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Chapter 13: Managing Human Resources in a Global Business
1. Workforce mobility programs focus on
A. overcoming barriers to entry to the workforce for persons with disabilities.
B. sustainable ways of enabling employees to get to/from the workplace.
C. managing the human resources functions for employees working outside of head office
region.
D. finding jobs for employees who are facing layoff or downsizing.
E. enabling workers from foreign countries to find work in Canada.
Answer: C. managing the human resources functions for employees working outside of head
office region.
2. As a result of globalization, companies based in Canada with international operations
A. must cut costs in Canada to remain profitable.
B. tend to relocate the head office to a jurisdiction where they pay less tax.
C. relocate employees overseas on a regular basis.
D. have more than one "official" language.
E. are often targets for companies wanting to merge and gain access to Canadian markets.
Answer: C. relocate employees overseas on a regular basis.
3. When sending employees abroad, employers must address practical issues such as
A. knowledge dissemination.
B. developing talent on a global basis.
C. deployment.
D. naturalization.
E. assignment letters.
Answer: E. assignment letters.
4. The number one concern when it comes to employee relocations is
A. cost projections.
B. candidate assessment.
C. relocation assistance.
D. family issues.
E. candidate selection.
Answer: D. family issues.
5. Brian is the director of HR for a global software development company. He is advising the
director of sales about which of the sales managers to send to lead the sales department in
India. Which of the following are key traits Brian should consider in advising on the best
candidate for the expatriate assignment?
A. agreeableness
B. interpersonal skills and cultural sensitivity
C. cultural sensitivity only
D. interpersonal skills, cultural sensitivity, and flexibility
E. There are no specific traits that are helpful to consider.
Answer: D. interpersonal skills, cultural sensitivity, and flexibility
6. "Expatriate failure" is
A. failure to recover cost of investment on an expatriate.
B. rare.
C. repatriation.
D. re-assimilating the expatriate.
E. early return from an expatriate assignment.
Answer: E. early return from an expatriate assignment.
7. The most likely destination for a foreign assignment today is
A. Brazil.
B. Mexico.
C. Singapore.
D. Russia.
E. the People's Republic of China.
Answer: E. the People's Republic of China.
8. Wide-ranging customs that vary from country to country demanding corresponding
differences in HR practices among a company's foreign subsidiary are
A. cultural differences.
B. trade deficits.
C. balance of payments.
D. trade surpluses.
E. foreign trade.
Answer: A. cultural differences.
9. The extent to which the less influential members of institutions accept and expect that
power will be distributed unequally is referred to as
A. power distance.
B. political differences.
C. need for power.
D. religious practices.
E. legal distinctions.
Answer: A. power distance.
10. The degree to which ties between persons are normally loose rather than close is known
as
A. individualism vs. collectivism.
B. religious vs. sacrimonious practices.
C. legal practices vs. bribery.
D. loose-tight tension.
E. mercantilism vs. trade isolation.
Answer: A. individualism vs. collectivism.
11. The following are all factors that demand adapting personnel policies and procedures to
the differences among countries in which subsidiaries are based except
A. industrial relations factors.
B. import tax rates.
C. cultural factors.
D. economic factors.
E. labour cost factors.
Answer: B. import tax rates.
12. It is suggested that HR staff members in a foreign subsidiary are best drawn from
A. parent-country citizens.
B. third-country nationals.
C. locals.
D. home-country citizens.
E. host-country citizens.
Answer: E. host-country citizens.
13. In socialist countries, HR practices tend to shift toward preventing unemployment, even
at the cost of
A. freedom of expression.
B. civil liberties.
C. efficiency.
D. long-range planning.
E. career development.
Answer: C. efficiency.
14. High labour costs can require a focus on efficiency and on human resource practices
aimed at improving
A. absenteeism rates.
B. selection practices.
C. employee turnover.
D. grievance procedures.
E. employee performance.
Answer: E. employee performance.
15. The relationship between the worker, the employer, and the labour union is referred to as
A. reengineering of work.
B. empowerment of employees.
C. human resources management.
D. production management.
E. industrial relations.
Answer: E. industrial relations.
16. The process whereby employees have a legal right to a voice in setting company policies
is
A. reengineering of work.
B. codetermination.
C. joint venturing.
D. career development.
E. strategic alliance.
Answer: B. codetermination.
17. Brian is the director of HR for a car manufacturer. He must advise the VP of operations as
to whether the plant manager in India should be a local employee or an expatriate manager.
Which of the following includes the advantages of hiring local talent for this role?
A. It is generally less expensive.
B. It is generally less expensive and expatriates may emphasize short-term projects.
C. Expatriates may emphasize short-term projects.
D. It is generally less expensive and the corporation may be viewed locally as a "better
citizen."
E. Local talent is likely to have greater management experience.
Answer: D. It is generally less expensive and the corporation may be viewed locally as a
"better citizen."
18. Human resources managers must consider the impact of intercountry differences on
human resource operations conducted
A. across Canada.
B. intrafirm.
C. domestically.
D. globally.
E. locally.
Answer: D. globally.
19. Canadian companies have reported low failure rates for employees on foreign
assignments relative to other countries, particularly
A. Sweden.
B. Germany.
C. the United States.
D. Japan.
E. Britain.
Answer: C. the United States.
20. U.S. multinational companies experience expatriate assignment failure rates of
A. 40%-50%.
B. 5% and under.
C. 30%-40%.
D. 15%-25%.
E. 10%-20%.
Answer: A. 40%-50%.
21. The primary reason for expatriate failure is not inadequate technical competence, but
A. lack of skilled personnel.
B. inability to cope with overseas production.
C. language barriers.
D. personal or family problems.
E. difficulty of the new assignment.
Answer: D. personal or family problems.
22. Some organizations have moved away from full-scale relocation of an employee and his
or her family to other alternatives including
A. job sharing on foreign assignments.
B. short-term assignments of between six months and one year with frequent home leave.
C. rotating foreign assignments.
D. dual households in the destination country.
E. frequent short-term business trips.
Answer: B. short-term assignments of between six months and one year with frequent home
leave.
23. The citizens of a country who have jobs in the home country are referred to as
A. expatriates.
B. locals.
C. illegal immigrants.
D. home-country nationals.
E. third-country nationals.
Answer: B. locals.
24. The noncitizens of the countries in which they are working are referred to as
A. expatriates.
B. illegal aliens.
C. home-country nationals.
D. third-country nationals.
E. locals.
Answer: A. expatriates.
25. International managers who are citizens of a country other than the parent or the host
country are called
A. home-country nationals.
B. illegal aliens.
C. third-country nationals.
D. expatriates.
E. locals.
Answer: C. third-country nationals.
26. The citizens of the host country are referred to as
A. third-country nationals.
B. home-country nationals.
C. locals.
D. illegal immigrants.
E. expatriates.
Answer: C. locals.
27. Expatriates represent a minority of managers; thus, most managerial positions are filled
by
A. third-country nationals.
B. illegal aliens.
C. second-country nationals.
D. locals.
E. home-county nationals.
Answer: D. locals.
28. The following are all reasons to rely on local, host-country management for filling a
foreign subsidiary's management ranks except
A. the multinational corporation may be seen as a "better citizen."
B. lower costs incurred with expatriates.
C. preference of government for the "nativization" of local management.
D. preference of employees to not work in a foreign country.
E. lower costs incurred with local management.
Answer: B. lower costs incurred with expatriates.
29. The major reason for using expatriates for staffing subsidiary operations is
A. greater understanding of the foreign laws.
B. better relationships with local customers.
C. lower costs incurred with expatriates.
D. greater familiarity with culture.
E. technical competence.
Answer: E. technical competence.
30. Multinationals assign home-country nationals from their headquarter's staff abroad on the
assumption that these managers are
A. eager to face a new challenge.
B. familiar with customers abroad.
C. motivated to adapt to a new culture.
D. multilingual.
E. more likely to implement instructions from headquarters.
Answer: E. more likely to implement instructions from headquarters.
31. Multinational firms' top executives are often categorized in which of the following
classes?
A. geocentric and ecocentric
B. homocentric and polycentric
C. polycentric and biocentric
D. ethnocentric, homocentric, and multicentric
E. ethnocentric, polycentric, and geocentric
Answer: E. ethnocentric, polycentric, and geocentric
32. The type of corporation where the prevailing attitude is that the home-country attitudes,
management style, knowledge, evaluation criteria, and managers are superior to anything the
host country may have to offer is known as a(n)
A. ethnocentric organization.
B. geocentric organization.
C. homocentric business.
D. polycentric business.
E. multicentric corporation.
Answer: A. ethnocentric organization.
33. The type of corporation where there is a conscious belief that only host-country managers
can ever really understand the culture and behaviour of the host-country market is known as
a(n)
A. homocentric business.
B. multicentric corporation.
C. geocentric organization.
D. polycentric corporation.
E. ethnocentric organization.
Answer: D. polycentric corporation.
34. The type of organization where it is assumed that management candidates must be
searched for on a global basis because the best manager for any specific position anywhere
on the globe may be found in any of the countries in which the firm operates is known as a(n)
A. ethnocentric corporation.
B. homocentric business.
C. multicentric organization.
D. geocentric organization.
E. polycentric corporation.
Answer: D. geocentric organization.
35. The staffing policy in which all key management positions are filled by parent-country
nationals is known as
A. homocentric.
B. ethnocentric.
C. polycentric.
D. geocentric.
E. multicentric.
Answer: B. ethnocentric.
36. The following are all reasons for using ethnocentric policies in staffing subsidiaries
except
A. lack of qualified host-country senior management talent.
B. tighter control.
C. transferring the parent firm's core competencies to a foreign subsidiary more expeditiously.
D. maintaining a diverse corporate culture.
E. maintaining a unified corporate culture.
Answer: D. maintaining a diverse corporate culture.
37. The policy in which the foreign subsidiary is staffed with host-country nationals and its
home-office headquarters with parent-country nationals is known as
A. geocentric.
B. polycentric.
C. ethnocentric.
D. multicentric.
E. homocentric.
Answer: B. polycentric.
38. Realtex, an international resort development company, has a staffing policy which seeks
the best people for key jobs throughout the organization, regardless of nationality. Realtex has
what type of staffing policy?
A. polycentric
B. geocentric
C. multicentric
D. homocentric
E. ethnocentric
Answer: B. geocentric
39. The following are all traits that managers should possess when assigned domestically and
overseas in order to be successful except
A. adaptability.
B. relational skills.
C. technical skills.
D. exploitive skills.
E. motivation.
Answer: D. exploitive skills.
40. The training level that corresponds to raising awareness of cultural differences and their
impact on business outcomes is
A. Level 1.
B. Level 2.
C. Level 3.
D. Level 4.
E. Level 5.
Answer: A. Level 1.
41. The training level that corresponds to a focus on attitudes and aims to get participants to
understand how attitudes are formed and influence behaviour is
A. Level 1.
B. Level 2.
C. Level 3.
D. Level 4.
E. Level 5.
Answer: B. Level 2.
42. Level 3 of the training of employees for global assignments is focused on
A. the impact of cultural differences.
B. understanding how attitudes are formed.
C. factual knowledge of the target country.
D. language acquisition and adaptation skills.
E. non-verbal communication awareness.
Answer: C. factual knowledge of the target country.
43. The training level that is focused on skill building in areas like language and adaptation
skills is
A. Level 1.
B. Level 2.
C. Level 3.
D. Level 4.
E. Level 5.
Answer: D. Level 4.
44. The leading cause of expatriate "failures" is
A. the maturity level of the expatriate.
B. the adaptability of the expatriate.
C. the inability of the expatriate's spouse to adjust.
D. compensation levels which do not adequately match the local living standards in the
expatriate's assignment.
E. unsuitability for the assignment.
Answer: C. the inability of the expatriate's spouse to adjust.
45. One of the reasons Canadian managers are in demand across the globe is because
A. Canada's living standards are relatively low compared to many European countries and the
US.
B. Canadians are widely perceived to be "nice people."
C. Canada's business schools produce managers who are among the very best in the world.
D. Canada's diverse ethnic makeup has produced a generation of business leaders who mix
easily with different cultures.
E. many managers in Canada come from an ethnic background compatible with their
expatriate assignment so they already are well-adapted to it.
Answer: D. Canada's diverse ethnic makeup has produced a generation of business leaders
who mix easily with different cultures.
46. The first step in ensuring the foreign assignee's success is
A. screening.
B. job enrichment.
C. human resource planning.
D. succession planning.
E. job previews.
Answer: A. screening.
47. A process for ensuring success for managers in overseas assignments is
A. occupational health and safety training.
B. cross-cultural training.
C. job analysis.
D. performance appraisal.
E. job enrichment.
Answer: B. cross-cultural training.
48. A four-level approach to special training for expatriate candidates includes training in all
of the following except
A. attitudes and how they influence behaviour.
B. factual knowledge about the target country.
C. awareness of cultural differences.
D. family dynamics.
E. language, adjustment, and adaptation.
Answer: D. family dynamics.
49. The most common method for formulating expatriate pay, to equalize purchasing power
across countries, is a technique known as the
A. balance sheet approach.
B. balance of payments approach.
C. balanced pay approach.
D. income statement approach.
E. balance of trade method.
Answer: A. balance sheet approach.
50. The balance sheet approach for formulating expatriate pay uses all of the following homecountry groups of expenses except
A. pay supplements.
B. job evaluation.
C. goods and services.
D. income taxes.
E. housing.
Answer: B. job evaluation.
51. In the balance sheet approach, base salary will normally be in the same range as the
manager's
A. performance appraisal.
B. foreign country salary.
C. home-country salary.
D. peers.
E. annual bonus.
Answer: C. home-country salary.
52. A payment made to compensate a manager for cultural and physical adjustments that he
or she will have to make is called a(n)
A. education allowance.
B. overseas bonus.
C. overseas incentive.
D. housing allowance.
E. mobility premium.
Answer: E. mobility premium.
53. An international compensation trend used to reward managers is
A. an annual bonus.
B. a lump sum bonus.
C. a piece wage incentive.
D. variable pay.
E. perquisites.
Answer: D. variable pay.
54. International EAPs can treat common reactions to culture shock, including all the
following except
A. chronic fatigue.
B. depression.
C. homesickness.
D. irritability.
E. marital stress.
Answer: A. chronic fatigue.
55. The expatriate performance appraisal process could be improved in any of the following
ways except
A. weighing the evaluation more toward the on-site manager's appraisal than the homecountry manager's perceptions.
B. not appraising the expatriate manager on quantifiable criteria only, including others such
as insight into the interdependencies of domestic and foreign operations.
C. modifying performance appraisal criteria to fit the overseas position.
D. Using behaviourally anchored rating scales.
E. Stipulating the assignment's difficulty level.
Answer: D. Using behaviourally anchored rating scales.
56. Codetermination, or mandatory worker representation on an enterprise's board of
directors, is especially prevalent in
A. Japan.
B. Mexico.
C. Sweden.
D. Italy.
E. Germany.
Answer: E. Germany.
57. The process of moving back to the parent company and country from the foreign
assignment and returning to one's family and familiar surroundings is known as
A. repatriation.
B. expatriation.
C. acclimatization.
D. confiscation.
E. reengineering.
Answer: A. repatriation.
58. Repatriation refers to the process of
A. moving family back to the home country.
B. moving from one country to another.
C. moving home then back to the host country.
D. moving back to the parent company and country from the foreign assignment.
E. becoming a third-country national.
Answer: D. moving back to the parent company and country from the foreign assignment.
59. To reduce problems associated with repatriation, any of the following steps can be taken
except
A. providing career counselling.
B. writing a repatriation agreement.
C. offering financial support.
D. assigning the employee to another international position.
E. assigning a sponsor.
Answer: D. assigning the employee to another international position.
60. Recent research indicates that workforce mobility programs and how efficiently they are
managed has a direct impact on company profits.
a. True
b. False
Answer: a. True
61. Management of the HR function in multinational companies is complicated enormously
by the need to adapt HR policies and procedures to the differences among countries in which
each subsidiary is based.
a. True
b. False
Answer: a. True
62. Differences in culture explain why incentive plans in Pakistan tend to focus on the work
group, while in the United States, the focus is usually on individual worker incentives.
a. True
b. False
Answer: a. True
63. A high degree of sensitivity and empathy for the cultural and attitudinal demands of
coworkers has very little importance when selecting employees to staff overseas operations.
a. True
b. False
Answer: b. False
64. Industrial relations and, specifically, the relationship between the worker, the union, and
the employer, vary dramatically from country to country and have an enormous impact on
HR management practices.
a. True
b. False
Answer: a. True
65. Expatriate assignments usually fail because the person cannot accommodate to the
technical demands of the job.
a. True
b. False
Answer: b. False
66. Expatriates are noncitizens of the countries in which they are working.
a. True
b. False
Answer: a. True
67. Third-country nationals are citizens of a country other than the parent or host country.
a. True
b. False
Answer: a. True
68. Geocentrism, rarely seen, assumes that management candidates must be searched for
domestically.
a. True
b. False
Answer: b. False
69. A polycentric staffing policy would be more expensive than sending expatriates abroad.
a. True
b. False
Answer: b. False
70. For recent immigrants to Canada, work experience outside of Canada contributes a great
deal to their ability to find a job and their overall income.
a. True
b. False
Answer: b. False
71. In 2008, over 42 percent of new immigrants were working in occupations that required
lower levels of education than what they had attained.
a. True
b. False
Answer: a. True
72. Determining equitable wage rates in many countries is a simple matter.
a. True
b. False
Answer: b. False
73. International EAPs can help expatriates with mental health, which is often affected by the
stressful relocation process.
a. True
b. False
Answer: a. True
74. To improve the expatriate appraisal process, the evaluation should be weighted more
toward the home-site manager's perceptions than toward the on-site manager's appraisal.
a. True
b. False
Answer: b. False
75. Upon repatriation, a former expatriate family may undergo a sort of reverse culture shock.
a. True
b. False
Answer: a. True
76. Identify and describe the three barriers confronting new immigrants to Canada upon
attempting to enter the labour force.
Answer: Four points each for accurate identification and description of lack of Canadian
experience, poor transferability of foreign education or training, and lack of literacy skills.
77. Discuss steps that can be taken to assist in the repatriation process.
Answer: Up to 10 points for an answer that describes the following:
- Writing repatriation agreements
- Assigning a sponsor - employee should be assigned a sponsor/mentor (e.g. a senior manager
at the parent firm's home office)
- Providing career counselling
- Keeping communication open
- Offering financial support
- Developing reorientation programs
- Building in return trips
Test Bank for Management of Human Resources: The Essentials
Nina D. Cole, Gary Dessler, Nita Chhinzer
9780133807332, 9780134305066
