Question 1

Which of the following objectives of an effective overall competitive strategy for managing a global workforce relates most closely to external equity?

Accepted Answer

A)  Establish and maintain reasonable financial equity for all employees, both at home and abroad.
B)  Be competitive in relation to the practices of leading competitors.
C)  Ensure transparency and clear understanding of compensation plans.
D)  Take cost-saving advantage of economies of scale, delivering rewards in the most cost-efficient manner. B

Question 2

Four variable contextual factors for determining the appropriate degree of emphasis on a global versus local perspective in designing compensation systems include heterogeneity, pervasiveness, strength of enforcement, and

Accepted Answer

A)  regulatory enforcement.
B)  demographic composition.
C)  formalization.
D)  divergence. C

Question 3

According to the Milkovich and Bloom model of global reward system design, the crafted set of rewards provides clear encouragement for a common company mind-set and support of identified priorities for success, and which underlie and reinforce a common MNC global culture.

Accepted Answer

A) True 
 B)False  False

Question 4

Since compensation has such a potentially powerful influence on individuals at the local level, this particular HR function is unable to contribute much to integration, coordination, and cooperation at the global level.

Accepted Answer

A) True 
 B)False

Question 5

Despite recent developments in more standardized models of expatriate compensation, it is recommended that companies maintain flexibility in considering each expatriate's unique needs and situation and fine-tune the actual compensation arrangements through open discussion and negotiation.

Accepted Answer

A) True 
 B)False

Question 6

A comprehensive, total reward system perspective likely would include these major forms of compensation: direct and indirect financial, job-related, and

Accepted Answer

A)  bonuses.
B)  legally required.
C)  voluntary benefits (e.g., child care) .
D)  work environment.

Question 7

The purpose of the __________ approach is to help expatriates avoid personal sacrifice in standard of living or financial loss due to the expatriate assignment, as well as provide an attractive incentive for accepting the assignment.

Accepted Answer

A)  Flex-Rate
B)  Earning Stability
C)  Procurement Parity
D)  Balance Sheet

Question 8

Compensation practices in countries and subcultures registering high in femininity (such as those in Italy, Switzerland, Mexico, USA, and Germany) may emphasize individual and group competition in pay, promotions, and recognition, with a clear emphasis on performance-based pay.

Accepted Answer

A) True 
 B)False

Question 9

To fit country cultures that tend to be high in the cultural dimension of femininity (e.g., low masculinity), such as in __________, reward plans might appropriately reflect a strong emphasis in the total compensation package on social benefits, quality of work life, work/life balance, and job security.

Accepted Answer

A)  The United States
B)  Denmark
C)  Mexico
D)  Japan

Question 10

Notwithstanding the increased interest and use of employee incentives, there remains a virtually universal interest, based on employee expectations and demands, for the total compensation package to

Accepted Answer

A)  use employee stock ownership plans (esops) .
B)  use profit sharing plans.
C)  retain basic benefits.
D)  involve maintaining a meaningful and satisfying work environment.

Question 11

Which of the following ultimately determines whether an employee will want to continue his or her level and quality of effort?

Accepted Answer

A)  Current compensation survey results about the external labor market
B)  General benefits provided
C)  Employee perceptions of rewards
D)  Health of the economy

Question 12

__________ to fit individual employee needs is increasingly recognized as one of the most commonly described forms of rewards for all levels of employees throughout the world.

Accepted Answer

A)  Work flexibility
B)  Health-care benefits
C)  Challenge and meaningful work
D)  Ongoing training

Question 13

Senior executives, whose individual leadership performance is often associated with organizational performance, will likely continue to have their pay based more on organizational performance targets, such as stock price.

Accepted Answer

A) True 
 B)False

Question 14

The practice of "pay-for-performance" focuses on financial incentives to motivate individual work performance, not group or organizational performance.

Accepted Answer

A) True 
 B)False

Question 15

To fit country cultures that are relatively high in individualism, such as in __________, effective compensation practices might emphasize rewards based on individual performance.

Accepted Answer

A)  China
B)  Kuwait
C)  Canada
D)  India

Question 16

This is by far the most common expatriate compensation model used by U.S. and European MNCs:

Accepted Answer

A)  Headquarters-Based Model
B)  Modified Home-Country Model
C)  International Citizen Model
D)  Lump-Sum Model

Question 17

Tax law for expatriates around the world is fairly standard, making tax-related compensation planning relatively simple.

Accepted Answer

A) True 
 B)False

Question 18

Compensation ultimately involves an individual determination of __________ in exchange for work effort.

Accepted Answer

A)  pay
B)  benefits
C)  satisfaction
D)  value

Question 19

There is a general trend that the higher the employee level, the less of one's total direct financial compensation is at risk with individual, group, and organizational incentives.

Accepted Answer

A) True 
 B)False

Question 20

That which can effectively reward and motivate employee performance is not limited to direct financial compensation.

Accepted Answer

A) True 
 B)False

Exam 10: Compensation for a Global Workforce

Which of the following objectives of an effective overall competitive strategy for managing a global workforce relates most closely to external equity?

Four variable contextual factors for determining the appropriate degree of emphasis on a global versus local perspective in designing compensation systems include heterogeneity, pervasiveness, strength of enforcement, and

According to the Milkovich and Bloom model of global reward system design, the crafted set of rewards provides clear encouragement for a common company mind-set and support of identified priorities for success, and which underlie and reinforce a common MNC global culture.

Since compensation has such a potentially powerful influence on individuals at the local level, this particular HR function is unable to contribute much to integration, coordination, and cooperation at the global level.

Despite recent developments in more standardized models of expatriate compensation, it is recommended that companies maintain flexibility in considering each expatriate's unique needs and situation and fine-tune the actual compensation arrangements through open discussion and negotiation.

A comprehensive, total reward system perspective likely would include these major forms of compensation: direct and indirect financial, job-related, and

The purpose of the __________ approach is to help expatriates avoid personal sacrifice in standard of living or financial loss due to the expatriate assignment, as well as provide an attractive incentive for accepting the assignment.

Compensation practices in countries and subcultures registering high in femininity (such as those in Italy, Switzerland, Mexico, USA, and Germany) may emphasize individual and group competition in pay, promotions, and recognition, with a clear emphasis on performance-based pay.

Notwithstanding the increased interest and use of employee incentives, there remains a virtually universal interest, based on employee expectations and demands, for the total compensation package to

Which of the following ultimately determines whether an employee will want to continue his or her level and quality of effort?

__________ to fit individual employee needs is increasingly recognized as one of the most commonly described forms of rewards for all levels of employees throughout the world.

Senior executives, whose individual leadership performance is often associated with organizational performance, will likely continue to have their pay based more on organizational performance targets, such as stock price.

The practice of "pay-for-performance" focuses on financial incentives to motivate individual work performance, not group or organizational performance.

To fit country cultures that are relatively high in individualism, such as in __________, effective compensation practices might emphasize rewards based on individual performance.

This is by far the most common expatriate compensation model used by U.S. and European MNCs:

Tax law for expatriates around the world is fairly standard, making tax-related compensation planning relatively simple.

Compensation ultimately involves an individual determination of __________ in exchange for work effort.

There is a general trend that the higher the employee level, the less of one's total direct financial compensation is at risk with individual, group, and organizational incentives.

That which can effectively reward and motivate employee performance is not limited to direct financial compensation.