Deck 16: Managing Human Resources Globally

Question 1

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

Answer 1

True
Explanation: Power distance concerns the way the culture deals with unequal distribution of power and defines the amount of inequality that is normal. In countries with large power distances, the culture defines it as normal to maintain large differences in power. Job design aimed at employee empowerment can be problematic in cultures with high power distance.

Question 2

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

Answer 2

True
Explanation: Uncertainty avoidance describes how cultures handle the fact that the future is unpredictable. High uncertainty avoidance refers to a strong cultural preference for structured situations. In countries with low uncertainty avoidance, people seem to take each day as it comes.

Question 3

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

Answer 3

False
Explanation: Third-country nationals are employees from a country other than the parent country or the host country. Employees assigned to work in another country are called expatriates.

Question 4

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

Question 5

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

Question 6

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

Question 7

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 8

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

Question 9

Educational opportunities remain constant from one country to another.

Question 10

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

Question 11

While international companies go overseas on a broader scale,multinational companies build one or a few facilities in another country.

Question 12

The trends and arrangements that encourage international trade decrease the demands on human resource management.

Question 13

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

Question 14

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

Question 15

Cultural differences are a disadvantage to global organizations.

Question 16

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

Question 17

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

Question 18

Most organizations' expanding opportunities in fast-developing nations have limited their ability to tap into the immigrant workforce.

Question 19

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

Question 20

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

Question 21

Which of the following agreements have been 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 22

Which of the following terms would accurately describe an individual 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 23

Thomas,a South African,is employed by a pharmaceutical company whose headquarters is in Philadelphia.Thomas operates out of the firm's production facility in Cape Town,South Africa.Thomas is considered to be a(n):

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

Question 24

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

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

Question 25

Gerard is an Australian citizen and works at the headquarters of an Australian company.This would make him a _____.

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

Question 26

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

Question 27

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 28

Which of the following statements 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

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

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

Question 30

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 31

A company is unlikely to have a facility in a:

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

Question 32

Peter,a British citizen,and Keith,a U.S.citizen,are employees of an electronics manufacturing company headquartered in London.While Peter works out of the London office,Keith operates out of the marketing unit in New York.Which of the following statements is true in this scenario?

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

Question 33

Which of the following 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 34

A company with _____ level participation is likely to have a single office,the headquarters,in the parent country.

A) international
B) multinational
C) global
D) domestic
E) transnational

Question 35

The balance sheet approach for determining expatriate compensation adjusts the manager's compensation so that it gives the manager the same standard of living as in the home country plus extra pay for the inconvenience of locating overseas.

Question 36

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

Question 37

European companies usually link stock options to specific performance goals,such as the increase in a company's share price compared with that of its competitors.

Question 38

Which of the following statements best describes 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 39

Which of the following refers to the nation other than the one in which the organization's headquarters is located,where the organization operates a facility?

A) Host country
B) Parent country
C) First country
D) Third country
E) Guest country

Question 40

John and Henry are U.S.citizens and work for the same law firm that is headquartered in New York.John,however,works from the firm's London office,while Henry works from the office in New York.Which of the following is a difference between the two employees?

A) John is an expatriate, whereas Henry is a parent-country national.
B) John is a host-country national, whereas Henry is an expatriate.
C) John is a third-country national, whereas Henry is a host-country national.
D) John is a parent-country national, whereas Henry is a host-country national.
E) John is repatriate, whereas Henry is a third-country national.

Question 41

Tanya works at a retail store in Los Angeles.She addresses her Indian manager,Priya,by her first name.Tanya's colleague advises against addressing Priya by her name as she might find it disrespectful.The colleague is most likely right if Priya's belief reflects that of an individual with:

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

Question 42

Which of the following statements 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 and easy and detest 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 43

Edward,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 were offended by this gesture.Which of the following differences 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 44

Dev and Emily are employees of a publishing house and work together on the same team.Dev believes that Emily hails from an individualistic culture,while Emily disagrees.Which of the following,if true,would strengthen Dev's argument?

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

Question 45

Tiffany,the marketing manager of a mobile phone company,is achievement oriented and exhibits high levels of assertiveness.She prefers to plan extensively for the future,treats everyone equally regardless of age or seniority,and doesn't expect groups to stand up for an individual's rights.Tiffany 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 46

Which of the following organizations is 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 47

Which of the following is the usual way in which companies first enter foreign markets?

A) Importing
B) Offshoring
C) Exporting
D) Outsourcing
E) Relocating

Question 48

Joanne and Patrick work for two different corporations.Joanne's company is very structured,follows rigid rules,and expects employees to behave in a certain manner.Patrick's company is a little more relaxed,and they tend to take each day as it comes.Which of the following cultural differences contributes to this difference in the way these corporations operate?

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

Question 49

Stephen works as an accountant in the headquarters of a fast food chain.He encourages his colleagues to participate in an initiative he started that involved planting trees and flowers on the office's grounds.Stephen's initiative reflects those of individuals belonging to a culture with:

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

Question 50

Sarah works at an organization that places high emphasis on relationships,service,care for the weak,and preserving the environment.Sarah's workplace would be viewed as one that places emphasis on the qualities that are considered high in _____.

A) femininity
B) masculinity
C) power distance
D) individualism
E) capitalism

Question 51

Adrian and Ben are employees of a software development firm in San Francisco.Ben believes that Adrian exhibits behaviors that resemble those of individuals from feminine cultures.Which of the following,if true,would weaken Ben's beliefs?

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

Question 52

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

A) It gives 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 53

Which of the following is an effective recruitment and selection strategy when the required skills are scarce in a particular location?

A) Host-country nationals
B) Immigrant workers
C) Parent-company nationals
D) Local contract workers
E) Local temporary workers

Question 54

Which of the following is a feature of individualistic cultures?

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 collective decision making.
E) It has compensation systems based on fixed pay according to seniority.

Question 55

Katie and Nate are employees of an investment bank based in Chicago.Katie is of the opinion that the qualities Nate exhibits reflect an individual rather than a masculine culture.Which of the following,if true,would strengthen Katie's beliefs?

A) Nate places more emphasis on a healthy superior-subordinate relationship.
B) Nate places more emphasis on initiatives pertaining to corporate social responsibility.
C) Nate places more emphasis on being ahead of the crowd and achieving goals.
D) Nate places more emphasis on initiatives involving the conservation of the environment.
E) Nate places more emphasis on achieving social mobility through collectivist means.

Question 56

Jenny,a sales executive,believes that her hard work and persistence will reap rewards in the future.She is not very assertive,prefers to address her seniors by titles rather than names,prefers to be instructed,and awaits her team's approval before taking decisions.Jenny is likely to belong to 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 57

Eric's company lays down stringent rules for employees to follow at work.Business decisions are usually made by teams rather than individuals.And profit making is given priority over employee satisfaction.The company is at a stage where it prioritizes quick revenue generation over sustainability.In this case,Eric's company is most likely to be rated high on:

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

Question 58

Sheena 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 59

Jerome believes that the key to effective management is to involve his team members in the firm's decision-making process.He prefers structured meetings and detailed plans that include everything from immediate goals to objectives for the next decade.In this case,Jerome'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 60

Identify a true statement about countries with small power distances.

A) People address one another with titles.
B) People try to eliminate inequalities.
C) People tend to rely on orders from superiors.
D) People seem to take each day as it comes.
E) People value seniority more than talent.

Question 61

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

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

Question 62

Daniel,an American,is selected by his firm to undertake a temporary assignment in Russia.Daniel's compensation is determined and adjusted in accordance with the standard of living in Russia.He is also paid relocation expenses to ensure he is not inconvenienced by the transfer.Which of the following approaches have been used to determine Daniel's compensation?

A) Third-country based approach
B) Flat-pay approach
C) Transactional approach
D) Balance sheet approach
E) Going-rate approach

Question 63

Kim,a civil engineer,was sent by her firm to Kuwait on a temporary assignment.After completing her project within the given span of six months,Kim approaches the HR department of her firm to arrange for her return.The HR department is likely to prepare for Kim's _____ as the first task.

A) expatriation
B) validation
C) repatriation
D) culture shock
E) overseas assignment

Question 64

While training and developing a global workforce,which of the following 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 65

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

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

Question 66

_____ refers to training employees and their family members to get them ready for an assignment in a foreign country.

A) Acculturation
B) Uncertainty avoidance
C) Cross-cultural preparation
D) Community training
E) Biculturalism

Question 67

Which of the following employees is likely to be the most motivated to take on an overseas assignment?

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

Question 68

Identify a true statement about 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 69

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 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 70

During which phase does an employee returning from a foreign assignment experience culture shock in reverse?

A) Expatriation
B) Cross-cultural preparation
C) Repatriation
D) Honeymoon
E) Validation

Question 71

Betty,an American,works for an automobile manufacturer in New Jersey.Her manager,Ruth,sends her on an overseas assignment to handle operations at the company's newly acquired plant in Japan.Which of the following,if true,could have most likely led to Betty being chosen for the assignment?

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

Question 72

Alex,an employee of Teal Inc.,an American company,was sent to Turkey for an assignment.HR specialists at Teal Inc.have been preparing Alex for his return to the United States after three years.Which of the following terms describes the process being undertaken by the HR team at Teal Inc.?

A) Cross-cultural preparation
B) Time orientation
C) Repatriation
D) Uncertainty avoidance
E) Culture shock

Question 73

Roger,an automobile engineer,was sent on a foreign assignment to Spain.Initially,Roger was fascinated by the culture and history of the town he lived in.Within a month,he began to feel disillusioned and discomforted by the differences in norms and values.Which of the following terms best describe this phase of Roger's experience?

A) Recovery
B) Culture shock
C) Honeymoon
D) Validation
E) Adjustment

Question 74

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 75

Bryan,an American,works for a company that manufactures electronics.His managers send him on an assignment to Japan.Which of the following factors is most likely to have led to Bryan being chosen for the assignment?

A) Bryan is unfamiliar with the legal and political systems of Japan but would like to learn about them.
B) Bryan needs training in the skills required for the assignment, which is available in the United States.
C) Bryan does not consider the assignment more than a temporary overseas trip.
D) Bryan is adaptable to new situations and appreciates cultural differences.
E) Bryan wants to explore different cultures, although he is unwilling to mix work and travel.

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

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 parent country.
E) It constantly changes in response to a host of economic forces.

Question 78

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

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

Question 79

Which of the following is true of employees from cultures high in uncertainty avoidance?

A) Trainers adopt an impromptu style of instruction.
B) Trainees expect a formal instructional environment.
C) Trainers are flexible and open to schedule and activity changes.
D) Trainees are allowed to determine the pace of the programs.
E) Relationships with fellow trainees are emphasized.

Question 80

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

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