Deck 19: Human Resource Management in the Global Firm

Question 1

Cross-cultural awareness training tends to lower intercultural sensitivity and effectiveness.

Answer 1

False

Question 2

Host-country nationals (HCNs) are citizens of the country where the MNE is headquartered.

Answer 2

False

Question 3

Firms usually hire HCNs abroad to maintain local control over foreign operations.

Answer 3

False

Question 4

In expatriate compensation, tax equalization is a special consideration.

Question 5

Worldwide staffing with PCNs helps firms develop an integrated global enterprise.

Question 6

Foreign subsidiaries are never staffed from the home country.

Question 7

Avoiding country bias, nepotism, and other local practices and cultivating a global mindset are some of the significant challenges of the international staffing policy.

Question 8

The problem of noncomparable outcomes arises because of differences in economic, political, legal, and cultural variables.

Question 9

Critical incident analysis examines an episode in which tension arises between employee and foreign counterpart due to a cross-cultural misunderstanding.

Question 10

Typically, country laws do not dictate how many employees can come from nonlocal sources.

Question 11

Firms prefer HCNs when the host-country environment is complex and their specialized knowledge or local connections are required in the local marketplace.

Question 12

Training programs designed for preparing employees for assignments abroad consists of area studies, practical information, and cross-cultural awareness.

Question 13

Margaret Lee, an American and a private bank employee from New York, is assigned to work and reside in Paris for five years. She is most likely to be known as a repatriate in Paris.

Question 14

Local tradition, culture, and cost of living do not influence compensation packages.

Question 15

Parent-country nationals (PCNs) are citizens of the country where the MNE's subsidiary is located.

Question 16

Developing talent is a multistep collaboration between human resource managers and executive management.

Question 17

Typically, a standardized diagnostic tool is used to evaluate the performance of all firm employees and subsidiaries, both domestic and international.

Question 18

International human resource managers support subsidiary managers by providing IHRM guidelines and by hiring, training, and evaluating employees for international operations.

Question 19

MNEs with a global mindset encourage an ethnocentric orientation among managers and employees working abroad.

Question 20

Subsidiary managers are often assessed by multiple evaluators mainly because MNEs are typically characterized by a low level of mutual trust among employees.

Question 21

Richard Johnson, an American citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa. Richard is a ________.

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

Question 22

Employee Categories (Scenario)
Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often re-located for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer.
Which of the following employees is most likely a third-country national?

A) Raj Patel
B) Marcus Field
C) Shelly Eaton
D) Keiko Tran

Question 23

In which of the following situations is the employee considered a host-country national?

A) a French MNE sends a French employee to work in its Canadian subsidiary
B) a Japanese MNE sends an American employee to work at its Hong Kong subsidiary
C) a Chinese MNE employs a Chinese citizen for its subsidiary in Singapore
D) an American MNE employs a Mexican citizen for its subsidiary in Mexico

Question 24

Employee Categories (Scenario)
Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often re-located for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer.
Which of the following employees is most likely a host-country national?

A) Shelly Eaton
B) Raj Patel
C) Keiko Tran
D) Marcus Field

Question 25

Employee Categories (Scenario)
Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often re-located for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer.
Which of the following employees is a parent-country national working in a host country?

A) Marcus Field
B) Keiko Tran
C) Raj Patel
D) Shelly Eaton

Question 26

Linda Grahams, an American citizen, works in a global conglomerate based in Washington D.C. A few months ago, Linda was assigned to work in the company's office in Hong Kong and live there for the next three years. Which of the following can Linda be best described as?

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

Question 27

________ are typically the largest proportion of workers hired abroad and usually work in manufacturing, assembly, basic service activities, clerical work, and other nonmanagerial functions.

A) Home-country nationals
B) Parent-country nationals
C) Third-country nationals
D) Host-country nationals

Question 28

International human resource management is usually more complex than domestic human resource management because ________.

A) IHRM managers usually encounter routine situations akin to those present at home
B) IHRM managers typically have a low exposure to risks
C) IHRM managers are required to both hire and retain talent
D) IHRM managers are required to demonstrate greater involvement in employees' personal lives

Question 29

Expatriates usually do not receive the benefits normally accorded to home-country employees.

Question 30

Advanced economies tend to pay relatively lower wages.

Question 31

Unions in Europe often represent not only factory workers but white-collar workers such as physicians, engineers, and teachers.

Question 32

With rapid globalization, the incidence of strikes has increased worldwide.

Question 33

Union membership has experienced a gradual decline in many advanced economies.

Question 34

Through labor relations, management and workers identify and determine job relationships that will apply in the workplace.

Question 35

________ are citizens of the country where the MNE's subsidiary is located.

A) Third-country nationals
B) Expatriates
C) Host-country nationals
D) Parent-country nationals

Question 36

Most European countries restrict firms' ability to lay off workers.

Question 37

Representation by women in senior management is lowest in Russia and the Philippines.

Question 38

In traditional societies, women tend to enjoy a high degree of economic independence.

Question 39

Which of the following best describes an expatriate?

A) an employee who is assigned to live and work in a foreign country for an extended period
B) an employee who returns to his home country after a foreign assignment
C) an employee hired on a temporary basis by an MNE
D) an employee who is a host-country national

Question 40

Women enjoy equal access to senior management positions in most Asian countries.

Question 41

All of the following refer to key tasks of IHRM EXCEPT ________.

A) developing global managers
B) assessing job performance of expatriates
C) evaluating internal accounting practices and audits
D) handling labor disputes and strikes

Question 42

________ refers to the employee's ability to adopt verbal and nonverbal behaviors appropriate in different cultures.

A) Behavioral biases
B) Parochialism
C) Behavioral flexibility
D) Ethnocentrism

Question 43

How can international human resource managers effectively minimize culture shock for expatriates?

A) by allowing personnel a short trip to the foreign location before the actual assignment
B) by training personnel to understand the host country's government, culture, and language
C) by inviting foreign employees to the homes of future expatriates for enhancing cultural awareness
D) by asking the expatriate to return to the headquarters

Question 44

International Management Qualifications (Scenario)
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.
Which of the following most supports hiring Craig Springer as manager for CCC's facility in New Delhi?

A) Craig handles work-related stress mostly by exercising and spending time with friends.
B) Craig has served as a manager for six months in CCC's office in Beijing.
C) Craig learned to speak fluently in Spanish and French from his past assignments in Europe.
D) Craig is able to work independently with little direction.

Question 45

International Management Qualifications (Scenario)
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.
Which of the following, if true, most seriously undermines the argument in favor of hiring Devon Parks as manager for CCC's facility in New Delhi?

A) Devon has few local connections in New Delhi where success is largely determined by local connections and networking.
B) CCC wants to maintain strong control over all its foreign operations including India.
C) Devon is capable of working independently and with little direction.
D) CCC has significantly benefitted in the past by hiring PCNs for training local managers in Asia.

Question 46

International Management Qualifications (Scenario)
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.
Which of the following would be the most important for human resources managers to determine before deciding who should manage the New Delhi facility?

A) Which candidate possesses the ability to be a flexible and sensitive leader with superior cross-cultural knowledge?
B) Which candidate best understands CCC corporate culture in Texas?
C) Which candidate is the most knowledgeable about CCC's products?
D) Which candidate has mentored the most CCC interns and new employees over the past three years?

Question 47

Area studies refer to ________.

A) technical knowledge pertaining to a firm's core competencies
B) factual knowledge of the historical, political, and economic environment of the host country
C) factual knowledge about a firm's foreign subsidiaries
D) knowledge pertaining to daily living abroad

Question 48

Firms with global mindsets are characterized by ________.

A) staff diversity
B) parochialism
C) a strong sense of national pride
D) rigid hiring policies

Question 49

Under which of the following circumstances would an MNE most likely hire a parent-country national?

A) when the MNE wants to maintain strong control over its foreign operations
B) when the MNE wants to benefit substantially from specialized knowledge available in the host country
C) when the MNE wants to transfer specific knowledge or corporate culture from third countries to host-country operations
D) when the host country environment is complex

Question 50

________ refers to searching for and locating potential job candidates to fill the firm's needs.

A) Retrenchment
B) Recruitment
C) Codetermination
D) Repatriation

Question 51

International Management Qualifications (Scenario)
Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.
Which of the following, if true, would strengthen the argument in favor of hiring a local manager for the New Delhi facility?

A) Indians are mostly multilingual.
B) Local connections are crucial to achieve success in the local marketplace in India.
C) CCC wants to have strong control over all its foreign operations.
D) The quality of labor in New Delhi is no lesser than that in Texas.

Question 52

An MNE would most likely employ a host-country national when ________.

A) it has substantial knowledge regarding upstream value-chain activities
B) it emphasizes R&D and manufacturing
C) it wants to maintain strong control over local operations
D) it needs specialized knowledge about the local market

Question 53

Which of the following is NOT one of the four dimensions of cultural intelligence?

A) behavioral flexibility
B) motivation
C) strategy
D) introversion

Question 54

For which of the following activities would parent-country nationals most likely be employed?

A) marketing
B) creating a global culture
C) research and development
D) sales

Question 55

________ refers to the confusion and anxiety experienced by a person who lives in a foreign culture for an extended period.

A) Culture shock
B) Culture pluralism
C) Enculturation
D) Segregation

Question 56

________ refers to an employee's ability to function effectively with those from different cultural backgrounds or in different cultural contexts.

A) Reverse culture shock
B) Ethnocentrism
C) Cultural intelligence
D) Cultural pluralism

Question 57

Which of the following issues most likely complicates international human resource management?

A) equal education opportunities
B) health benefit reimbursement
C) political risk and terrorism
D) vacation and travel policies

Question 58

Firms prefer HCNs when ________.

A) the host country environment is complex
B) the host country has no specialized knowledge to share
C) the parent country is keen on maintaining full control over foreign operations
D) managers located in the headquarters adopt a dominantly ethnocentric approach to hiring

Question 59

Which of the following most likely occurs as a result of expatriate failure?

A) culture shock
B) diminished careers
C) acculturation
D) knowledge sharing

Question 60

________ tends to worsen culture shock.

A) The ability to speak more than one language
B) Proximity to family
C) Inadequate cross-cultural skills
D) High adaptability

Question 61

Typically, ________ provide(s) a means for collective bargaining.

A) government agencies
B) the top management of MNEs
C) labor unions
D) NGOs

Question 62

________ refers to the tendency to view other cultures through the lens of your own culture.

A) Codetermination
B) Self-reference criterion
C) Segregation
D) Cross-cultural awareness

Question 63

Managers typically consider all of the following elements when developing compensation packages for employees working abroad EXCEPT ________.

A) wages
B) premium
C) incentives
D) benefits

Question 64

Which of the following best summarizes the goal of cross-cultural awareness training for expatriates?

A) It enables expatriates to cope with reverse-culture shock.
B) It enables expatriates to share knowledge with host-country nationals more effectively.
C) It enables expatriates to significantly upgrade their technical skills.
D) It enables expatriates to effectively communicate with local customers and employees and be sensitive to the host-country's culture.

Question 65

Which of the following is true about the taxation of expatriates?

A) Expatriates are exempted from paying taxes while working abroad.
B) Most employers do not reimburse the extra tax burden incurred by expatriates.
C) Most parent countries insist on double taxation for expatriates.
D) Most parent-country governments have devised regulations that allow expatriates to minimize double taxation.

Question 66

Which of the following refers to the additional payment that allows the expatriate to maintain a standard of living similar to that at home?

A) allowance
B) benefits
C) base remuneration
D) wages

Question 67

International Management Position (Scenario)
Global Choppers Inc. is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from the company headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods.
The human resources department of Global Choppers designs trainings for employees in a way that helps them avoid the self-reference criterion. This implies that the training designed by the human resources department of Global Choppers ________.

A) helps counter the tendency of viewing foreign assignments with suspicion and distrust
B) does not emphasize cultural awareness
C) is inadequately equipped to enhance the cultural intelligence of employees
D) helps counter the tendency of viewing other cultures through the lens of one's own culture

Question 68

________ is a formal process for assessing how effectively employees perform their jobs.

A) Performance planning
B) Performance management
C) Performance appraisal
D) Performance guarantee

Question 69

Which of the following is the best example of a situation in which a firm is compensating an employee with base remuneration?

A) An American engineer working in Japan receives a salary comparable to that of engineers working in the U.S.
B) A Dutch computer programmer working in Hong Kong receives an additional payment to cover the cost of relocation.
C) A German accountant working in India receives a one-time bonus for the potential hardships of working abroad.
D) A British manager working in a civil war-torn zone receives additional allowances for working under perceived threat.

Question 70

Strikes organized by labor unions are aimed at ________.

A) settling disputes regarding offshore unions
B) pressuring management to grant union demands
C) pressuring management to unionize
D) creating public awareness about social issues

Question 71

Which of the following is the term used to describe an expatriate's return to his/her home country following completion of a foreign assignment?

A) repatriation
B) reverse culture shock
C) national integration
D) codetermination

Question 72

Which of the following sums up the goal of training Conrad for his assignment in Romania?

A) increasing Conrad's effectiveness abroad
B) ensuring a smooth repatriation for Conrad
C) decreasing the per-unit cost of production
D) enhancing overall freedom for employees

Question 73

Which of the following most likely complicates international performance appraisals?

A) overproduction
B) distance from the headquarters
C) lack of general consensus among managers with regard to reward systems
D) cost of doing business abroad

Question 74

Critical incident analysis examines ________.

A) a situation under which an MNE is forced to relocate operations abroad
B) an episode in which tension arises between employee and foreign counterpart due to a cross-cultural misunderstanding
C) an episode in which tension arises between an employee and a manager with regard to performance evaluation
D) a critical situation in which the internal stakeholders of a firm fail to reach a consensus with regard to a common issue

Question 75

International Management Position (Scenario)
Global Choppers Inc. is an MNE based in Vancouver that manufactures high-quality motorcycles for sale around the world. The majority of design work is done at the Vancouver headquarters, but manufacturing and assembly are performed in company facilities located in Romania. In order to maintain control over manufacturing quality, Global Choppers sends representatives from the company headquarters to manage the Romanian facility for one year rotations. Conrad O'Neil has been selected to run the foreign facility for the upcoming year. The human resources department of Global Choppers will be preparing him for his foreign assignment through a variety of training methods.
Conrad's training for his assignment in Romania would most likely include ________.

A) technical training
B) area studies
C) training on developing global managers
D) natural disaster management

Question 76

When outsourcing work to foreign suppliers, managers must ensure that ________.

A) wages in the host country are higher than that in the home country
B) the local level of productivity is more
C) workers in the host country enjoy a high degree of employee empowerment
D) worker productivity in the host country meets acceptable levels

Question 77

Base remuneration is also referred to as ________.

A) incentives
B) allowance
C) wages
D) benefits

Question 78

Given the potential hardships of working abroad, many MNEs also provide ________ to expatriate employees which is similar to a bonus.

A) wages
B) incentives
C) base remuneration
D) allowance

Question 79

A strike refers to ________.

A) an unorganized anarchical movement initiated by employees within an organization
B) an organized, collective refusal to work with the aim of pressuring management to grant union demands
C) the hostile takeover of a weak company by a strong one
D) governmental restrictions on imports

Question 80

________ makes performance evaluations more complex in the international context.

A) The problem of noncomparable outcomes
B) Inadequate cross-cultural skills
C) Overproduction
D) Knowledge sharing