SHRM 2022 Managing a Global Workforce
How does the issue of allegiance in global assignments affect the processes of global assignment selection and assignee management? High levels of allegiance can create risks of noncompliance with local laws. Greater attention should be paid to the logistics of the move. A priority should be placed on the support needed for assignee's unique needs. Allegiance to the home or host country should not affect selection of a global assignee.
A priority should be placed on the support needed for assignee's unique needs. Rationale A global assignee may feel allegiance to the home country or to the host country, depending on the individual and the circumstances. This can affect the ease of the transition into a host country's culture and processes and of the assignee's return to the home country. It does not affect logistics, but it can indicate which candidates are likely to be more successful in global assignments. An employee who has a history of being compliant will probably be aware of and respect the need for compliance in different countries.
Which best describes a global organization? A large multinational corporation with global subsidiaries, vast resources, and a network of mobile global subject matter experts An organization whose processes, actions, and decisions are firmly rooted in a carefully conceived global strategy An organization with operations in both developed and emerging economies with established cultural diversity to achieve success An organization that is grossing more than $1 million and doing business in more than two countries
An organization whose processes, actions, and decisions are firmly rooted in a carefully conceived global strategy Rationale Because of technologies and the growing ease of doing business across borders, a global organization is no longer defined by its size or physical presence in multiple countries but by its global strategy.
Which critical role must HR assume in light of globalization? Ensure that local management is not prejudiced by global policies Ensure that an organization's global strategy is not influenced by its workforce's local cultures Balance an organization's global strategy with policy localization to reflect national cultures and laws Oversee workforce management policy shifts due to increased offshoring
Balance an organization's global strategy with policy localization to reflect national cultures and laws Rationale In developing and implementing global strategies, global HR must balance standardization of policies influenced by the organization's values and global strategy with the need to localize these policies through programs and practices that reflect organizational and national cultures and local laws.
Which action best characterizes an organization that approaches global assignments from a strategic-systematic perspective? Approaching international assignments as noncritical short-term business expenses Coordinating critical functions among the home office and foreign locations Focusing attention mainly on problems as they arise Decreasing attention to worldwide integration of values and technology
Coordinating critical functions among the home office and foreign locations Rationale The strategic-systematic approach to global assignments, which is characterized by coordinating and controlling functions among the home office and foreign locations, is more cost-effective than the alternative tactical-reactive approach and yields much better long-term results.
Which growth strategy is commonly used to accelerate the path to globalization? Restructuring Outsourcing Internal expansion Creating alliances
Creating alliances Rationale Alliances, partnerships, and acquisitions are all vehicles that can accelerate the path to globalization. Internal expansion and restructuring can be time-consuming as the organization adjusts. While outsourcing can be a global strategy, its general goal is to reduce costs.
To approach global assignments from a strategic-systematic perspective, which action should HR take? Approach global assignments as short-term expenses. Focus on staffing levels in lieu of talent development and growth. Perform HR functions and focus attention on arising problems. Develop future executives with essential global perspectives.
Develop future executives with essential global perspectives. Rationale Developing future executives with essential global perspectives is a primary action in a strategic-systematic approach.
Which statement characterizes globalization? Global interconnections reached a peak in the 1980s and 1990s and have since decreased Global markets, economies, and technologies are increasingly interconnected Technology has become the single shaping force in globalization Developed economies play an increasingly dominant role in globalization
Global markets, economies, and technologies are increasingly interconnected Rationale The integration of markets, nation-states, and technologies is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before.
How does HR support strategic management in a global organization? Measure independently collected data, and not depend on data mining Develop communication policies that maintain organizational boundaries Implement processes to increase integration and knowledge exchange Maintain policies not defined by globalization or fundamental cultures
Implement processes to increase integration and knowledge exchange Rationale Implementing processes to increase integration and knowledge exchange achieves two goals. First, it aligns organizational values and goals and HR policies across global locations. Second, it establishes processes that promote collaboration and knowledge sharing across geographical boundaries.
Why is cross-cultural training critical for international assignees and their families? It shortens the culture shock phase. It increases the ability to mentor. It supports HR's duty-of-care obligations. It reduces the risk of failed assignments.
It reduces the risk of failed assignments. Rationale Effective international assignments involve many practices. Cross-cultural training for assignees and their families not only reduces the risk of failed assignments but also helps to manage expectations and to facilitate adjustment and performance.
A Taiwanese manufacturer for major global brands has production locations in several countries, including Vietnam, Turkey, Mexico, and the United States. What offshoring trend does this exemplify? Demise of offshoring by firms based in developed countries First use of offshoring by multinational companies Multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies Shift in offshoring from low-tech products such as textiles to high-tech products such as electronics
Multidirectional shift in the flow of offshoring jobs to and from developed and emerging economies Rationale The motivations for offshoring, and, consequently, where it is taking place and which firms are adopting it as a global strategy, are changing as a result of new globalization forces, principally the shift from developed to emerging economies. The flow of offshoring jobs is now going in both directions or, rather, in many directions at once.
In pursuit of cost savings, a western European company decides to partner with an organization in central Europe. In addition to a lower cost base, the company chose this partner over a Chinese prospect because of reduced geographical, cultural, and linguistic differences. Which outsourcing arrangement does this describe? Best-sourcing Offshoring Onshoring Near-shoring
Near-shoring Rationale This is an example of near-shoring, where an organization outsources part or all of its operations to a nearby country. In this scenario, the manufacturer moves some of its operations to a lower-cost organization while maintaining geographic and cultural proximity. As such, travel distances will be less than relocating to China, and the new partner will most likely be more culturally aligned.
What is the difference between offshoring and outsourcing? Offshoring relocates processes or production to another country; outsourcing transfers portions of work to outside suppliers Offshoring creates a more favorable climate for corporate taxation; outsourcing allows closer proximity to production resources Offshoring does not involve a company's core competencies; outsourcing allows for movement of core competencies to a vendor Offshoring occurs when a firm moves a division across borders; outsourcing occurs when a company relocates a division within borders
Offshoring relocates processes or production to another country; outsourcing transfers portions of work to outside suppliers Rationale Offshoring is the practice of relocating processes or production to another country. For example, a U.S. computer company may move its help desk to India. When a company outsources, it does not necessarily mean that a process or product is moved abroad, although it may be. The company may outsource to a domestic or international vendor. For example, a U.S. company may outsource the customer service function to a small town in another state.
Which primary role does HR play in supporting global strategic management? Create HR policies that reinforce global inclusion versus local responsiveness Define strategies for local subsidiaries Ensure that subsidiaries' workforces retain their local identities Partner to create the organization's global strategy
Partner to create the organization's global strategy Rationale HR can support strategic management by helping to create global strategy, aligning HR activities with it, adapting the activities to local needs, and enhancing communication between the organization and its stakeholders.
What is one thing an organization can do to help ensure a global assignment's success for both the individual and the organization? Provide well-planned, ongoing training and support. View assignments as an activity rather than a process. Select a candidate based on functional competence and communication skills. Focus on expatriation rather than repatriation.
Provide well-planned, ongoing training and support. Rationale Ongoing training and support is critical throughout the assignment, not just before. Both expatriation and repatriation require equal attention. Assignments should be viewed as a process, not an activity. All criteria, not just functional and communication skills, should be considered in candidate selection.
Which is the best reasoning for offshoring production to remain competitive? Labor relations concerns are diminished Proximity to new markets will lower costs Wage increase concerns are eliminated Quality control levels will remain the same
Proximity to new markets will lower cost Rationale The main reason offshoring is considered is that it will lower costs.
An assignee returning to the United States after several years in Asia says he feels like an alien at home and at work. What is the assignee experiencing? Reverse culture shock Weak cross-cultural awareness Strong technical competence Career fatigue and burnout
Reverse culture shock Rationale Upon returning to their home country, many assignees experience reverse culture shock . The organization and their home surroundings are neither what they left nor what they anticipated returning to.
A multinational corporation known for its big, premium-priced ultrasound scanners) introduces a cheaper and portable version in emerging markets. The portable scanner creates new markets in small hospitals and for immobile patients. Which globalization force does this exemplify? Reverse innovation Diaspora Hyperconnectivity Demographic dichotomy
Reverse innovation Rationale All of these choices are examples of forces shaping globalization. This scenario describes reverse innovation. Historically, multinationals innovated in developed-economy countries and sold those products in emerging-economy countries. Reverse innovation is doing just the opposite. It is about innovating for or by emerging-economy countries and bringing those products to developed countries.
Which of the following factors influence an organization to expand globally? Favorable tax policies for domestic investment Saturated market demand at home Greater strategic control over global branding Attractive trade agreements with foreign countries
Saturated market demand at home Rationale Saturated demand at home means that the only growth option (without developing new products and markets at home) is to find new customers in new countries.
Which is the best option to help an international assignee rapidly acclimate to the new country's culture? Schedule the assignee in a series of accelerated language and customs courses. Arrange for the assignee to move in and live with a local host family for the first six months. Provide the international assignee with a country overview and culture orientation. Secure a specialized third-party vendor to provide the assignee with a customized settling-in program.
Secure a specialized third-party vendor to provide the assignee with a customized settling-in program. Rationale To navigate the complexities of global assignments, a specialized third-party vendor is the best resource. Although the other options may be generally helpful, they are not specifically targeted to assist the assignee in acclimating to the global assignment.
Which scenario illustrates a geocentric global orientation as described by Perlmutter? Senior management moves between countries within regions Policies are created independently within global regions Senior management remains primarily within the borders of each country of a region Senior management from all countries are considered to be part of a single global resource pool Previous Question Next Question Review
Senior management from all countries are considered to be part of a single global resource pool Rationale In a geocentric global orientation, the organization is viewed as a single international business. Headquarters and subsidiaries work together as one team.
An organization employs remote teams spread across a country. What strategy can HR use to help build engagement, trust, and alignment with the organization's goals? Site visits Additional leave for remote employees Diversity training Mandatory weekly team check-in meetings
Site visits Rationale Site visits can improve team engagement and connection, build trust, and ensure that the team remains in alignment with the organization's goals. Diversity training may be an important tool for remote teams, but it may be less useful when cultural and linguistic differences aren't in play, including when the remote teams are all located within a single country.
In which way has globalization impacted how domestic organizations train managers? A domestic company is not affected by globalization; training does not need to evolve. Domestic organizations are concerned only with downstream processes and needs. Training includes cross-cultural sensitivity and adaptability. Cross-cultural sensitivity training is used only for global assignees.
Training includes cross-cultural sensitivity and adaptability. Rationale Training should include cross-cultural sensitivity and adaptability. Even domestic companies are affected by global forces and should train managers to aid in developing a global mindset.
Which is critical when considering forces for globalization? Learn whether a force's origin is an emerging or a developed economy Identify whether a force will have a positive or negative impact on the organization Understand which forces are significant to the organization Determine whether a force is political, technological, economic, or social
Understand which forces are significant to the organization Rationale An HR professional's goal in considering any aspect of globalization is to strive to understand which globalization events, forces, and trends are significant for an organization and for HR responsibilities in that organization. Whatever the force's type or origin, its impact will be unique for that organization.
How can HR ensure that the relative value of a position in a global organization is the same regardless of where the work is done? Complete a job analysis. Conduct an employee survey. Use global job classifications. Create unique job classifications for each country.
Use global job classifications. Rationale Using global job classifications allows HR professionals to more clearly identify the relative value of a job position in the organization, regardless of where the work is done or local conventions.
What document legally authorizes a person to take employment in another country? Nonimmigrant visa Work permit Immigrant visa Residence permit
Work permit Rationale A work permit is the official document giving a foreigner permission to take a job in a country.