human resource management, 12e (dessler) web viewchapter 17 managing global human resources. 1)...

Human Resource Management, 12e (Dessler)Chapter 17 Managing Global Human Resources

1) Geert Hofstede called the extent to which less powerful members of institutions accept and expect an unequal power distribution ________.A) masculinityB) time frameworkC) individualismD) power distanceE) tolerance for ambiguityAnswer: DExplanation: A study by Professor Geert Hofstede identified international cultural differences. For example, Hofstede says societies differ in power distance, which is the extent to which the less powerful members of institutions accept and expect an unequal distribution of power.Diff: 1 Page Ref: 632Chapter: 17Objective: 2Skill: Concept

2) According to research, which of the following is a primary concern of Chinese managers? A) getting tasks accomplished efficientlyB) keeping a distance from subordinatesC) encouraging individual creativity D) enforcing a firm's policies and regulationsE) maintaining a peaceful work environmentAnswer: EExplanation: In a study of about 330 managers from Hong Kong, Mainland China, and the United States, the U.S. managers tended to be most concerned with getting the job done. Chinese managers were most concerned with maintaining a harmonious environment. Hong Kong managers fell between these extremes.Diff: 2 Page Ref: 632AACSB: Multicultural and DiversityChapter: 17Objective: 2Skill: Concept

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3) In ________, managers are expected to maintain formal, distant relationships with subordinates. A) MexicoB) Hong KongC) IrelandD) CanadaE) United StatesAnswer: AExplanation: Compared to U.S. employees, "Mexican workers expect managers to keep their distance rather than to be close, and to be formal rather than informal."Diff: 2 Page Ref: 633Chapter: 17Objective: 2Skill: Concept

4) Of the countries listed below, in which one do production workers receive the lowest hourly wage?A) United Kingdom B) United StatesC) Mexico D) GermanyE) TaiwanAnswer: CExplanation: Differences in labor costs are also substantial. Hourly compensation costs for production workers range from $2.75 in Mexico to $6.43 in Taiwan, $23.82 in the United States, $27.10 in the United Kingdom, and $34.21 in Germany.Diff: 2 Page Ref: 633Chapter: 17Objective: 2Skill: Concept

5) ________ are formal, employee-elected groups of worker representatives that meet monthly with managers to discuss topics affecting the employees.A) Bargaining unitsB) Work councilsC) Mediation groupsD) Employee boardsE) Advisory boardsAnswer: BExplanation: In many European countries, work councils replace the worker–management mediations typical in U.S. firms. Work councils are formal, employee-elected groups of worker representatives that meet monthly with managers to discuss topics ranging from no-smoking policies to layoffs.Diff: 1 Page Ref: 633Chapter: 17Objective: 2Skill: Concept


6) In many European countries, ________ replace the union-based worker-management mediations typical in the U.S.A) executive coachesB) HR managersC) corporate attorneysD) work councilsE) bargaining unitsAnswer: DExplanation: In many European countries, work councils replace the worker–management mediations typical in U.S. firms. Work councils are formal, employee-elected groups of worker representatives that meet monthly with managers to discuss topics ranging from no-smoking policies to layoffs.Diff: 1 Page Ref: 633Chapter: 17Objective: 2Skill: Concept

7) In Germany, employees have the legal right to a voice in setting company policies. This is called ________.A) codeterminationB) employment at willC) internal coordinationD) grievance proceduresE) gainsharing Answer: AExplanation: Codetermination is the rule in Germany and several other countries. Codetermination means employees have the legal right to a voice in setting company policies.Diff: 1 Page Ref: 633Chapter: 17Objective: 2Skill: Concept

8) Which of the following terms refers to governmental actions that may adversely affect the long-term value of a firm? A) cultural dynamicsB) political risksC) power distanceD) legislative idealsE) codeterminationAnswer: BExplanation: Political risks are the governmental actions or politically motivated events that affect thelong run profitability or value of the firm. Codetermination means employees have the legal right to a voice in setting company policies.Diff: 2 Page Ref: 634Chapter: 17Objective: 2, 3Skill: Concept


9) In regards to ethics, which of the following is recommended for international firms? A) requiring employee-at-will contractsB) enforcing U.S. laws on overseas workers C) establishing codes of conducts for each countryD) developing and distributing a global code of conductE) translating the U.S. employee handbook into different languages Answer: DExplanation: Instead of exporting the employee handbook, firms are advised to create and distribute a global code of conduct. The employer's main concern here may be establishing global standards for adhering to U.S. laws that have cross-border impacts like discrimination, harassment, and bribery.Diff: 3 Page Ref: 634Chapter: 17Objective: 2Skill: Concept

10) The European Union is best described as a ________. A) legal system for taxing imports and exports B) system of global standards, policies, and legislationC) common market for goods, services, capital, and laborD) political agreement that standardizes human resource lawsE) political system for equalizing wages, benefits, and taxationAnswer: CExplanation: The separate countries of the former European Community unified into a common market for goods, services, capital, and even labor called the European Union (EU). Tariffs for goods moving across borders from one EU country to another generally disappeared, and employees now move freely between jobs in EU countries.Diff: 2 Page Ref: 634Chapter: 17Objective: 2Skill: Concept

11) 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) The EU workweek is 40 hours, but most EU countries set 30 hour work weeks.D) Each EU country pays workers the same minimum hourly wage.E) Workers in the EU must live and work in their home country.Answer: AExplanation: The EU directive on confirmation of employment requires employers to provide employees with written terms and conditions of their employment. Each country determines the amount of notice to give employees, working hours, and wage rate. Workers may move freely between jobs in EU countries. Diff: 3 Page Ref: 634Chapter: 17Objective: 2Skill: Concept


12) Why is recruiting, hiring, and retaining good employees difficult in China? A) economic difficultiesB) unmotivated workersC) limited educationD) government restrictionsE) training requirementsAnswer: DExplanation: Because of governmental constraints on migration and other legal constraints, it is relatively difficult to recruit, hire, and retain good employees. China's new Employment Contract Law requires that employers report the names, sexes, identification numbers, and contract terms for all employees they hire.Diff: 2 Page Ref: 635Chapter: 17Objective: 2Skill: Concept

13) In China, qualified job candidates are most likely to be interested in a firm that offers ________. A) signing bonusesB) performance-based pay C) job expansion opportunitiesD) training and development programsE) heavily structured tasks and responsibilitiesAnswer: DExplanation: Employees are highly career oriented and gravitate toward employers that provide the best career advancement training and opportunities. Group harmony is important in China, so incentive pay is not advisable.Diff: 2 Page Ref: 635AACSB: Multicultural and DiversityChapter: 17Objective: 2Skill: Concept


14) 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) focus on building manager-employee relationshipsB) link performance with employee bonuses C) make personal comments to the employeeD) focus on quantifiable, objective resultsE) post appraisal results for each teamAnswer: DExplanation: Employee appraisal is particularly sensitive to the cultural realities in China. The appraisal therefore needs to follow the formalities of saving face and avoiding confrontational, tension-producing situations. In general, it's best to talk in terms of objective work data (as opposed to personal comments like "you're too slow").Diff: 3 Page Ref: 635AACSB: Multicultural and DiversityChapter: 17Objective: 2Skill: Application

15) ________ are citizens of the countries where they are working.A) ExpatriatesB) Third-country nationalsC) Home-country nationalsD) Multi-nationals E) LocalsAnswer: EExplanation: Locals are citizens of the countries where they are working. Expatriates are non-citizens of the countries in which they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters.Diff: 1 Page Ref: 635Chapter: 17Objective: 3Skill: Concept


16) Of the types of international workers that multinational companies can employ, locals are best described as ________.A) citizens of the countries where they are workingB) noncitizens of the countries in which they are workingC) citizens of a country other than the parent or the host countryD) citizens of the country in which the multinational company has its headquartersE) noncitizens of the country in which the multinational company has its headquartersAnswer: AExplanation: Locals are citizens of the countries where they are working. Expatriates are non-citizens of the countries in which they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters.Diff: 1 Page Ref: 635Chapter: 17Objective: 3Skill: Concept

17) 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 ________.A) localB) expatriateC) third-country nationalD) home-country nationalE) host-country nationalAnswer: AExplanation: Locals are citizens of the countries where they are working. Expatriates are non-citizens of the countries in which they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters.Diff: 2 Page Ref: 635Chapter: 17Objective: 3Skill: Application


18) Jason is a British freelance journalist working in Paris, so he is most likely classified as a(n) ________.A) localB) expatriateC) third-country nationalD) home-country nationalE) host-country nationalAnswer: BExplanation: Expatriates are non-citizens of the countries in which they are working. Locals are citizens of the countries where they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Third-country nationals are citizens of a country other than the parent or the host country.Diff: 2 Page Ref: 635Chapter: 17Objective: 3Skill: Application

19) ________ are noncitizens of the countries in which they are working.A) ExpatriatesB) Third-country nationalsC) Home-country nationalsD) LocalsE) Multi-nationalsAnswer: AExplanation: Expatriates are non-citizens of the countries in which they are working. Locals are citizens of the countries where they are working. Home-country nationals are citizens of the country in which the multinational company has its headquarters.Diff: 1 Page Ref: 635Chapter: 17Objective: 3Skill: Concept


20) In January 2009, Wal-Mart acquired a controlling interest in Chile's leading food retailer. Since then, Wal-Mart has opened the first environmentally friendly supermarket in Chile that uses energy efficient technology throughout the store. Wal-Mart is planning to open additional stores in Chile over the next five years. Wal-Mart'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 Wal-Mart of using expatriates?B) What did Wal-Mart's adaptability screening tests reveal about the potential candidates?C) What level of corporate control is needed for opening the new Wal-Mart stores?D) What is the planned Wal-Mart marketing strategy for the new stores in Chile?E) What is the typical attrition rate for expatriate employees at Wal-Mart?Answer: DExplanation: Marketing strategy is irrelevant to a staffing decision. Costs, adaptability screening test results, corporate control, and attrition rates are important aspects to consider when debating between filling management positions with locals or expatriates.Diff: 3 Page Ref: 635-636, 638-642AACSB: Reflective ThinkingChapter: 17Objective: 3Skill: Critical Thinking

21) Which of the following terms refers to citizens of a country other than the parent or the host country?A) expatriateB) third-country nationalC) home-country nationalD) multi-national E) localAnswer: BExplanation: Third-country nationals are citizens of a country other than the parent or the host country. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Diff: 1 Page Ref: 635-636Chapter: 17Objective: 3Skill: Concept


22) 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) patronB) expatriateC) third-country nationalD) home-country nationalE) host-country nationalAnswer: DExplanation: Home-country nationals are citizens of the country in which the multinational company has its headquarters. Third-country nationals are citizens of a country other than the parent or the host country. Diff: 2 Page Ref: 635-636Chapter: 17Objective: 3Skill: Application

23) Which of the following terms refers to citizens of the country in which the multinational company has its headquarters?A) expatriatesB) third-country nationalsC) home-country nationalsD) localsE) multi-nationalsAnswer: CExplanation: Home-country nationals are citizens of the country in which the multinational company has its headquarters. Third-country nationals are citizens of a country other than the parent or the host country. Diff: 1 Page Ref: 635-636Chapter: 17Objective: 3Skill: Concept


24) 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) localB) expatriateC) third-country nationalD) home-country nationalE) host-country nationalAnswer: CExplanation: Third-country nationals are citizens of a country other than the parent or the host country. Home-country nationals are citizens of the country in which the multinational company has its headquarters. Diff: 2 Page Ref: 635-636Chapter: 17Objective: 3Skill: Application

25) Which type of international manager is most prevalent in both headquarters and foreign subsidiary operations?A) localsB) expatriatesC) third-country nationalsD) home-country nationalsE) host-country nationalsAnswer: AExplanation: Locals fill most positions. Expatriates represent a minority of multinationals' managers. Diff: 2 Page Ref: 636Chapter: 17Objective: 3Skill: Concept



Which of the following, if true, supports the argument that locals should be hired to fill management positions in Chile?A) People from Chile accept the idea that power is unequally distributed in society.B) Chile has a high percentage of younger workers with college degrees. C) Managers in Chile are expected to keep their distance from subordinates.D) Chile has experienced an increase in foreign direct investment over the last five years.E) Chileans expect managers and subordinates to interact in a formal manner.Answer: BExplanation: A high number of skilled and educated locals suggests that Wal-Mart would be able to find competent managers in Chile. Choice A refers to power distance, which is not particularly relevant. Choices C and E relate to working as a manager in Chile, but not necessarily why locals should be hired as managers instead of expatriates.Diff: 3 Page Ref: 636AACSB: Reflective ThinkingChapter: 17Objective: 3Skill: Critical Thinking

27) Which of the following is the primary disadvantage of using expatriates to fill foreign subsidiary management positions?A) high costs associated with relocationB) time and effort required for trainingC) inability to create short-term results D) cultural difficultiesE) security concerns Answer: AExplanation: The cost of posting someone abroad is very high due to travel, relocation, housing, and salary. Expatriates tend to focus on short-term instead of long-term results, although they require less training. Although security is an issue, it is less significant than the overall costs of using expatriates.Diff: 2 Page Ref: 636Chapter: 17Objective: 3Skill: Concept


28) 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 communityD) greater likelihood of long-term employment E) high level of skills and technical qualificationsAnswer: EExplanation: The cost of using expatriates and the usual short-term nature of their employment are reasons that firms use locals. Local governments often pressure firms to use locals, and doing so improves the firm's PR in the community. The drawback of locals is that they likely do not have the necessary technical qualifications and require extensive training.Diff: 3 Page Ref: 636AACSB: Multicultural and DiversityChapter: 17Objective: 3Skill: Concept


Which of the following, if true, best supports the argument of using expatriates to establish the new Wal-Mart stores in Chile?A) Local candidates with the necessary managerial experience are difficult to find in Chile.B) Wal-Mart uses an online recruiting system to facilitate human resources activities. C) The State Department has issued travel alerts for Americans traveling in Chile.D) Repatriated Wal-Mart employees usually resign within one year of their return.E) Wal-Mart wants to develop good relationships with the local community. Answer: AExplanation: The primary reason to use expatriates instead of locals is when qualified local candidates cannot be found. Choices D and E undermine the decision to use expatriates and support a decision to use locals.Diff: 3 Page Ref: 636AACSB: Reflective ThinkingChapter: 17Objective: 3Skill: Critical Thinking


30) 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 ________. A) commuter employeeB) independent contractorC) third-country nationalD) permanent transfereeE) freelancerAnswer: DExplanation: About 78% of employers have some form of "localization" policy. This is a policy of transferring a home-country national employee to a foreign subsidiary as a "permanent transferee." In this case, Sara is a U.S. Dell employee originally from India. If she moves back she would be a permanent transferee.Diff: 2 Page Ref: 636-637Chapter: 17Objective: 3Skill: Application

31) Which of the following terms refers to having local employees abroad do jobs that the firm's domestic employees previously did in-house?A) adaptingB) offshoringC) enlargingD) downsizingE) diversifyingAnswer: BExplanation: Offshoring means having local employees abroad do jobs that the firm's domestic employees previously did in-house. Offshoring is an increasingly popular staffing option.Diff: 1 Page Ref: 637Chapter: 17Objective: 3Skill: Concept


32) 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) outsourcingB) offshoringC) deportmentD) downsizingE) international staffingAnswer: BExplanation: Offshoring means having local employees abroad do jobs that the firm's domestic employees previously did in-house. Offshoring is a popular staffing option, especially for call centers.Diff: 2 Page Ref: 637Chapter: 17Objective: 3Skill: Application

33) Which of the following corporate divisions plays the greatest role in offshoring? A) salesB) marketing C) accountingD) manufacturingE) human resourcesAnswer: EExplanation: When developing foreign markets or opening new manufacturing facilities, marketing, sales, and production executives play the pivotal roles. Offshoring mostly involves HR management as firms seek to gain cost advantages. Firms look to their HR managers to help identify high-quality, low-cost talent abroad, and to provide the necessary information on skills, foreign wage rates, and working conditions.Diff: 2 Page Ref: 637Chapter: 17Objective: 3Skill: Application

34) Which of the following countries would offer a firm the highest percentage of 20-35 year old workers with college degrees? A) South Korea B) IndonesiaC) MexicoD) PolandE) IndiaAnswer: AExplanation: The percentage of younger workers with postsecondary educations ranges from 5% or 10% in Indonesia up to 60% or more in South Korea and Singapore.Diff: 2 Page Ref: 637Chapter: 17Objective: 3Skill: Concept


35) 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) polycentricB) ethnocentricC) geocentricD) monocentricE) francocentricAnswer: BExplanation: An ethnocentric corporation believes that home-country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country might have to offer. A polycentric-oriented firm would staff its foreign subsidiaries with host-country nationals, and its home office with parent-country nationals. A geocentric staffing policy seeks the best people for key jobs regardless of nationality.Diff: 1 Page Ref: 638AACSB: Multicultural and DiversityChapter: 17Objective: 3Skill: Concept

36) 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) polycentricB) ethnocentricC) geocentricD) monocentricE) francocentricAnswer: AExplanation: A polycentric-oriented firm would staff its foreign subsidiaries with host-country nationals, and its home office with parent-country nationals. An ethnocentric corporation believes that home-country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country might have to offer. A geocentric staffing policy seeks the best people for key jobs regardless of nationality.Diff: 1 Page Ref: 638AACSB: Multicultural and DiversityChapter: 17Objective: 3Skill: Concept


37) 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 nationalsB) host country nationalsC) third country nationalsD) permanent transfereesE) local citizensAnswer: AExplanation: With an ethnocentric staffing policy, Samsung fills key management jobs with home-country nationals. Managers would be citizens of South Korea where Samsung has its headquarters. Diff: 2 Page Ref: 638Chapter: 17Objective: 3Skill: Application

38) 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 candidatesB) goal of reducing misunderstandings with locals C) need to transfer core competencies effectivelyD) desire to maintain a unified corporate cultureE) interest in maintaining tight controlAnswer: BExplanation: Reasons given for ethnocentric staffing policies include lack of qualified host-country senior management talent, a desire to maintain a unified corporate culture and tighter control, and the desire to transfer the parent firm's core competencies to a foreign subsidiary more expeditiously. A polycentric-oriented firm would likely reduce thelocal cultural misunderstandings that might occur with ethnocentric staffing. Diff: 3 Page Ref: 638Chapter: 17Objective: 3Skill: Concept


39) 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) polycentricB) monocentricC) ethnocentricD) francocentricE) geocentricAnswer: CExplanation: With an ethnocentric staffing policy, the firm fills key management jobs with parent-country nationals. Mercedes sent German executives to manage an American facility, so its executives have ethnocentric values. Diff: 2 Page Ref: 638Chapter: 17Objective: 3Skill: Application

40) 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) polycentricB) ethnocentricC) geocentricD) monocentricE) francocentricAnswer: CExplanation: A geocentric staffing policy seeks the best people for key jobs throughout the firm, regardless of nationality. This can let the global firm use its human resources more efficiently by transferring the best person to the open job, wherever he or she may be.Diff: 1 Page Ref: 638AACSB: Multicultural and DiversityChapter: 17Objective: 3Skill: Concept


41) With a geocentric staffing policy, a firm is most likely able to ________. A) provide effective trainingB) comply with EU guidelinesC) recruit recent college graduatesD) use its human resources efficientlyE) strengthen its image within a local communityAnswer: DExplanation: A geocentric staffing policy fills positions with the best people from within the organization, regardless of nationality. This can let the global firm use its humanresources more efficiently by transferring the best person to the open job, whereverhe or she may be. Diff: 3 Page Ref: 638AACSB: Multicultural and DiversityChapter: 17Objective: 3Skill: Concept


Which of the following, if true, supports the assertion that Wal-Mart is an ethnocentrically oriented corporation?A) Wal-Mart offers top managers mobility premiums because it frequently transfers them from one country to another.B) Wal-Mart usually succeeds on an international level because the firm actively works to support local charities. C) Wal-Mart rarely experiences cultural misunderstandings because of its tendency to hire locals to fill management positions.D) Wal-Mart aims to maintain a unified organizational culture by filling foreign management positions with Americans.E) Adaptability screening eliminates problems associated with transferring Wal-Mart managers and their families abroad.Answer: DExplanation: An ethnocentric company fills key management positions with home-country nationals to maintain a unified culture and tight control. Choice A suggests a geocentric staffing policy, while Choice C suggests a polycentric policy.Diff: 3 Page Ref: 638AACSB: Reflective ThinkingChapter: 17Objective: 3Skill: Critical Thinking


43) The most common reason that an expatriate fails at an international assignment is ________.A) expense B) incompetenceC) technical demands D) family pressuresE) language difficultiesAnswer: DExplanation: Family support is the most significant factor in the success or failure of an expatriate. If the family of the executive cannot adapt or is negative about the international assignment, then the employee will most likely have difficulties. Choices A, B, C, and E are less significant issues.Diff: 2 Page Ref: 638-639, 642Chapter: 17Objective: 3Skill: Concept

44) Which of the following qualities is most closely linked to an employee's success on an international work assignment? A) technical skillsB) responsibilityC) intelligenceD) flexibilityE) alertnessAnswer: DExplanation: Employees need to be intelligent, responsible, alert, and technically skilled for all jobs, but being flexible is key to success on foreign assignments. Some people adapt anywhere; others fail to adapt anywhere.Diff: 2 Page Ref: 638-639Chapter: 17Objective: 3Skill: Concept

45) When Colgate uses adaptability screening to assess an employee's probable success in handling a foreign transfer, the best predictor of future success is ________.A) job competence and knowledgeB) overseas travel historyC) level of educationD) dependabilityE) ageAnswer: BExplanation: Travel experience is often the best predictor of future success on international assignments. Companies like Colgate-Palmolive look for overseas candidates whosework and nonwork experience, education, and language skills already demonstratea commitment to and facility for living and working with different cultures.Diff: 2 Page Ref: 639Chapter: 17Objective: 3Skill: Concept


46) Which of the following terms refers to the process of assessing an employee's probable success in handling a foreign transfer?A) competency assessmentB) skills placement testingC) adaptability screeningD) management assessmentE) performance appraisalAnswer: CExplanation: Adaptability screening attempts to assess the assignees' and his or her spouse's probable success in handling a foreign transfer.Diff: 1 Page Ref: 639Chapter: 17Objective: 3Skill: Concept

47) Which of the following is NOT one of the factors thought to be important in predicting an international assignee's success?A) motivationB) education levelC) relational skillsD) adaptabilityE) family situationAnswer: BExplanation: Motivation/job knowledge, relational skills, family situation, adaptability, and extracurricular openness are the five factors important to international success. Education level is not a specific factor, although it is likely relevant to job knowledge.Diff: 2 Page Ref: 639Chapter: 17Objective: 3Skill: Concept



Which of the following, if true, undermines the argument of using expatriates to establish the new Wal-Mart stores in Chile?A) Adaptability screening tests indicate that three potential candidates are bilingual and travel overseas frequently.B) Wal-Mart offers overseas candidates extensive training on cultural differences and adaptation skills. C) The most qualified Wal-Mart managers have no foreign travel experience and do not speak Spanish.D) A balance sheet approach is used by Wal-Mart , but workers do not receive hardship allowances for moving to Chile.E) Security issues have not been an issue for other Wal-Mart executives who have traveled to Chile.Answer: CExplanation: Foreign travel experience and language skills demonstrate an ability to live and work with other cultures. If the most qualified candidates lack that experience, then using expatriates is probably a bad idea.Diff: 3 Page Ref: 639-640AACSB: Reflective ThinkingChapter: 17Objective: 3Skill: Critical Thinking

49) Which of the following best explains why female managers receive fewer foreign assignments than male managers? A) cultural prejudices against womenB) misperceptions by supervisors C) lack of interest in overseas workD) spousal and family reluctance E) safety concernsAnswer: BExplanation: Surveys indicate that supervisors assume women will face cultural prejudice and safety problems, but neither is an issue. Supervisors also assume that women are not interested in leaving the U.S. and that their spouses will be reluctant to do so. Therefore, it is the misperceptions of supervisors that have led to a small percentage of female managers being sent abroad.Diff: 3 Page Ref: 640Chapter: 17Objective: 3Skill: Concept


50) For most firms, which of the following is the most important selection criteria when selecting employees for international assignments? A) adaptabilityB) personalityC) technical competenceD) spousal willingnessE) language capabilitiesAnswer: CExplanation: Most employers still tend to select expatriates almost entirely based on technical competence. However, studies indicate that family situation and adaptability are better qualities for determining an employee's success overseas.Diff: 2 Page Ref: 642Chapter: 17Objective: 3Skill: Concept

51) According to research, all of the following will most likely help spouses of expatriates adjust to living in foreign countries EXCEPT ________. A) assistance with finding a job abroadB) close family relationshipsC) pre-school age children D) scheduled vacationsE) language training Answer: DExplanation: Language fluency helps spouses adjust as do preschool-age children. A strong bond of closeness between spouse and expat partner and help finding a job are both helpful as well.Diff: 2 Page Ref: 643Chapter: 17Objective: 3Skill: Concept

52) Before departing for an overseas assignment, an employee would most likely benefit from ________ training. A) technical B) financialC) interpersonalD) cross-cultural E) career developmentAnswer: DExplanation: Assignees benefit from training on the culture and language of the country in which they will be living. Such training helps them adapt and to work more effectively with locals.Diff: 1 Page Ref: 643Chapter: 17Objective: 4Skill: Concept


53) All of the following are the primary benefits of providing ongoing training to employees on overseas assignments EXCEPT ________. A) developing professional skillsB) offering educational opportunitiesC) developing relationships with co-workersD) cultivating corporate values and standardsE) providing spousal networking opportunitiesAnswer: EExplanation: Managers abroad continue to need traditional skills-oriented development to help them grow professionally, hone their skills, and have the same educational opportunities that stateside co-workers have. In addition, seminars help managers form bonds with colleagues around the world and cultivate corporate values. Providing spouses the chance to network is not a primary benefit. Diff: 2 Page Ref: 644Chapter: 17Objective: 4Skill: Concept

54) Most North American companies use the ________ approach to formulating expatriate pay.A) balance sheetB) equitable wage rateC) performanceD) host countryE) total packageAnswer: AExplanation: The most common approach to formulating expatriate pay is to equalize purchasing power across countries, a technique known as the balance sheet approach. More than 85% of North American companies reportedly use this approach.Diff: 1 Page Ref: 646Chapter: 17Objective: 4Skill: Concept


55) Which approach to formulating expatriate pay involves estimating the employee's expenses in the home country and the host country?A) income sheetB) balance sheetC) mobility allowanceD) performance payE) hardship methodAnswer: BExplanation: The balance sheet approach focuses on four groups of expenses—income taxes, housing, goods and services, and discretionary expenses. The employer estimates what each of these four expenses is in the expatriate's home country, and what each will be in the host country. The employer then pays any differences.Diff: 1 Page Ref: 645Chapter: 17Objective: 4Skill: Concept

56) Which of the following terms refers to paying a portion of an expatriate's salary in home-country currency and a portion in local currency? A) balance sheet approachB) split pay approachC) hardship premiumD) foreign-service premiumE) tax equalizationAnswer: BExplanation: When using the balance sheet approach, firms often help the expatriate manage his or her home and foreign financial obligations with the split pay approach. The employer pays part of a person's actual pay in home-country currency and part in the local currency.Diff: 1 Page Ref: 645Chapter: 17Objective: 4Skill: Concept

57) Which of the following is NOT one of the primary expense groups used in the balance sheet approach to formulating expatriate pay?A) taxesB) housingC) goods and servicesD) disposable incomeE) discretionary expensesAnswer: DExplanation: The balance sheet approach focuses on four groups of expenses—income taxes, housing, goods and services, and discretionary expenses. Disposable income is not a category.Diff: 1 Page Ref: 645Chapter: 17Objective: 4Skill: Concept


58) ________ are financial payments over and above regular base pay.A) Foreign service premiumsB) Hardship allowancesC) Balance sheet paymentsD) Cultural adjustmentsE) Mobility premiumsAnswer: AExplanation: Foreign service premiums are financial payments over and above regular base pay, typically ranging between 10% and 30% of base pay. Hardship allowances compensateexpatriates for hard living and working conditions at certain foreign locations. Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.Diff: 1 Page Ref: 645-646Chapter: 17Objective: 4Skill: Concept

59) 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 allowanceB) performance bonusC) hardship allowanceD) foreign service premiumE) mobility premiumAnswer: CExplanation: Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations. Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another.Diff: 2 Page Ref: 646Chapter: 17Objective: 4Skill: Application


60) 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 allowanceB) foreign service premiumC) cost-of-living allowanceD) cultural adjustment premiumE) mobility premiumAnswer: EExplanation: Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another. Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations. Diff: 1 Page Ref: 646Chapter: 17Objective: 4Skill: Concept

61) 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 Turkey 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 allowanceB) foreign service premiumC) cost-of-living increaseD) team incentiveE) mobility premiumAnswer: EExplanation: Mobility premiums are typically lump-sum payments to reward employees for moving from one assignment to another. Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations. Diff: 2 Page Ref: 646Chapter: 17Objective: 4Skill: Application


62) All of the following characterize European labor relations EXCEPT ________. A) limited number of bargaining units B) brevity of labor-management agreementsC) informal recognition of labor unionsD) bargaining through employer associationsE) industry-wide collective bargainingAnswer: AExplanation: Unions in Europe are influential and labor–management bargaining and relations reflect this fact. Collective bargaining in Western Europe tends to be industry-wide, which leads to bargaining through employer associations. Union recognition is less formal than in the United States. European agreements tend to be brief and to leave individual employers free to institute more generous terms.Diff: 3 Page Ref: 648Chapter: 17Objective: 4Skill: Concept

63) Which of the following is most likely NOT covered by kidnapping and ransom insurance policies? A) abductionsB) ransomsC) crisis teamsD) weaponsE) legal expensesAnswer: DExplanation: K&R insurance typically covers several costs associated with kidnappings, abductions,or extortion attempts. These costs might include, for instance, hiring a crisis team, theactual cost of the ransom payment to the kidnappers or extortionists, insuring the ransommoney in transit, legal expenses, and employee death or dismemberment.Diff: 2 Page Ref: 648Chapter: 17Objective: 4Skill: Concept


64) 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) emphasize that he is an AmericanB) take the same route to and from work C) arrive at the airport close to departure timeD) wait at the airport in a main traffic areaE) leave work at the same time each dayAnswer: CExplanation: Security experts suggest that business travelers not draw attention to the fact that they're American. They should arrive at airports as close to departure time as possible and waitin areas away from the main flow of traffic where they're not as noticeable. Employees should also vary their departure and arrival times and take different routes to and from work.Diff: 3 Page Ref: 648Chapter: 17Objective: 4Skill: Application

65) ________ refers to bringing a manager back home after a foreign assignment has been completed.A) expatriationB) repatriationC) culture shockD) mediationE) job rotationAnswer: BExplanation: Expatriation refers to sending a worker to work overseas, while repatriation is the process of bringing the employee back to his or her home country. Repatriation programs help employees and their families make smooth adjustments.Diff: 1 Page Ref: 649Chapter: 17Objective: 4Skill: Concept


66) A formal repatriation program should do all of the following EXCEPT ________. A) assist employees with relocation logistics B) update employees about activities at the home office C) seek compensation and benefits on behalf of employeesD) help employees update their resumes and make career plansE) reassure employees of the company's concern for their welfareAnswer: CExplanation: Repatriation programs are supported by an employee's firm, so seeking compensation and benefits is not part of the activities. However, repatriation programs should help employees with the logistics of moving back, keep them in the loop regarding the home office, help them with career planning, and reassure them that the firm cares.Diff: 3 Page Ref: 649Chapter: 17Objective: 4Skill: Concept

67) 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.E) Most expatriates change their residency status. Answer: DExplanation: One of the most worrisome facts about sending employees abroad is that 40% to 60% of them will probably quit within 3 years of returning home. Firms provide psychologists to expatriates when they return to ensure that they are adapting well, but they do not necessarily need long-term treatment. Diff: 3 Page Ref: 649Chapter: 17Objective: 3Skill: Concept


68) Which of the following was determined by a study of six international firms that have successfully established global HR systems? A) Firms must rely on local managers to develop HR management systems that account for cross-cultural differences. B) Firms should focus on expatriation and repatriation programs to ease the transition period for employees working abroad.C) Firms should develop HR systems that are universally acceptable and that can be effectively implemented in any location.D) Firms rely more heavily on expatriates than locals in foreign subsidiaries, so it is unnecessary to make changes to existing HR policies. E) Firms with foreign subsidiaries should adhere to local customs regarding screening, hiring, and training applicants.Answer: CExplanation: 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. Diff: 3 Page Ref: 650Chapter: 17Objective: 5Skill: Concept

69) Which of the following is a best practice used by firms that develop effective global HR systems?A) creating a global network of specialists to help create a new HR systemB) standardizing the specific methods used to screen and evaluate applicantsC) allowing HR managers to devise locally appropriate recruiting policiesD) establishing HR policies at the firm's headquarters to avoid conflictE) developing a single compensation and benefits package for new hiresAnswer: AExplanation: To head off resistance, human resource managers around the world should feel that they are part of a greater whole by belonging to global teams to help develop the new human resources systems. It's more important to standardize ends and competencies, so certain details are left up to local HR managers based on customs and culture.Diff: 3 Page Ref: 650-651Chapter: 17Objective: 5Skill: Concept


70) Which of the following is recommended to firms to ensure that local managers find a global HR system acceptable? A) provide online training B) ignore cultural differencesC) establish a chain of commandD) develop a strong corporate cultureE) understand the laws of the home countryAnswer: DExplanation: Companies that create a strong corporate culture find it easier to obtain agreement among far-flung employees. Cultural differences should not be ignored, and firms should also understand local laws. Understanding the laws of the firm's home country do not necessarily help implement a global HR system.Diff: 3 Page Ref: 651Chapter: 17Objective: 5Skill: Concept

71) A major challenge for international businesses is the need to adapt personnel policies and procedures to the differences among countries.Answer: TRUEExplanation: Taking the company global triggers various management challenges, including how to adapt personnel policies and procedures to various cultures and countries. Human resource management must also consider its systems for recruiting, selecting, training, and appraising and compensating its workers abroad.Diff: 1 Page Ref: 632AACSB: Multicultural and DiversityChapter: 17Objective: 2Skill: Concept

72) The most significant HR challenge faced by international firms is the language barrier. Answer: FALSEExplanation: Vast distances increase the challenges for an international firm. However, language is not necessarily the biggest issue. Cultural, political, legal, and economic differences among countries create challenges for global firms.Diff: 1 Page Ref: 632Chapter: 17Objective: 1Skill: Concept


73) Legally mandated holidays range from five weeks each year in Luxembourg to none in Great Britain. Answer: TRUEExplanation: Minimum legally mandated holidays range from none in the United Kingdom to five weeks per year in Luxembourg.Diff: 1 Page Ref: 632Chapter: 17Objective: 2Skill: Concept

74) Codetermination means that employees have a legal right to voice opinions and preferences in setting company policies.Answer: TRUEExplanation: Codetermination means employees have the legal right to a voice in setting company policies. Workers elect their own representatives to the supervisory board of the employer.Diff: 1 Page Ref: 633Chapter: 17Objective: 2Skill: Concept

75) Hourly wages for production workers in the United States are higher than those in Germany. Answer: FALSEExplanation: Differences in labor costs are also substantial. Hourly compensation costs for production workers range from $2.75 in Mexico to $6.43 in Taiwan, $23.82 in the United States, $27.10 in the United Kingdom, and $34.21 in Germany.Diff: 1 Page Ref: 633Chapter: 17Objective: 2Skill: Concept

76) The official length of a work week in the European Union is 40 hours.Answer: FALSEExplanation: The EU sets the workweek at 48 hours, but most EU countries set it at 40 hours a week.Diff: 1 Page Ref: 634Chapter: 17Objective: 2Skill: Concept


77) In China, a structured interview process is the typical method for selecting employees. Answer: TRUEExplanation: The dominant employee selection method in China involves analyzing the applicant's résumé and then interviewing him or her. The ideal way to do this is to institute a structured interview process, as many of the foreign firms in China have done.Diff: 1 Page Ref: 635Chapter: 17Objective: 2Skill: Concept

78) The majority of multinational corporation management positions are filled by expatriates. Answer: FALSEExplanation: Expatriates still represent a minority of multinationals' managers. Locals fill most positions.Diff: 1 Page Ref: 636Chapter: 17Objective: 3Skill: Concept

79) Third-country nationals hold citizenship in three countries.Answer: FALSEExplanation: Third-country nationals are citizens of a country other than the parent or the host country—for example, a British executive working in the Tokyo branch of a U.S. multinational bank.Diff: 1 Page Ref: 636Chapter: 17Objective: 3Skill: Concept

80) U.S. employers are required to attempt recruiting U.S. workers before filing requests to fill positions with foreign workers. Answer: TRUEExplanation: Under rules in effect since 2005, U.S. employers must now try to recruit U.S. workers before filing foreign labor certification requests with the Department of Labor. In particular, employers must now first post open positions in the Department of Labor's job bank and (at least) run two Sunday newspaper advertisements before filing such requests.Diff: 2 Page Ref: 636Chapter: 17Objective: 3Skill: Concept


81) The least expensive way to fill managerial positions in foreign subsidiaries is with local people.Answer: TRUEExplanation: Expatriates are costly due to relocation expenses and housing costs. Filling positions with locals is much more cost effective.Diff: 1 Page Ref: 636Chapter: 17Objective: 3Skill: Concept

82) Less costly alternatives to expatriates include Internet video meetings and group decision-making software. Answer: TRUEExplanation: Today, the choice is not just between expatriate versus local employees; there are other solutions. Some firms use Internet-based video technologies and group decision-making software to enable global virtual teams to do business without either travel or relocation.Diff: 1 Page Ref: 636AACSB: Use of IT Chapter: 17Objective: 3Skill: Concept

83) Off shoring, which has declined in popularity over the last decade, refers to having local employees abroad do jobs that the firm's domestic employees previously did in-house.Answer: FALSEExplanation: Offshoring means having local employees abroad do jobs that the firm's domestic employees previously did in-house. Offshoring is increasingly popular.Diff: 2 Page Ref: 637Chapter: 17Objective: 3Skill: Concept

84) In a polycentric corporation, the prevailing attitude is that home country attitudes, management style, knowledge, and managers are superior to anything the host country might offer.Answer: FALSEExplanation: Ethnocentric is the notion that home-country attitudes, management style, knowledge, evaluation criteria, and managers are superior to anything the host country has to offer. Polycentric is the conscious belief that only the host-country managers can ever really understand the culture and behavior of the host-country market.Diff: 2 Page Ref: 638AACSB: Multicultural and DiversityChapter: 17Objective: 3Skill: Concept


85) Firms using a geocentric staffing model will seek the best people for key jobs throughout the organization, regardless of nationality.Answer: TRUEExplanation: A geocentric staffing policy "seeks the best people for key jobs throughout the organization, regardless of nationality." This can let the global firm use its human resources more efficiently by transferring the best person to the open job, wherever he or she may be.Diff: 1 Page Ref: 638Chapter: 17Objective: 3Skill: Concept

86) The most expensive approach to staffing is the polycentric staffing model.Answer: FALSEExplanation: A polycentric-oriented firm would staff its foreign subsidiaries with host-country nationals, and its home office with parent-country nationals. It is the least expensive staffing method. Diff: 2 Page Ref: 638Chapter: 17Objective: 3Skill: Concept

87) Adaptability screening is a commonly used process to assess the likelihood that an expatriate can reintegrate into his or her home country' culture following a foreign assignment.Answer: FALSEExplanation: Adaptability screening aims to assess the assignees' (and spouses') probable success in handling the foreign transfer, and to alert them to issues (such as the impact on children) the move may involve.Diff: 2 Page Ref: 639Chapter: 17Objective: 3Skill: Concept

88) The Overseas Assignment Inventory is a test that identifies the characteristics and attitudes international assignment candidates should have based on norms.Answer: TRUEExplanation: Many firms also use tests such as the Overseas Assignment Inventory (OAI). This identifies the characteristics and attitudes international assignment candidates should have. Its publisher establishes local norms and conducts ongoing validation studies.Diff: 1 Page Ref: 640Chapter: 17Objective: 3Skill: Concept


89) Female managers represent only 21% of managers sent abroad because they do not want to uproot their families, and their spouses are reluctant to move. Answer: FALSEExplanation: Women represent only 21% of managers sent abroad mostly due to misperceptions. Surveys have found that women do want international assignments, they are not less inclined to move their families, and that male spouses are not necessarily reluctant to move.Diff: 2 Page Ref: 640Chapter: 17Objective: 3Skill: Concept

90) To help to ensure success for expatriates on international assignment, companies should provide language training to their spouses.Answer: TRUEExplanation: Employers can help expatriate spouses adjust to living in a foreign country by providing language training. Spouses are less likely to feel cut off from the foreign culture if they are able to communicate with locals. Diff: 2 Page Ref: 643AACSB: CommunicationChapter: 17Objective: 3Skill: Concept

91) Being childless makes it easier for spouses to adjust to living overseas because of less stress. Answer: FALSEExplanation: Having preschool-age children (rather than school-age children or no children) seemed to make it easier for the spouse of an expatriate to adjust. "This suggests that younger children, perhaps because of their increased dependency, help spouses retain that part of their social identities: as parents, their responsibilities for these children remain the same.Diff: 2 Page Ref: 643Chapter: 17Objective: 3Skill: Concept

92) Employees preparing for overseas assignments benefit from training in cultural differences, attitude formation and behavioral influence, factual country knowledge, and language skills.Answer: TRUEExplanation: Orienting and training employees prior to their departure helps them adjust and be more successful. They should receive training in culture, language, and adaptation methods.Diff: 1 Page Ref: 643AACSB: Multicultural and DiversityChapter: 17Objective: 4Skill: Concept


93) More than 85% of North American companies use the balance sheet approach to formulate expatriate pay.Answer: TRUEExplanation: The most common approach to formulating expatriate pay is to equalize purchasing power across countries, a technique known as the balance sheet approach. More than 85% of North American companies reportedly use this approach.Diff: 1 Page Ref: 645Chapter: 17Objective: 4Skill: Concept

94) Foreign service premiums compensate expatriates for exceptionally hard living and working conditions at certain foreign locations.Answer: FALSEExplanation: Foreign service premiums are paid to encourage the employee to take the job abroad. Hardship allowances compensate expatriates for hard living and working conditions at certain foreign locations.Diff: 1 Page Ref: 645-646Chapter: 17Objective: 4Skill: Concept

95) Performance-based incentives are used more often by multinational employers in Europe than in other countries. Answer: FALSEExplanation: Employers use performance-based incentives less in Europe, although more European firms are moving toward incentive pay.Diff: 2 Page Ref: 646Chapter: 17Objective: 4Skill: Concept

96) As in the U.S., collective bargaining in Western Europe typically occurs at the plant level rather than at the industry level. Answer: FALSEExplanation: Collective bargaining in Western Europe tends to be industry-wide, whereas in the United States it generally occurs at the enterprise or plant level.Diff: 2 Page Ref: 648Chapter: 17Objective: 4Skill: Concept


97) Varying departure and arrival times when working in a foreign country can minimize a business traveler's chances of becoming a crime victim. Answer: TRUEExplanation: Experts advise business travelers to vary their departure and arrival times and to take different routes to and from work to stay safe in a foreign country. Diff: 2 Page Ref: 648Chapter: 17Objective: 4Skill: Concept

98) A global HR system should integrate global tools, such as online recruitment systems, with local methods. Answer: TRUEExplanation: Effective global HR systems combine the firm's global tools like online recruiting or online benefits management with local methods. Diff: 2 Page Ref: 652Chapter: 17Objective: 5Skill: Concept

99) The most effective global HR systems implement identical strategies, practices, and methods in every location to ensure consistency throughout the organization. Answer: FALSEExplanation: Effective global HR systems have certain general standards, but the methods of implementation vary from location to location to account for cultural differences.Diff: 2 Page Ref: 652Chapter: 17Objective: 5Skill: Concept

100) Treating locals as equal partners when developing a global HR system will minimize resistance. Answer: TRUEExplanation: Using a global team to develop a global HR system will minimize resistance and increase support.Diff: 2 Page Ref: 652Chapter: 17Objective: 5Skill: Concept


101) What are the HR challenges of conducting business on a global scale? How can firms effectively implement global HR management programs? Answer: Managing human resources internationally creates unique challenges. For example, "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, andeconomic 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.Diff: 3 Page Ref: 632, 650Chapter: 17Objective: 1, 5Skill: Synthesis

102) In a brief essay, discuss the economic and labor relations factors that are unique to Europe. Answer: 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 thenumber 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, usually equal to at least 1 years' service in Germany. Workers in France can expect two and a half days of paid holiday per full month of service per year, and Germans get about 18 vacation days per year. 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 labor–management 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. Diff: 3 Page Ref: 633, 647-648Chapter: 17Objective: 2, 4Skill: Synthesis


103) What staffing options do multinational firms have when filling positions in foreign subsidiaries?Answer: Multinational companies employ several types of international managers. They can employ locals, home-country nationals, or third-country nationals. Home-country and third-country-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. Third-country nationals are citizens of a country other than the parent or the host country.Diff: 3 Page Ref: 635-636Chapter: 17Objective: 3Skill: Application

104) What considerations need to be made when appraising an expatriate's performance? What cultural considerations need to be made when appraising a local employee's performance? Answer: Several things complicate the task of appraising an expatriate's performance. For one thing, the question of who actually appraises the expatriate is crucial. Obviously, local management must have some input, but cultural differences here may distort the appraisals. Thus, host-country bosses might evaluate a U.S. expatriate manager in India somewhat negatively if they find his or her use of participative decision making culturally inappropriate. On the other hand, home-office managers may be so out of touch that they can't provide valid appraisals. Similarly, the procedure may be to measure the expatriate by objective criteria such as profits and market share. However, local events (such as political instability) may affect the manager's performance while remaining "invisible" to home-office staff. Some suggestions for improving expatriate appraisals follow.1. Stipulate the assignment's difficulty level, and adapt the performance criteria to the situation.2. Weigh the evaluation more toward the on-site manager's appraisal than toward the home-site manager's appraisal.3. If the home-office manager does the actual written appraisal, have him or her use a former expatriate from the same overseas location for advice.Employee appraisals of local employees need to keep cultural differences in mind. For example, appraisals in China should follow the formalities of saving face and avoiding confrontational, tension-producing situations. In general, it's best to talk in terms of objective work data (as opposed to personal comments like "you're too slow").Diff: 3 Page Ref: 635, 647Chapter: 17Objective: 2, 4Skill: Synthesis


105) What are the advantages and disadvantages of using expatriates for staffing foreign subsidiaries? Answer: 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.Diff: 3 Page Ref: 636Chapter: 17Objective: 3Skill: Application

106) What are some reasons for firms bringing expatriates home early? How can firms ease the transition during repatriation? Answer: 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 top-quality 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. Diff: 3 Page Ref: 636, 649Chapter: 17Objective: 3, 4Skill: Synthesis

107) Explain the meaning of ethnocentrism, polycentrism, and geocentrism and how those values might affect a multinational company's staffing policy.Answer: 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.Diff: 3 Page Ref: 638Chapter: 17Objective: 3Skill: Application


108) What type of special training is recommended for employees as they prepare for international assignments? Answer: The four-step training approach recommended in the text begins with training on the impact of cultural differences and on raising trainees' awareness of such differences and their impact on business outcomes. In Level 2, participants are encouraged to understand how attitudes are formed and how they influence behavior. In Level 3, the training provides factual knowledge about the target country, and in Level 4, skill building in areas like language and adjustment and adaptation skills are the focus. More employers use software and the Internet for such cross-cultural training.Diff: 3 Page Ref: 643Chapter: 17Objective: 4Skill: Application

109) How can employers improve the chances of success for an expatriate? What are the benefits of providing training and development opportunities to expatriates during overseas assignments? Answer: Employers can do several things to boost the odds that assignments abroad will go smoothly. Providing realistic previews of what to expect, carefully screening expat and spouse, improved orientation, and improved benefits packages are obvious solutions. Another is simply to shorten the length of the assignment. Person–job match is also important, insofar as expatriates who aremore satisfied with their jobs are more likely to adapt to the foreign assignment. Helping spouses get jobs abroad and providing more support to the expat and his or her family are also important. Some employers set up "global buddy" programs. Here local managers mentor new expatriates. Beyond such predeparture training, more firms are providing continuing, in-country cross-cultural training during the early stages of an overseas assignment. In addition to honing these managers' skills, international development activities hopefully have other, less tangible benefits. For example, rotating assignments can help managers form bonds with colleagues around the world. These can help the managers make cross-border decisions more expeditiously. Bringing together managers from their global subsidiaries for seminars can also help employers cultivatea unifying set of values, standards, and corporate culture.Diff: 3 Page Ref: 643-644Chapter: 17Objective: 3, 4Skill: Synthesis

110) Explain the balance sheet approach to formulating expatriate pay.Answer: 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.Diff: 3 Page Ref: 645Chapter: 17Objective: 4Skill: Application


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