Deck 9: Staffing, Training, and Compensation for Global Operations

Question 1

The need to outsource employees is a complex issue for international human resource (IHR)managers as they seek to support strategic mandates.

Answer 1

True

Question 2

Which of the following should ideally dictate the organizational structure and staffing needs of the firm?

A)the firm's customers
B)the size of the firm
C)the firm's strategy
D)the firm's short-term objectives

Answer 2

C

Question 3

Alec is an American working for a software company in Texas.He has been assigned to work on a project in China for a year.He would be considered as a(n)________ in China.

A)domicile resident
B)expatriate
C)host-country national
D)third-country national

Answer 3

B

Question 4

________ is increasingly being recognized as a major determinant of success or failure in international business.

A)International human resource management
B)Procurement of raw materials from abroad
C)Outsourcing
D)Insourcing

Question 5

Kelly Roberts, an American, is a senior manager at her firm's headquarters in New York.Kelly is a(n)________.

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

Question 6

When the company is at the internationalization stage of strategic expansion and has a centralized structure, it will likely use a(n)________ staffing approach to fill key managerial positions with PCNs.

A)polycentric
B)regiocentric
C)global
D)ethnocentric

Question 7

Building global corporate cultures and staffing organizations with global leaders are some of the major challenges faced by the HR function in the global arena.

Question 8

A(n)________ policy is likely to be used where a company notes the inadequacy of local managerial skills and determines a high need to maintain close communication and coordination with headquarters.

A)global
B)regiocentric
C)polycentric
D)ethnocentric

Question 9

________ are usually preferable when a high level of technical capability is required and maintenance of close control is desired.

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

Question 10

In ________, operations outside the home country are managed by individuals from the host country.

A)vertical integration
B)horizontal integration
C)ethnocentric staffing
D)polycentric staffing

Question 11

________ are employees assigned to a country other than their own.

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

Question 12

Which of the following is a disadvantage of the ethnocentric staffing approach?

A)increased opportunities or development for local managers at the expense of PCNs
B)low adaptation of expatriates in the parent country
C)lack of managerial effectiveness of PCNs in foreign countries
D)lack of managerial effectiveness of PCNs in the parent country

Question 13

________ are the most preferred staffing choice for a foreign subsidiary where proprietary technology is used extensively.

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

Question 14

Which staffing approach will most likely be effective when implementing a global strategy of "acting local"?

A)polycentric
B)talent-intensive
C)ethnocentric
D)cost-intensive

Question 15

International human resource management is a vital component of implementing global strategy.

Question 16

________ are familiar with company goals, products, technology, policies, and procedures; they know how to get things accomplished through headquarters.

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

Question 17

Briefly discuss the interdependence of strategy, structure, and staffing.

Question 18

A(n)________ staffing approach is more likely to be effective when implementing a multinational strategy.

A)ethnocentric
B)polycentric
C)regional
D)local

Question 19

________ staffing approach serves to perpetuate particular personnel selections and other decision-making processes because the same types of people are making the same types of decisions.

A)Global
B)Ethnocentric
C)Polycentric
D)Regiocentric

Question 20

In addition to the global war for talent, there are considerable strategic competitive challenges for firms.Which of the following is one such challenge?

A)increasing talent in order to lower the costs of operations
B)relocating operations around the world
C)obtaining competent talent at higher wages than competitors
D)obtaining talent using a regiocentric approach

Question 21

________, when placed in key positions, are perceived by employees as acceptable compromises between headquarters and local managers.

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

Question 22

A global staffing policy ________.

A)avoids recruiting third-country nationals
B)relies primarily on local managers to fill key managerial positions abroad
C)is overly in favor of filling key managerial positions with people from headquarters
D)provides a greater pool of qualified and willing applicants from which to choose

Question 23

Who, among the following, when used to manage subsidiaries, usually brings more cultural flexibility and adaptability to a situation?

A)parent-country nationals
B)home-country nationals
C)managers with minimal global exposure
D)third-country nationals

Question 24

Felix Department Store has over 900 stores in the United States and over 300 stores in Mexico and Canada.Felix has been particularly successful in Mexico, and the firm's executives believe Felix should expand into other Latin American countries.As a result, plans are underway for the construction of a new Felix store in Managua, Nicaragua.The construction, once started, is expected to be completed within a year, so staff selection needs to begin soon.Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua.Which of the following, if true, undermines the argument that parent-country nationals should manage the Felix store in Nicaragua?

A)Felix is implementing a strategy of global expansion by acting local.
B)Decision-making authority stems primarily from Felix's top management housed in the company's headquarter in the United States.
C)The top management of Felix is in favor of closely monitoring all of the company's subsidiaries.
D)Felix's HR department recently developed a new expatriation policy.

Question 25

Recruiting managers from Latin America for a position in Brazil is an example of ________.

A)global staffing approach
B)ethnocentric staffing approach
C)regiocentric staffing approach
D)polycentric staffing approach

Question 26

Most MNCs tend to start their operations in a particular region by selecting primarily from their own pool of managers.Over time, and with increasing internationalization, they tend to move to a predominantly polycentric or regiocentric policy because of ________.

A)the lack of governmental support for hiring locals
B)the inefficiencies of expatriate managers
C)the poor performance of subsidiaries
D)the greater costs of expatriate staffing

Question 27

Which of the following is NOT a barrier for maintaining globalization momentum?

A)time and cost constraints
B)conflicting host government requirements
C)the scarce availability of staff
D)having an international team

Question 28

________ are managers with global experience who are transferred to the organization's headquarters country, so their overseas business and cultural experience and contacts can facilitate interactions among the country's far-flung operations.

A)Inpatriates
B)Third-country nationals
C)Host-country nationals
D)Repatriates

Question 29

Which of the following will most likely produce a specific mix of parent-country nationals, home-country nationals, and third-country nationals, according to the needs of the company?

A)ethnocentric staffing approaches
B)polycentric staffing approaches
C)local staffing approaches
D)regiocentric staffing approaches

Question 30

Which of the following is true with regard to the global staffing approach?

A)As a rule, companies keen on "acting local" adopt a global staffing approach.
B)In the global staffing approach, key managerial positions are generally filled with people from headquarters-that is, parent-country nationals.
C)In a global staffing approach, local managers-that is, host-country nationals-are hired to fill key positions in their own country.
D)Recruiting third-country nationals is a common aspect of the global staffing strategy.

Question 31

Felix Department Store has over 900 stores in the United States and over 300 stores in Mexico and Canada.Felix has been particularly successful in Mexico, and the firm's executives believe Felix should expand into other Latin American countries.As a result, plans are underway for the construction of a new Felix store in Managua, Nicaragua.The construction, once started, is expected to be completed within a year, so staff selection needs to begin soon.Felix's executives are considering the idea of using parent-country nationals to manage the new store in Nicaragua.Which of the following, if true, best supports the argument that parent-country nationals should manage the Felix store in Managua, Nicaragua?

A)Felix encourages employees to participate in community outreach programs.
B)The top management of Felix is unlikely to endorse the recruitment of cheap, incompetent workers.
C)Felix wants to maintain close control of the Nicaragua store for at least three years.
D)Felix's managers in Nicaragua will choose what items to stock based on local needs and customs.

Question 32

Host-country nationals are employees assigned to key positions in countries other than their own.

Question 33

When a company is at the internationalization stage of strategic expansion, and has a centralized structure, it will likely use a polycentric staffing approach to fill key managerial positions.

Question 34

Which of the following is an advantage of the staffing approach that employs parent-country nationals as top managers?

A)maintenance of close control over subsidiaries
B)less-costly transferees
C)facilitation of global multicultural teams
D)high effectiveness of expatriates in foreign countries

Question 35

More recently, a staffing option known as ________ has been utilized to provide a linking pin between the company's headquarters and local host subsidiaries.

A)expatriates
B)inpatriates
C)transpatriates
D)migrants

Question 36

Given the generally accepted consensus that staffing, along with structure and systems, must "fit" the desired strategy, firms desiring a truly worldwide posture should adopt a(n)________.

A)global staffing approach
B)geocentric staffing approach
C)regiocentric staffing approach
D)ethnocentric staffing approach

Question 37

________ staffing approach usually results in a higher level of authority and decision making at headquarters compared to the polycentric approach.

A)Ethnocentric
B)Global
C)Geocentric
D)Regiocentric

Question 38

In which of the following staffing approaches, are the best managers recruited from within or outside of the company, regardless of nationality?

A)geocentric staffing approach
B)global staffing approach
C)ethnocentric staffing approach
D)polycentric staffing approach

Question 39

Which of the following is an advantage of the polycentric staffing approach?

A)Home-country managers gain valuable overseas management experience.
B)Coordination between the subsidiary and the parent company is simplified.
C)Local managers tend to be instrumental in staving off or more effectively dealing with problems in sensitive political situations.
D)The local managers have no conflicting loyalties.

Question 40

Which of the following terms is increasingly replacing the term "expatriate" due to the global staffing approach?

A)repatriate
B)global manager
C)transpatriate
D)line manager

Question 41

Host-country nationals are more likely to be accepted by people both inside and outside the subsidiary, and they provide role models for other upwardly mobile personnel.

Question 42

Why do most firms shift from ethnocentric staffing to polycentric or regiocentric staffing methods?

Question 43

A polycentric recruiting approach enables a company to take advantage of its worldwide pool of management skill.

Question 44

Which of the following is the final stage of the IHRM process that is used to maximize the effectiveness of expatriate assignments?

A)selection of expatriate
B)debriefing expatriate and family to improve IHRM process
C)development of contract
D)assessment of development and support needs

Question 45

What are the advantages of the global staffing approach?

Question 46

Briefly define the ethnocentric, polycentric, regiocentric, and global staffing approaches.

Question 47

Historically, personnel directors selected potential expatriates on the basis of a candidate's ________.

A)interpersonal skills
B)adaptation capabilities
C)cross-cultural awareness
D)domestic track records

Question 48

According to Mansour Javidan, which of the following is NOT a global mind-set attribute that a successful expatriates possesses?

A)cognitive complexity
B)psychological capital
C)autocratic leadership qualities
D)ability to build trusting relationships with local stakeholders

Question 49

Expatriate failure, defined in broad terms, refers to the ________.

A)manager's premature return home due to poor job performance
B)manager's miscues, which give competitors a market advantage
C)unintentional dilution of the company's core competency
D)poor expatriate selection procedures of the MNE

Question 50

In the global staffing approach, the best managers are recruited from within or outside of the company, regardless of nationality.

Question 51

Companies using a polycentric staffing approach, avoid using parent-country nationals to fill in key managerial positions.

Question 52

According to Mansour Javidan, the ability to function successfully in the host country through internal acceptance of different cultures and a strong desire to learn from new experiences is termed ________.

A)cognitive complexity
B)psychological capital
C)social capital
D)intellectual capital

Question 53

Local managers are, by and large, effective in dealing with problems in sensitive political situations.

Question 54

One disadvantage of a polycentric staffing policy is the difficulty of coordinating activities and goals between the subsidiary and the parent company, including the potentially conflicting loyalties of the local manager.

Question 55

Which of the following is the LEAST critical area of expatriate preparation?

A)cultural training
B)language instruction
C)technical training
D)familiarity with everyday matters

Question 56

________ is the first stage in a comprehensive plan for developing expatriates.

A)Assessing development and support needs
B)Integration of the value added to the firm
C)Development of a contract
D)Problem recognition

Question 57

According to Tye and Chen, which of the following characteristics has the greatest predictive value of determining expatriate success?

A)gender
B)stress tolerance
C)international experiences
D)domestic work experience

Question 58

The goal of cross-cultural training is to ease the expatriate's adjustment to the new environment by reducing ________.

A)culture shock
B)power distance
C)social distance
D)cultural diversity

Question 59

In a polycentric staffing approach, recruiting is done on a regional basis and can produce a specific mix of PCNs, HCNs, and TCNs, according to the needs of the company or the product strategy.

Question 60

With an ethnocentric staffing approach, host-country nationals are hired to fill key positions in their own country.

Question 61

Which of the following most likely occurs when a manager is transferred to another part of the country where there are significant cultural differences?

A)subculture shock
B)culture shock
C)expatriation
D)repatriation

Question 62

According to Oberg, which of the following is the final stage of culture shock?

A)honeymoon
B)biculturalism
C)gradual adjustment
D)irritation and hostility

Question 63

Simon Parker, an American, works with a Houston-based MNC, Orpheus Inc.When he was sent to Africa to manage his company's newly-opened facility in Lagos, Nigeria, Simon was placed with Mr.Adeyami and his family as part of a familiarization program.Orpheus paid for this field experience known as ________.

A)repatriation
B)language training
C)host-family surrogate
D)immersion group analytics

Question 64

Alienation or lack of support from headquarters is one of the major causes of expatriate failure.

Question 65

A state of disorientation and anxiety that results from not knowing how to behave in an unfamiliar culture is called ________.

A)culture shock
B)enculturation
C)cultural contingency
D)acculturation

Question 66

As described by Oberg, in the ________ stage of culture shock the expatriate and his or her family members come to understand and predict patterns of behavior, use the language, deal with daily activities, and accept their new life.

A)honeymoon
B)biculturalism
C)gradual adjustment
D)irritation and hostility

Question 67

Which of the following is most likely to occur in the honeymoon stage of culture shock?

A)new arrivals are fascinated by aspects of the new culture
B)individuals become annoyed by unpredictable quirks of the new culture
C)emotions hit rock bottom for visitors
D)visitors better understand and appreciate local customs and behavior

Question 68

What are the major causes of expatriate failure?

Question 69

Expatriates are managers with global experience who are transferred to the organization's headquarters country, so their overseas business and cultural experience and contacts can facilitate interactions among the country's far-flung operations.

Question 70

What are the different stages of culture shock as described by Oberg?

Question 71

Enculturation refers to a state of disorientation and anxiety about not knowing how to behave in an unfamiliar culture.

Question 72

Local managers can provide communication of strategic goals and change processes, and provide continuity among revolving expatriates and host nationals.

Question 73

As described by Oberg, ________ refers to the stage in culture shock in which the manager and family members grow to accept and appreciate local people and practices, and are able to function effectively in two cultures.

A)gradual adjustment
B)honeymoon
C)biculturalism
D)irritation and hostility

Question 74

As described by Oberg, which of the following is most likely a characteristic of the irritation and hostility stage of culture shock?

A)excitement
B)homesickness
C)appreciation of local practices
D)positive attitudes and expectations

Question 75

According to Tung, the ________ training technique exposes trainees to the kinds of situations they are likely to encounter, which are critical to successful interactions.

A)area studies
B)field experiences
C)language trainings
D)culture assimilators

Question 76

In the global stage of a firm's globalization, ________.

A)training is focused on local culture and interpersonal skills
B)the need for training is virtually nonexistent
C)host-country nationals are trained to understand parent-country products and policies
D)the need for training is high

Question 77

Joan Kerry, an American national, worked as a senior manager in her firm's headquarters in New Jersey.When her firm opened a new office in San Francisco, she was transferred to California.Soon, she started feeling like an immigrant in her own country owing to the differences in attitudes and lifestyle between New Jersey and California.Joan is most likely experiencing ________.

A)segregation
B)subculture shock
C)social distance
D)power distance

Question 78

According to Tung, which of the following refers to a training technique where the trainees are acquainted with documentary programs about the country's geography, economics, sociopolitical history, and so forth?

A)field experiences
B)sensitivity training
C)language training
D)area studies

Question 79

What is the difference between culture shock and subculture shock?

Question 80

Inpatriate managers can facilitate multicultural management teams in global organizations.