Ch. 19
may be dropping.
Recent research shows that the rate of expatriate failure
geocentric
Recent trends show that the _____ staffing policy is being used by more international businesses.
Geocentric
Referring to Table 19.1, which staffing approach is notable because it uses human resources efficiently?
false
Research has shown that the top reason for expatriate failure in U.S. multinational firms is the manager's inability to cope with larger overseas responsibilities.
Management development
SunShine Agricultural Group is introducing a program that will be focused on managers to increase their skill levels by providing educational opportunities and allowing them to rotate through different jobs in the company. Which type of program does this describe?
true
Superior human resource management can be a sustained source of high productivity and competitive advantage in the global economy.
coordinate the company's globally dispersed operations. solidify a common culture in the company.
Swedish telecommunications company, Ericsson frequently transfers managers from the parent company to foreign subsidiaries and vice versa. Ericcsson hopes this practice will be an effective way to accomplish what two things?
reducing the cost of value creation adding value by better serving customers
The HRM function can help a firm achieve its two primary strategic goals, which are ________.
foster harmony and minimize conflict
The HRM function tries to ______ between the firm and organized labor.
Culture Incentive systems People
The HRM functions have a critical impact on which three elements of a firm's organizational architecture? (Check all that apply.)
2
The Towers Watson survey results cited in the text suggest that US CEOs earn roughly ______ -times the pay of non-US CEOs.
balance sheet
The ______ approach to expatriate compensation seeks a balance of purchasing power between the two countries.
him
The ______ function of an international firm usually addresses international labor relations.
cultural toughness
The ________ dimension of Mendenhall and Oddou's study refers to the relationship between the country of assignment and how well an expatriate adjusts to a particular posting.
inability of the spouse to adjust
The biggest reason for expatriate failure with US multinationals is ______.
the organization doesn't know what they have done while overseas the organization doesn't know how to use their new knowledge they are assigned to a job that doesn't take advantage of their skills
The challenges that expatriate managers face when returning home often include which three situations?
decentralize
The historical trend for the response from most international businesses has been to _____ their approach to international labor relations.
polycentric
The lack of a manager's mobility among national operations in _____ firms implies that compensation for these managers should be country specific.
people
The most important aspect of every firm's organizational architecture is
reduce cultural myopia.
The multicultural composition of the management team in firms pursuing a geocentric staffing policy tends to
control
The performance appraisal system is a component of the ___ system within a company.
repatriation
The process that involves preparing expatriate managers to return to their home-country organization is called ______.
inpatriate
The term _____ is sometimes given to identify a subset of expatriates who are citizens of a foreign country working in the home country of their multinational employer.
easy
The threat to unions from an MNC keeping highly-skilled tasks in the home country and farming out the low-skilled tasks to foreign plants is that it is ____for the company to switch production facilities, reducing the bargaining power of organized labor.
polycentric geocentric ethnocentric
The three types of staffing policies in international business are _______.
cultural
The three types of training that seem to reduce expatriate failure include language training, practical training, and ________ training.
how compensation should be adjusted to reflect economic circumstances how expatriate managers should be paid
The two issues that impact compensation practices in an international business are ______.
expatriate failure
Tom's company hired three individuals from the US to work in its plant based in Japan. Unfortunately, at the end of six months, all three of the employees ended up quitting because they did not like adhering to the Japanese principles in place at the plant. This demonstrates ______.
false
True or false: Firms that use an ethnocentric staffing policy place host-country nationals into management positions.
false
True or false: Hard data allows a manager to evaluate an expatriate based on things such as cultural awareness and the ability of the expatriate to work with local managers.
false
True or false: In Tung's study, expatriate failure within European firms was mainly the result of poor working conditions.
true
True or false: It is expected that people's global mindset will continue to grow and will improve significantly in the next 20 years.
false
True or false: It is less expensive to employ someone as an expatriate than to keep that person at the home-country-firm.
True
True or false: The HRM function plays a valuable role in helping a firm achieve its primary strategic goals.
true
True or false: Today, the level of centralized input into labor relations practices is increasing.
true
True or false: While an exclusive reliance on English may diminish an expatriate's ability to interact with a host country, It is possible to conduct business anywhere in the world using only English.
Refusing to work overtime Strikes Disrupting production
Unions derive their bargaining power using what three methods? (Check all that apply.)
bargaining power
Unions use threats to disrupt production in order to gain ______.
threaten to disrupt production.
Unions' bargaining power is derived largely from their ability to
achieve international regulations on MNCs enact national legislation to restrict MNCs establish international labor organizations
What are the three actions organized labor has attempted in order to deal with the increased bargaining power of MNCs?
Make up the difference when a higher rate in the host country reduces the expatriate's take-home pay Pay the expatriate's income tax in the host country
What are the two ways a company may address the issue of double taxation for an expatriate?
improves employee's effectiveness increases cultural understanding fosters a better image of the firm in the host country
What are three benefits of foreign language training for expatriates? Choose all that apply.
Tax differentials Foreign service premium Benefits
What are three components of a typical expatriate compensation? (Check all that apply.)
The executive team feels comfortable working in a variety of cultures. The firm makes best use of human resources.
What are two advantages of a geocentric staffing policy?
may be less expensive to implement fewer cultural misunderstandings
What are two advantages of using a polycentric approach to staffing?
helping people focus on differences to reduce stereotyping role-playing to have someone experience bias personally
What are two examples of techniques that can be used in a diversity workshop to educate employees about the value of building a more inclusive workforce?
If the customer set is diverse, they may appreciate interacting with a company who "looks" like them. A diverse workforce may improve the brand image of a company making it more attractive for top talent
What are two reasons why a diverse workforce will improve company performance?
differences in equal employment legislation a variance in compensation practices
What are two situations that can complicate HRM activities in an international business?
Housing Education Cost of living Hardship
What four allowances are typically accounted for in expatriate compensation? (Check all that apply.)
people
What is at the center of every firm's organizational architecture and must be present for a firm to outperform its competition?
language differences unable to work loss of network of friends
What three reasons are mentioned in the text to explain why spouses fail to adjust to international postings? Choose all that apply.
Willingness to communicate Relationship development
What two factors play a key role in the others-orientation dimension identified by Mendenhall and Oddou?
Cultural training Language training
What two types of training have been found to reduce expatriate failure? (Check all that apply.)
practical
When Rob Bennett was posted to Thailand for a management opportunity, he and his wife quickly joined the expatriate community to learn the ins and outs of living in the Thai culture. This is a form of ______ training.
hardship allowance
When an expatriate is sent to a country where basic amenities such as health care, schools, and retail stores are grossly deficient, a company will often provide the expatriate with a _____.
cost-of-living
When his company transferred him to Germany, Ricardo's company provided him with a compensation package that includes a _____ allowance, which is meant to help him enjoy the same standard of living in Germany as he does currently at home.
perceptual ability
Which dimension identified by Mendenhall and Oddou refers to understanding why people of other countries behave the way they do?
organized labor
Which group benefited from the establishment of international trade secretariats in the 1960s?
Geocentric
Which international staffing policy seeks the best people for key jobs regardless of nationality?
Hollis, a US citizen, has been sent to Saudi Arabia to manage an office for Verizon. She is very unhappy and wants to return home.
Which scenario is an example of expatriate failure?
Polycentric
Which staffing policy requires host-country nationals to be recruited to manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters?
geocentric
Which staffing policy results in executives who are comfortable working in a number of cultures?
Cultural myopia
Which term is used when a company doesn't realize the cultural differences of a host-country and as a result, fails to consider different approaches to marketing and management?
house of living
Which type of allowance ensures that an expatriate will enjoy the same standard of living in a foreign post as he or she would at home?
compensation policy.
While profound differences between countries complicate the HRM function, the major tasks still include staffing policy, management training and development, performance appraisal, and
enhance management and leadership skills of executives.
With regard to management development, research suggests that broad international experience will
Staffing
_____ policy is concerned with the selection of employees for particular jobs.
Management development programs
______ help improve the overall productivity and quality of the firm's management resources.
foreign service premium
A ________ is the extra pay that an expatriate receives for working outside his or her country of origin.
polycentric
A business is more likely to understand the cultural differences in a host country when using a(n) _____ staffing policy.
practical
A company that helps the expatriate manager and family ease into day-to-day life in the host country by ensuring access to a support network of friends is providing ______ training.
won't
A company with a homogeneous employee base____ utilize talents from every employee, including women and minorities.
an ethnocentric
A desire to maintain a unified corporate culture is a reason a firm may choose _______ staffing policy.
cultural myopia
A firm's failure to understand the differences of a host-country that require different approaches to marketing and management is known as _____.
polycentric
A major problem with a(n) ________ staffing policy is the gap that can form between host-country managers and parent-country managers.
control
A performance appraisal would be part of an organization's ______ system.
false..host country
A polycentric staffing policy requires parent-country nationals to be recruited to manage subsidiaries.
cultural bias
A problem that arises when a home-office manager evaluates the performance of an expatriate is ______, which can be alleviated by receiving input from on-site managers.
performance appraisal
A system that is used to evaluate the performance of managers against some stated criteria is called a(n) ______ system.
expatriate
A(n) _____ manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.
others-orientation
According to Mendenhall and Oddou, the attributes of the ________ dimension enhance the expatriate's ability to interact effectively with host-country nationals.
inability to cope with larger overseas responsibilities
According to Tung's study, what was the number one reason for expatriate failure for managers of Japanese firms?
leave their firms within 3 years of arriving home
According to a study in the text on repatriated employees, 40% of them ______.
on-site; off-site
According to most expatriates, the appraisal of a(n) _____ manager should be given more credence than the appraisal of a(n) _____ manager.
impact on a spouse's career
According to research, the primary reason a manager will turn down an international assignment is _____.
global mindset.
According to some researchers, a manager who demonstrates cognitive complexity and a cosmopolitan outlook has a(n)
top management
Advocating for a diverse workforce within a company must be driven by _____.
Lower productivity Resentment
An ethnocentric staffing policy can lead to which two negative outcomes for host-country nationals?
host
An expatriate's willingness to use the _______ country language is the definition of willingness to communicate within the others-orientation.
corporate culture
An organization's norms and value systems are called its _______.
premium
As an incentive to encourage employees to take an expatriate position, Favorite Food Brands Inc. provides extra pay each month in addition to the employees' salary. This extra pay is known as a foreign service _____.
expensive
As compared to other staffing policies, a geocentric staffing policy ______ to implement.
repatriation
As the final step in training their expatriate team, Renata's company is holding a seminar which will focus on what to expect when the expatriates return to the US after their two years of work in Indonesia. This training is an example of _____.
polycentric
At Big Style Furniture Inc., the company's executives at headquarters are all parent-company nationals, but the foreign subsidiaries all have home-country presidents. This demonstrates the _______ staffing policy.
more
Companies that provide the same level of medical benefits to expatriates as they do for home-country employees, typically pay ______ for the benefits received by the expatriate.
balance sheet
Company ABC carefully examined the cost of living in Costa Rica before it determined compensation for the manager it was sending from the US. It wanted to be sure the manager would be able to enjoy the same standard of living in Costa Rica as at home. This is referred to as the ______ approach to compensation.
toughness
Cultural _____ refers to the relationship between the country of assignment and how well an expatriate adjusts to living in that country.
expatriate failure.
Darren Peterson is a Seattle, Washington native who works for Microsoft. The company sent him to manage a branch of the company in China, but he was homesick and returned home in six months. This is an example of
Others-orientation
Developing steadfast friendships with host-country nationals is an aspect of which dimension in Mendenhall and Oddou's model?
an MNC can import employment practices and contractual agreements from its home country only low-skilled tasks might be sent to another country the company can move production to another country
Domestic unions encounter particular challenges with multinational firms. What are three of those challenges?
reciprocal
Double taxation can be an issue for an expatriate when a(n) ______ treaty is not in place.
cultural
Eleanor's company is providing her with training in the social and business practices of the country of Morocco. She will be working there for the next two years and it is important for her to understand these practices. This demonstrates expatriate ______ training.
management development.
Elizabeth has been assigned to a one-year position in the company's overseas office. This is Elizabeth's fourth year-long overseas assignment with the company. Elizabeth's experience is an example of
30%
Expatriate failure can be reduced through training, but despite the known benefits of training, one study showed that only about ______ of managers sent on an expatriate assignment receive training prior to departure.
employees
Expatriate failure refers to a firm's inability to identify _____ who will not thrive abroad.
immigration laws
Firms may be prevented from using a geocentric staffing policy because of ______ in the host country.
inpatriate
Harry is a citizen of the United Kingdom. He works in the United States because the UK-based company he works for has a facility in Toledo, Ohio. Harry is an example of a(n) _____.
ethnocentric
Hartson Electric Corp. has filled all of its key management positions with parent-country nationals. This demonstrates the concept of ______ staffing.
ethnocentric
Host-country nationals would encounter the greatest limits on advancement opportunities when faced with a(n) _____ staffing policy.
unintentional
Host-nation managers may be biased by their own cultural frame of reference when giving a performance appraisal to an expatriate. This is a form of _____ bias.
Many firms provide the same level of benefits they would receive at home.
How are medical and pension benefits treated for expatriates?
management
Human resource _____ is the term used to describe a company's activities that include compensation, performance evaluations, staffing, and labor relations.
Labor relations Staffing Performance evaluation
Human resource management includes which three activities?
a company needs the right people in the right place to outperform rivals.
Human resources plays a key role in a firm's organizational architecture because
ethnocentric
If a firm believes that the host country does not have qualified personnel to fill senior management positions, it is likely to choose (an) ________ staffing policy.
parent-country nationals.
In an ethnocentric staffing approach, the key management positions are held by
Cultural
In his new position as global marketing manager, Sam will be interacting with local managers to develop marketing campaigns. Which type of training will best help Sam be successful in his interactions with host-country nationals?
Host-nation managers Home-office managers
In many business situations, two groups are responsible for evaluating the performance of expatriate managers. Who are these two groups?
true
In many cases, firms fail to plan for an expatriate's repatriation.
national unions in particular industries.
In the 1960s, international trade secretariats (ITSs) were established to provide worldwide links for
toughness
Jacob's company assigned him to work in Indonesia for three years. He and his family moved from their home in Atlanta to Indonesia and quickly adapted to their new living arrangements. Mendenhall and Oddou would say that Jacob demonstrates excellent cultural _____.
Self-orientation
James is being considered for the expatriate position with his company because he possesses high self-esteem, self-confidence, and mental well-being. Which of Mendenhall and Oddou's dimensions does this represent?
compensation
Jason felt he should receive a higher salary as an expatriate working in the Cayman Islands because the cost-of-living there was greater than the United States. Which aspect of his job is Jason concerned with?
corporate culture
Jorie was hired in part because she was comfortable with the company's norms and value systems. In other words, she was a good fit for the company's ______.
hard
Kevin's evaluation of the performance of his manager based in Belgium was based solely on the profitability and market share established by the office. Kevin used ____ data in his evaluation.
Staffing
Kimberly works in the human resource department and her main responsibility is selecting employees for particular jobs. Which aspect of human resource management is Kimberly involved with?
hard data such as productivity
Lawrence is the manager of the product development department of a furniture manufacturing facility and has three expatriates working in Finland on his team. When it comes time for Lawrence to evaluate these expatriates, he will most likely rely on ________ because of the physical distance between himself and the expatriates.
Ethnocentric - International Polycentric - Localization Geocentric - Transnational
Match the staffing approach to its compatible strategy.
ethnocentric
Maxwell Manufacturing is worried about transferring its core competencies to a facility in Thailand, so it decided to send personnel from the parent company who understand the competencies to the facility in Thailand. This would be an example of the ______ staffing strategy.
self-orientation
Mendenhall and Oddou's dimension known as _____ is seen as a predictor of success in a foreign posting due to the individual's high self-esteem and self-confidence.
expatriate
Mieko is a citizen of Japan and is currently working as a manager in the US headquarters of Toyota. As such, Mieko is considered to be a(n)
hardship
Millie is an expatriate. She is originally from San Diego and now works in Indonesia where health care, schools, and retail stores are not as prominent or efficient as those she had in San Diego. To compensate for this, her company will provide her with a(n) ________ allowance.
false
Most benefits that are tax deductible for the firm in its home country are tax deductible outside of the country
true
Most expatriates appear to believe more weight should be given to an on-site manager's appraisal than to an off-site manager's appraisal.
Geocentric
Of the types of international staffing policies identified by research, which one tends to be the most attractive one, although it has its own problems?
premium
Often an expatriate will receive extra compensation for working outside his or her country of origin. This is referred to as a foreign service
there is little opportunity for host-country nationals to gain any experience outside of their own country
One drawback to a polycentric staffing policy is ________.
3
One estimate provided in the text shows that the average cost per expatriate failure to the parent firm can be as high as ____ times the expatriate's annual domestic salary plus the cost of relocation.
true
One of the obstacles to cooperation between unions and international firms is the wide variation in the structure of unions around the world.
culture
One way management development programs can help build a company's _____ is by socializing new managers into the norms and value systems of the firm.
has not had a lot of success
Organized labor _____ in responding to the bargaining power of MNCs.
empathize
Perceptual ability is synonymous with the ability to _____.
unintentional bias.
Performance appraisals of expatriate managers are often hampered by
management development
Programs that aim to improve the overall productivity and quality of the firm's management resources are called ______ programs.