Human Resource Management Chapter 17

What is the first step in developing a more effective global HR system? A) adapting pay policies B) forming global HR networks C) identifying crucial executive behaviors D) remembering that truly global organizations find it easier to install global systems

B) forming global HR networks

The current global average of employee engagement is: A) 23% B) 44% C) 61% D) 83%

C) 61%

________ are noncitizens of the countries in which they are working. A) Home-country nationals B) Third-country nationals C) Expatriates D) Locals

C) Expatriates

Which of the following corporate divisions plays the greatest role in offshoring? A) marketing B) accounting C) manufacturing D) human resources

D) human resources

Which of the following is most likely NOT covered by kidnapping and ransom insurance policies? A) abductions B) ransoms C) crisis teams D) weapons

D) weapons

The most expensive approach to staffing is the polycentric staffing model.

False Its the least expensive

A global HR system should integrate global tools, such as online recruitment systems, with local methods.

True

What value classification refers to a belief that the best manager for a specific position could be in any of the countries in which the firm operates? A) polycentric B) ethnocentric C) geocentric D) monocentric

C) geocentric

With a geocentric staffing policy, a firm is most likely able to ________. A) provide effective training B) recruit recent college graduates C) use its human resources efficiently D) strengthen its image within a local community

C) use its human resources efficiently

________ are citizens of the countries where they are working. A) Home-country nationals B) Multi-nationals C) Expatriates D) Locals

D) Locals

Which of the following is a true statement regarding expatriates? A) Most expatriates require at least one year of psychological help after returning home. B) Most expatriates avoid traveling abroad after returning to their home country. C) Most expatriates and their families prefer open-ended work assignments. D) Most expatriates quit within three years of returning home.

D) Most expatriates quit within three years of returning home.

Being childless makes it easier for spouses to adjust to living overseas because of less stress.

False

The official length of a work week in the European Union is 40 hours.

False

Foreign service premiums compensate expatriates for exceptionally hard living and working conditions at certain foreign locations.

False Hardship allowences

The top driver of employee engagement around the globe is career opportunities.

True

The majority of multinational corporation management positions are filled by expatriates.

False

According to research, all of the following will most likely help spouses of expatriates adjust to living in foreign countries EXCEPT ________. A) close family relationships B) pre-school age children C) scheduled vacations D) language training

C) scheduled vacations

In many European countries, ________ replace the union-based worker-management mediations typical in the U.S. A) HR managers B) corporate attorneys C) work councils D) bargaining units

C) work councils

What is the primary problem associated with virtual teams at international firms? A) scheduling meetings B) agreeing on important issues C) facilitating group communication D) building trust among team members

D) building trust among team members

All of the following are reasons that firms rely heavily on locals to fill foreign subsidiary management positions EXCEPT ________. A) pressure from local government B) lower costs than using expatriates C) improved public relations in community D) high level of skills and technical qualifications

D) high level of skills and technical qualifications

According to research, which of the following is a greater concern to Chinese managers than United States managers? A) getting tasks accomplished efficiently B) keeping a distance from subordinates C) enforcing a firm's policies and regulations D) maintaining a harmonious work environment

D) maintaining a harmonious work environment

Jim Simmons, an American, has worked for a U.S. firm's Italian operations for two years with great success. Now, the company wants Jim to relocate to France to establish a new division. The company will most likely offer Jim a ________ to reward him for moving from one assignment to another. A) hardship allowance B) foreign service premium C) cost-of-living increase D) mobility premium

D) mobility premium

Which of the following terms refers to a lump-sum payment given to employees as a reward for moving from one assignment to another? A) hardship allowance B) foreign service premium C) cost-of-living allowance D) mobility premium

D) mobility premium

Sara, who is originally from India, works in Texas for Dell as an IT manager. Dell, which has a localization policy, recently announced that management positions are available in its Bangalore, India facility. If Sara, who wants to return to India, is offered the Bangalore position, she would most likely be categorized as a(n) ________. A) commuter employee B) independent contractor C) third-country national D) permanent transferee

D) permanent transferee

Jason is a British freelance journalist working in Paris, so he is most likely classified as a(n) ________. A) local B) expatriate C) third-country national D) home-country national

B) expatriate

Explain the balance sheet approach to formulating expatriate pay.

This method seeks to equalize purchasing power across countries. The basic method is to take the expenses for an employee in his or her home country, including income taxes, housing, goods and services, and discretionary income, and then to estimate how those expenses will vary in the host country. The employer will pay the differences. The base salary will normally be in the same range as the manager's home-country salary. Then, a foreign service premium and/or hardship allowance might be added. There could also be allowances given for housing and education.

In China, a structured interview process is the typical method for selecting employees.

True

Offshoring involves moving business processes such as manufacturing or call-center operations abroad.

True

One negative of expatriates is that they can focus too much on short-term results.

True

Which of the following is a true statement regarding the European Union? A) EU employers must provide employees with written terms of their employment. B) EU employers must provide two weeks' notice when dismissing employees. C) Each EU country pays workers the same minimum hourly wage. D) Workers in the EU must live and work in their home country.

A) EU employers must provide employees with written terms of their employment.

All of the following characterize European labor relations EXCEPT ________. A) limited number of bargaining units B) informal recognition of labor unions C) bargaining through employer associations D) industry-wide collective bargaining

A) limited number of bargaining units

Marie is an Italian executive working in a manufacturing plant in Siena, Italy that is owned by a parent company based in Singapore. Marie is a(n) ________. A) local B) expatriate C) third-country national D) home-country national

A) local

Which of the following terms refers to citizens of a country other than the parent or the host country? A) third-country national B) home-country national C) multi-national D) local

A) third-country national

Which term refers to a group of geographically dispersed co-workers that uses a desktop videoconferencing system to communicate and accomplish tasks for the firm? A) virtual team B) telecommuter group C) permanent transferee D) short-term international team

A) virtual team

Before departing for an overseas assignment, an employee would most likely benefit from ________ training. A) technical B) interpersonal C) cross-cultural D) career development

C) cross-cultural

Which of the following is NOT one of the primary expense groups used in the balance sheet approach to formulating expatriate pay? A) taxes B) housing C) disposable income D) discretionary expenses

C) disposable income

Which of the following terms refers to the belief that home country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country has to offer? A) polycentric B) ethnocentric C) geocentric D) monocentric

B) ethnocentric

Which of the following is the LEAST likely reason that a firm would choose an ethnocentric staffing policy? A) lack of qualified host-country upper-management candidates B) goal of reducing misunderstandings with locals C) need to transfer core competencies effectively D) desire to maintain a unified corporate culture

B) goal of reducing misunderstandings with locals

Why is recruiting, hiring, and retaining good employees difficult in China? A) economic difficulties B) unmotivated workers C) government restrictions D) training requirements

C) government restrictions

Adaptability screening is a commonly used process to assess the likelihood that an expatriate can reintegrate into his or her home country's culture following a foreign assignment.

False

As in the U.S., collective bargaining in Western Europe typically occurs at the plant level rather than at the industry level.

False

) International human resource management (IHRM) is the human resource management concepts and techniques employers use to manage the human resource challenges of their international operations.

True

Firms using a geocentric staffing model will seek the best people for key jobs throughout the organization, regardless of nationality.

True

Treating locals as equal partners when developing a global HR system will minimize resistance

True

A major challenge for international businesses is the need to adapt personnel policies and procedures to the differences among countries.

True

Explain what a virtual team is. What are some challenges virtual teams face and how can they be dealt with?

Virtual teams are groups of geographically dispersed coworkers who interact using a combination of telecommunications and information technologies to accomplish an organizational task. The main challenges virtual teams face are often people related. Challenges include building trust, cohesion, and team identity, and overcoming the isolation among team members. Success therefore depends on human resource management actions. In particular, train virtual team members in leadership, conflict management, and meetings management, and to respond swiftly to virtual teammates. Be scrupulous about answering e-mails and being positive. Select virtual team members using behavioral and situational interviews, where they describe how they'd respond to illustrative virtual team situations. Use current virtual team members to help recruit and select new team members.

What are the top drivers of employee engagement around the globe? A) career opportunities B) recognition C) company reputation D) setting goals

A) career opportunities

Which of the following is a best practice in ensuring success in actually implementing globally consistent human resource policies and practices? A) "Keep it consistent." B) "Provide instruction from above." C) "You can't communicate enough." D) "Form global HR networks."

C) "You can't communicate enough."

The most common approach to formulating expatriate pay is the balance sheet approach.

True

In which country do individuals have a high acceptance of unequal power distribution between managers and subordinates? A) Mexico B) Hong Kong C) Sweden D) United States

A) Mexico

Which of the following terms refers to paying a portion of an expatriate's salary in homecountry currency and a portion in local currency? A) balance sheet approach B) split pay approach C) hardship premium D) foreign-service premium

B) split pay approach

Which of the following qualities is most closely linked to an employee's success on an international work assignment? A) technical skills B) responsibility C) intelligence D) flexibility

D) flexibility

Hourly wages for production workers in the United States are higher than those in Germany.

False

In a polycentric corporation, the prevailing belief is that home country attitudes, management style, knowledge, and managers are superior to anything the host country might offer.

False

Over the last decade, the majority of U.S. firms have been steadily increasing the size of their expatriate workforces.

False

The most significant HR challenge faced by international firms is the language barrier.

False

In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which of the following, if true, supports the assertion that Walmart is an ethnocentrically oriented corporation? A) Walmart usually succeeds on an international level because the firm actively works to support local charities. B) Walmart rarely experiences cultural misunderstandings because of its tendency to hire locals to fill management positions. C) Walmart aims to maintain a unified organizational culture by filling foreign management positions with Americans. D) Adaptability screening eliminates problems associated with transferring Walmart managers and their families abroad

C) Walmart aims to maintain a unified organizational culture by filling foreign management positions with Americans.

Describe what an expatriate is and factors that impact expatriate success.

Expatriates (expats) are noncitizens of the countries in which they are working. Employers often can't find local candidates with the required qualifications. Multinationals also view a successful stint abroad as a required step in developing top managers. Furthermore, the assumption is that home-country managers are already steeped in the firm's policies and culture, and thus more likely to apply headquarters' ways of doing things. Posting expatriates abroad is expensive, security problems give potential expatriates' pause, returning expatriates often leave for other employers within a year or two, and educational facilities are turning out top-quality candidates abroad. Systematizing the entire expatriate management process is one way to avoid such early returns. For example, employers should have an expatriate policy covering matters such as compensation and travel costs. Include procedures, for instance, requiring that the manager responsible for the expat's costs obtain all chain of command approvals. Another step in avoiding early returns is to test and select people who have the necessary traits and adaptability (as discussed earlier). And perhaps most importantly consider the expat's family situation. In one study, U.S. managers listed, in descending order of importance, reasons for expatriates leaving early: inability of spouse to adjust, managers' inability to adjust, other family problems, managers' personal or emotional immaturity, and inability to cope with larger overseas responsibility. Such findings underscore a truism about selecting international assignees: The problem is usually not incompetence, but family and personal problems.

Explain the meaning of ethnocentrism, polycentrism, and geocentrism and how those values might affect a multinational company's staffing policy

Firms with an ethnocentric value system believe that the knowledge and methods used in the home country are superior to those elsewhere. Consequently, these firms will prefer to staff managerial positions in foreign subsidiaries with home-country nationals. Firms with a polycentric view believe that only host-country nationals can really understand the local culture and customs. These firms will choose locals for managerial positions in international locations. Finally, firms with a geocentric view believe that the best managers could be anywhere. They will likely use a mix of locals, home-country nationals, and third-country nationals

The most common reason that an expatriate fails at an international assignment is ________. A) incompetence B) technical demands C) inability of spouse to adjust D) language difficulties

C) inability of spouse to adjust

In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which of the following, if true, best supports the argument of using expatriates to establish the new Walmart stores in Chile? A) Local candidates with the necessary managerial experience are difficult to find in Chile. B) Walmart uses an online recruiting system to facilitate human resources activities. C) The State Department has issued travel alerts for Americans traveling in Chile. D) Walmart wants to develop good relationships with the local community.

A) Local candidates with the necessary managerial experience are difficult to find in Chile.

Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country? A) balance sheet B) mobility allowance C) performance pay D) hardship method

A) balance sheet

Which of the following terms refers to having local employees abroad do jobs that the firm's domestic employees previously did in-house? A) adapting B) offshoring C) enlarging D) diversifying

B) offshoring

Frank Williams is being sent to Saudi Arabia for two years to work for his company's Saudi affiliate. Which of the following suggestions should Frank follow to minimize his chances of being the victim of a kidnapping? A) Take the same route to and from work. B) Arrive at the airport close to departure time. C) Wait at the airport in a main traffic area. D) Leave work at the same time each day.

B) Arrive at the airport close to departure time.

Of the countries listed below, in which one do production workers receive the lowest hourly wage? A) United States B) Philippines C) Germany D) Taiwan

B) Philippines

________ refers to bringing a manager back home after a foreign assignment has been completed. A) Expatriation B) Repatriation C) Mediation D) Job rotation

B) Repatriation

The European Union is best described as a ________. A) system of global standards, policies, and legislation B) common market for goods, services, capital, and labor C) political agreement that standardizes human resource laws D) political system for equalizing wages, benefits, and taxation

B) common market for goods, services, capital, and labor

Which of the following terms refers to the human resource management concepts and techniques employers use to manage the challenges of their international operations? A) work councils B) international human resource management C) power distance D) codetermination

B) international human resource management

International human resource management (IHRM) focuses on three main topics. Which of the following is NOT one of them? A) comparing human resource management practices B) managing human resources in global companies C) domestic company partnerships D) managing expatriate employees

C) domestic company partnerships

Mercedes sent a team of executives from Germany to oversee the start-up of its U.S. operations. Which of the following terms best describes the values of Mercedes' top executives? A) polycentric B) monocentric C) ethnocentric D) geocentric

C) ethnocentric

Ina planned economy, such as China, some industries are under the direct control of the government while other industries are free to make pricing and production decisions based on market demand.

False

Third-country nationals hold citizenship in three countries.

False

Codetermination means that employees have a legal right to voice opinions and preferences in setting company policies.

True

Employees preparing for overseas assignments benefit from training in cultural differences, attitude formation and behavioral influence, factual country knowledge, and language skills.

True

What are the advantages and disadvantages of using expatriates for staffing foreign subsidiaries?

Expatriates typically share a common culture and educational background with corporate headquarters staff so they are able to facilitate communication and coordination with corporate headquarters. They are also adept at introducing techniques from home to the host country setting. However, expatriates typically lack the knowledge of the host country's laws, culture, economic conditions, social structure, and political processes. These weaknesses can be overcome with training but such training is expensive. Further, it is expensive to relocate expatriates and maintain them in the host country.

The Overseas Assignment Inventory is a test that identifies the characteristics and attitudes international assignment candidates should have based on norms.

True

The least expensive way to fill managerial positions in foreign subsidiaries is with local people.

True

To help to ensure success for expatriates on international assignment, companies should provide language training to their spouses.

True

Varying departure and arrival times when working in a foreign country can minimize a business traveler's chances of becoming a crime victim.

True

Virtual teams consist of geographically dispersed coworkers who interact using a combination of telecommunications and information technologies to accomplish organizational tasks.

True

Which of the following was determined by a study of six international firms that have successfully established global HR systems? A) Firms should focus on expatriation and repatriation programs to ease the transition period for employees working abroad. B) Firms should develop HR systems that are universally acceptable and that can be effectively implemented in any location. C) Firms rely more heavily on expatriates than locals in foreign subsidiaries, so it is unnecessary to make changes to existing HR policies. D) Firms with foreign subsidiaries should adhere to local customs regarding screening, hiring, and training applicants.

B) Firms should develop HR systems that are universally acceptable and that can be effectively implemented in any location.

Call centers that service customers for firms like software and computer hardware companies are increasingly using employees in India to staff the telephones. This is an example of ________. A) outsourcing B) offshoring C) downsizing D) international staffing

B) offshoring

A formal repatriation program should do all of the following EXCEPT ________. A) assist employees with relocation logistics B) seek compensation and benefits on behalf of employees C) help employees update their resumes and make career plans D) reassure employees of the company's concern for their welfare

B) seek compensation and benefits on behalf of employees

________ are financial payments over and above regular base pay. A) Foreign service premiums B) Hardship allowances C) Balance sheet payments D) Mobility premiums

A) Foreign service premiums

Of the types of international workers that multinational companies can employ, locals are best described as ________. A) citizens of the countries where they are working B) noncitizens of the countries in which they are working C) citizens of the country in which the multinational company has its headquarters D) noncitizens of the country in which the multinational company has its headquarters

A) citizens of the countries where they are working

In Germany, employees have the legal right to a voice in setting company policies. This is called ________. A) codetermination B) employment at will C) internal coordination D) gainsharing

A) codetermination

Which of the following is the primary disadvantage of using expatriates to fill foreign subsidiary management positions? A) high costs associated with relocation B) time and effort required for training C) inability to create short-term results D) security concerns

A) high costs associated with relocation

A corporation that believes that only host country managers can ever really understand the culture and behavior of the host country market would be referred to as ________. A) polycentric B) ethnocentric C) geocentric D) monocentric

A) polycentric

Samsung tends to follow an ethnocentric staffing model. From which group will it most likely hire for upper-level management positions at its Texas facility? A) home-country nationals B) host-country nationals C) third-country nationals D) local citizens

A) home-country nationals

________ are formal, employee-elected groups of worker representatives that meet monthly with managers to discuss topics affecting the employees. A) Bargaining units B) Work councils C) Mediation groups D) Employee boards

B) Work councils

Which of the following terms refers to the process of assessing an employee's probable success in handling a foreign transfer? A) skills placement testing B) adaptability screening C) management assessment D) performance appraisal

B) adaptability screening

In China, qualified job candidates are most likely to be interested in a firm that offers ________. A) signing bonuses B) performance-based pay C) job expansion opportunities D) training and development programs

D) training and development programs

Which of the follow is a step in "Making the Global HR System More Acceptable?" A) Identify crucial executive behaviors. B) Remember that it's more important to standardize ends and competencies than specific methods. C) Dedicate adequate resources. D) Try to work within the context of a strong corporate culture.

D) Try to work within the context of a strong corporate culture.

U.S. employers have most likely experienced an increase in successful expatriate assignments in the last two decades because they have ________. A) focused on job performance as the main selection criteria B) increased the number of selection criteria for global assignees C) provided global assignees with local managers to serve as mentors D) allowed HR managers to have more control of the global hiring process

B) increased the number of selection criteria for global assignees

Roberta is an Italian citizen who spent a great deal of time during her childhood in England. She now works in Brazil as an HR manager for a British company. Roberta is best described as a(n) ________. A) expatriate B) third-country national C) home-country national D) host-country national

B) third-country national

In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which of the following, if true, supports the argument that locals should be hired to fill management positions in Chile? A) Chile has a high percentage of younger workers with college degrees. B) Managers in Chile are expected to keep their distance from subordinates. C) Chile has had an increase in foreign direct investment over the last five years. D) Chileans expect managers and subordinates to interact in a highly informal manner.

A) Chile has a high percentage of younger workers with college degrees.

All of the following are the primary benefits of providing ongoing training to employees on overseas assignments EXCEPT ________. A) offering educational opportunities B) developing relationships with co-workers C) cultivating corporate values and standards D) providing spousal networking opportunities

D) providing spousal networking opportunities

What staffing options do multinational firms have when filling positions in foreign subsidiaries?

Multinational companies employ several types of international managers. They can employ locals, home-country nationals, or third-country nationals. Home-country and thirdcountry-nationals are both types of expatriates. Locals are citizens of the countries where they are working. Home-country nationals are citizens of the country in which the multinational firm has its headquarters. Home-country nationals are also called parent-country nationals. Thirdcountry nationals are citizens of a country other than the parent or the host country.

What are some reasons for firms bringing expatriates home early? How can firms ease the transition during repatriation?

New expatriate postings are not only down, but many employers are actually bringing them home early for a number of reasons. Posting expatriates abroad is very expensive, security problems increasingly give potential expatriates pause, educational facilities are turning out topquality candidates abroad, and the recent global recession made the cost of posting employees abroad even more unattractive. As expatriates return home, employers can ease the transition with a repatriation program. Firms need to make sure that the expatriate and his or her family don't feel that the company has left them adrift. Firms often provide psychologists, mentors, career planning services, and relocation assistance.

Geert Hofstede called the extent to which less powerful members of institutions accept and expect an unequal power distribution ________. A) masculinity B) individualism C) power distance D) tolerance for ambiguity

C) power distance

Daniel is a manager for Siemens China, and it is time to conduct performance appraisals. During the appraisals, it would be most effective for Daniel to ________. A) link performance with employee bonuses B) make personal comments to the employee C) focus on quantifiable, objective results D) post appraisal results for each team

C) focus on quantifiable, objective results

In a brief essay, discuss the economic and labor relations factors that are unique to Europe

Differences in economic systems also translate into differences in human resource management policies. For instance, some countries in the Euro zone tend to put more restrictions on the number of hours an employee can legally work each week. Differences in labor costs are also substantial. Hourly compensation costs for production workers vary as well. Several European countries, including the United Kingdom and Germany, require substantial severance pay to departing employees. The U.S. practice of employment at will does not exist in Europe, where firing or laying off workers is usually expensive. And in many European countries, work councils replace the worker-management mediations typical in U.S. firms. Codetermination is the rule in Germany and several other countries. Unions in Europe are influential, and labormanagement bargaining and relations reflect this fact. In general, four issues characterize European labor relations: centralization, employer organization, union recognition, and content and scope of bargaining.

Most North American companies use the ________ approach to formulating expatriate pay. A) equitable wage rate B) balance sheet C) performance D) total package

B) balance sheet

In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next five years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which of the following, if true, undermines the argument of using expatriates to establish the new Walmart stores in Chile? A) Adaptability screening tests indicate that three potential candidates are bilingual and travel overseas frequently. B) Walmart offers overseas candidates extensive training on cultural differences and adaptation skills. C) The most qualified Walmart managers have no foreign travel experience and do not speak Spanish. D) A balance sheet approach is used by Walmart, but workers do not receive hardship allowances for moving to Chile.

C) The most qualified Walmart managers have no foreign travel experience and do not speak Spanish.

JJP Enterprises seeks to entice one of its star managers to move to Iraq to oversee a construction project. The firm will most likely offer a ________ because of the difficult living and working conditions in Iraq. A) cost-of-living allowance B) performance bonus C) hardship allowance D) mobility premium

C) hardship allowance

What are the major steps in establishing a global pay system?

Balancing global consistency in compensation with local considerations starts with establishing a rewards program that makes sense in terms of the employer's strategic aims. Then the employer turns to more micro issues, such as, is how we're paying our employees abroad competitive? Steps to follow in creating a global pay system include these: Step 1. Set strategy. First, formulate longer-term strategic goals, for instance, in terms of improving productivity or boosting market share. Step 2. Identify crucial executive behaviors. Next, list the actions you expect your executives to exhibit in order to achieve these strategic goals. Step 3. Global philosophy framework. Next, step back and ask how you want each pay component (salary, bonus, incentives, and so forth) to contribute to prompting those executive actions. Step 4. Identify gaps. Next, ask, "To what extent do our pay plans around the world now support these actions, and what changes if any are required?" Step 5. Systematize pay systems. Next, create more consistent performance assessment practices, and establish consistent job requirements and performance expectations for similar jobs worldwide. Step 6. Adapt pay policies. Finally, review your global pay policies (for setting salary levels, incentives, and so forth). Conduct surveys and analyses to assess local pay practices. Then finetune the firm's global pay policies so they make sense for each location.

) In January 2009, Walmart acquired a controlling interest in Chile's leading food retailer. Since then, Walmart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Walmart is planning to open additional stores in Chile over the next seven years. Walmart's top executives are considering the idea of transferring U.S. managers to Chile to oversee the construction and establishment of the new stores. Which of the following questions is LEAST relevant to the decision to fill management positions in Chile with expatriates? A) What will be the relocation and compensation costs to Walmart of using expatriates? B) What level of corporate control is needed for opening the new Walmart stores? C) What is the planned Walmart marketing strategy for the new stores in Chile? D) What is the typical attrition rate for expatriate employees at Walmart?

C) What is the planned Walmart marketing strategy for the new stores in Chile?

Peter is a German citizen working as a manager for Siemens in Freiberg, Germany. Siemens has facilities all over the world but its headquarters is in Germany. Peter is best categorized as a(n) ________. A) expatriate B) third-country national C) home-country national D) host-country national

C) home-country national

Which of the following terms refers to citizens of the country in which the multinational company has its headquarters? A) expatriates B) third-country nationals C) home-country nationals D) locals

C) home-country nationals

What are the HR challenges of conducting business on a global scale? How can firms effectively implement global HR management programs?

"Should we staff the local offices abroad with local or U.S. managers?" "How should we appraise and pay our local employees?" "How should we deal with the unions in our offices abroad?" "How do we identify and get the right talent and skills to where we need them?" and "How do we spread state-of-the-art knowledge to our operations abroad?" Challenges like these don't just come from the vast distances involved. The bigger issue is coping with the cultural, political, legal, and economic differences among countries. The study's overall conclusion was that employers who successfully implement global HR systems do so by applying several best practices. This enables them to install uniform global human resource policies and practices around the world. The basic idea is to develop systems that are acceptable to employees in units around the world, and ones that the employers can implement more effectively. We'll look at each of these three requirements' best practices.