WK 6 Ch 12,13,15 & 16
An organization does a complete review and redesign of critical work processes, making them more efficient and providing higher quality, as part of a(n)
reengineering process
What factor indicates that human capital is high in a country?
the presence of educational opportunities for citizens
Feedback in traditional merit pay programs typically flows in which direction?
unidirectionally, from supervisor to subordinate
Employee performance can be measured at the ___ level.
unit organizational individual
Employers who do not meet employee expectations regarding benefits run the risk of violating the
"implicit contract" that exists between workers and the company they work for
Who collects the majority of information on an individual's performance in traditional merit pay programs?
the immediate supervisor
What is the purpose of the General Agreement on Tariffs and Trade (GATT)?
to reduce trade barriers among its member-nations
Companies considering an expansion into global markets must recognize that the new markets ___
will be different in a number of ways from the home country
For a domestic company, what is typically the focus of its training programs?
Employees' technical competence
Most organizations have a written document that summarizes the goal(s) of their various benefits programs, which helps them measure the outcomes of providing those benefits.
False
Which organization was established by the General Agreement on Tariffs and Trade (GATT) to seek solutions to conflicts between member-nations?
World Trade Organization (WTO)
Pay programs that recognize employee contributions differ depending on whether payouts are
a fixed cost part of base pay variable
What HRM practices or requirements may be dictated by a country's political-legal system?
employee training compensation hiring and firing
An expatriate employee who works and lives in the country in which he was born and is employed at the satellite location of company is known as a(n)
host-country national
Employee performance can be measured at the ___ level.
organizational individual unit
What are the factors that affect HRM policies in global markets?
political-legal system economic system education-human capital culture
Which of the following statements about human capital is true?
Countries with low human capital attract facilities that require low skills and low wage levels.
Which of the following should be a key factor in designing an employee benefits package?
The preferences of current workforces
Which of the following is true for employees who sign up for a health maintenance organization (HMO) health care plan?
They can only use HMO services. They have benefits that are prepaid.
It is important to pay high performers an amount they believe is equitable in order to ___ them
attract retain motivate
Organizations should choose a pay strategy in the context of how effectively it will further the organization's
business strategy
What is the primary reason why HRM practices effective in the United States may not work in another country?
differences in culture
A country in which an organization seeks to locate or has already located a facility is called the
host country
Chief human resource officers hold which of the following responsibilities?
leading the HR function ensuring that HR systems and processes deliver value to the company
According to research findings, when an organization changes from a pay strategy that has below average variability to one with above average variability, on average they will experience a return on assets of approximately
2%
When a firm contracts with an outside vendor to provide products or services to the firm, it is known as
outsourcing
Which Asian country has the largest potential consumer market for goods and services?
China
Which of the following statements about communicating with employees about benefits is true?
Most employees do not fully understand what their benefits provide.
Which of the following increase with increasing incentive intensity?
Motivation The chance of unintended consequences
Which technique to understanding a process involves real-world issues presented to data end users?
Scenario analyses A scenario analysis simulates real-world issues and presents them to end users who are asked to indicate how an information system could help address their particular situations, and what data should be maintained to deal with those situations.
How should Mr.Jacobs develop the HRM function at Scranton, Inc. using the generic structure?
Restructure HR to include centers for expertise, field staff, and a service center By developing centers for expertise, a field staff, and a service center, Mr. Jacobs would be capitalizing on the strengths of his employees and creating organization throughout the organization.
What has been the result of European countries coming together as members of the European Union (EU)?
The European Union (EU) is a large, free-market economy. The economies of European Union (EU) member countries are closely intertwined.
Which of the following increase with increasing incentive intensity?
The chance of unintended consequences Motivation
North American Free Trade Agreement (NAFTA) member nations made up a larger free market than European Union (EU) member nations.
True
North American Free Trade Agreement (NAFTA) member nations made up a larger free market than European Union (EU) member nations.
True Reason: The North American Free Trade Agreement (NAFTA) created a free market consisting of Mexico, the United States, and Canada that was even larger than the European Union (EU).
A socialist economic system is characterized by a tax system that takes ___
a higher percentage of income than a capitalist system does as a person moves up the economic ladder
Which of the following are HR competencies as identified in the Human Resource Competency Study?
accelerates business mobilizes information fosters collaboration
Outsourced providers can be more efficient than internal employees because they:
are specialists.
It is important to pay high performers an amount they believe is equitable in order to ___ them
attract motivate retain
Workers have economic incentives to invest in their individual human capital in ___ economic systems.
capitalist
Which of the following characteristics concerning pay-for-performance programs may help increase the probability that the program has the intended effects and decrease the probability of unintended consequences and problems?
careful alignment with human resource strategy careful alignment with organizational strategy balancing of objectives
To maximize their return on a benefits package, companies must
communicate benefits information effectively to all employees
What is the common currency used by the European Union (EU)?
euro
Employees notice how some employees get paid differently, and their perceptions of ___ will influence their behaviors.
fairness
On which of the following roles does the CHRO spend the least amount of time?
firm representative
Which of the following are design features that potentially help differentiate pay-for-performance programs?
frequency of payout payment method ways of measuring performance
Employers can obtain competitive information about other employers' benefit packages through which of the following?
hiring private consultants the U.S. Chamber of Commerce the Bureau of Labor Statistics
The strength of the relationship between pay and performance is known as
incentive intensity
Money spent on health care in the United States has ___ since 1960
increased dramatically
Which of the following are traditional HRM subfunctions?
labor relations training staffing
Domino's franchises may be impacted by training, compensation, hiring, and firing rules in different countries. What factor affecting human resource management in international markets does this represent?
political-legal system The political-legal system often dictates the requirements for certain HRM practices,such as training, compensation, hiring, firing, and layoffs.
Merit pay, or merit bonuses, is a form of
variable
Merit pay exists in most organizations.
True Merit pay exists in most organizations.
What is the most important factor influencing international HRM?
a country's culture
Sam visits Mexico for a business meeting. At the meeting, Sam addresses the vice president of the firm by his first name rather than using his title. This is considered offensive. In the context of Hofstede's cultural dimensions, this difference in cultures is part of the _____ dimension.
power distance Differences in power distance often result in miscommunication and conflicts between people from different cultures. In Mexico, individuals are always addressed by their titles. Individuals from the United States, however, often believe in minimizing power distances by using first names.
In order to succeed at a foreign assignment, which adaptive dimensions are most important for an expatriate to have?
self dimension relationship dimension perception dimension
Which competency is characterized by the ability to think critically and respond calmly?
simplifies complexity
The legal regulations pertaining to HRM practices in other countries typically reflect the country's ___
societal norms
A good source for credible cost information about competitors' benefits packages is
the Bureau of Labor Statistics
Employers can obtain competitive information about other employers' benefit packages through which of the following?
the Bureau of Labor Statistics the U.S. Chamber of Commerce hiring private consultants
What structural arrangement needs to be in place for the HRM function to contribute strategically to firm effectiveness?
the senior HR person reporting to the CEO
Which of the following are likely motivations for a company to pursue reengineering?
to ensure realization of benefits from new technology to improve the efficiency of critical work processes to improve the quality of critical work processes
Which of the following are traditional HRM subfunctions?
training staffing labor relations
Which of the following nations spends the most on health care?
the United States
What type of benefit allows employees to travel abroad to seek cheaper medical care?
Medical tourism benefit
When there is goal setting, employment security, and management commitment, which compensation program are you describing?
Gainsharing Common factors of gainsharing include (1) management commitment, (2) a need to change or a strong commitment to continuous improvement, (3) management's acceptance and encouragement of employee input, (4) high levels of cooperation and interaction, (5) employment and security, (6) information sharing on productivity and costs, (7) goal setting, (8) commitment of all involved parties to the process of change and improvement, and (9) agreement on a performance standard and calculation that is understandable, seen as fair, and closely related to managerial objectives.
At which stage in the reengineering process would Mr. Jacobs try out the process by testing it in a limited, control setting?
Implementing the new process In the implementing the process stage, a company tries out the process by testing it in a limited, controlled setting before expanding companywide.
In general, what are some characteristics of a domestic company?
It offers a product or service that meets the needs of domestic consumers. It tends to employ local labor almost exclusively. It is often started by an entrepreneur.
Based on what you know about uncertainty avoidance, Domino's would have the most challenge finding franchisees in which of the following countries?
Japan Uncertainty avoidance describes howcultures seek to deal with anunpredictable future. Agreeing to be a franchisee of Domino's involves some unpredictability and countries with high uncertainty avoidance may pose a challenge for the company. Out of the listed nations, Japan has the highest uncertainty avoidance (see Table 15.2).
What has been the impact of the North American Free Trade Agreement (NAFTA) on jobs in the United States?
Low-skilled jobs shifted to Mexico. More higher-level skilled jobs were created in the United States.
In addition to Japan and China, which Asian countries have recently become economic forces?
Malaysia Singapore Reason: This is incorrect. North Korea is a communist country with little or no economic consequences for companies looking to expand globally.
Based on the information presented in the case, what should Mr. Jacobs do with the transactional tasks such as payroll and benefits administration?
Outsource them since it no longer seems cost-effective to keep in-house Outsourcing entails contracting with an outside vendor to provide a product or service to the firm, as opposed to producing the product using employees within the firm. Usually this is done for one of two reasons: Either the outsourcing partner can provide the service more cheaply than it would cost to do it internally, or the partner can provide it more effectively than it can be performed internally. Firms primarily outsource transactional activities and services of HR such as pension and benefits administration, as well as payroll.
Which of the following is true of cultures that are strong in uncertainty avoidance?
These cultures condition people to seek security through technology and law. Cultures with strong uncertainty avoidance, such as those of Greece and Portugal, socialize their people to seek security through technology, law, and religion. Thus, these cultures provide clear rules as to how one should behave. Cultures that have weak uncertainty avoidance socialize individuals to accept this uncertainty and take each day as it comes.
How can companies assess employee preferences for specific benefits?
Through focus group discussions Through interviews Through questionnaires
For an expatriate manager to be successful, his or her family must be able to adapt to life overseas as well.
True
