Global Mindset Flashcards
An organization wants to diversity its portfolio and expand both internationally and into innovative new products. What can HR do to help make that happen?
Push for the hiring of product designers from foreign cultures.
When persons from other cultures join the organization, it helps in developing a more global mindset. One operational benefit of a global mindset is that it becomes more likely that the organization will identify international opportunities in order to take advantage of the benefits associated with being first to market. With a global mindset, one begins to perceive the commonality between cultures. When underlying similarities are revealed, real collaboration can happen.
Which two tendencies are critical in developing a global mindset?
Curiosity and change acceptance
A global mindset is characterized by intellectual curiosity, a desire to understand larger contexts and multiple perspectives. Employees with a global mindset tend to see change as an opportunity.
A company has decided to expand globally. What is the initial challenge the company will most likely need to address with its stakeholders as a result?
Understanding the various cultural expectations of stakeholders.
In a global organization, the expectations of stakeholders are closely tied to the culture, and they may vary widely from one group to another.
A company has announced to its employees that it will be opening its first office outside of its home country. How can the HR department help the company’s employees prepare for this global expansion?
Implement cross-cultural communication training.
Cross-cultural communication training will help employees appreciate differences and commonalities and apply communication skills to building relationships and managing conflicts.
A manufacturer has international wholly owned entities operating with little involvement from headquarters. The CEO asks the HR VP for ideas on integrating operations and products so that it could offer variety in each market and leverage dispersed expertise. What is the best advice HR could provide?
Begin by initiating some small global projects with team members from different regions.
One way to improve collaboration and develop the global mindset needed for true synergy is to create project teams that blend cultural perspectives and give team members a chance to learn new perspectives and develop trust.
Which steps can HR use to develop managers to effectively work in a diverse organization?
Create opportunities for managers to travel and to work on teams.
HR can effectively develop the ability of managers to work in a diverse and inclusive environment by creating opportunities for travel, teamwork, training, and transfers.
An organization has an active board of governors and a well-funded internal audit function, but despite this, one of the organization’s executives is investigated for embezzlement and brought up on charges. How should HR view this situation?
While the climate is troublesome, the culture is strong in this area.
Climate is distinct from culture. Culture is the result of shared beliefs; climate may result from the actions of a few individuals or external forces. Mistaking the climate and culture can result in organizations undertaking cultural changes to correct a disorder that does not exist. In this situation, an active board of directors and a well-funded internal audit function mean that internal controls related to fraud are in place. The fact that the person was caught is further evidence of this.
The manager of an organizational development department is assigned to establish a performance management training program in a satellite office in a different country. The manager is told to be aware of the low power distance culture when approaching training. Which observation is the manager most likely to make?
Decisions regarding who should participate in training are based on developmental needs or skill deficiencies.
The power distance dimension of culture (the degree to which the herarchical distribution of power is accepted by all the culture’s members) can influence the information that is shared and the developmental and training needs that may be identified during the analysis step of instructional design. In a low power distance culture, selection for training is usually based on developmental needs rather than group affiliation.
Which term refers to a set of beliefs, attitudes, values, and behaviors shared by members of a large group and passed down from one generation to the next?
Culture
The term culture refers to basic assumptions, norms, and values shared by members of a group. These elements of culture are expressed in artifacts such as clothing and in speech and behaviors. The elements are learned by new members of the group (whether newborn children or new employees in a workplace) and in this way are passed down over time.
A manager from Asia has transferred to lead a U.S. operation. During team meetings, the manager observes constant and open conflict. According to Hofstede’s cultural dimensions theory, how is the manager most likely to respond?
By urging team members to focus on a harmonious way to interact with one another.
Collectivist cultures like China tend to prefer harmony and group decisions, so the manager may see this team’s conflict as leading to the project’s failure.
Which is a demonstration of cultural synergy in an organization with offices around the world?
Policies for each office are written to reflect local work customs and laws.
Policies that are written to reflect local work customs and laws use what works well in each culture and remove obstacles to communication and collaboration.
Which is the likely view of employees in an individualist culture?
Anyone can be financially successful if they work hard and demonstrate achievement of goals and objectives.
Individualism primarily values personal freedom, human rights, and competitiveness. This may be contrasted with collectivism, which values cooperation, harmonious relationships, and social responsibility. For example, in an individualist culture, compensation for having the highest sales in the group may make work fun and exciting. In a collectivist culture, praise and rewards are more likely to be sought for the team than for the individual.
How would Hofstede label a culture that is nurturing, empathetic, and oriented toward quality of life and that strives for consensus?
High feminine
Hofstede’s masculine/feminine dimension assesses the degree to which a culture prefers values traditionally associated with male characteristics (ambition, competition, achievement) or female characteristics (nurturing, collaboration, empathetic)
A manager from a diffuse culture asks an assignee to a family dinner. How might the assignee respond?
Accept gratefully, and offer to bring something to the meal.
In a diffuse culture, access to one’s private life is granted only when there is trust, so the invitation should be gratefully accepted.
What statement best defines cultural relativism?
Ethics is determined by local culture, laws, and practices.
Cultural relativism holds that ethical systems do exist but that norms are influenced by local culture, laws, and practices.
Which is an example of a cultural factor that poses potential risk when evaluating an organization for a merger or acquisition?
Creation of a workforce with a large number of workers who speak different languages.
Integrating a large number of employees who speak a different language is a cultural factor that HR should include in its due diligence investigation. Such a cultural factor will require special planning for a successful acquisition or merger. Discrimination claims represent a legal risk factor. A large number of key employees approaching retirement age represents a structural risk factor.
Which world legal system is based primarily on legal precedent?
Common law
Common law is based primarily on previous judgements by courts. The lawyers point to precedents. The judge assess the relevance of those precedents to the case at hand and then issues a new ruling, which becomes part of common law. Common law is made by judges.
The nation in which a global organization is headquartered has anti-bribery laws that are extraterritorial. How will this affect the organization’s code of conduct?
The global policies on bribery will have to confirm to the law in the headquarters country.
An extraterritorial law extends liability for transgressing the law to a nation’s citizens who are traveling or working in foreign countries. The organization’s code of conduct should reflect the legal requirements of the headquarters country.
Capacity to recognize, interpret, and behaviorally adapt to multicultural situations and contexts.
Cultural intelligence
Concept that laws are enforced only through accepted, codified procedures.
Due process
Ability to take an international perspective, inclusive of other cultures’ views.
Global mindset
Societies or groups characterized by complex, usually long-standing networks of relationships; members share a rich history of common experience, so the way they interact and interpret events is often apparent to outsiders.
High-context cultures
Legal system in which each case is considered in terms of how it relates to legal decisions that have already been made; evolves through judicial decisions over time.
Common law
Legal system based on written codes (laws, rules, or regulations)
Civil law
Right of a legal body to exert authority over a given geographical territory, subject matter, or persons or institutions
Jurisdiction
Societies in which relationships have less history; individuals know each other less well and don’t share a common database of experience, so communication must be very explicit.
Low-context cultures
Concept that stipulates that no individual is beyond the reach of the law and that authority is exercised only in accordance with written and publicly disclosed laws.
Rule of law
Basic beliefs, attitudes, values, behaviors, and customs shared and followed by members of a group, which give rise to the group’s sense of identity.
Culture
A global organization headquartered in the U.S., known for its fair and equitable culture, has grown organically over time, and the configuration of the South American business has been established country by country. Each country has been viewed as a discrete business entity. A strategic decision has been made to grow the South American business through acquisition.
To prepare for the acquisition, the organization reviews all country-specific HR practices and a significant disparity in the compensation is identified for the Brazilian CEO. The responsibilities are similar country to country, as are the education and background of the five CEOs from the region. There have been compensation adjustments in acknowledgment of the growth of the business and to align with the markets in Brazil as well as in recognition of the CEO’s performance.
HR recognizes that Brazil is one of the global economic focus areas and that this CEO is perceived by the global heads of the business as not only key to the acquisition strategy but to the ongoing success of the entire business.
Which HR approach best addresses organizational growth and the pay equity?
Move from a polycentric, local responsiveness approach to a regiocentric global integration perspective for compensation.
A global organization headquartered in the U.S., known for its fair and equitable culture, has grown organically over time, and the configuration of the South American business has been established country by country. Each country has been viewed as a discrete business entity. A strategic decision has been made to grow the South American business through acquisition.
To prepare for the acquisition, the organization reviews all country-specific HR practices and a significant disparity in the compensation is identified for the Brazilian CEO. The responsibilities are similar country to country, as are the education and background of the five CEOs from the region. There have been compensation adjustments in acknowledgment of the growth of the business and to align with the markets in Brazil as well as in recognition of the CEO’s performance.
HR recognizes that Brazil is one of the global economic focus areas and that this CEO is perceived by the global heads of the business as not only key to the acquisition strategy but to the ongoing success of the entire business.
Which is the best approach for HR to take to secure support from the business leaders?
Compile a statement of need and an analysis of risks and opportunities with a recommended solution estimating costs and time frames.
A global organization headquartered in the U.S., known for its fair and equitable culture, has grown organically over time, and the configuration of the South American business has been established country by country. Each country has been viewed as a discrete business entity. A strategic decision has been made to grow the South American business through acquisition.
To prepare for the acquisition, the organization reviews all country-specific HR practices and a significant disparity in the compensation is identified for the Brazilian CEO. The responsibilities are similar country to country, as are the education and background of the five CEOs from the region. There have been compensation adjustments in acknowledgment of the growth of the business and to align with the markets in Brazil as well as in recognition of the CEO’s performance.
HR recognizes that Brazil is one of the global economic focus areas and that this CEO is perceived by the global heads of the business as not only key to the acquisition strategy but to the ongoing success of the entire business.
How should HR implement the organizational changes needed and reduce resistance from South American business heads?
Use a collaborative approach supported with encouragement, communication, and training applied consistently in the region.
The president of a global automotive business headquartered in the U.S. is conducting annual global all-employee meetings. The president travels with the executive staff, which includes the chief financial officer (CFO), the chief HR officer (CHRO), and the chief technology officer (CTO), to all the factories around the world to deliver key messages to the employees.
The employees gather in large meeting rooms for the presentations, which focus mainly on successes from the past year and priorities for the new year, followed by a question-and-answer session. The president delivers most of the presentation, the CHRO presents on employee engagement and development initiatives, the CFO presents on the financials, and the others participate in the question-and-answer session.
Within a two-week period, they travel to meetings in China, Malaysia, Ireland, and several large U.S. sites. In addition to the presentations at each site, they take facility tours and have one-on-one meetings with front-line employees of their functional organizations and with key talent while they are on site. It is a rigorous schedule, but it is very important to the president, who is committed to building a strong global team and organization.
While the president is presenting to a room full of factory associates in Tianjin, China, the CHRO notices that many of the associates are whispering to each other. What action should the CHRO take to understand the reason for the employees’ behavior?
Consult with the local HR manager after the presentation to better understand why the associates were whispering during the presentation.
The president of a global automotive business headquartered in the U.S. is conducting annual global all-employee meetings. The president travels with the executive staff, which includes the chief financial officer (CFO), the chief HR officer (CHRO), and the chief technology officer (CTO), to all the factories around the world to deliver key messages to the employees.
The employees gather in large meeting rooms for the presentations, which focus mainly on successes from the past year and priorities for the new year, followed by a question-and-answer session. The president delivers most of the presentation, the CHRO presents on employee engagement and development initiatives, the CFO presents on the financials, and the others participate in the question-and-answer session.
Within a two-week period, they travel to meetings in China, Malaysia, Ireland, and several large U.S. sites. In addition to the presentations at each site, they take facility tours and have one-on-one meetings with front-line employees of their functional organizations and with key talent while they are on site. It is a rigorous schedule, but it is very important to the president, who is committed to building a strong global team and organization.
Midway through the first week of the global trip, the CHRO notices that the president is using a lot of U.S. college sports analogies in the presentation. What recommendation should the CHRO immediately provide to the president?
After this presentation, provide feedback in private to increase the president’s cross-cultural awareness.
The president of a global automotive business headquartered in the U.S. is conducting annual global all-employee meetings. The president travels with the executive staff, which includes the chief financial officer (CFO), the chief HR officer (CHRO), and the chief technology officer (CTO), to all the factories around the world to deliver key messages to the employees.
The employees gather in large meeting rooms for the presentations, which focus mainly on successes from the past year and priorities for the new year, followed by a question-and-answer session. The president delivers most of the presentation, the CHRO presents on employee engagement and development initiatives, the CFO presents on the financials, and the others participate in the question-and-answer session.
Within a two-week period, they travel to meetings in China, Malaysia, Ireland, and several large U.S. sites. In addition to the presentations at each site, they take facility tours and have one-on-one meetings with front-line employees of their functional organizations and with key talent while they are on site. It is a rigorous schedule, but it is very important to the president, who is committed to building a strong global team and organization.
During a one-on-one meeting with the local HR manager in Malaysia, the CHRO learns that the Malaysian management team is unhappy about conference calls always being scheduled based on the timezone of the headquarters location, resulting in calls being at night in Malaysia. What response should the CHRO provide to the local HR manager?
Commit to the local HR manager that you will explore options and provide the HR manager with an update at the end of the month.
The HR director’s job at a mid-sized company has just moved from being a corporate-based position to a field-based position that covers a large geographic region. The regional manager in the HR director’s region requests that the HR director join a conference call to discuss a pending termination. The HR director is unfamiliar with many of the acronyms used to describe the employee’s performance at given tasks throughout the call. After the discussion, the regional manager states that the company must terminate the employee immediately. Based on the HR director’s understanding of the call, they do not believe that the employee’s actions warrant termination. Others on the call express mixed reactions to the termination suggestion, though no one spoke strongly in opposition. The regional manager then calls for a vote on the termination.
What action should the HR director take first when asked to vote on the termination?
Ask the regional manager to clarify the unfamiliar acronyms.
The HR director’s job at a mid-sized company has just moved from being a corporate-based position to a field-based position that covers a large geographic region. The regional manager in the HR director’s region requests that the HR director join a conference call to discuss a pending termination. The HR director is unfamiliar with many of the acronyms used to describe the employee’s performance at given tasks throughout the call. After the discussion, the regional manager states that the company must terminate the employee immediately. Based on the HR director’s understanding of the call, they do not believe that the employee’s actions warrant termination. Others on the call express mixed reactions to the termination suggestion, though no one spoke strongly in opposition. The regional manager then calls for a vote on the termination.
After the call, what step should the HR director take first to ensure that company processes including termination are clear for all employees?
Schedule a meeting with all regional managers to make sure that processes are consistent.
The HR director’s job at a mid-sized company has just moved from being a corporate-based position to a field-based position that covers a large geographic region. The regional manager in the HR director’s region requests that the HR director join a conference call to discuss a pending termination. The HR director is unfamiliar with many of the acronyms used to describe the employee’s performance at given tasks throughout the call. After the discussion, the regional manager states that the company must terminate the employee immediately. Based on the HR director’s understanding of the call, they do not believe that the employee’s actions warrant termination. Others on the call express mixed reactions to the termination suggestion, though no one spoke strongly in opposition. The regional manager then calls for a vote on the termination.
Based on the call, which document(s) is most important for the HR director to update to ensure that the company protects itself from future litigation?
Formal approval process for terminations.
The CEO of a mid-sized company envisions becoming a global leader in the industry. The CEO’s vision includes acquiring two companies, both in other countries that are culturally very different from the country in which the CEO’s company is located. These acquisitions would triple the company’s current size.
In order to make the transition as smooth and effective as possible, the CEO has asked the HR director to develop an employee handbook that includes policies and guidelines for employees across all three countries where the company will be operating. The CEO wants the new handbook drafted as quickly as possible. In addition, for the two companies the CEO intends to acquire, the CEO would like the HR director to make a plan for the due diligence auditing of the HR functions. A due diligence audit checklist needs to be developed, also as soon as possible.
What is the first step that should be taken to develop the due diligence audit checklist?
Contact an international organization of auditors for a due diligence checklist that covers all areas of the acquisitions.
The CEO of a mid-sized company envisions becoming a global leader in the industry. The CEO’s vision includes acquiring two companies, both in other countries that are culturally very different from the country in which the CEO’s company is located. These acquisitions would triple the company’s current size.
In order to make the transition as smooth and effective as possible, the CEO has asked the HR director to develop an employee handbook that includes policies and guidelines for employees across all three countries where the company will be operating. The CEO wants the new handbook drafted as quickly as possible. In addition, for the two companies the CEO intends to acquire, the CEO would like the HR director to make a plan for the due diligence auditing of the HR functions. A due diligence audit checklist needs to be developed, also as soon as possible.
What should the HR director do to gather information to create the policies and guidelines for the employee handbook?
Research the labor laws and other relevant rules and regulations in all three countries.
The CEO of a mid-sized company envisions becoming a global leader in the industry. The CEO’s vision includes acquiring two companies, both in other countries that are culturally very different from the country in which the CEO’s company is located. These acquisitions would triple the company’s current size.
In order to make the transition as smooth and effective as possible, the CEO has asked the HR director to develop an employee handbook that includes policies and guidelines for employees across all three countries where the company will be operating. The CEO wants the new handbook drafted as quickly as possible. In addition, for the two companies the CEO intends to acquire, the CEO would like the HR director to make a plan for the due diligence auditing of the HR functions. A due diligence audit checklist needs to be developed, also as soon as possible.
The CEO wants to ensure that, after the acquisitions, the employees from all three companies feel united as one company. What should the HR director suggest to facilitate this?
The CEO should visit the acquired companies soon after acquisition to meet with employees and answer questions.
The CEO of a mid-sized company envisions becoming a global leader in the industry. The CEO’s vision includes acquiring two companies, both in other countries that are culturally very different from the country in which the CEO’s company is located. These acquisitions would triple the company’s current size.
In order to make the transition as smooth and effective as possible, the CEO has asked the HR director to develop an employee handbook that includes policies and guidelines for employees across all three countries where the company will be operating. The CEO wants the new handbook drafted as quickly as possible. In addition, for the two companies the CEO intends to acquire, the CEO would like the HR director to make a plan for the due diligence auditing of the HR functions. A due diligence audit checklist needs to be developed, also as soon as possible.
After the acquisitions take place, the CEO points out to the HR director specific aspects of the company culture that the CEO wants to be part of the culture of the acquired companies. What should the HR director do first to facilitate this?
Meet with the HR departments in the acquired companies to gain a better understanding of the companies’ respective cultures.
A manufacturing organization with locations in several countries is in the process of acquiring a production plant in a new country. The employees at the newly acquired plant will all be retained and will be made aware of the acquisition once it is finalized. The organization’s leadership team hires an HR consultant to assist with the HR functions during the acquisition. The HR consultant is working confidentially to ensure that the HR department of the production plant has a smooth transition through the acquisition and will be fully prepared to communicate information to the plant employees. Members of the leadership team are relying on the expertise of the HR consultant to ensure that the new plant’s HR department complies with local laws and procedures, but they are struggling to fully trust the HR consultant.
What should the HR consultant do to most effectively gain the leadership team’s trust?
Meet with the leadership team to listen to their concerns.
A manufacturing organization with locations in several countries is in the process of acquiring a production plant in a new country. The employees at the newly acquired plant will all be retained and will be made aware of the acquisition once it is finalized. The organization’s leadership team hires an HR consultant to assist with the HR functions during the acquisition. The HR consultant is working confidentially to ensure that the HR department of the production plant has a smooth transition through the acquisition and will be fully prepared to communicate information to the plant employees. Members of the leadership team are relying on the expertise of the HR consultant to ensure that the new plant’s HR department complies with local laws and procedures, but they are struggling to fully trust the HR consultant.
The HR consultant is responsible for making sure that news of the acquisition is communicated effectively to the employees at the new plant. How should the HR consultant handle this task?
Create a communication plan that includes a face-to-face message from the CEO welcoming the new employees.
A manufacturing organization with locations in several countries is in the process of acquiring a production plant in a new country. The employees at the newly acquired plant will all be retained and will be made aware of the acquisition once it is finalized. The organization’s leadership team hires an HR consultant to assist with the HR functions during the acquisition. The HR consultant is working confidentially to ensure that the HR department of the production plant has a smooth transition through the acquisition and will be fully prepared to communicate information to the plant employees. Members of the leadership team are relying on the expertise of the HR consultant to ensure that the new plant’s HR department complies with local laws and procedures, but they are struggling to fully trust the HR consultant.
The leadership team is concerned about employees leaving when they learn of the acquisition. What should the HR consultant recommend the organization do to retain top talent?
Encourage frequent and open communication between leadership and the employees so the employees feel like part of the team.
Five years ago, a multinational textile company won an award from a prominent publication for its favorable treatment of employees. In order to keep the award, the company must pass an audit every five years ensuring that it is continuing to uphold high standards of working conditions and employee treatment. In the last five years, the company hired a new CEO. In preparation for the audit, the CHRO, who is retiring in a month and a half, asks an HR director to travel to three of the company’s new factories in a different country to see if the standards are being followed. The HR director is scheduled to leave in a week and has a month to investigate and report back to the CHRO. The audit will take place in roughly two months.
Which approach should the HR director take to most effectively investigate the working conditions in the three assigned factories?
Walk through each factory and observe the working conditions.
Five years ago, a multinational textile company won an award from a prominent publication for its favorable treatment of employees. In order to keep the award, the company must pass an audit every five years ensuring that it is continuing to uphold high standards of working conditions and employee treatment. In the last five years, the company hired a new CEO. In preparation for the audit, the CHRO, who is retiring in a month and a half, asks an HR director to travel to three of the company’s new factories in a different country to see if the standards are being followed. The HR director is scheduled to leave in a week and has a month to investigate and report back to the CHRO. The audit will take place in roughly two months.
The HR director learns that employees in the three factories have very poor and potentially dangerous working conditions. Which action should the HR director recommend to the CHRO in order to help the company keep the award?
Share what the HR director finds with the auditors ahead of time, along with a plan for improving conditions.
Five years ago, a multinational textile company won an award from a prominent publication for its favorable treatment of employees. In order to keep the award, the company must pass an audit every five years ensuring that it is continuing to uphold high standards of working conditions and employee treatment. In the last five years, the company hired a new CEO. In preparation for the audit, the CHRO, who is retiring in a month and a half, asks an HR director to travel to three of the company’s new factories in a different country to see if the standards are being followed. The HR director is scheduled to leave in a week and has a month to investigate and report back to the CHRO. The audit will take place in roughly two months.
After learning about the poor and potentially dangerous conditions of the three factories, the HR director shares these findings with the CHRO. The CHRO decides not to take any action because the award is not a priority. How should the HR director convince the CHRO to take action?
Tell the CHRO that it is unethical to knowingly allow employees to work in poor conditions.
Five years ago, a multinational textile company won an award from a prominent publication for its favorable treatment of employees. In order to keep the award, the company must pass an audit every five years ensuring that it is continuing to uphold high standards of working conditions and employee treatment. In the last five years, the company hired a new CEO. In preparation for the audit, the CHRO, who is retiring in a month and a half, asks an HR director to travel to three of the company’s new factories in a different country to see if the standards are being followed. The HR director is scheduled to leave in a week and has a month to investigate and report back to the CHRO. The audit will take place in roughly two months.
The HR director has never been to the country where the factories are located and is unfamiliar with the language and the culture. Which approach should the HR director take to best prepare for the trip to the new country?
Research some common cultural differences, customs, and gestures ahead of time.
A food and beverage company has recently expanded to new markets and regions. In the past three months, the company has implemented sudden hiring and restructuring across all international offices. The CEO hires an external consultant to help with the organizational changes and provide informational and training sessions to employees. Many employees believe that the expansion is too rapid, feel uncertain about their future at the company, and are considering leaving the company. Newly hired employees often appear to be lacking work tasks. Employees in regional offices also encounter difficulty in communicating with the main office due to cultural differences. A few employees approach the HR manager with concerns about identifying their specific roles and feeling like their areas of responsibility are encroached on by coworkers.
Some employees complain to the HR manager about the consultant’s lack of guidance during training. How should the HR manager respond?
Discuss employees’ concerns about the training with the consultant.
A food and beverage company has recently expanded to new markets and regions. In the past three months, the company has implemented sudden hiring and restructuring across all international offices. The CEO hires an external consultant to help with the organizational changes and provide informational and training sessions to employees. Many employees believe that the expansion is too rapid, feel uncertain about their future at the company, and are considering leaving the company. Newly hired employees often appear to be lacking work tasks. Employees in regional offices also encounter difficulty in communicating with the main office due to cultural differences. A few employees approach the HR manager with concerns about identifying their specific roles and feeling like their areas of responsibility are encroached on by coworkers.
How should the HR manager motivate employees to remain with the company?
Advise leadership to communicate employees’ role in the company’s expansion.
A food and beverage company has recently expanded to new markets and regions. In the past three months, the company has implemented sudden hiring and restructuring across all international offices. The CEO hires an external consultant to help with the organizational changes and provide informational and training sessions to employees. Many employees believe that the expansion is too rapid, feel uncertain about their future at the company, and are considering leaving the company. Newly hired employees often appear to be lacking work tasks. Employees in regional offices also encounter difficulty in communicating with the main office due to cultural differences. A few employees approach the HR manager with concerns about identifying their specific roles and feeling like their areas of responsibility are encroached on by coworkers.
Which approach should the HR manager take to improve the sense of inclusion and diversity across regional offices?
Develop a diversity and inclusion strategic plan with company leadership.
A 50-year-old family-owned restaurant has a good business model. Repeat customers are greeted by name, and their preferences are remembered. The owner visits each table to engage in conversation. Food quality is high, merging home cooking with new cuisine.
Business decisions are typically made in family meetings. In the next six months, the owners plan to open a new location, but they worry about maintaining the same quality of personal service and name brand at the new location. The owners have relied on relatives and close friends to primarily staff the restaurant, since outsiders without a family connection tend to quickly leave the business. Long-time employees take advantage of time off, yet the owners are reluctant to use discipline for fear it will anger the family. The owners’ children have expressed concern about continuing in the business, instead wanting to pursue careers of their own choosing.
Realizing that they must bring on additional staff for the new location, the owners hire an HR representative. In addition to identifying a renowned chef to hire who currently lives in another country, the owners want to establish a bonus program and to implement policies and procedures to avoid attendance issues.
Identifying candidates who are positioned for success within a family business environment is critical. Which should be the HR representative’s key consideration in creating an external candidate applicant pool?
Competence and cultural fit
A 50-year-old family-owned restaurant has a good business model. Repeat customers are greeted by name, and their preferences are remembered. The owner visits each table to engage in conversation. Food quality is high, merging home cooking with new cuisine.
Business decisions are typically made in family meetings. In the next six months, the owners plan to open a new location, but they worry about maintaining the same quality of personal service and name brand at the new location. The owners have relied on relatives and close friends to primarily staff the restaurant, since outsiders without a family connection tend to quickly leave the business. Long-time employees take advantage of time off, yet the owners are reluctant to use discipline for fear it will anger the family. The owners’ children have expressed concern about continuing in the business, instead wanting to pursue careers of their own choosing.
Realizing that they must bring on additional staff for the new location, the owners hire an HR representative. In addition to identifying a renowned chef to hire who currently lives in another country, the owners want to establish a bonus program and to implement policies and procedures to avoid attendance issues.
Given the owners’ children’s uncertainty, the HR representative identifies a potential ned for a succession plan, initially at the senior leader level. Which is the best course of action the HR representative should take to start this process?
Meet separately with the children to determine leadership expectations and then prepare a SWOT analysis.
A 50-year-old family-owned restaurant has a good business model. Repeat customers are greeted by name, and their preferences are remembered. The owner visits each table to engage in conversation. Food quality is high, merging home cooking with new cuisine.
Business decisions are typically made in family meetings. In the next six months, the owners plan to open a new location, but they worry about maintaining the same quality of personal service and name brand at the new location. The owners have relied on relatives and close friends to primarily staff the restaurant, since outsiders without a family connection tend to quickly leave the business. Long-time employees take advantage of time off, yet the owners are reluctant to use discipline for fear it will anger the family. The owners’ children have expressed concern about continuing in the business, instead wanting to pursue careers of their own choosing.
Realizing that they must bring on additional staff for the new location, the owners hire an HR representative. In addition to identifying a renowned chef to hire who currently lives in another country, the owners want to establish a bonus program and to implement policies and procedures to avoid attendance issues.
What steps should the HR representative take to support implementing an attendance policy that meets the owners’ business strategy?
Download sample policies and tailor them to the company’s culture/needs; comply with laws and get the owners’ input.
A financial services organization terminates its CEO for embezzlement after an investigation by regulatory authorities determines that the CEO improperly submitted expense reimbursements for fraudulent charges. An independent team of examiners evaluates whether the proper financial controls and reporting structures are in place moving forward. In addition, an HR consultant is hired to review the existing payroll practices, the expense reimbursement process, and the corporate culture.
Upon starting the review, the HR consultant learns that there is no ethical code or code of conduct in place. Since the CEO’s termination, customers and other stakeholders are openly expressing concerns about the company’s stability on social media. Employees report concerns about the corporate culture to the HR consultant as well. Questions emerge about whether the remaining executive leaders were aware of the CEO’s expense reimbursements but took no action to deter the alleged violations. The media has picked up the story, and the company’s board of trustees is now concerned that investors will withdraw their funds, causing serious financial harm to the organization.
How should the HR consultant address the employees’ concerns about the corporate culture?
Have the organization’s remaining executive leaders field employee questions in a town hall meeting setting.
A financial services organization terminates its CEO for embezzlement after an investigation by regulatory authorities determines that the CEO improperly submitted expense reimbursements for fraudulent charges. An independent team of examiners evaluates whether the proper financial controls and reporting structures are in place moving forward. In addition, an HR consultant is hired to review the existing payroll practices, the expense reimbursement process, and the corporate culture.
Upon starting the review, the HR consultant learns that there is no ethical code or code of conduct in place. Since the CEO’s termination, customers and other stakeholders are openly expressing concerns about the company’s stability on social media. Employees report concerns about the corporate culture to the HR consultant as well. Questions emerge about whether the remaining executive leaders were aware of the CEO’s expense reimbursements but took no action to deter the alleged violations. The media has picked up the story, and the company’s board of trustees is now concerned that investors will withdraw their funds, causing serious financial harm to the organization.
Which action should the HR consultant prioritize when conducting the review of the organization’s payroll practices?
Analyze payroll data and processes to identify dual control inadequacies in current payroll processes.
A financial services organization terminates its CEO for embezzlement after an investigation by regulatory authorities determines that the CEO improperly submitted expense reimbursements for fraudulent charges. An independent team of examiners evaluates whether the proper financial controls and reporting structures are in place moving forward. In addition, an HR consultant is hired to review the existing payroll practices, the expense reimbursement process, and the corporate culture.
Upon starting the review, the HR consultant learns that there is no ethical code or code of conduct in place. Since the CEO’s termination, customers and other stakeholders are openly expressing concerns about the company’s stability on social media. Employees report concerns about the corporate culture to the HR consultant as well. Questions emerge about whether the remaining executive leaders were aware of the CEO’s expense reimbursements but took no action to deter the alleged violations. The media has picked up the story, and the company’s board of trustees is now concerned that investors will withdraw their funds, causing serious financial harm to the organization.
How should the HR consultant concentrate efforts to establish ethical behavior as the foundation of organizational culture?
Develop a strategic plan focused on building ethics and integrity into the organization’s mission and vision.
A company employing bus drivers receives passenger complaints of unethical and unsafe behaviors by drivers when they are operating routes. For example, passengers report seeing bus drivers having personal conversations on the phone while driving, taking pictures of themselves while driving, and passing around alcoholic beverages to share with passengers. These reports have been found on social media, posted by unhappy passengers who tagged the company’s profile. The CEO is worried about the public perception of the company. Many bus drivers have a low proficiency in English and speak another dominant language. In the past few months, there has been a sudden increase in bus drivers filing injury claims to seek workers’ compensation. The HR manager investigates the injury claims and discovers that most cases do not qualify for workers’ compensation.
From investigating the injury claims, the HR manager believes that there is misunderstanding due to a language barrier. How should the HR manager ensure understanding of workers’ compensation?
Hire interpreters to explain information about worker’s compensation to bus drivers.
A company employing bus drivers receives passenger complaints of unethical and unsafe behaviors by drivers when they are operating routes. For example, passengers report seeing bus drivers having personal conversations on the phone while driving, taking pictures of themselves while driving, and passing around alcoholic beverages to share with passengers. These reports have been found on social media, posted by unhappy passengers who tagged the company’s profile. The CEO is worried about the public perception of the company. Many bus drivers have a low proficiency in English and speak another dominant language. In the past few months, there has been a sudden increase in bus drivers filing injury claims to seek workers’ compensation. The HR manager investigates the injury claims and discovers that most cases do not qualify for workers’ compensation.
A few bus drivers approach the HR manager, complaining that they receive inadequate training from their supervisors. How should the HR manager respond?
Review the driver’s training records to verify that the drivers completed proper training.
A company employing bus drivers receives passenger complaints of unethical and unsafe behaviors by drivers when they are operating routes. For example, passengers report seeing bus drivers having personal conversations on the phone while driving, taking pictures of themselves while driving, and passing around alcoholic beverages to share with passengers. These reports have been found on social media, posted by unhappy passengers who tagged the company’s profile. The CEO is worried about the public perception of the company. Many bus drivers have a low proficiency in English and speak another dominant language. In the past few months, there has been a sudden increase in bus drivers filing injury claims to seek workers’ compensation. The HR manager investigates the injury claims and discovers that most cases do not qualify for workers’ compensation.
How should the HR manager assist the CEO to improve the public perception of the company?
Establish a feedback channel for members of the public to report unsafe driving.
How would Trompenaars and Hampden-Turner label a culture in which individuals express their emotions freely?
Affective
In an affective culture, people feel free to express their emotions; the opposite of an affective culture is a neutral culture. A particular culture is flexible and pragmatic, comfortable with ambiguity. A synchronic culture believes that the past and the present are as important as the future - possible more important. Schedules can be subordinated to tending to a relationship or participating in a ritual. An external culture is fatalistic. People can adapt to nature; they cannot dominate it.
A global organization implements a clothing policy that sets general guidelines for a neat appearance and safety in the workplace. The policy also allows regional management to issue appropriate expectations for the local operations. Which does this action illustrate?
Cultural relativism
When a firm adopts a cultural relativist perspective, it allows local HR practitioners to interpret general guidelines according to local cultural practices and norms.
A major provider of health-care services, under a new senior leadership team, is embarking on an organizational turnaround effort. The CEO asks the chief human resources officer (CHRO) to conduct an assessment of the compliance function to review the current state of organizational compliance and to ensure that the organization is conforming to regulatory requirements on a global basis. The CHRO interviews all managers to identify critical gaps and conducts multiple site audits of the HR, finance, operations, and IT functions to review compliance of systems and practices. As part of the site audits, the CHRO interviews front-line employees to assess their knowledge, skills, and abilities and to gain feedback for improvements.
The CHRO shares with the senior leadership team the outcomes of the analysis and a plan to address gaps and deficiencies as well as capitalize on opportunities. This includes recommendations to change the organizational structure and to standardize practices and polices related to regulatory compliance. After much discussion about whether the company should adopt a standardized approach or a localized approach to compliance, they agree to a balanced, “glocalized” approach. The CEO tasks the CHRO with leading the efforts of moving toward this agreed-upon approach.
What is the first step the CHRO should take to address the regulatory compliance requirements of the organization?
Understand the organization-wide impact of compliance across multiple jurisdictions.
A major provider of health-care services, under a new senior leadership team, is embarking on an organizational turnaround effort. The CEO asks the chief human resources officer (CHRO) to conduct an assessment of the compliance function to review the current state of organizational compliance and to ensure that the organization is conforming to regulatory requirements on a global basis. The CHRO interviews all managers to identify critical gaps and conducts multiple site audits of the HR, finance, operations, and IT functions to review compliance of systems and practices. As part of the site audits, the CHRO interviews front-line employees to assess their knowledge, skills, and abilities and to gain feedback for improvements.
The CHRO shares with the senior leadership team the outcomes of the analysis and a plan to address gaps and deficiencies as well as capitalize on opportunities. This includes recommendations to change the organizational structure and to standardize practices and polices related to regulatory compliance. After much discussion about whether the company should adopt a standardized approach or a localized approach to compliance, they agree to a balanced, “glocalized” approach. The CEO tasks the CHRO with leading the efforts of moving toward this agreed-upon approach.
How should the CHRO begin the process of developing relationships with global stakeholders?
Conduct a stakeholder analysis to determine the relevant information needed by and the impact to each stakeholder.
A major provider of health-care services, under a new senior leadership team, is embarking on an organizational turnaround effort. The CEO asks the chief human resources officer (CHRO) to conduct an assessment of the compliance function to review the current state of organizational compliance and to ensure that the organization is conforming to regulatory requirements on a global basis. The CHRO interviews all managers to identify critical gaps and conducts multiple site audits of the HR, finance, operations, and IT functions to review compliance of systems and practices. As part of the site audits, the CHRO interviews front-line employees to assess their knowledge, skills, and abilities and to gain feedback for improvements.
The CHRO shares with the senior leadership team the outcomes of the analysis and a plan to address gaps and deficiencies as well as capitalize on opportunities. This includes recommendations to change the organizational structure and to standardize practices and polices related to regulatory compliance. After much discussion about whether the company should adopt a standardized approach or a localized approach to compliance, they agree to a balanced, “glocalized” approach. The CEO tasks the CHRO with leading the efforts of moving toward this agreed-upon approach.
How should the CHRO assess the impact of these changes on the business goals and objectives?
Develop and assess metrics that measure the outcomes of the changes.
A new CEO joins a large company with over 1,000 employees. The company has a history of favoritism and unethical behavior, which has altered the company’s brand within the industry. For example, family and friends lacking qualifications get hired and employees use workplace privileges to help family, but without a connection in the company already, it can be difficult for external candidates to get hired. Additionally, many employees, including function directors, engage in bribery to ensure high performance ratings and subsequent bonus awards. This has resulted in stagnant employee and function performance across the company.
The legal department consists of a single individual hired over a decade ago. The individual is asked to perform many duties for the organization and has thus been unable to address the legal issues associated with the preferential hiring, favoritism, and bribery. The CEO asks the HR manager for support with improving these workplace issues to ensure legal compliance.
How should the HR manager address stagnant employee performance?
Revise the employee evaluation process to encourage higher performance standards.
A new CEO joins a large company with over 1,000 employees. The company has a history of favoritism and unethical behavior, which has altered the company’s brand within the industry. For example, family and friends lacking qualifications get hired and employees use workplace privileges to help family, but without a connection in the company already, it can be difficult for external candidates to get hired. Additionally, many employees, including function directors, engage in bribery to ensure high performance ratings and subsequent bonus awards. This has resulted in stagnant employee and function performance across the company.
The legal department consists of a single individual hired over a decade ago. The individual is asked to perform many duties for the organization and has thus been unable to address the legal issues associated with the preferential hiring, favoritism, and bribery. The CEO asks the HR manager for support with improving these workplace issues to ensure legal compliance.
Which step should the HR manager take to ensure that the company abides by anti-bribery and anti-corruption laws?
Implement anti-bribery and anti-corruption training for all employees.
A new CEO joins a large company with over 1,000 employees. The company has a history of favoritism and unethical behavior, which has altered the company’s brand within the industry. For example, family and friends lacking qualifications get hired and employees use workplace privileges to help family, but without a connection in the company already, it can be difficult for external candidates to get hired. Additionally, many employees, including function directors, engage in bribery to ensure high performance ratings and subsequent bonus awards. This has resulted in stagnant employee and function performance across the company.
The legal department consists of a single individual hired over a decade ago. The individual is asked to perform many duties for the organization and has thus been unable to address the legal issues associated with the preferential hiring, favoritism, and bribery. The CEO asks the HR manager for support with improving these workplace issues to ensure legal compliance.
The CEO asks the HR manager to investigate the potential impact of favoritism at the company. Which action should the HR manager take?
Conduct focus groups to understand employee perceptions of ethical work behavior.
Although its latest venture isn’t a company’s first entry into global operations, it is its first experience with a country whose laws are derived from religious traditions. HR must create policies and practices that comply with this legal system. Which is the best way to approach this task?
Hire expert legal advice on the laws in that particular country.
Since laws are complex and interpretations may vary, the best course of action is to hire expert legal advice in the laws of the specific country. An HR manager from that country may not be an expert on all of the laws that currently apply. Training the HR manager is no guarantee that the manager will be qualified to create appropriate policies and practices to comply with religious laws. Standardized policies will not protect the organization and employees from legal liability.
A vice president of HR is part of a global acquisitions team. To prepare for the due diligence process for a particular location, the vice president consults with peers in other organizations who operate in this country. They report significant problems with government officials demanding bribes and using false claims from employees and suppliers to extort fines. What characteristic of legal systems does this address?
Rule of law
These reports point to a weak rule of law in this country. Officials’ actions do not conform to local legal requirements, and the courts may not be fairly administering these laws.
