978-1305500891 Chapter 15 Solution Manual

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END-OF-CHAPTER GUIDE

*Review Questions and Answers

*Critical Discussion Questions and Answers

*Global Action

*Closing Case

REVIEW QUESTIONS AND ANSWERS

1. Name and describe three staffing approaches.

Ethnocentric approach is an emphasis on the norms and practices of the parent company

(and the parent country of the MNE) by relying on PCNs.

2. ON CULTURE: What factors often lead to an expatriate experiencing difficulties or even

failure on an overseas assignment?

Surveys of U.S. and European MNEs find that the inability of the spouse and the family to

3. ON CULTURE: How would you use training for spouses of expatriate employees to

improve employee performance and the duration of service overseas?

Not only should the employee be trained in how to interact with locals and survive in the

4. ON CULTURE: Describe some of the problems experienced by repatriates. How may

training and development alleviate those problms?

A leading concern is “What kind of position will I have when I return?” Many returning

expatriates experience painful adjustment at the workplace. Having been “big fish in a

5. In relation to expatriate compensation, what is the difference between the going rate

approach and the balance sheet approach?

Balance sheet approach is an attempt to balance the cost of living differences based on

6. What are some of the problems inherent in evaluating an expatriate’s job performance?

Chapter 15: Managing Human Resources Globally

Performance appraisal entails (1) how expatriates provide performance appraisal to

HCNs and (2) how expatriates are evaluated. Western expatriates pushing HCNs in some

cultures to express themselves in performance appraisal meetings would be viewed as

7. Why has union power declined in developed countries?

Managers’ bargaining chip lies in their threat to shut down operations and move jobs

overseas. In the United States, union membership dropped from 20% of the work force in

8. If you were trying to establish a multinational labor organization, what barriers would

you need to overcome?

The interests of workers in a given country may not be identical to those in another

country. For example, unions in the U.S. might be opposed to outsourcing to Mexico but

9. In HR use of VRIO, why is it more difficult to imitate an HR system than a practice?

Students may have various answers but it should be noted an HR system consists of much

more than a practice or even a collection of practices. The skills and motivation of the

10. Look at the countries on PengAtlas Map 4.2. Suppose your multinational team consists of

people from these countries. In your opinion, is it possible to have too much diversity?

Answers will vary. Normally, diversity enhances the ability to draw from a variety of

insights and capabilities. In cases where there is a long and deadly history of ethnic

11. Regarding the two countries with the largest labor force shown on PengAtlas Map 4.2,

what advantage does the large size provide? What is the disadvantage?

Answers will vary. As indicated in the response to the previous question, much depends

on the productivity of the labor force. If the force is very productive, each labor hour

Chapter 15: Managing Human Resources Globally

12. What concept can be used to reconcile the best fit versus best practice debate, and how

does it work?

To reconcile the debate, experts note “it is not a question of either/or but a question of

13. What are the benefits of inpatriation?

Inpatriation benefits involve relocating employees of a foreign subsidiary to the MNE’s

14. What are the four C’s that can benefit HR managers?

Be curious.

15. What can you do to develop a global mindset and help your career?

The important thing is not so much the answer as the extent to which the student

CRITICAL DISCUSSION QUESTIONS AND ANSWERS

1. You have been offered a reasonably lucrative expatriate assignment for the next three

years, and your boss will have a meeting with you next week. How would you discuss

this opportunity with your boss?

This is a question in which the answer is not as important as the thought process and the

2. ON ETHICS: If you were a HCN, do you think pay should be equal between HCNs and

expatriates in equivalent positions? If you were president of your subsidiary in a host

country who has profit/loss (P/L) responsibilities, as a PCN your pay is ten times higher

than the pay for the highest paid HCN (your vice president, who is the third highest-paid

employee). The second highest-paid employee is another vice president, a fellow PCN

Chapter 15: Managing Human Resources Globally

like you, who does essentially the same work as the HCN vice president and is paid five

times more than the PCN. What do you think?

Answers will vary. It would not be shocking if the perspectives of the HCN and the

expatriate were very different. From an egalitarian perspective, the pay arrangement

may seem to be unfair. However, from a realistic perspective, there may be no good

3. ON ETHICS: As HR director for an oil company, you are responsible for selecting 15

expatriates to go to work in Iraq. However, you are personally concerned about the safety

there. How do you proceed?

Answers will vary. The HR director should seek volunteers and may need to offer a

premium level of pay and additional benefits to attract such volunteers. To deal with

GLOBAL ACTION

1. You work at a large MNE that operates in every one of the top 100 metropolitan

areas worldwide. One of the most pressing concerns in your firm at

the moment is to control costs. Therefore, you have been asked to develop a

forecast for the coming year that identifies the markets in which the firm can

expect an increase in the cost of living and, as a result, general salary expenditures.

After the report needed for your evaluation is secured, classify the cities

that have experienced cost increases into their respective countries. Which

countries have more than one city that meets the criteria for your forecast?

What are the salary increase traits associated with each city identified?

Exercise 1 Answers

One resource which can be used is “Mercer: 2015 Cost of Living Rankings”. This

website can be found by entering the search term “cost of living” at the globalEDGE™

2. Currently, your European company is evaluating its standing in the fast-growing

emerging economies known as BRIC (Brazil, Russia, India, and

Chapter 15: Managing Human Resources Globally

China). Based on your evaluation of the cost of living in each country, the company may

reconfigure some of its operations to increase profitability. Your company’s

manufacturing facilities are located in Shanghai, China; Mumbai, India;

Sao Paulo, Brazil; and St. Petersburg, Russia. How much could be saved if the

company were to consolidate into one BRIC location that has the lowest cost of living?

Exercise 2 Answers

One resource which can be used is “United States: U.S. Department of State – Quarterly

Report Indexes of Living Costs Abroad, Quarters Allowances, and Hardship

CLOSING CASE DISCUSSION GUIDE AND ANSWERS

Emerging Markets: Dallas versus Delhi

1. What questions should Sarkar ask the people at headquarters in Dallas? Please help him

prepare a list.

2. Will Neeli and the children be happy about this move? Why?

Answers will vary. In New Delhi, Neeli has a good job and the children have a good

3. What differences does Sarkar’s status as an expatriate or inpatriate make?

4. Should Sarkar accept or decline this opportunity? Why?