HRM: Chapter 15 – Flashcards
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A multinational firm that maintains control of operations back in the home office can be viewed as a
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global corporation.
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The type of organization that attempts to achieve the local responsiveness of a multinational corporation while also achieving the efficiencies of a global firm is a(n)
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transnational corporation.
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Communications, religion, values and ideologies, education, and the social structure of a country are examples of
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a cultural environnent.
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The country in which an international business operates is the
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host country.
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Natives of a country other than the home country or the host country are
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third-country nationals.
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The following are different sources of employees with whom to staff international operations, except
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preferential union shops.
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Natives of the host country who manage international operations are known as
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host-country nationals.
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A document issued by a government granting authority to a foreign individual to seek employment in that government's country is a
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work permit or visa.
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Compared to the United States, employee recruitment in other countries is subject to
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more government regulation.
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A major source of trained labor in European nations is
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apprenticeship training. programs.
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Foreign workers invited to come to a country to perform needed labor are usually referred to as
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guest workers.
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The assembly of people of multiple nationalities who can work together effectively on projects that span multiple countries is a
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transnational team.
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One of the principal causes of failure among employees working internationally is a lack of
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training.
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The most prevalent reasons for failure among expatriates working in foreign countries are
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family and lifestyle issues.
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Most executives agree that the biggest problem for the foreign business traveler is
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communicating in different languages.
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Managerial attitudes and behaviors are influenced by the society in which managers have
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received their education and training.
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Studying cultural differences can be helpful to managers in identifying and understanding cultural
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work attitudes and motivation.
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A disorientation that causes perpetual stress experienced by people who settle overseas for extended periods is
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culture shock.
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Helping employees make the transition back home is
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repatriation.
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According to a recent survey, what percentage of expatriates believed that their careers had not advanced after returning home?
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60%.
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To be effective, an international compensation program must
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do all of the above; provide an incentive to leave the United states, facilitate re-entry home, be in writing
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A compensation system designed to equal the purchasing power in a person's home country is a
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balance-sheet approach to management.
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Under which pay system, expatriates are given a portion of their pay in local currency to cover day-to-day expenses?
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split-pay.
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Compensation that is equivalent to that earned by employees in the country where the expatriate is assigned is
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host-based pay.
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Because expatiate assignments are very costly, many HR Managers are increasingly under pressure to calculate the
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return on investment of these assignments.
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Although the home-country and host-country superiors may tell an expatriate how well he or she is doing, it is also important for expatriates to provide feedback regarding
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all of the above; the support they are receiving, obstacles they face, suggestions they have about the assignment
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Which country only has one union?
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China
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The most active of the international union organizations has been the
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International Confederation of Free Trade Unions.
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Which of the following organizations has had the greatest impact on the rights of workers throughout the world?
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International Labor Organization.
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A higher form of worker participation in management is found in Germany where representation of labor by directors of a company is required by law. This arrangement is known as
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codetermination.
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T/F: The international corporation is essentially a domestic firm that builds on its existing capabilities to penetrate home markets.
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False
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T/F: To balance a "global/local" dilemma, a transnational corporation uses a network structure that coordinates specialized facilities positioned around the world.
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True
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T/F: International HRM is the same as domestic HRM in all aspects.
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False
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T/F: All large corporations have a part-time staff of human resources specialists devoted to assisting in the globalization process.
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False
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T/F: Third-country nationals are natives of a country other than the home country or the host country.
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True
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T/F: Recently there has been a trend to use only expatriates in the lower management positions.
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False
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T/F: Employee recruitment in the United States is subject to more government regulation than in other countries.·
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False
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T/F: The employment of non-nationals throughout the globe may involve lower direct labor costs.
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True
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T/F: In the United States, managers tend to emphasize seniority, with the most-senior person getting· the job.
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False
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T/F: One way to improve the success ofexpatriate assignments is to involve spouses early in the process.
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True
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T/F: Core skills are considered critical to an employee's success abroad.
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True
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T/F: The biggest mistake managers can make is to assume that people are different everywhere.
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False
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T/F: One of the greatest contributions thatthe United States has made to work organizations is in improving the competence of managers.
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True
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T/F: Working abroad tends to increase a person's responsibilities and influence within the organization.
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True
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T/F: When compared with the Japanese, Americans may feel more loyalty to their organizations.
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False
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T/F: One of the important dimensions of leadership is the degree to which managers invite employee participation in decision making.
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True
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T/F: One of the most frequent causes of an employee's failure to complete an international assignment is personal and family stress.
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True
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T/F: Repatriation is the process of helping an employee make the transition back home from an international assignment.
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True
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T/F: All companies have career development programs designed for repatriating employees.
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False
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T/F: More companies are making an effort to keep in touch with expatriates while they are abroad, which has been easier with email, instant messaging, and videoconferencing.
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True
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T/F: One of the most cqmplex areas of international HRM is compensation.
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True
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T/F: Host-country employees are generally paid on the basis of productivity, time spent on the job, or a combination of these factors.
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True
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T/F: HR Managers are increasingly under pressure to calculate the return on investment on expatriate assignments.
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True
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T/F: Because for most companies, labor is their largest cost, it plays a prime role in international HR decision making.
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True
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T/F: The collective bargaining process can vary widely among countries, especially with regard to the role that government plays.
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True
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Guest workers
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foreign workers invited into a foreign labor market to perform needed labor
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Culture shock
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perceptual stress experienced by people who settle overseas
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Multi-national corporation (MNC)
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firm with independent business units operating in multiple countries
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Augmented skills
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skills helpful in facilitating the efforts of expatriate managers
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Host-country nationals
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natives of the host country
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Co-determination
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representation of labor on the board of directors of a company
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Global corporation
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firm that has integrated worldwide operations through a centralized home office
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Balance-sheet approach
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compensation system designed to match the purchasing power of a person's home country
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Work permit or visa
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government document granting a foreign individual the right to seek employment
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Host country
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country in which an international corporation operates
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Expatriates, home-country nationals
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employees from the home country who are sent on international assignment
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Cultural environment
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communication, religion, values and ideologies, education, and social structure of a country
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International corporation
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domestic firm that uses its existing capabilities to move into overseas markets
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Transnational teams
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teams composed of members of multiple nationalities working on projects that span multiple countries
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Core skills
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skills considered critical in an employee's success abroad
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Transnational corporation
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firm that attempts to balance local responsiveness and global scale via a network of specialized operating units
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Global manager
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manager equfpped to.run an international business
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Failure rate
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percentage of expatriates who do not perform satisfactorily
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Third-country nationals
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natives of a country other than the home country or the host country
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Repatriation
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process that helps employees make the transition back home after a foreign assignment
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Host-based pay
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expatriate pay comparable to that earned by employees in a host country
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Home-based pay
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pay based on an .expatriate's home country's compensation practices
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Localization
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adapting pay and other compensation benefits to match that of a particular country
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Global compensation system
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A centralized pay system whereby host-county employees are offered a full range of training programs, benefits; and pay comparable with a firm's domes.t ic empl.o yee but adjusted for local differences
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Split pay
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A system whereby expatriates are given a portion of their pay in the local currency to cover their day-to-day expenses and a portion of their pay in their home currency to safeguard their earnings from changes in inflation or foreign exchange rates.