HR Management - Ch 3
Which of the following dimensions of national culture was identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness)?
Humane orientation
Which of the following countries is an original member of the European Union (EU), an economic community?
Italy
In the context of economic communities, which of the following statements is true of the European Union (EU)?
Twelve early members of the EU make up the eurozone.
Which of the following is a difference between labor relations in Japan and labor relations in most European nations?
Unlike most European nations, unions and management in Japan tend to work together cordially.
In the context of corporate international strategies, a firm using a transnational strategy:
can implement a knowledge contract to get all the information acquired by an expatriate manager.
The term _____ refers to the set of values that helps an organization's members understand what it stands for, how it does things, and what it considers important.
culture
Which of the following statements is true of the local compensation issues that international businesses face?
Difference in lifestyles causes a variation in the way in which firms compensate their employees in different foreign locations.
Forrest & Barnes, a pharmaceutical company in the United States, builds a research and development facility in Japan. This helps the company make the best use of the efficient labor and technology available in Japan. Which of the following international business strategies is Forrest & Barnes most likely using in the given scenario?
Direct foreign investment
Philip, a French national, is hired by an international corporation based in Japan for its London office. After joining, Philip learns that two other candidates, one from the company's home office in Japan and the other from its London branch, were also considered for the same position. After a complete assessment, however, the management had hired Philip because they found him better qualified for the job. In the context of the different staffing strategies used by international businesses, the company that hired Philip most likely uses the _____.
geocentric staffing model
Tanya, a social activist, works closely with a local NGO to spread awareness about the importance of education in rural areas. She is actively involved in planning and organizing programs conducted by the community. Together, they have managed to get 500 students admitted into public schools and have also been responsible for the establishment of 15 new schools. Tanya takes a lot of pride in her work and her association with the NGO. In the context of the dimensions of national culture as identified by Robert House in his GLOBE project (Global Leadership and Organizational Behavior Effectiveness), Tanya belongs to a culture that is likely to score:
high on in-group collectivism.
One of the domestic issues in international human resource management is that firms have to:
invest additional money to bring the workforce in underdeveloped countries up to the expected performance standards.
Rapid population growth in developing countries like China and India has:
made them attractive sites for new businesses or joint ventures.
In the context of managing international transfers and assignments, repatriation occurs when a:
manager is brought back home from a foreign assignment.
Feel Good Inc. is a multinational sports goods manufacturer that uses a different strategy in each of its subsidiaries and operations. Moreover, all decision making is decentralized, which leaves the company open for the threat of opportunistic behavior. Since expatriate managers do not rely on headquarters expertise, there is also a great imbalance in transference of information and specialized knowledge. In the context of the four international strategies proposed by Bartlett and Goshal, Feel Good Inc. uses the _____.
multidomestic strategy
Jared has been working in his company's foreign subsidiary as a plant manager for five years. He decides to move back to his home country for personal reasons and his company starts the process of bringing him and his family back home. The company also provides Jared with career counselling in case he decides to look for a new job on his return. In this context, Jared is involved in the _____ step of managing the human resources of global business.
repatriation
In the context of managing international transfers and assignments, _____ is instruction directed at enhancing specific job-related skills and abilities and most often focuses on operating employees and technical specialists.
training
Who among the following individuals is most likely to receive a hardship premium?
An expatriate manager posted in a war-torn country
Which of the following international business strategies involves cooperation between firms but may not involve sharing of ownership?
A strategic alliance
Which of the following companies is an example of an international business that uses the ethnocentric staffing model?
Albits, a beverage producing company that hires parent-country nationals to staff higher-level positions and host-country nationals for entry-level positions in its foreign offices
In the context of the dimensions of national culture as identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness), who among the following individuals is most likely to belong to a culture with high performance orientation?
Belinda, who makes sure her employees are rewarded for their excellence at work
Sera Pharma, a pharmaceutical company, produces medicines in its home country. It recently started selling its products to foreign companies to expand its business and enter new markets. Which of the following international business strategies does Sera Pharma use in the given scenario?
Exporting
Which of the following international business strategies least affect the HR function of a firm?
Exporting and licensing
Which of the following companies is an example of an international business that uses the geocentric staffing model?
Hydracore, a web development company that hires employees from a pool of qualified candidates from across the world
Which of the following statements is true of the international business strategy of licensing?
It allows a firm to enter a foreign market with relatively little risk.
Which of the following statements is true of training expatriate managers?
It is typical to have a training component that deals with social manners and issues involved in social exchanges.
Brooks & Bill is an organic chemicals and fertilizer manufacturer. It allows Fixit Chemicals, a company based in another country, to manufacture Brooks & Bill's products using the Brooks & Bill name, logo, and materials. Fixit Chemicals then sells these products in its own local market. Fixit Chemicals also pays a royalty to Brooks & Bill for every unit that it sells. Which of the following international business strategies is Brooks & Bill most likely using in the given scenario?
Licensing
Which of the following companies uses a strategic alliance to compete in the international business environment?
Manolo, a large organic farming business that partners with a chain of retail supermarkets to sell its produce
Which of the following is a general human resource issue in international business?
Organizations must deal with conflicts existing between the laws of the home country and those of the host country.
Which of the following statements is true of selecting expatriates for international assignments?
People with foreign-language skills and international travel experience are attractive expatriate candidates.
Which of the following dimensions of national culture identified by Dutch scholar Geert Hofstede refers to the status and authority differences between a superior and a subordinate?
Power distance
_____, a form of trade control, place a limit on the number or value of goods that can be traded.
Quotas
In the context of the four international strategies as proposed by Bartlett and Goshal, which of the following strategies poses the highest risk of agency problems?
The multidomestic strategy
Which of the following is a disadvantage of the international business strategy of licensing?
The profits of a firm using this strategy are limited to those it receives from royalty payments.
Which of the following is an advantage of using exporting as an international business strategy?
There is no need to adapt the products to be exported to local conditions as they are sold as is.
Which of the following is a reason why host-country nationals are usually hired as nonmanagerial employees in international businesses?
They are cheaper to employ than parent-country or third-country nationals.
Suave is an accessory and jewelry retailer based in France. The company wants to enter new markets to expand its business. As a result, it decides to sell its goods to retailers in other countries. Which of the following is the most likely advantage that Suave will have by using this approach?
This approach will involve relatively little risk for Suave.
Which of the following is the first step in the process of selecting an expatriate manager? a.Defining the skills necessary to do the foreign assignment b. Evaluating the adaptability skills of the prospective candidates c. Employing a headhunter to identify prospective managerial candidates d. Developing a pool of qualified applicants
a. Defining the skills necessary to do the foreign assignment
In the context of economic communities, unlike the European Union (EU), the North American Free Trade Agreement (NAFTA):
attempts to reduce the trade barriers that exist among Canada, the United States, and Mexico.
Axtara, an automobile manufacturer, has several factories in foreign countries. The management strongly believes in giving precedence to the values and perspectives of its home office over those of its foreign subsidiaries. As a result, the management hires workers from the home country to staff the upper-management positions in all the foreign offices of the company. In the context of the different staffing strategies used by international businesses, Axtara most likely uses the _____.
ethnocentric staffing model
In the context of international human resource management strategies, the corporate human resource function in organizations that adopt the _____ is primarily concerned with selecting and training managers for foreign assignments, developing appropriate compensation packages for those managers, and handling adjustment issues when the manager is reassigned back home.
ethnocentric staffing model
GeNext, a leading mobile software developer in Japan, agrees to develop exclusive software application programs for a new line of affordable smartphones to be launched by CelCom, a smartphone manufacturer in China. The brand reputation and pricing strategies of both these companies are expected to bring in large volumes of smartphone sales. The profits from the sales will be divided between these two firms. In the given scenario, GeNext and CelCom have _____.
formed a strategic alliance
In the context of selecting expatriates, _____ are recruiting firms that actively seek qualified managers and other professionals for possible placement in positions in other organizations.
headhunters
Robert, an executive manager, works in a firm with a clearly-defined hierarchical structure. He prefers to strictly follow the work schedule designed by the top management and assigns tasks to his subordinates well in advance. He expects his subordinates to follow his directions without questioning them and favors a standardized and structured approach to work. In the context of Geert Hofstede's dimensions of national culture, Robert belongs to a culture that is likely to score:
high on uncertainty avoidance.
John prefers to work alone on projects and avoids group work that requires him to work with other employees, especially women. He believes in self-reliance and gives precedence to his own ideas and values over the beliefs of others. In the context of the dimensions of national culture as identified by Geert Hofstede, John belongs to a culture that is likely to score high on _____.
individualism
Flaherty Steel Company, based in Japan, decides to open a big manufacturing and distribution center in China. It does this by acquiring operating facilities from another company in China. The management at Flaherty believes that adopting this approach will provide the company with instant access to new markets. In this context, the HR function at Flaherty Steel Company will:
need to extend and expand its scope and operations to provide the appropriate contributions to firm performance.
Hannah is a relationship-oriented manager at a multinational corporation. She makes sure her subordinates know that she values their positive rapport with each other. She also makes it a point to reward her subordinates for improving as well as for showing excellence in their work. In the context of the dimensions of national culture as identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness), Hannah most likely displays high _____.
performance orientation
Companies that use the geocentric staffing model:
require that every aspect of their human resource management process be undertaken from an international perspective.
In the context of the dimensions of national culture as identified by Dutch scholar Geert Hofstede, _____ means emphasizing long-term values such as thrift and persistence as opposed to short-term values such as fulling social obligations.
time orientation
Florence is an expatriate manager for a multinational corporation. Her managers expect her to act independently and acquire specialized knowledge and transfer it to her subordinates. The only issue she faces is being unable to get the local employees to go along with her ideas. As a result, there is a high risk of agency problem. In the context of the four international strategies proposed by Bartlett and Goshal, Florence is working with a company that uses the _____.
transnational strategy
In the context of the four international strategies as proposed by Bartlett and Goshal, if an expatriate manager is expected to acquire, leverage, and transfer specialized knowledge with much independence, he is most likely working with a firm using the _____.
transnational strategy