international business ch 17 module

Host-country nationals would encounter the greatest limits on advancement opportunities when faced with a(n) ______ staffing policy.

ethnocentric

If a firm was concerned with transferring its core competencies to a foreign operation, it might elect to transfer parent-company nationals who have knowledge of that competency to the foreign operation. This would be an example of the ______ staffing strategy.

ethnocentric

The chief operations officer at Bradley Motor Corp., based in Omaha, doesn't feel there are qualified individuals in Brazil to staff the senior management positions at the company's new manufacturing facility. Which type of staffing policy should Bradley Motor Corp. use based on this information?

ethnocentric

True or false: Most cases of expatriate failure in Japan are the result of poor working conditions.

false Expatriate failure tends to stem from the inability of the manager to adjust or the inability of a spouse to adjust or other family matters.

True or false: Refer to Figure 17.1. Within the organizational architecture of a firm, human resources is responsible for both structure and processes.

false Human resources is responsible for people, culture, and incentives and controls but not for structure or processes.

When focusing on the strategic perspective, no matter what compensation system is used, international managers should be rewarded for

following the corporate strategy

Of the types of international staffing policies identified by research, which one tends to be the most attractive to companies?

geocentric

______ should be seen as the final link in the process of selection and training expatriate managers.

repatriation

Polycentric Staffing Policy

requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters for: localization

geocentric staffing policy

seeks the best people for key jobs throughout the organization, regardless of nationality for: global standardization and transnational

Mendenhall and Oddou's dimension known as ______ fosters how an expatriate feels about himself or herself and indicates their confidence level.

self orientation

Expatriates with high self-esteem, self-confidence, and mental well-being are more likely to succeed in a foreign posting. Which of Mendenhall and Oddou's dimensions does this represent?

self-orientation

Which company function involves selecting individuals to do certain jobs, as well as, promoting the desired culture of the firm?

staffing policy

cultural myopia

the lack of interest in learning about other cultures or recognizing what works in other cultures firm's failure to understand that host-countries require different approaches to marketing and management

The three types of staffing policies in international business are:

1. ethnocentric 2. geocentric 3. polycentric

In many cases, which two groups are responsible for evaluating the performance of expatriate managers?

1. host nation managers 2. home-office managers

The two issues that impact compensation practices in an international business are _____ and _____.

1. how compensation should be adjusted to reflect economic circumstances 2. how expatriate managers should be paid

What are three components of a typical expatriate compensation package?

1. benefits 2. foreign service premium 3. tax differentials

Which two types of training have been found to reduce expatriate failure?

1. cultural training 2. language training

What are two ways a diverse workforce will improve workplace performance?

1. diversity can increase employee satisfaction about the workplace 2. a diverse customer set may appreciate interacting with similarly diverse employees

What three actions has organized labor attempted in order to deal with the increased bargaining power of MNCs?

1. establish international labor organizations 2. lobby for national legislation to restrict MNCs 3. achieve international regulations on MNCs

According to research done by R. L. Tung, three common reasons US multinationals experience expatriate failure include:

1. inability of spouse to adjust 2. inability to cope with larger overseas responsibilities 3. manager's personal or emotional maturity

Three major reasons for expatriate failure in Japan include:

1. inability of spouse to adjust 2. lack of technical competence 3. inability to cope with responsibilities

According to the text, what three things help managers develop a global mindset?

1. learn foreign languages as a part of family life 2. live in a foreign country 3. grow up in a bicultural family

Human resource management includes which three activities?

1. performance evaluation 2. labor relations 3. staffing

What are two ways unions disrupt production and derive their bargaining power?

1. refusing to work overtime 2. strikes

What two things may occur as a result of the limits an ethnocentric staffing policy puts on advancement opportunities for host country nationals?

1. resentment 2. lower productivity

What two factors are particularly important in the others-orientation dimension identified by Mendenhall and Oddou?

1. willingness to communicate 2. relationship development

Foreign service premiums typically range from ______ to ______ of base salary after tax.

10%; 30%

It has been evidenced that the presence of diversity in the workplace increases employee satisfaction. The text notes that in the case of minority workers, improved satisfaction occurs when representation exceeds at least _____ of the workforce.

15%

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.

30%

performance appraisal system

A system that is used to evaluate the performance of managers against stated criteria a firm considers necessary to attain a competitive advantage

The ______ function of an international firm usually addresses international labor relations.

HRM

Which scenario is an example of expatriate failure?

Janis, a US citizen, has been sent to Saudi Arabia to manage an office for Verizon. She is very unhappy and wants to return home.

repatriation

The process that involves preparing expatriate managers to return to their home-country organization

Host-nation managers may exhibit a form of ______ bias as a result of their own cultural frame of reference when giving a performance appraisal to an expatriate

Unintentional

ethnocentric staffing policy

all key management positions are filled by parent-country nationals. for: International

inpatriate

an employee of a multinational company who is from a foreign country, but is transferred from a foreign subsidiary to the corporation's headquarters.

foreign service premium

an expatriate will receive extra compensation for working outside his or her country of origin.

staffing policy

concerned with the selection and training of individuals for specific job functions.

A firm's performance appraisal systems are a critical part of its _____ systems.

control

When Trevor's company transferred him to Tokyo, it provided him with a compensation package that included a(n) ______ allowance to ensure that Trevor would live in the same manner as he did at home.

cost of living

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.

cultural bias

According to Mendenhall and Oddou, ______ refers to the relationship between the foreign country and how well an expatriate can deal with living there.

cultural 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 ______.

cultural toughness

As defined in the text, perceptual ability is synonymous with the ability to

empathize

Historically, most international businesses ______ the labor relations duties to local managers because labor laws and union power varied so much between countries.

decentralized

The main way unions gain bargaining power is by ______ within a company.

disrupting production

According to some researchers, a manager who demonstrates cognitive complexity and a cosmopolitan outlook has a(n)

global mindset

When an expatriate is sent to a country where basic amenities such as health care, schools, and retail stores are minimal compared to the employee's home country, a company will often provide the expatriate with a(n) ______ allowance.

hardship

Organized labor _____ had much success in responding to the bargaining power of MNCs.

has not

Jensen works for Hudson Department Stores which has locations all over the world. It is her job to determine the staffing needs for the holiday season for retail stores in the European market. Which activity is Jensen involved with?

human resource management

The most indicated reason for expatriate failure with US multinationals is the

inability of the spouse to adjust.

Renee is a citizen of France who has moved to the US to work at Intel. Renee is an example of a(n)

inpatriate

The HRM function tries to ______ between the firm and organized labor.

minimize conflict

It typically costs a firm _____ to post someone to a foreign country than what it costs to keep that person in the home office.

more

According to most expatriates, more weight should be given to the ______ manager's evaluation than to the ______ manager's assessment during a performance evaluation.

on site; off site

Based on Mendenhall and Oddou's dimension known as _____ the more effectively an expatriate can interact with host-country nationals, the more likely he or she is to succeed.

others orientation

What is considered to be the linchpin that holds a firm's organizational architecture together?

people

Which dimension identified by Mendenhall and Oddou refers to understanding why people of other countries behave the way they do?

perceptual ability

The lack of a manager's mobility among national operations in ______ firms implies that pay can and should be kept country-specific.

polycentric

Once an expatriate manager has been selected, what is the next step in the management development process?

training

Companies using a _____ strategy are more likely to foster management development as these managers must be able to detect pressures for local responsiveness.

transnational

More and more international businesses are incorporating management development techniques. This is especially evident in companies using a(n) _____ strategy.

transnational

True or false: Today, the level of centralized input into labor relations practices is increasing.

true More and more international companies are trying to centralize this practice since labor costs account for a large percentage of total costs.

True or false: Japanese firms have historically used an ethnocentric staffing policy.

true Recent statistics show that only twenty-nine percent of foreign subsidiaries of Japanese companies had presidents who were not Japanese.

Recent survey results suggest that US CEOs earn roughly ______ -times the pay of non-US CEOs.

two

hardship allowance

typically provided to an expatriate who is sent to a location that is deemed difficult because of a lack of basic services or amenities.