Question 1

Which of the following is a feature of developmental performance management?

Accepted Answer

A)   Develop the bases for promotions
B)   Communicate unsatisfactory performance
C)   Enhance commitment through discussion about careers
D)   Develop bases for decisions about compensation. C

Question 2

What is the aim of tax equalization as a part of compensation?

Accepted Answer

A)   Provide extra money in case of tax discrepancies
B)   Lower the tax obligation of the organization
C)   Provide that expatriates neither gain nor lose as a result of taxation
D)   A bonus to incentivize expatriates. C

Question 3

In which case are 360 degree performance appraisals most appropriate?

Accepted Answer

A)   Countries with high power distance
B)   Countries with lower power distance
C)   Countries with collectivist culture
D)   They are never appropriate B

Question 4

What is the most type of common compensation on short-term assignments?

Accepted Answer

A)   Reimbursement for travel and accommodation
B)   Mobility premium
C)   Housing allowance
D)   Spousal assistance.

Question 5

Which of the following is a feature of evaluative performance management?

Accepted Answer

A)   Provide feedback
B)   Develop professional skills
C)   Motivate employees through recognition
D)   Enhance commitment

Question 6

In the strategic flexibility approach, what does a compensation packages consist of?

Accepted Answer

A)   Core
B)   Crafted
C)   Choice
D)   All of the above

Question 7

What type of performance pay is more likely in collectivist cultures?

Accepted Answer

A)   Merit pay
B)   Competency based pay
C)   Ownership
D)   Promotion

Question 8

What effect can giving individual feedback have in collectivist cultures?

Accepted Answer

A)   Develops the employee
B)   Enhances productivity
C)   Disturbs group harmony
D)   No effect

Question 9

What is an example of a soft factor that influences expatriate performance?

Accepted Answer

A)   Ability to establish relationships
B)   Generating profit
C)   Increasing market share
D)   All of the above.

Question 10

Which compensation approach is the most cost effective?

Accepted Answer

A)   Host country approach
B)   Home country approach
C)   Global approach
D)   None of the above

Question 11

What is considered good performance in individual cultures?

Accepted Answer

A)   Employee's productivity
B)   Group harmony
C)   Trustworthiness
D)   Respectful attitude

Question 12

Why do organizations use performance management systems?

Accepted Answer

A)   Identify organizational talent
B)   Leadership development
C)   Succession planning
D)   All of the above

Question 13

Which is a reason why expatriate appraisals should be more frequent?

Accepted Answer

A)   Stable business conditions
B)   Determining problems earlier makes them easier to solve
C)   It is easy for raters to recall information
D)   Annual performance appraisals are effective

Question 14

Which is a common allowance given to expatriates?

Accepted Answer

A)   Cost of living allowance
B)   Hardship premium
C)   Base salary
D)   Benefits

Question 15

What would limit the effectiveness of performance based pay?

Accepted Answer

A)   Link it to the strategy of the organization
B)   Ensure its consistency
C)   Failure to tailor rewards to the situation
D)   Use it to motivate employees

Exam 8: Global Performance Management and Compensation