Deck 17: Managing Human Resources in a Global Business

Question 1

High labour costs can require a focus on efficiency and on human resource practices aimed at improving

A)absenteeism rates.
B)selection practices.
C)employee turnover.
D)grievance procedures.
E)employee performance.

Answer 1

E

Question 2

Brian is the director of HR for a car manufacturer.He must advise the VP of operations as to whether the plant manager in India should be a local employee or an expatriate manager.Which of the following includes the advantages of hiring local talent for this role?

A)It is generally less expensive.
B)It is generally less expensive and expatriates may emphasize short term projects.
C)Expatriates may emphasize short term projects.
D)It is generally less expensive and the corporation may be viewed locally as a "better citizen."
E)Local talent is likely to have greater management experience.

Answer 2

D

Question 3

Human resources managers must consider the impact of intercountry differences on human resource operations conducted

A)across Canada.
B)intrafirm.
C)domestically.
D)globally.
E)locally.

Answer 3

D

Question 4

The relationship between the worker, the employer, and the labour union is referred to as

A)reengineering of work.
B)empowerment of employees.
C)human resources management.
D)production management.
E)industrial relations.

Question 5

The most likely destination for a foreign assignment today is

A)Brazil.
B)Mexico.
C)Singapore.
D)Russia.
E)the People's Republic of China.

Question 6

It is suggested that HR staff members in a foreign subsidiary are best drawn from

A)parent country citizens.
B)third-country nationals.
C)locals.
D)home country citizens.
E)host-country citizens.

Question 7

As a result of globalization, companies based in Canada with international operations

A)must cut costs in Canada to remain profitable.
B)tend to relocate the head office to a jurisdiction where they pay less tax.
C)relocate employees overseas on a regular basis.
D)have more than one "official" language.
E)are often targets for companies wanting to merge and gain access to Canadian markets.

Question 8

In socialist countries, HR practices tend to shift toward preventing unemployment, even at the cost of

A)freedom of expression.
B)civil liberties.
C)efficiency.
D)long-range planning.
E)career development.

Question 9

Brian is the director of HR for a global software development company.He is advising the director of sales about which of the sales managers to send to lead the sales department in India.Which of the following are key traits Brian should consider in advising on the best candidate for the expatriate assignment?

A)agreeableness
B)interpersonal skills and cultural sensitivity
C)cultural sensitivity only
D)interpersonal skills, cultural sensitivity, and flexibility
E)There are no specific traits that are helpful to consider.

Question 10

Wide-ranging customs that vary from country to country demanding corresponding differences in HR practices among a company's foreign subsidiary are

A)cultural differences.
B)trade deficits.
C)balance of payments.
D)trade surpluses.
E)foreign trade.

Question 11

The process whereby employees have a legal right to a voice in setting company policies is

A)reengineering of work.
B)codetermination.
C)joint venturing.
D)career development.
E)strategic alliance.

Question 12

When sending employees abroad, employers must address practical issues such as

A)knowledge dissemination.
B)developing talent on a global basis.
C)deployment.
D)naturalization.
E)assignment letters.

Question 13

U.S.multinational companies experience expatriate assignment failure rates of

A)40%-50%.
B)5% and under.
C)30%-40%.
D)15%-25%.
E)10%-20%.

Question 14

Workforce mobility programs focus on

A)overcoming barriers to entry to the workforce for persons with disabilities.
B)sustainable ways of enabling employees to get to/from the workplace.
C)managing the human resources functions for employees working outside of head office region.
D)finding jobs for employees who are facing layoff or downsizing.
E)enabling workers from foreign countries to find work in Canada.

Question 15

Canadian companies have reported low failure rates for employees on foreign assignments relative to other countries, particularly

A)Sweden.
B)Germany.
C)the United States.
D)Japan.
E)Britain.

Question 16

The degree to which ties between persons are normally loose rather than close is known as

A)individualism vs.collectivism.
B)religious vs.sacrimonious practices.
C)legal practices vs.bribery.
D)loose-tight tension.
E)mercantilism vs.trade isolation.

Question 17

The number one concern when it comes to employee relocations is

A)cost projections.
B)candidate assessment.
C)relocation assistance.
D)family issues.
E)candidate selection.

Question 18

The extent to which the less influential members of institutions accept and expect that power will be distributed unequally is referred to as

A)power distance.
B)political differences.
C)need for power.
D)religious practices.
E)legal distinctions.

Question 19

"Expatriate failure"is

A)failure to recover cost of investment on an expatriate.
B)rare.
C)repatriation.
D)re-assimilating the expatriate.
E)early return from an expatriate assignment.

Question 20

The following are all factors that demand adapting personnel policies and procedures to the differences among countries in which subsidiaries are based except

A)industrial relations factors.
B)import tax rates.
C)cultural factors.
D)economic factors.
E)labour cost factors.

Question 21

The citizens of a country who have jobs in the home country are referred to as

A)expatriates.
B)locals.
C)illegal immigrants.
D)home-country nationals.
E)third-country nationals.

Question 22

The following are all traits that managers should possess when assigned domestically and overseas in order to be successful except

A)adaptability.
B)relational skills.
C)technical skills.
D)exploitive skills.
E)motivation.

Question 23

The type of corporation where there is a conscious belief that only host country managers can ever really understand the culture and behaviour of the host country market is known as a(n)

A)homocentric business.
B)multicentric corporation.
C)geocentric organization.
D)polycentric corporation.
E)ethnocentric organization.

Question 24

The type of corporation where the prevailing attitude is that the home country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country may have to offer is known as a(n)

A)ethnocentric organization.
B)geocentric organization.
C)homocentric business.
D)polycentric business.
E)multicentric corporation.

Question 25

International managers who are citizens of a country other than the parent or the host country are called

A)home-country nationals.
B)illegal aliens.
C)third-country nationals.
D)expatriates.
E)locals.

Question 26

The type of organization where it is assumed that management candidates must be searched for on a global basis because the best manager for any specific position anywhere on the globe may be found in any of the countries in which the firm operates is known as a(n)

A)ethnocentric corporation.
B)homocentric business.
C)multicentric organization.
D)geocentric organization.
E)polycentric corporation.

Question 27

The citizens of the host country are referred to as

A)third-country nationals.
B)home-country nationals.
C)locals.
D)illegal immigrants.
E)expatriates.

Question 28

The major reason for using expatriates for staffing subsidiary operations is

A)greater understanding of the foreign laws.
B)better relationships with local customers.
C)lower costs incurred with expatriates.
D)greater familiarity with culture.
E)technical competence.

Question 29

Some organizations have moved away from full-scale relocation of an employee and his or her family to other alternatives including

A)job sharing on foreign assignments.
B)short-term assignments of between six months and one year with frequent home leave.
C)rotating foreign assignments.
D)dual households in the destination country.
E)frequent short-term business trips.

Question 30

Expatriates represent a minority of managers; thus, most managerial positions are filled by

A)third-country nationals.
B)illegal aliens.
C)second-country nationals.
D)locals.
E)home-county nationals.

Question 31

Multinational firms' top executives are often categorized in which of the following classes?

A)geocentric and ecocentric
B)homocentric and polycentric
C)polycentric and biocentric.
D)ethnocentric, homocentric, and multicentric
E)ethnocentric, polycentric, and geocentric

Question 32

The primary reason for expatriate failure is not inadequate technical competence, but

A)lack of skilled personnel.
B)inability to cope with overseas production.
C)language barriers.
D)personal or family problems.
E)difficulty of the new assignment.

Question 33

The following are all reasons for using ethnocentric policies in staffing subsidiaries except

A)lack of qualified host-country senior management talent.
B)tighter control.
C)transferring the parent firm's core competencies to a foreign subsidiary more expeditiously.
D)maintaining a diverse corporate culture.
E)maintaining a unified corporate culture.

Question 34

The training level that corresponds to raising awareness of cultural differences and their impact on business outcomes is

A)Level 1.
B)Level 2.
C)Level 3.
D)Level 4.
E)Level 5.

Question 35

The noncitizens of the countries in which they are working are referred to as

A)expatriates.
B)illegal aliens.
C)home-country nationals.
D)third-country nationals.
E)locals.

Question 36

Multinationals assign home-country nationals from their headquarter's staff abroad on the assumption that these managers are

A)eager to face a new challenge.
B)familiar with customers abroad.
C)motivated to adapt to a new culture.
D)multilingual.
E)more likely to implement instructions from headquarters.

Question 37

The policy in which the foreign subsidiary is staffed with host-country nationals and its home-office headquarters with parent-country nationals is known as

A)geocentric.
B)polycentric.
C)ethnocentric.
D)multicentric.
E)homocentric.

Question 38

The staffing policy in which all key management positions are filled by parent-country nationals is known as

A)homocentric.
B)ethnocentric.
C)polycentric.
D)geocentric.
E)multicentric.

Question 39

Realtex, an international resort development company, has a staffing policy which seeks the best people for key jobs throughout the organization, regardless of nationality.Realtex has what type of staffing policy?

A)polycentric
B)geocentric
C)multicentric
D)homocentric
E)ethnocentric

Question 40

The following are all reasons to rely on local, host country management for filling a foreign subsidiary's management ranks except

A)the multinational corporation may be seen as a "better citizen."
B)lower costs incurred with expatriates.
C)preference of government for the "nativization"of local management.
D)preference of employees to not work in a foreign country.
E)lower costs incurred with local management.

Question 41

An international compensation trend used to reward managers is

A)an annual bonus.
B)a lump sum bonus.
C)a piece wage incentive.
D)variable pay.
E)perquisites.

Question 42

In the balance sheet approach, base salary will normally be in the same range as the manager's

A)performance appraisal.
B)foreign country salary.
C)home-country salary.
D)peers.
E)annual bonus.

Question 43

Codetermination, or mandatory worker representation on an enterprise's board of directors, is especially prevalent in

A)Japan.
B)Mexico.
C)Sweden.
D)Italy.
E)Germany.

Question 44

The balance sheet approach for formulating expatriate pay uses all of the following home-country groups of expenses except

A)pay supplements.
B)job evaluation.
C)goods and services.
D)income taxes.
E)housing.

Question 45

A four-level approach to special training for expatriate candidates includes training in all of the following except

A)attitudes and how they influence behaviour.
B)factual knowledge about the target country.
C)awareness of cultural differences.
D)family dynamics.
E)language, adjustment, and adaptation.

Question 46

International EAPs can treat common reactions to culture shock, including all the following except

A)chronic fatigue.
B)depression.
C)homesickness.
D)irritability.
E)marital stress.

Question 47

A process for ensuring success for managers in overseas assignments is

A)occupational health and safety training.
B)cross-cultural training.
C)job analysis.
D)performance appraisal.
E)job enrichment.

Question 48

The training level that is focused on skill building in areas like language and adaptation skills is

A)Level 1.
B)Level 2.
C)Level 3.
D)Level 4.
E)Level 5.

Question 49

One of the reasons Canadian managers are in demand across the globe is because

A)Canada's living standards are relatively low compared to many European countries and the US.
B)Canadians are widely perceived to be "nice people."
C)Canada's business schools produce managers who are among the very best in the world.
D)Canada's diverse ethnic makeup has produced a generation of business leaders who mix easily with different cultures.
E)many managers in Canada come from an ethnic background compatible with their expatriate assignment so they already are well-adapted to it.

Question 50

The expatriate performance appraisal process could be improved in any of the following ways except

A)weighing the evaluation more toward the on-site manager's appraisal than the home-country manager's perceptions.
B)not appraising the expatriate manager on quantifiable criteria only, including others such as insight into the interdependencies of domestic and foreign operations.
C)modifying performance appraisal criteria to fit the overseas position.
D)Using behaviourally anchored rating scales.
E)Stipulating the assignment's difficulty level.

Question 51

A payment made to compensate a manager for cultural and physical adjustments that he or she will have to make is called a(n)

A)education allowance.
B)overseas bonus.
C)overseas incentive.
D)housing allowance.
E)mobility premium.

Question 52

Some important differences between labour relations practices in Europe and North America include all of the following except

A)employer organization.
B)centralization.
C)labour-management contracts.
D)union recognition.
E)time horizon.

Question 53

Repatriation refers to the process of

A)moving family back to the home country.
B)moving from one country to another.
C)moving home then back to the host country.
D)moving back to the parent company and country from the foreign assignment.
E)becoming a third-country national.

Question 54

The training level that corresponds to a focus on attitudes and aims to get participants to understand how attitudes are formed and influence behaviour is

A)Level 1.
B)Level 2.
C)Level 3.
D)Level 4.
E)Level 5.

Question 55

A committee in which plant workers consult with management about certain issues or share in the governance of the workplace is called a(n)

A)codetermination committee.
B)workers' rights committee.
C)joint labour-management committee.
D)works council.
E)enterprise management committee.

Question 56

The leading cause of expatriate "failures" is

A)the maturity level of the expatriate.
B)the adaptability of the expatriate.
C)the inability of the expatriate's spouse to adjust.
D)compensation levels which do not adequately match the local living standards in the expatriate's assignment.
E)unsuitability for the assignment.

Question 57

The process of moving back to the parent company and country from the foreign assignment and returning to one's family and familiar surroundings is known as

A)repatriation.
B)expatriation.
C)acclimatization.
D)confiscation.
E)reengineering.

Question 58

The first step in ensuring the foreign assignee's success is

A)screening.
B)job enrichment.
C)human resource planning.
D)succession planning.
E)job previews.

Question 59

Level 3 of the training of employees for global assignments is focused on

A)the impact of cultural differences.
B)understanding how attitudes are formed.
C)factual knowledge of the target country.
D)language acquisition and adaptation skills.
E)non-verbal communication awareness.

Question 60

The most common method for formulating expatriate pay, to equalize purchasing power across countries, is a technique known as the

A)balance sheet approach.
B)balance of payments approach.
C)balanced pay approach.
D)income statement approach.
E)balance of trade method.

Question 61

In 2008, over 42 percent of new immigrants were working in occupations that required lower levels of education than what they had attained.

Question 62

Identify and describe the three barriers confronting new immigrants to Canada upon attempting to enter the labour force.

Question 63

To improve the expatriate appraisal process, the evaluation should be weighted more toward the home-site manager's perceptions than toward the on-site manager's appraisal.

Question 64

Industrial relations and, specifically, the relationship between the worker, the union, and the employer, vary dramatically from country to country and have an enormous impact on HR management practices.

Question 65

Management of the HR function in multinational companies is complicated enormously by the need to adapt HR policies and procedures to the differences among countries in which each subsidiary is based.

Question 66

Determining equitable wage rates in many countries is a simple matter.

Question 67

To reduce problems associated with repatriation, any of the following steps can be taken except

A)providing career counselling.
B)writing a repatriation agreement.
C)offering financial support.
D)assigning the employee to another international position.
E)assigning a sponsor.

Question 68

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

Question 69

Geocentrism, rarely seen, assumes that management candidates must be searched for domestically.

Question 70

Differences in culture explain why incentive plans in Pakistan tend to focus on the work group, while in the United States, the focus is usually on individual worker incentives.

Question 71

Expatriate assignments usually fail because the person cannot accommodate to the technical demands of the job.

Question 72

A polycentric staffing policy would be more expensive than sending expatriates abroad.

Question 73

Third-country nationals are citizens of a country other than the parent or host country.

Question 74

Discuss steps that can be taken to assist in the repatriation process.

Question 75

Upon repatriation, a former expatriate family may undergo a sort of reverse culture shock.

Question 76

Graciella is the new director of HR for a soft drink manufacturer with offices in 7 countries.After the last performance appraisal process, she heard from expatriate managers that questioned the fairness of the process.Discuss what steps Graciella should take to improve the expatriate performance appraisal process.

Question 77

International EAPs can help expatriates with mental health, which is often affected by the stressful relocation process.

Question 78

For recent immigrants to Canada, work experience outside of Canada contributes a great deal to their ability to find a job and their overall income.

Question 79

Recent research indicates that workforce mobility programs and how efficiently they are managed has a direct impact on company profits.

Question 80

A high degree of sensitivity and empathy for the cultural and attitudinal demands of coworkers has very little importance when selecting employees to staff overseas operations.