Deck 17: Managing Global Human Resources

Question 1

Of the types of international workers that multinational companies can employ,locals are best described as ________.

A)citizens of the countries where they are working
B)noncitizens of the countries in which they are working
C)citizens of the country in which the multinational company has its headquarters
D)noncitizens of the country in which the multinational company has its headquarters

Answer 1

A
Explanation: A) Locals are citizens of the countries where they are working.Expatriates are non-citizens of the countries in which they are working.Home-country nationals are citizens of the country in which the multinational company has its headquarters.

Question 2

Daniel is a manager for Siemens China,and it is time to conduct performance appraisals.During the appraisals,it would be most effective for Daniel to ________.

A)link performance with employee bonuses
B)make personal comments to the employee
C)focus on quantifiable, objective results
D)post appraisal results for each team

Answer 2

C
Explanation: C) Employee appraisal is particularly sensitive to the cultural realities in China.The appraisal therefore needs to follow the formalities of saving face and avoiding confrontational,tension-producing situations.In general,it's best to talk in terms of objective work data (as opposed to personal comments like "you're too slow") .

Question 3

Marie is an Italian executive working in a manufacturing plant in Siena,Italy that is owned by a parent company based in Singapore.Marie is a ________.

A)local
B)expatriate
C)third-country national
D)home-country national

Answer 3

A
Explanation: A) Locals are citizens of the countries where they are working.Expatriates are non-citizens of the countries in which they are working.Home-country nationals are citizens of the country in which the multinational company has its headquarters.

Question 4

Which of the following is a true statement regarding the European Union?

A)EU employers must provide employees with written terms of their employment.
B)EU employers must provide two weeks' notice when dismissing employees.
C)Each EU country pays workers the same minimum hourly wage.
D)Workers in the EU must live and work in their home country.

Question 5

In regards to ethics,which of the following is recommended for international firms?

A)requiring employee-at-will contracts
B)establishing codes of conducts for each country
C)developing and distributing a global code of conduct
D)translating the U.S. employee handbook into different languages

Question 6

In which country do individuals have a high acceptance of unequal power distribution between managers and subordinates?

A)Mexico
B)Hong Kong
C)Sweden
D)United States

Question 7

In China,qualified job candidates are most likely to be interested in a firm that offers ________.

A)signing bonuses
B)performance-based pay
C)job expansion opportunities
D)training and development programs

Question 8

Why is recruiting,hiring,and retaining good employees difficult in China?

A)economic difficulties
B)unmotivated workers
C)government restrictions
D)training requirements

Question 9

________ are noncitizens of the countries in which they are working.

A)Home-country nationals
B)Third-country nationals
C)Expatriates
D)Locals

Question 10

According to research,which of the following is a primary concern of Chinese managers?

A)getting tasks accomplished efficiently
B)keeping a distance from subordinates
C)enforcing a firm's policies and regulations
D)maintaining a peaceful work environment

Question 11

________ are formal,employee-elected groups of worker representatives that meet monthly with managers to discuss topics affecting the employees.

A)Bargaining units
B)Work councils
C)Mediation groups
D)Employee boards

Question 12

Geert Hofstede called the extent to which less powerful members of institutions accept and expect an unequal power distribution ________.

A)masculinity
B)individualism
C)power distance
D)tolerance for ambiguity

Question 13

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following questions is LEAST relevant to the decision to fill management positions in Chile with expatriates?

A)What will be the relocation and compensation costs to Wal-Mart of using expatriates?
B)What level of corporate control is needed for opening the new Wal-Mart stores?
C)What is the planned Wal-Mart marketing strategy for the new stores in Chile?
D)What is the typical attrition rate for expatriate employees at Wal-Mart?

Question 14

Which of the following terms refers to governmental actions that may adversely affect the long-term value of a firm?

A)cultural dynamics
B)political risks
C)power distance
D)codetermination

Question 15

In many European countries,________ replace the union-based worker-management mediations typical in the U.S.

A)HR managers
B)corporate attorneys
C)work councils
D)bargaining units

Question 16

Jason is a British freelance journalist working in Paris,so he is most likely classified as a(n)________.

A)local
B)expatriate
C)third-country national
D)home-country national

Question 17

In Germany,employees have the legal right to a voice in setting company policies.This is called ________.

A)codetermination
B)employment at will
C)internal coordination
D)gainsharing

Question 18

The European Union is best described as a ________.

A)system of global standards, policies, and legislation
B)common market for goods, services, capital, and labor
C)political agreement that standardizes human resource laws
D)political system for equalizing wages, benefits, and taxation

Question 19

Of the countries listed below,in which one do production workers receive the lowest hourly wage?

A)United States
B)Mexico
C)Germany
D)Taiwan

Question 20

________ are citizens of the countries where they are working.

A)Home-country nationals
B)Multi-nationals
C)Expatriates
D)Locals

Question 21

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following,if true,supports the assertion that Wal-Mart is an ethnocentrically oriented corporation?

A)Wal-Mart usually succeeds on an international level because the firm actively works to support local charities.
B)Wal-Mart rarely experiences cultural misunderstandings because of its tendency to hire locals to fill management positions.
C)Wal-Mart aims to maintain a unified organizational culture by filling foreign management positions with Americans.
D)Adaptability screening eliminates problems associated with transferring Wal-Mart managers and their families abroad.

Question 22

Peter is a German citizen working as a manager for Siemens in Freiberg,Germany.Siemens has facilities all over the world but its headquarters is in Germany.Peter is best categorized as a(n)________.

A)expatriate
B)third-country national
C)home-country national
D)host-country national

Question 23

Which of the following terms refers to having local employees abroad do jobs that the firm's domestic employees previously did in-house?

A)adapting
B)offshoring
C)enlarging
D)diversifying

Question 24

What value classification refers to a belief that the best manager for a specific position could be in any of the countries in which the firm operates?

A)polycentric
B)ethnocentric
C)geocentric
D)monocentric

Question 25

Which of the following terms refers to citizens of a country other than the parent or the host country?

A)third-country national
B)home-country national
C)multi-national
D)local

Question 26

Which of the following is the LEAST likely reason that a firm would choose an ethnocentric staffing policy?

A)lack of qualified host-country upper-management candidates
B)goal of reducing misunderstandings with locals
C)need to transfer core competencies effectively
D)desire to maintain a unified corporate culture

Question 27

Which of the following terms refers to the belief that home country attitudes,management style,knowledge,evaluation criteria,and managers are superior to anything the host country has to offer?

A)polycentric
B)ethnocentric
C)geocentric
D)monocentric

Question 28

Which of the following is the primary disadvantage of using expatriates to fill foreign subsidiary management positions?

A)high costs associated with relocation
B)time and effort required for training
C)inability to create short-term results
D)security concerns

Question 29

Which of the following terms refers to citizens of the country in which the multinational company has its headquarters?

A)expatriates
B)third-country nationals
C)home-country nationals
D)locals

Question 30

Which of the following corporate divisions plays the greatest role in offshoring?

A)marketing
B)accounting
C)manufacturing
D)human resources

Question 31

With a geocentric staffing policy,a firm is most likely able to ________.

A)provide effective training
B)recruit recent college graduates
C)use its human resources efficiently
D)strengthen its image within a local community

Question 32

A corporation that believes that only host country managers can ever really understand the culture and behavior of the host country market would be referred to as ________.

A)polycentric
B)ethnocentric
C)geocentric
D)monocentric

Question 33

Mercedes sent a team of executives from Germany to oversee the start-up of its U.S.operations.Which of the following terms best describes the values of Mercedes' top executives?

A)polycentric
B)monocentric
C)ethnocentric
D)geocentric

Question 34

Call centers that service customers for firms like software and computer hardware companies are increasingly using employees in India to staff the telephones.This is an example of ________.

A)outsourcing
B)offshoring
C)downsizing
D)international staffing

Question 35

Sara,who is originally from India,works in Texas for Dell as an IT manager.Dell,which has a localization policy,recently announced that management positions are available in its Bangalore,India facility.If Sara,who wants to return to India,is offered the Bangalore position,she would most likely be categorized as a ________.

A)commuter employee
B)independent contractor
C)third-country national
D)permanent transferee

Question 36

Samsung tends to follow an ethnocentric staffing model.From which group will it most likely hire for upper-level management positions at its Texas facility?

A)home country nationals
B)host country nationals
C)third country nationals
D)local citizens

Question 37

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following,if true,supports the argument that locals should be hired to fill management positions in Chile?

A)Chile has a high percentage of younger workers with college degrees.
B)Managers in Chile are expected to keep their distance from subordinates.
C)Chile has had an increase in foreign direct investment over the last five years.
D)Chileans expect managers and subordinates to interact in a highly informal manner.

Question 38

All of the following are reasons that firms rely heavily on locals to fill foreign subsidiary management positions EXCEPT ________.

A)pressure from local government
B)lower costs than using expatriates
C)improved public relations in community
D)high level of skills and technical qualifications

Question 39

Roberta is an Italian citizen who spent a great deal of time during her childhood in England.She now works in Brazil as an HR manager for a British company.Roberta is best described as a(n)________.

A)expatriate
B)third-country national
C)home-country national
D)host-country national

Question 40

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following,if true,best supports the argument of using expatriates to establish the new Wal-Mart stores in Chile?

A)Local candidates with the necessary managerial experience are difficult to find in Chile.
B)Wal-Mart uses an online recruiting system to facilitate human resources activities.
C)The State Department has issued travel alerts for Americans traveling in Chile.
D)Wal-Mart wants to develop good relationships with the local community.

Question 41

In January 2009,Wal-Mart acquired a controlling interest in Chile's leading food retailer.Since then,Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store.Wal-Mart is planning to open additional stores in Chile over the next five years.Wal-Mart's top executives are considering the idea of transferring U.S.managers to Chile to oversee the construction and establishment of the new stores. Which of the following,if true,undermines the argument of using expatriates to establish the new Wal-Mart stores in Chile?

A)Adaptability screening tests indicate that three potential candidates are bilingual and travel overseas frequently.
B)Wal-Mart offers overseas candidates extensive training on cultural differences and adaptation skills.
C)The most qualified Wal-Mart managers have no foreign travel experience and do not speak Spanish.
D)A balance sheet approach is used by Wal-Mart , but workers do not receive hardship allowances for moving to Chile.

Question 42

Which of the following terms refers to a lump-sum payment given to employees as a reward for moving from one assignment to another?

A)hardship allowance
B)foreign service premium
C)cost-of-living allowance
D)mobility premium

Question 43

All of the following are the primary benefits of providing ongoing training to employees on overseas assignments EXCEPT ________.

A)offering educational opportunities
B)developing relationships with co-workers
C)cultivating corporate values and standards
D)providing spousal networking opportunities

Question 44

Which of the following is most likely NOT covered by kidnapping and ransom insurance policies?

A)abductions
B)ransoms
C)crisis teams
D)weapons

Question 45

All of the following characterize European labor relations EXCEPT ________.

A)limited number of bargaining units
B)informal recognition of labor unions
C)bargaining through employer associations
D)industry-wide collective bargaining

Question 46

________ refers to bringing a manager back home after a foreign assignment has been completed.

A)expatriation
B)repatriation
C)mediation
D)job rotation

Question 47

Most North American companies use the ________ approach to formulating expatriate pay.

A)equitable wage rate
B)balance sheet
C)performance
D)total package

Question 48

________ are financial payments over and above regular base pay.

A)Foreign service premiums
B)Hardship allowances
C)Balance sheet payments
D)Mobility premiums

Question 49

Before departing for an overseas assignment,an employee would most likely benefit from ________ training.

A)technical
B)interpersonal
C)cross-cultural
D)career development

Question 50

A formal repatriation program should do all of the following EXCEPT ________.

A)assist employees with relocation logistics
B)seek compensation and benefits on behalf of employees
C)help employees update their resumes and make career plans
D)reassure employees of the company's concern for their welfare

Question 51

Which of the following terms refers to paying a portion of an expatriate's salary in home-country currency and a portion in local currency?

A)balance sheet approach
B)split pay approach
C)hardship premium
D)foreign-service premium

Question 52

Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country?

A)balance sheet
B)mobility allowance
C)performance pay
D)hardship method

Question 53

JJP Enterprises seeks to entice one of its star managers to move to Iraq to oversee a construction project.The firm will most likely offer a ________ because of the difficult living and working conditions in Iraq.

A)cost-of-living allowance
B)performance bonus
C)hardship allowance
D)mobility premium

Question 54

Frank Williams is being sent to Saudi Arabia for two years to work for his company's Saudi affiliate.Which of the following suggestions should Frank follow to minimize his chances of being the victim of a kidnapping?

A)take the same route to and from work
B)arrive at the airport close to departure time
C)wait at the airport in a main traffic area
D)leave work at the same time each day

Question 55

Which of the following qualities is most closely linked to an employee's success on an international work assignment?

A)technical skills
B)responsibility
C)intelligence
D)flexibility

Question 56

According to research,all of the following will most likely help spouses of expatriates adjust to living in foreign countries EXCEPT ________.

A)close family relationships
B)pre-school age children
C)scheduled vacations
D)language training

Question 57

The most common reason that an expatriate fails at an international assignment is ________.

A)incompetence
B)technical demands
C)family pressures
D)language difficulties

Question 58

Which of the following terms refers to the process of assessing an employee's probable success in handling a foreign transfer?

A)skills placement testing
B)adaptability screening
C)management assessment
D)performance appraisal

Question 59

Which of the following is NOT one of the primary expense groups used in the balance sheet approach to formulating expatriate pay?

A)taxes
B)housing
C)disposable income
D)discretionary expenses

Question 60

Jim Simmons,an American,has worked for a U.S.firm's Italian operations for two years with great success.Now,the company wants Jim to relocate to France to establish a new division.The company will most likely offer Jim a ________ to reward him for moving from one assignment to another.

A)hardship allowance
B)foreign service premium
C)cost-of-living increase
D)mobility premium

Question 61

Legally mandated holidays range from five weeks each year in Luxembourg to none in Great Britain.

Question 62

The majority of multinational corporation management positions are filled by expatriates.

Question 63

U.S.employers are required to attempt recruiting U.S.workers before filing requests to fill positions with foreign workers.

Question 64

The most significant HR challenge faced by international firms is the language barrier.

Question 65

In China,a structured interview process is the typical method for selecting employees.

Question 66

Which of the following is NOT one of the main components of a global mind-set?

A)psychological capital
B)intellectual capital
C)language capital
D)social capital

Question 67

Which term refers to a group of geographically dispersed coworkers that uses a desktop videoconferencing system to communicate and accomplish tasks for the firm?

A)virtual team
B)telecommuter group
C)permanent transferee
D)short-term international team

Question 68

An expatriate manager working in ________ would have the highest amount of disposable income.

A)Brazil
B)France
C)Indonesia
D)Saudi Arabia

Question 69

Third-country nationals hold citizenship in three countries.

Question 70

Which of the following was determined by a study of six international firms that have successfully established global HR systems?

A)Firms should focus on expatriation and repatriation programs to ease the transition period for employees working abroad.
B)Firms should develop HR systems that are universally acceptable and that can be effectively implemented in any location.
C)Firms rely more heavily on expatriates than locals in foreign subsidiaries, so it is unnecessary to make changes to existing HR policies.
D)Firms with foreign subsidiaries should adhere to local customs regarding screening, hiring, and training applicants.

Question 71

Codetermination means that employees have a legal right to voice opinions and preferences in setting company policies.

Question 72

What is the first step in establishing a global pay system?

A)adapting pay policies
B)developing strategic goals
C)identifying crucial executive behaviors
D)establishing a global philosophy framework

Question 73

The official length of a work week in the European Union is 40 hours.

Question 74

A major challenge for international businesses is the need to adapt personnel policies and procedures to the differences among countries.

Question 75

What is the primary problem associated with virtual teams at international firms?

A)scheduling meetings
B)agreeing on important issues
C)facilitating group communication
D)building trust among team members

Question 76

Which of the following is a true statement regarding expatriates?

A)Most expatriates require at least one year of psychological help after returning home.
B)Most expatriates avoid traveling abroad after returning to their home country.
C)Most expatriates and their families prefer open-ended work assignments.
D)Most expatriates quit within three years of returning home.

Question 77

U.S.employers have most likely experienced an increase in successful expatriate assignments in the last two decades because they have ________.

A)focused on job performance as the main selection criteria
B)increased the number of selection criteria for global assignees
C)provided global assignees with local managers to serve as mentors
D)allowed HR managers to have more control of the global hiring process

Question 78

Which of the following is a best practice used by firms that develop effective global HR systems?

A)creating a global network of specialists to help create a new HR system
B)standardizing the specific methods used to screen and evaluate applicants
C)allowing HR managers to devise locally appropriate recruiting policies
D)establishing HR policies at the firm's headquarters to avoid conflict

Question 79

Hourly wages for production workers in the United States are higher than those in Germany.

Question 80

Which of the following is recommended to firms to ensure that local managers find a global HR system acceptable?

A)ignore cultural differences
B)establish a chain of command
C)develop a strong corporate culture
D)understand the laws of the home country