Week 4

Question 1

What is the strategic role of human resource management in international business?

Answer 1

Human resource management has a strong link with profitability and impacts people, culture, incentives, and control systems in organizational architecture.

It must be congruent with the firm’s strategy.

Question 2

What are the pros and cons of the ethnocentric staffing approach?

Answer 2

Pros:
* Overcomes lack of qualified managers in host nation
* Unifies culture
* Helps transfer core competencies

Cons:
* Produces resentment in host country
* Can lead to cultural myopia.

Question 3

What is the polycentric staffing approach?

Answer 3

In the polycentric approach, host-country nationals manage subsidiaries while parent-country nationals occupy key positions at corporate headquarters.

This approach is less expensive than ethnocentric and alleviates cultural myopia.

Question 4

What is the geocentric staffing approach?

Answer 4

The geocentric approach seeks the best people for key jobs throughout the organization, regardless of nationality.

It enhances local responsiveness and reduces cultural myopia.

Question 5

Fill in the blank: The primary reason for expatriate failure is the inability of the ______ to adjust.

Answer 5

[manager]

Question 6

What are the four dimensions that predict expatriate success?

Answer 6

• Self-orientation
• Others-orientation
• Perceptual ability
• Cultural toughness.

Question 7

What is the difference between training and development for expatriate managers?

Answer 7

Training provides skills for the foreign posting, while development focuses on long-term career skills.

New emphasis on general management development programs is seen as a strategic tool.

Question 8

What type of training seeks to foster appreciation for the host country’s culture?

Answer 8

Cultural training.

Question 9

What is the balance sheet approach in expatriate pay?

Answer 9

It includes base salary, foreign service premium, allowances, tax differentials, and benefits to provide expatriates with a standard of living comparable to their home country.

It also includes financial inducements for accepting foreign postings.

Question 10

True or False: Expatriates should have the same level of medical and pension benefits abroad as at home.

Answer 10

True.

Question 11

What are some reasons a diverse workforce may improve performance?

Answer 11

• Diverse talents bring insights into diverse customer needs
• Improves brand image
• Increases employee satisfaction and productivity.

Question 12

What should top managers do to drive diversity efforts?

Answer 12

Create a clear value proposition, set clear goals, and measure performance improvements over time.

Question 13

Fill in the blank: Diversity workshops aim to overcome subconscious biases and ______ against minority employees.

Answer 13

[discrimination]

Question 14

What factors can affect performance appraisal systems across nations?

Answer 14

Unintentional bias from both host-nation and home-office managers, distance, and lack of experience working abroad.

Question 15

What is the primary goal of expatriate selection processes?

Answer 15

To reduce expatriate failures by improving selection procedures.

Question 16

What challenges do expatriates face during repatriation?

Answer 16

They often do not have jobs that utilize their new skills.

HRM should develop good reintegration programs.

Question 17

What is a global mindset?

Answer 17

A fundamental attribute of a global manager that allows dealing with complexity and ambiguity while being open to the world.