Chapter 19- Global Human Resource Management

Question 1

all key management positions are filled by parent company nationals

Answer 1

ethnocentric approach

Question 2

why might you choose an ethnocentric approach

Answer 2

if you have core competencies that can only be absorbed in the home country or transferred by home country nationals; also it is easier to keep the company culture intact; if the value of the company comes from transferring core competencies

Question 3

staffing recruits from host country nationals to operate subsidiaries

Answer 3

polycentric approach

Question 4

pros to the polycentric approach

Answer 4

addresses the cultural norms and problems for each country; knows the language;

Question 5

cons to the polycentric approach

Answer 5

may not always get the best people because someone can only go as high as their subsidiary

Question 6

seek the best people who can perform from all over the world

Answer 6

geocentric approach (ex. Coca Cola)

Question 7

citizens of one country who are working and living in another country

Answer 7

expatriates

Question 8

HRM

Answer 8

human resource management

Question 9

what is extremely important when you decide to use expatriates

Answer 9

training for expatriate managers; want to get them and their family acclimated through the language and culture

Question 10

what do you have to understand about performance appraisals

Answer 10

some areas are harder to work in and have tougher markets than other areas of the world so need to take that into account when looking at the performance

Question 11

base salary

Answer 11

the base amount that a company will pay an employee adjusted for the cost of living in each country they are working in

Question 12

foreign service premium

Answer 12

pay the expatriate extra compensation due to them going to a new country to work for the company

Question 13

allowance

Answer 13

can also pay extra things for the expatriate such as housing, the difference in cost of living, education costs, or hardship compensation

Question 14

a company’s activities that include compensation, performance evaluations, staffing, and labor relations

Answer 14

human resource management

Question 15

what are tasks of the HRM function

Answer 15

compensation and staffing policy

Question 16

a citizen of one country who is working abroad in one of the firm’s subsidiaries

Answer 16

expatriate manager

Question 17

an organization’s norms and value systems

Answer 17

corporate culture

Question 18

the three types of staffing policies

Answer 18

ethnocentric, polycentric, and geocentric

Question 19

what international staffing policy seeks the best people for key jobs regardless of nationality

Answer 19

geocentric

Question 20

when a manager is sent to work in a subsidiary in a foreign country but is not happy and prematurely returns to the home country

Answer 20

expatriate failure

Question 21

a manager who demonstrates cognitive complexity and a cosmopolitan outlook has a

Answer 21

global mindset

Question 22

As the final step in training their expatriate team, Jill’s company is holding a seminar which will focus on what to expect when the expatriates return to the US after their two years of work in Indonesia. This training is an example of

Answer 22

repatriation

Question 23

The ______ approach to expatriate compensation seeks a balance of purchasing power between the two countries

Answer 23

balance sheet

Question 24

an incentive to encourage employees to take the expatriate position

Answer 24

foreign service premium

Question 25

when an expatriate is sent to a country where basic amenities such as health care, schools, and retail stores are grossly deficient, a company will often provide the expatriate with a

Answer 25

hardship allowance

Question 26

what type of allowance will ensure that an expatriate will enjoy the same standard of living in a foreign post as he or she would at home

Answer 26

cost of living

Question 27

what is the most common reason why US multinationals experience expatriate failure

Answer 27

inability of spouse (then manager) to adjust

Question 28

Jacob’s company assigned him to work in Indonesia for three years. He and his family moved from their home and quickly adapted to their new living arrangements. Jacob demonstrates excellent

Answer 28

cultural toughness