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

Question 1

Felix Department Store has over 900 stores in the U.S.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.

Answer 1

C

Question 2

Local managers are hired to fill key positions in their own country under the ________.

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

Answer 2

B

Question 3

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

Answer 3

A

Question 4

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 5

________ 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 6

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 7

Felix Department Store has over 900 stores in the U.S.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 U.S.
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 8

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

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

Question 9

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 10

________ 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 11

Fred Sanders,an American,works as a manager at his firm's headquarters in New York.He recently learned that he has been assigned to manage the firm's subsidiary office in Tokyo,and he will be relocating to Japan within the next six weeks.Which of the following staffing approaches is being employed in this scenario?

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

Question 12

________ 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 13

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

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

Question 14

________ 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 15

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 16

________ 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 17

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 18

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 19

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 20

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

Question 21

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 22

________ 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 23

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 24

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 25

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 26

________ has been found to be the most frequently cited reason for expatriate failure in U.S.and European companies.

A) The inability of the spouse to adjust
B) Lack of quality training
C) Inadequate foreign language skills
D) Subculture shock

Question 27

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 28

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 29

________,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 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

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 32

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 33

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 34

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 35

________ 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 36

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 37

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 38

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 39

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 40

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 41

________ 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 42

Which of the following is a factor that facilitates integration of expatriate staff with local staff?

A) withholding useful information
B) having a headquarters mentality
C) speaking the local language
D) demonstrating autocratic behavior

Question 43

Which of the following factors will hinder the integration of expatriate staff with local staff?

A) knowledge sharing
B) headquarters mentality
C) overseas experience
D) cultural flexibility

Question 44

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 45

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 46

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 47

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 48

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 49

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 50

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 51

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 52

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 53

Training for host-country nationals during the export stage of globalization will most likely focus on ________.

A) parent-country products
B) global conduct policies
C) product and service systems
D) production and service procedures

Question 54

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

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

Question 55

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 56

An appropriate compensation and benefits package is most likely to ________.

A) increase the rate of attrition significantly
B) motivate employees
C) lower the overall organizational efficiency in the short-term
D) lower the importance of training

Question 57

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 58

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 59

Which of the following methods is used by many firms to reduce the overall costs of expatriate assignments?

A) extending the expatriate's tour
B) encouraging expatriates to visit their home country frequently
C) standardizing global compensation
D) implementing global benefits policies

Question 60

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 61

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 62

The ________ pays the expatriate the going rate for similar positions in the host country,plus whatever allowances and benefits for the assignment that the manager negotiates.

A) localization approach
B) privatization approach
C) balance sheet approach
D) home-based approach

Question 63

Relocation expense is an example of a(n)________.

A) salary
B) tax
C) allowance
D) benefit

Question 64

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

Question 65

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

Question 66

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 67

Managerial training in ________ is particularly critical for firms in new economy and emerging markets.

A) information and communication technologies
B) branding
C) sales and marketing
D) nano technology

Question 68

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

Question 69

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

Question 70

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 71

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

Question 72

The concept of "keeping the expatriate whole" in terms of compensation most likely means ensuring that the expatriate's ________.

A) family is prepared for the overseas assignment
B) health insurance coverage is globally accepted
C) foreign and domestic taxes are paid in a timely manner
D) standard of living is at par with that of colleagues at home

Question 73

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

Question 74

Which of the following refers to a core concept of the Toyota Way?

A) low emphasis on organizational learning
B) ownership of problems and visibility
C) hiding problems and difficulties from authorities
D) high emphasis on individual achievement

Question 75

The ________ is often used to equalize the standard of living between the host country and the home country,and to add some compensation for inconvenience or qualitative loss.

A) localization approach
B) balance sheet approach
C) relocation strategy
D) going-rate approach

Question 76

Which of the following can be termed as a benefit in the context of expatriate compensation?

A) relocation expenses
B) cost-of-living adjustments
C) health insurance
D) private education for children

Question 77

Which of the following is true with regard to training and compensating host-country nationals?

A) HCNs are rarely offered training in global business and Internet technology within their home corporations.
B) The traditional lifetime employment and guaranteed tidy pension of the East are being increasingly adopted by the West.
C) Many multinationals wish to train their employees to bridge the divide between the firm's successful corporate culture and practices, and the local culture and work practices.
D) In contemporary times, MNCs rarely have a global pay strategy in place.

Question 78

An ethnocentric recruiting approach enables a company to take advantage of its worldwide pool of management skill.

Question 79

Which of the following refers to a training priority for e-business development?

A) addressing security and privacy concerns
B) training personnel in soft skills
C) training personnel in talent management
D) devising a sustainable revenue model

Question 80

With the increasing number of companies that operate around the world and assign and move personnel from one country to another,________ has become exceedingly complex.

A) employing third-country nationals
B) designing equitable pay scales
C) employing local talent
D) convincing employees to take up foreign assignments