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Indicate whether the statement is true or false.
1. In the United States, training and development tends to focus on improving the group, with instruction
addressed to small groups and testing focusing upon group questions and answers.
a.
True
b.
False
2. The female participation in the workforce is highest in Muslim countries than anywhere else in the world.
a.
True
b.
False
3. The North American Free Trade Agreement (NAFTA) established free trade between the United States,
Argentina, and Brazil.
a.
True
b.
False
4. A computer programmer from India continues to receive his or her Mumbai, India base salary and is kept on
the Indian operation's balance sheet. Then the company adds various allowances for cost of living, housing,
education to this base salary so that the employee's overall standard of living while working in the company's
London, England office will be the same as his or her standard of living in Mumbai thus would be an example
of the balance sheet approach.
a.
True
b.
False
5. Reebok transferring the manufacturing of its sneakers to a third-party company in Thailand would be an
example of both outsourcing and offshoring.
a.
True
b.
False
6. A situation in which a number of employers join together to bargain with a given labor union is called co-
determination.
a.
True
b.
False
7. The United Nations International Labor Organization (ILO) sets minimal standards that involve prohibitions
against slave or forced labor, restrictions on the use of child labor, certain basic job safety protections, and the
right of workers to form labor unions.
a.
True
b.
False
8. In low power distance countries, strict hierarchies are maintained in the performance appraisal system, and
managers simply evaluate subordinate employees.
a.
True
b.
False
9. Human resource management (HRM) is handled much the same way in all countries.
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a.
True
b.
False
10. In highly collectivist countries such as South Korea and Japan, success tends to be measured by the success
of the group rather than by individual achievements and performances.
a.
True
b.
False
11. Host country nationals are workers already living in the foreign or host country where the U.S. company is
opening operations and are being employed by the U.S. company.
a.
True
b.
False
12. A company that has identified an employee with future managerial potential and consequently sends that
employee to a three-week university-sponsored program to help develop her leadership skills is an example of
development.
a.
True
b.
False
13. In the United States, companies have turned to executive pay strategies focused on tying pay to performance
by using performance stock awards and bonuses based on meeting target goals.
a.
True
b.
False
14. A U.S. company sending an employee to work for a few years in its Madrid, Spain office while also learning
the Spanish language would be an example of training.
a.
True
b.
False
15. Contracts that typically establish work policies including rates of pay, amounts of vacation time, and
seniority rights of employees are referred to as collective bargaining agreements.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
16. Hofstede’s dimension of uncertainty avoidance refers to
a.
the extent that people think of themselves as members of a group or collective, rather than discrete
individuals.
b.
the degree of equality of authority distribution in a given society and its workplaces, and employee
expectations related to the same.
c.
a culture’s desire for predictability, or the lack of predictability in the workplace and elsewhere.
d.
values such as competition, assertiveness, and achievement versus values like care for the weak and
relationships.
e.
the extent to which members of a given society value future planning as opposed to a more
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immediate short-term perspective.
17. Geert Hofstede identified _____ major dimensions of national culture are they apply to human resource
management.
a.
two
b.
three
c.
four
d.
five
e.
six
18. Hofstede’s dimension of _____ relates to values that are traditionally associated with one gender or the
other.
a.
power distance
b.
uncertainty avoidance
c.
individualism vs. collectivism
d.
masculinity vs. femininity
e.
long-term vs. short-term orientation
19. Which statement about compensation is accurate?
a.
Year-end bonuses are almost unheard of outside of the United States.
b.
Cost of living is generally not a factor when companies make compensation decisions.
c.
The gap between executive and employee pay has been shrinking steadily over the past two decades.
d.
Housing allowances are part of the compensation package in many places.
e.
Expatriate employees typically receive no additional compensation over and beyond what they would
be paid in their home countries.
20. The rate of expatriate failure has traditionally been _____ percent or more.
a.
15
b.
30
c.
45
d.
60
e.
75
21. _______ established free trade between the United States, Canada, and Mexico.
a.
NAFTA
b.
NAACP
c.
WTO
d.
World Bank
e.
NLRB
22. Hofstede’s dimension of power distance refers to
a.
the extent that people think of themselves as members of a group or collective, rather than discrete
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individuals.
b.
the degree of equality of authority distribution in a given society and its workplaces, and employee
expectations related to the same.
c.
a culture’s desire for predictability, or the lack of predictability in the workplace and elsewhere.
d.
values such as competition, assertiveness, and achievement versus values like care for the weak and
relationships.
e.
the extent to which members of a given society value future planning as opposed to a more
immediate short-term perspective.
23. In which of the following countries would the general expectation be that women will not be full-time
participants in the workforce?
a.
Denmark
b.
Norway
c.
the United States
d.
Sweden
e.
Japan
24. Of the following, which is NOT true regarding regulatory issues including immigration and border security?
a.
In Canada, labor relations are primarily regulated at the provincial level rather than at the national
level.
b.
President Obama recently signed an Executive Order allowing nearly 5 million immigrants to be
eligible for work authorization in the United States.
c.
The United States has the least restrictive policies in the world with respect to foreign worker entry
into its borders.
d.
Governmental regulations related to immigration and border security are among the most important
in the field of international HRM
e.
Some countries, such as Singapore, have immigration policies that make it relatively easy for people
from other countries to come and work there legally.
25. The process that takes place when the expatriate employee returns home is called _____.
a.
co-determination
b.
collective bargaining
c.
a needs assessment
d.
expatriate failure
e.
repatriation
26. An expatriate is someone who
a.
considers himself or herself as a member of a group or collective.
b.
works in a country other than his or her native country.
c.
has become successful without anyone else's help.
d.
has renounced citizenship in his or her native country.
e.
wants clear rules, procedures, and structures in the workplace.
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27. Jonathan is a U.S. citizen who works for U.S. based company, XYZ Computers. He was sent by XYZ
Computers to France to help open a branch overseas. Jonathan is a _____.
a.
host country national
b.
parent country national
c.
third country national
d.
trainer
e.
developer
28. Hofstede’s dimension of long-term vs. short-term orientation refers to
a.
the extent that people think of themselves as members of a group or collective, rather than discrete
individuals.
b.
the degree of equality of authority distribution in a given society and its workplaces, and employee
expectations related to the same.
c.
a culture’s desire for predictability, or the lack of predictability in the workplace and elsewhere.
d.
values such as competition, assertiveness, and achievement versus values like care for the weak and
relationships.
e.
the extent to which members of a given society value future planning as opposed to a more
immediate short-term perspective.
29. Of the following, which is NOT true of expatriates?
a.
There is risk of expatriate failure.
b.
Family issues may play a part in expatriate success.
c.
There is some evidence that the “culture shock” that employees face upon repatriation can be greater
than the culture shock they initially faced when first going to work in a foreign country.
d.
Host-country national expatriates, in particular, may represent a cheaper source of labor than other
alternatives.
e.
Expatriate assignments may provide very useful career development opportunities.
30. Of the following, which is NOT true regarding cultural differences in performance appraisal?
a.
In Mexico, the norm is not to give feedback at the outset, but instead to focus first upon something
positive.
b.
In the U.S., it is not uncommon for employers to be direct with negative feedback.
c.
In the U.S. performance reviews are typically conducted at the group level.
d.
In Japan, performance reviews are typically group oriented.
e.
It is not uncommon for Japanese performance reviews to focus upon how employees and groups can
improve over the long-term.
31. With which statement would Hofstede agree?
a.
Denmark and the Netherlands are high power distance cultures.
b.
Mexico and Japan are very masculine cultures.
c.
Germany and Austria rank low on uncertainty avoidance.
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d.
China and Japan have short-term orientations.
e.
The United States is a highly collectivist culture.
32. A U.S. company sending an employee to work for a few years in its Berlin office office would likely see to
it that the employee learns to speak a bit of German and understands something about German cultural norms.
This is an example of _____.
a.
co-determination
b.
development
c.
a needs assessment
d.
training
e.
repatriation
33. Hofstede’s dimension of individualism vs. collectivism refers to
a.
the extent that people think of themselves as members of a group or collective, rather than discrete
individuals.
b.
the degree of equality of authority distribution in a given society and its workplaces, and employee
expectations related to the same.
c.
a culture’s desire for predictability, or the lack of predictability in the workplace and elsewhere.
d.
values such as competition, assertiveness, and achievement versus values like care for the weak and
relationships.
e.
the extent to which members of a given society value future planning as opposed to a more
immediate short-term perspective.
34. Negotiations in which a number of employers jointly bargain with a given labor union is known as _____.
a.
mediation
b.
repatriation
c.
collective bargaining
d.
multi-employer bargaining
e.
co-determination
35. Why might Poland be a good country to open an operation for a business that needs a large available labor
supply?
a.
The unemployment rate in Poland has been very high since the 2008 recession.
b.
The female labor force participation rate in Poland is extremely low.
c.
The cost of living in Poland is the lowest in the world.
d.
More than 15 percent of Poles work in agriculture.
e.
Most members of the Polish workforce work on a part-time basis.
36. The primary goal of labor unions is to engage in negotiations with _____.
a.
employers
b.
suppliers
c.
customers
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d.
expatriates
e.
other unions
37. A major complaint about the NAALC process is that _____.
a.
it is not profitable
b.
it lacks any real “teeth.”
c.
it violates human rights laws
d.
it prohibits free trade
e.
it employs child laborers
38. In which country would it be inappropriate to mix upper and middle managers together in the same training
or development program?
a.
Denmark
b.
the United States
c.
Saudi Arabia
d.
Norway
e.
Canada
39. A manager who makes occasional trips to a foreign office but who manages mainly through ongoing e-
mails, videoconferences, and web-based collaboration can BEST be described as a(n) ______.
a.
offshore manager
b.
virtual expatriate
c.
parent country national
d.
downsized employee
e.
third country national
40. A U.S. company that hires another U.S. company, such as Automatic Data Processing Corporation (ADP) to
process all of its corporate payroll functions is engaging in _____.
a.
outsourcing
b.
offshoring
c.
importing
d.
exporting
e.
franchising
41. The process of assessing employee performance is called _____.
a.
performance appraisal
b.
development
c.
a needs assessment
d.
training
e.
repatriation
42. Perhaps the most interesting labor relations system in the world exists in _____.
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a.
Canada
b.
Great Britain
c.
Germany
d.
Australia
e.
Mexico
43. Employees from the home countries who are sent to work for their companies overseas are known as _____.
a.
host country nationals
b.
parent country nationals
c.
third country nationals
d.
inpatriates
e.
developers
44. Hofstede’s dimension of _____ relates to the extent that people think of themselves as members of a group
or collective, rather than discrete individuals.
a.
power distance
b.
uncertainty avoidance
c.
individualism vs. collectivism
d.
masculinity vs. femininity
e.
long-term vs. short-term orientation
45. Of the following, which is NOT true regarding technological implications on human resource management?
a.
Companies based in the United States are far more likely to have at least some operations in other
countries than in the past.
b.
The Internet, computers, and easy air travel have made it much easier for U.S. companies to conduct
business in other countries.
c.
Technological advances have created what some call a “knowledge economy.”
d.
The role of human resources and those who manage such resources has become less important in
today’s global economy.
e.
Corporate accountants and human resource managers now fulfill more strategic, knowledge-based
functions.
Enter the appropriate word(s) to complete the statement.
46. The employee representation on corporate boards in Germany refers to ______.
47. ______ refers to the process of assessing employee performance.
48. _______ are employees who are working in countries other than their native countries.
49. ______ refers to employees from a new parent or host country who are being employed in a given foreign
country.
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50. ______ involves preparing employees for new future assignments or positions.
51. A contract comprehensively setting forth employee terms and conditions of employment at a given
workplace or group of workplaces refers to a _________.
52. Keeping an employee on the home country’s salary structure and also providing additional allowances refers
to the ______.
53. _____ involves the process of transferring an organizational function to another country whether outsourced
or not.
54. Providing employees with skills specific to the job they are going to be doing refers to ______.
55. The _______ distance dimension deals with the degree of equality of authority distribution in a given
society and its workplaces and employee expectations related to the same.
Scenario – The Campbell Corporation
The Campbell Corporation is a multinational business, which currently operates in five foreign markets. It
manufactures stuffed toys for children around the world and is very pleased with the quality of its products. At
present, this company has about 900 employees split equally between the five markets it serves. Fifty percent
of its employees are host country nationals and this balance seems to work effectively for contributing to the
success of the Campbell Corporation.
The Campbell Corporation has faced many difficulties in gaining knowledge about human resource
management in foreign marketplaces. Even though the challenges have been considerable, they have not
weakened the desire of this company to succeed. The Campbell Company hopes to soon enter its sixth foreign
market, Switzerland. Past experiences have taught the owners of this company that it must gain knowledge of
the foreign country’s culture prior to entering its marketplace if it hopes to be successful.
56. Which one of the following would be least likely to be present if the Campbell Corporation found itself
manufacturing its products within a foreign country that embraces unionization?
a.
The International Labor Organization has established the right of workers to
have the freedom of association.
b.
The main goal of labor unions is to negotiate with employers to try and reach a
collective bargaining agreement acceptable to both sides.
c.
Employees may file grievances if they feel their rights under the contract are not
maintained.
d.
The host country will set the wage that all workers are to be paid regardless of
union affiliation.
e.
Bargaining agreements typically address rates of pay, vacation time, and
seniority rights of employees.
Scenario – Symon Enterprises
Symon Enterprises is an international construction company with global offices in twenty foreign markets
around the world. Symon currently has over 15,000 employees around the world. The company has an
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excellent record as being an employer of choice. It recently was voted the number three company to work for in
the world by Forbes Magazine.
Symon Enterprises has become very adept at effectively handling its human resources even though there are
vast differences in the various countries it services. The company attributes its HR success to the expertise of
its HR directors. Symon’s practice has always been to hire human resource managers and directors from the
country where they will be working. It has found this seems to give the company a competitive edge over the
competition.
57. Symon Enterprises sends approximately 20% of its workers on overseas assignments. All of the following
are considered advantages to be gained by the company from sending expatriates on foreign assignments except
which one?
a.
Expatriate failure rate is extremely low if they serve ten-years or more on one
assignment.
b.
It helps parent company with control related to structure.
c.
Workers from the parent country will help to impose the values of the
organization on the foreign workplace.
d.
Expatriates serve to supply the labor market if there are not enough qualified
workers available to fill the company’s needs.
e.
Expatriates can impart the cultural norms of the company to the foreign workers.
Scenario – The Campbell Corporation
The Campbell Corporation is a multinational business, which currently operates in five foreign markets. It
manufactures stuffed toys for children around the world and is very pleased with the quality of its products. At
present, this company has about 900 employees split equally between the five markets it serves. Fifty percent
of its employees are host country nationals and this balance seems to work effectively for contributing to the
success of the Campbell Corporation.
The Campbell Corporation has faced many difficulties in gaining knowledge about human resource
management in foreign marketplaces. Even though the challenges have been considerable, they have not
weakened the desire of this company to succeed. The Campbell Company hopes to soon enter its sixth foreign
market, Switzerland. Past experiences have taught the owners of this company that it must gain knowledge of
the foreign country’s culture prior to entering its marketplace if it hopes to be successful.
58. If the Campbell Corporation wanted to subcontract one of its production processes to a third party currently
in Switzerland, this action would most likely be referred to as which one of the following?
a.
Outsourcing
b.
Co-determination
c.
Multi-employer bargaining
d.
Repatriation
e.
Insourcing
59. If the Campbell Corporation conducts its business within a country where workers prefer to be evaluated as
part of a group, the cultural dimension of that nation most closely resembles which one of the following?
a.
Short-term orientation
b.
Collectivism
c.
Power distance
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d.
Individualism
e.
Masculinity
Scenario – Symon Enterprises
Symon Enterprises is an international construction company with global offices in twenty foreign markets
around the world. Symon currently has over 15,000 employees around the world. The company has an
excellent record as being an employer of choice. It recently was voted the number three company to work for in
the world by Forbes Magazine.
Symon Enterprises has become very adept at effectively handling its human resources even though there are
vast differences in the various countries it services. The company attributes its HR success to the expertise of
its HR directors. Symon’s practice has always been to hire human resource managers and directors from the
country where they will be working. It has found this seems to give the company a competitive edge over the
competition.
60. Employee compensation, performance appraisals, and benefits vary greatly from culture to culture. Which
one of the following would not be considered a challenge facing Symon Enterprises when it comes to global
compensation and performance management?
a.
Some countries evaluate the group rather than the individual.
b.
The idea of taxation and tax levels may vary greatly from county to country.
c.
Foreign compensation packages need to be compatible with the home country’s
compensation level.
d.
Some cultures require strict hierarchies to be maintained during the evaluation
process.
e.
A country’s culture may greatly affect the way feedback should be presented to
an employee.
61. When Symon Enterprises has work to be performed within a country where workers place a high value on
things like competition, assertiveness, and achievement, it can be stated that the company is most likely
working within which one of the following Hofstede’s cultural dimensions?
a.
Collectivism
b.
Power distance
c.
Uncertainty avoidance
d.
Short-term orientation
e.
Masculine dimension
62. Discuss immigration and border security issues regarding employment in the United States.
63. Differentiate between training and development and describe the different types of training and development
that a company can offer.
64. Discuss the role labor unions play in global human resource management. Does the impact unions have vary
in different countries? Explain.
65. Discuss expatriate issues as they affect staffing for global businesses.
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66. “Culture does not have any impact on performance appriasal.” Do you agree with this statement? Defend
your position.
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Answer Key
1. False
2. False
3. False
4. True
5. True
6. False
7. True
8. False
9. False
10. True
11. True
12. True
13. True
14. True
15. True
16. c
17. d
18. d
19. d
20. b
21. a
22. b
23. e
24. c
25. e
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26. b
27. b
28. e
29. d
30. c
31. b
32. d
33. a
34. d
35. a
36. a
37. b
38. c
39. b
40. a
41. a
42. c
43. b
44. c
45. d
46. co-determination
47. Performance appraisal
48. Expatriates
49. Third country nationals
50. Development
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51. collective bargaining agreement
52. balance sheet approach
53. Offshoring
54. training
55. power
56. d
57. a
58. a
59. b
60. c
61. e
62. Student answers will vary.
63. Student answers will vary.
64. Student answers will vary.
65. Student answers will vary.
66. Student answers will vary.
