A Global Mindset

In professional networking terminology, what is the value of the type of person that Malcolm Gladwell described as a "connector"?

A connector is someone who seems to be a nexus or a common node in a web of relationships. They know many people, who themselves know many people. Knowing a connector can build one's professional network quickly.

Conflict of laws

A situation in which the laws of two or more jurisdictions differ and may exert a different result on a legal case depending on which system is deemed to have jurisdiction

Which likely workforce reactions should the vice president of HR include in a presentation to executive leadership regarding an upcoming company reorganization?

A well-managed organizational change leads to the "dreaded J curve," where there is typically a short-term decline in performance and then more rapid growth to a new level of performance.

The nation in which a global organization is headquartered has anti-bribery laws that are extraterritorial. How will this affect the organization's code of conduct?

An extraterritorial law extends liability for transgressing the law to a nation's citizens who are traveling or working in foreign countries. The organization's code of conduct should reflect the legal requirements of the headquarters country.

Levels of law

Analyzing laws by their areas of control: national, subnational, supranational, international

According to Edgar Schein, implicit culture represents the innermost layer of culture. What cultural features does this layer include?

Basic assumptions depict the innermost layer of culture. Artifacts and products as well as norms and values are outer layers of explicit culture. Power distance is not a layer at all.

Which system of law is the most prevalent in the world?

Civil law is most prevalent type of law. Laws are created by legislative bodies, which are considered to represent the culture's norms.

A manager from Asia has been transferred to lead an operation in the U.S. During regular team meetings, the manager observes constant and open conflict. According to Hofstede's cultural dimensions theory, how is the manager most likely to respond?

Collectivist cultures like China tend to prefer harmony and group decisions, so the manager may see this team's conflict as leading to the project's failure.

A company is ready to begin a major change initiative. Which is the most important role HR can play?

Communication is key to any major change initiative. Keeping employees informed helps lessen their anxieties and makes them feel a part of the change process.

What advice can you give to a new HR manager who is a bit of an introvert but wants to improve his networking skills?

Cultivate contacts who can help you increase knowledge, skills, and awareness of the organization, its culture, and the cultures of its communities. Do not restrict yourself to people in your own discipline, areas of expertise, or social group.

An international seed company is in a position to buy one of its competitors. Management has narrowed the options down to three possibilities. How can HR most strategically contribute to developing and evaluating a business case for this project?

HR can strategically contribute by determining the pivotal talent pools of employees needed in order for the combined organization to be successful.

After recent activities such as downsizing, an organizational restructure, and the creation of a new business model, management believes the company is now set for renewal. As HR works with management to increase employee support of the changes, which critical issue should be the initial focus?

HR professionals can contribute a more in-depth and detailed picture of how people will be affected by changes, how they are likely to react, and what they need to come through to the other side of the change. Organizational change is unsuccessful if employees have negative attitudes and perceptions toward the change. Prior to implementing any organizational development initiatives, HR must understand the level of resistance to the upcoming change and must plan for ways to deal with it.

What is the best time to involve HR when a major internal workforce change is being introduced into an organization?

HR's knowledge of the organization, its people, and its processes, combined with its expertise in managing workforce capabilities and productivity, make it essential to structuring change. The other answers bring in HR after implementation or when asked and may lead to dissatisfaction and unsuccessful interventions.

A manager from a diffuse culture asks an assignee to a family dinner. Which approach best demonstrates the best way for the assignee to respond?

In a diffuse culture, access to one's private life is granted only when there is trust, so the invitation should be gratefully accepted.

What is the key challenge in balancing stakeholder needs in a global organization?

In a global organization, the expectations of stakeholders are closely tied to the culture. Expectations may vary widely from one location to another. For example, employee benefits may vary from country to country. Local cultures may influence the stakeholder relationship in a distinctive way.

How would an organization's use of zero-based budgeting affect the human resources budget?

In an organization using zero-based budgeting, each function, including HR, begins with zero funds and must justify the strategic importance of each item in its budget. Funds are not carried over. Budgets are not necessarily frozen or decreased but could increase, especially if new projects are deemed strategically important.

If HR wants to minimize resistance to change among the employee population when implementing a new health insurance plan, which is a critical first step in the process?

In leading a change initiative, a manager must anticipate resistance and seek ways to manage it in advance. One of the most effective ways is to involve employees in problem solving. In this way, they understand the context more thoroughly, have a chance to voice opinions, and can affect and feel more invested in final outcomes. The manager-supplied context is helpful but perhaps too late. Removing oneself and senior decision makers from the stressful situation is a failure of leadership.

Which of the following conflict resolution modes can be seen as win/win conflict resolution?

In the collaborate mode, both sides work together to identify a third or new solution to the conflict. Since both sides contribute, this can be seen as win/win conflict resolution.

Which is the likely view of employees in an individualist culture?

Individualism primarily values personal freedom, human rights, and competitiveness. This may be contrasted with collectivism, which values cooperation, harmonious relationships, and social responsibility. For example, in an individualist culture, compensation for having the highest sales in the group may make work fun and exciting. In a collectivist culture, praise and rewards are more likely to be sought for the team than for the individual.

During a performance review meeting, an HR staff member asks her manager for help making contacts with peers in other departments. How should the manager respond?

It is a responsibility for HR leaders to create opportunities for their staff members to develop professional networks, especially with internal customers.

Rule of law

No individual is beyond the reach of the law; authority is exercised in accordance with written and publicly disclosed laws.

The leader of HR in a global organization is considering a group of headquarters managers for promotion to a position as regional director of HR. Which individual shows the most potential for developing a global mindset?

One of the characteristics of a global mindset is the ability to adapt to different environments and form relationships with different cultural groups, including organizational subcultures. The manager who has a track record of forming relationships across hierarchies, job functions, education levels, genders, and ages is more likely to be open to new cultures. Longevity does not guarantee openness. A minor in a language is good but not as favorable a characteristic as ease with different groups and situations. Youth alone does not guarantee the development of a global mindset.

As part of a larger project on pay structure, an HR head directs a team to update job descriptions by observing and interviewing employees. The manager in charge of finalizing the job descriptions reports that he cannot finalize the descriptions because the data for any one individual position varies so much. What is the likely problem?

The observers were not using a tool, such as an observation or interview guide, that would ensure that they were collecting the same data in the same manner. In other words, the tool was unreliable, or the observers were not sufficiently trained in how to use the tool.

A company in a high power distance culture is expanding into another country with low power distance. Which recommendation should the vice president of HR provide senior management regarding employees?

The power distance cultural dimension looks at how much a culture does or does not value hierarchical relationships and respect for authority. In a low power distance culture, people expect and accept power relations that are more consultative or democratic. They are more likely to question and challenge. People relate to one another more as equals regardless of formal positions.

Forum or jurisdiction shopping

The practice of taking complaints to jurisdictions sympathetic to the complainants' case.

Jurisdiction

The right of a legal body to exert judicial authority over a region, subject matter, or individual.

Civil law

is a system based on written codes approved by legislative bodies.

Common law

is based on legal precedent: Each case is considered in terms of how it relates to judicial decisions that have already been made

The midpoint is determined by

subtracting the lowest salary from the highest, dividing by two, and adding that to the lower amount. In the example, $75,000 minus $55,000 yields $20,000, which is then divided by two to yield $10,000, which is then added to $55,000 to identify the salary range midpoint of $65,000.

After losing an important business contract with an overseas client, a negotiator learns that her counterpart felt she rushed the process. The business negotiator thought she was being efficient with their time. Which approach would allow her to improve her cross-cultural negotiation skills?

During any cross-cultural negotiation, it is important to realize that cultures are characterized by different behaviors, communication styles, and norms. Failing to recognize the different perspectives may result in potential misunderstandings and a lower likelihood of exploring and discovering integrative, or value-creating, solutions. However, recognizing and using those differences to craft agreements will allow both sides to win.

What is the term for the right of a legal body to exert authority over a given geographical territory, subject matter, or persons or institutions?

Each legal body (e.g., city, state or province, country) has the right to apply its laws to activities occuring within its defined boundaries.

Due to changing customer needs, a company plans to cut 60% of its capacity and invest heavily in leading-edge technology. This will mean a major realignment of procedures, which will affect over 75% of employees. How can management ensure acceptance of these changes?

Effective change recognizes that people are more likely to accept what they have participated in creating. The other answers impose solutions and are not participative.

Which is the best way to create a supportive knowledge management culture?

Effective knowledge management programs may be formal or informal, but they all focus on information sharing across the organization and at all levels of the hierarchy. Employees must be trained in the culture and processes of knowledge management. The focus in identifying knowledge sources and needs should be internal.

What is the role of an informal knowledge management system in an organization?

Knowledge management systems can be formal or informal. Informal systems capture critical information and experiences. They are very influential in organizations but are based more on personal networks.

Due process

Laws are enforced only through accepted, codified procedures, thus avoiding arbitrary treatment and abuse of power.

An agricultural equipment manufacturer has achieved international presence by buying smaller businesses in markets around the world. The local divisions have operated with little involvement and direction by the headquarters, but the manufacturer would now like to integrate its operations and products so that it could offer more products in each market and leverage its dispersed expertise. The CEO asks the VP HR for ideas on how to transition to this type of organization. What would be the best advice HR could suggest?

One way to improve collaboration and develop the global mindset needed for true synergy is to create project teams that blend cultural perspectives and give team members a chance to learn new perspectives and develop trust. A small project would avoid the pressure and complexity of a large, visible project. This would be more effective than home office training, which will not provide actual experience with diverse peers. Adopting home office processes establishes an ethnocentric culture, which is not what the CEO is seeking. The qualifications for international assignees are more complex than one's proficiency in one's current job.

Which is an example of how managers can best leverage the social sharing of knowledge?

Personal networks and social capital are part of the informal knowledge management system in which employee share knowledge. This does not depend on a computer application, like the formal system does, but rather on personal networks and associations that have been nurtured over time. Coaching and mentoring are methods to leverage and share information.

How can multicultural organizations meet the challenges of successful knowledge management systems?1

Removing barriers such as language helps to ensure that everyone in the organization, regardless of location, can access and understand the information.

The CEO has been unsuccessfully negotiating the termination of the vice president (VP) of sales. No one knows why, but this VP has become a disruptive influence on the senior management team. He instigates conflicts and is untrustworthy and untruthful, but the CEO and the board have always given him positive performance reviews and bonuses. He has been unpleasant but has not violated policies. He wants an exorbitant severance package, much larger than any the organization has ever given. The CEO asks the VP of HR for advice. What would you suggest?

The CEO and the VP of sales need to meet for a candid discussion on what would be an acceptable negotiated solution. The CEO can explain what he won't do. The VP of sales can explain what his goal in this situation is. A more creative solution can be negotiated that meets both sides' needs. It will be hard to justify a termination for performance or cause. Rather than paying the large severance amount, the board should prepare for the negotiation by deciding an amount that they can accept and determining what their alternatives are—their BATNA.

Through a recent company-wide survey, a large number of employees expressed interest in using cross-divisional teams to address organizational challenges. Which analysis should the HR business partner use to win management support for a pilot program?

The best way to win support for the initiative is to demonstrate to management its potential value. This could include tangible factors such as a higher number of solutions that can be implemented more easily and with greater success. It could also include some intangibles, such as the impact of employee participation on workforce engagement.

What should be done in a situation where a negotiation over a vendor's price is stalled because the vendor is insisting that the lowest they will go is $200,000 for the work and the purchaser is holding the line at paying $185,000?

The correct answer looks to move the negotiation away from positions and toward the use of objective criteria, such as an independent assessment of fair market value. This will preserve the relationship and help both parties feel that they have been treated fairly.

A new CEO of a food products company asks the vice president of HR in a meeting, "On average, what does a food scientist make here?" The company is large, with operations in different locations with different market rates. Many of the operations were acquired, and their staffs have more tenure. How should the vice president handle this question?

The most accurate answer is a weighted average that takes into account the broad range of salaries in this job class due to the different factors.

An organization recently acquired another company that has 2,000 employees. The acquired organization has several industry-leading manufacturing processes. Which development initiative enables these processes to be most cost-effectively shared with all employees?

The most cost-effective way for the organization to share these industry-leading manufacturing processes is by incorporating the processes into the knowledge management system. Developing new training will be expensive. Distributing the acquired organization's documentation sends knowledge in the wrong direction. Using experts may result in inconsistencies in the presentation of the the processes.

A new head of HR would like to introduce a program to benefit employees who have added a new family member (newborns, adoptees or foster children, or older family members). It would allow greater flexibility in scheduling for the two years following the change in family status. HR staff include a question on the annual employee survey to estimate interest and use. They report back to the head of HR that survey responses do not indicate more than 2% interest in participation in the program. How should the head of HR respond?

The usefulness of the survey data could depend on the representativeness of the employees who traditionally respond to the survey. Is the participation representative of all age groups and positions? Disregarding the staff recommendation, even if the action is well-meaning, could damage trust and engagement in the HR function. This would include hiring an outside expert, which shows doubt of the staff's expertise and judgment.

Two members of the HR strategy team constantly argue about priorities, and their conflict could now possibly impact the schedule. The vice president of HR tells them both to stop arguing and defines the priorities. What conflict management style did she use?

The vice president of HR has directed the managers on what to do and has made the decision for them. This mode creates a "win/lose" resolution, and it is often used when there is a crisis, when authority is being challenged, or when the impact on future relations is minimal.

A global business solutions technology company operates regional call centers. A quality survey was conducted in the call centers for the first time, using a headquarters-designed tool to observe and score caller performance. The business used an experienced vendor with trained observers. One region scored much lower. The low score will affect the performance bonus of the regional manager, and the manager is claiming that the process was not fair. How should the head of HR respond? Answers

There is a possibility that the tool is not valid for all call centers, that it is measuring performance in a way that is appropriate in the headquarters country but not in the low-scoring region. For example, different cultures may be more or less direct in asking for information from customers. Repeating the project with the same invalid tool, even with a different vendor, may yield the same result.

Which is a valid method to retain organizational knowledge when employees leave the organization?

Which is a valid method to retain organizational knowledge when employees leave the organization?