis of the cost of living in the home country.
D) They do not compare wages across countries.
E) They are not determined by labor costs.

Question 72

Christian, an automobile engineer, is sent on a foreign assignment to Iceland. Initially, Christian is fascinated by the culture and history of the town he lived in. Within a month, he begins to feel disillusioned and discomforted by the differences in norms and values. Which term best describes this phase of Christian's experience?

A) recovery
B) culture shock
C) honeymoon
D) validation
E) adjustment

Question 73

The founder of Radiance Co. in Mexico wants to open its second facility to produce housewares in the United States. However, the finance manager suggests an overseas location would help the company remain competitive, because labor costs are lower in many other countries. To arrive at the decision that will best promote Radiance's ability to compete, what other HR factors, if any, should the company consider?

A) access to resources in each possible location
B) differences in transportation costs from factories to customers
C) no other factors, because costs determine competitiveness
D) differences in workforces' education levels and languages
E) differences in workforces' education, skill, and productivity

Question 74

Deena, a human resource professional, works for a U.S. company that is opening an office in Brazil. She is preparing a training program for the managers there to learn how to carry out performance management. What is a valid point Deena should cover in the training?

A) If growth slows, the company may have to update its performance plans more often.
B) If managers are concerned about bad karma, they do not have to give employees feedback.
C) In delivering feedback, managers should meet Brazilian cultural standards for bowing and making eye contact.
D) Managers should review employees' shortcomings before giving praise.
E) Managers can expect that Brazilian employees want to know what they are doing right.

Question 75

Appropriate behavior in Ghana includes

A) touching foreheads as a sign of greeting.
B) dramatic displays of loyalty only when it suits the individual.
C) disobedience of government-suggested regulations and procedures.
D) the length of eye contact.
E) repaying obligations.

Question 76

________ refers to training employees on overseas work assignments to work through national and cultural boundaries.

A) Adventure learning
B) Experiential learning
C) Validation
D) Cross-cultural preparation
E) Repatriation

Question 77

International assignments are especially beneficial to the organization if they are linked to the company's

A) labor relations.
B) outsourcing programs.
C) training methods.
D) bonus plans.
E) development programs.

Question 78

Which statement describes an approach that is most appropriate for training employees from cultures high in uncertainty avoidance?

A) Trainers adopt an impromptu style of instruction.
B) Trainers provide a formal instructional environment.
C) Trainers are flexible and open to schedule and activity changes.
D) Trainers allow trainees to determine the pace of the programs.
E) Trainers emphasize trainees' relationships with one another.

Question 79

Identify a true statement about international labor relations.

A) In comparison with U.S. organizations, European organizations exert more centralized control over labor relations in the countries where they operate.
B) The day-to-day decisions about labor relations are usually handled by each foreign subsidiary in companies that operate across borders.
C) Governments never get involved to protect workers who immigrate to other countries.
D) Most U.S. organizations, in contrast to European organizations, bargain with a union representing an entire industry's employees, rather than with the local union.
E) Companies that operate across national boundaries mostly work only with unions in the home country.

Question 80

Which employee is likely to be the most motivated to take on an overseas assignment?

A) Sean, who may have medical conditions to deal with if he travels overseas.
B) Rachel, who has a very realistic understanding of what working and living abroad requires.
C) Pamela, whose spouse doesn't want to shift to a new culture and learn a new language.
D) Kelly, who is ethnocentric and has stereotypical views about other cultures.
E) Greg, who requires extensive training to acquire the basic skills required for the assignment.