Jensen works for Hudson Department Stores which has locations all over the world.

It is her job
to determine the staffing needs for the holiday season for retail stores in the European market.
Which activity is Jensen involved with? Human resource management

The HRM function can help a firm achieve its primary strategic goals, including: adding value
by better serving customers
reducing the cost of value creation

While profound differences between countries complicate the HRM function, the major tasks for
HRM in an international business still include staffing policy, management training and
development, performance appraisal, and compensation policy.

A(n) ______ manager is a citizen of one country who works abroad in a company's subsidiary.
expatriate

What is considered to be the linchpin that holds a firm's organizational architecture together?
people

Human resource management includes which three activities? Staffing

Performance evaluation
Labor relations

A performance appraisal would be part of an organization's ______ system. control

True or false: The HRM function plays a valuable role in helping a firm achieve its primary
strategic goals.True

What are two tasks of the HRM function in a multinational company? Staffing policy
Compensation policy

______ policy is concerned with the selection and training of individuals for specific job
functions. Staffing

Aiko is from Japan and recently moved from Japan to work at the US headquarters of Toyota in
Texas. In her US job, Aiko is considered to be a(n) expatriate.

Jeanne was hired in part because she was comfortable with the company's norms and value
systems. In other words, she was a good fit for the company's ______. corporate culture

True or false: Refer to Figure 17.1. Within the organizational architecture of a firm, human
resources is responsible for both structure and processes. False

Of the types of international staffing policies identified by research, which one tends to be the
most attractive to companies? geocentric
The HRM function has a critical impact on which three elements of a firm's organizational
architecture? Incentive systems
People
Culture

Trisha's firm has filled all of its key management positions with parent-country nationals. What
kind of staffing policy is this company using? ethnocentric

The chief operations officer at Bradley Motor Corp., based in Omaha, doesn't feel there are
qualified individuals in Brazil to staff the senior management positions at the company's new
manufacturing facility. Which type of staffing policy should Bradley Motor Corp. use based on
this information? ethnocentric

Which company function involves selecting individuals to do certain jobs, as well as, promoting
the desired culture of the firm? Staffing policy

What two things may occur as a result of the limits an ethnocentric staffing policy puts on
advancement opportunities for host country nationals? Resentment
Lower productivity

During the interview, the personnel manager told Celine that the company hires individuals who
display qualities of honesty, fairness, and open-mindedness -- values which are also considered
the mainstay of the company. The personnel manager is describing _____. the corporate culture

______ is the lack of interest in learning about other cultures or recognizing what works in other
cultures. Cultural myopia

The three types of staffing policies in international business are: polycentric.

ethnocentric.
geocentric.

At Darla's company, the executives at headquarters are all parent-company nationals, but the
foreign subsidiaries all have host-country presidents. This demonstrates the ______ staffing
policy. polycentric

True or false: Japanese firms have historically used an ethnocentric staffing policy. True

The two advantages of using a polycentric approach to staffing are:fewer cultural

misunderstandings.
less expensive to implement.

If a firm was concerned with transferring its core competencies to a foreign operation, it might
elect to transfer parent-company nationals who have knowledge of that competency to the
foreign operation. This would be an example of the ______ staffing strategy. ethnocentric
One drawback to a polycentric staffing policy is that ________. host-country nationals have
less chance to gain international experience.

Host-country nationals would encounter the greatest limits on advancement opportunities when
faced with a(n) ______ staffing policy. ethnocentric

A firm's failure to understand that host-countries require different approaches to marketing and
management is known as ______. cultural myopia

Which international staffing policy seeks the best people for key jobs regardless of nationality?
Geocentric

Which staffing policy requires host-country nationals to be recruited to manage subsidiaries

while parent-company nationals occupy key positions at corporate headquarters? Polycentric

The strengths of the ______ staffing policy are that it makes the best use of a company's human
resources and it results in executives who are comfortable in a number of cultures.geocentric

Since it may keep a firm from developing cultural myopia, the polycentric approach is a response
to the shortcomings of the ______ approach. ethnocentric

Firms may be prevented from using a geocentric staffing policy because of ______ in the host
country. immigration laws

The major drawback to a(n) ______ staffing policy is the separation that might develop between
host-country managers and parent-country managers. polycentric

Ethnocentric International

Polycentric Localization

Geocentric Transnational

The newly-hired human resource manager was told that it is company policy to find the best
person for all management positions, regardless if that person is from the home country or is
located in one of the company's international locations. Which staffing policy does this
represent? geocentric

Renee is a citizen of France who has moved to the US to work at Intel. Renee is an example of
a(n) inpatriate

What are two advantages of a geocentric staffing policy? The firm makes best use of human
resources.
The executive team feels comfortable working in a variety of cultures.
John Smith is a Seattle, Washington native who works for Microsoft. The company sent him to
manage a branch of the company in China, but he was homesick and returned home in six
months. This is an example of expatriate failure.

As compared to other staffing policies, a geocentric staffing policy is ______ to implement.

expensive

According to the text, compared to domestic managers, expatriates tend to leave their company
at about twice the rate

Refer to Table 17.1 Which staffing approach is notable because it uses human resources
efficiently? geocentric

Research undertaken during the late 2000s, shows that the rate of expatriate failure may be
dropping.

A(n) ______ is an employee of a multinational company who is from a foreign country, but is
transferred from a foreign subsidiary to the corporation's headquarters. inpatriate

The most indicated reason for expatriate failure with US multinationals is the inability of the
spouse to adjust.

Which scenario is an example of expatriate failure? Janis, a US citizen, has been sent to Saudi
Arabia to manage an office for Verizon. She is very unhappy and wants to return home.

True or false: Most cases of expatriate failure in Japan are the result of poor working conditions.
False

Tom's company hired three individuals from the US to work in its plant based in Japan.
Unfortunately, at the end of six months, all three of the employees ended up quitting because
they did not like adhering to the Japanese principles in place at the plant. This demonstrates
______. expatriate failure

According to research, a primary reason managers now turn down international assignments is
_____. a spouse's career

According to the text, the costs of expatriate failure for the parent company might be as much as
______ times the expatriate's annual domestic salary plus the cost of relocation. three

One of the four dimensions that Mendenhall and Oddou identified as predicting success in a
foreign posting is perceptual ability

Mendenhall and Oddou's dimension known as ______ fosters how an expatriate feels about
himself or herself and indicates their confidence level. self-orientation
According to research done by R. L. Tung, three common reasons US multinationals experience
expatriate failure include: manager's personal or emotional maturity
inability to cope with larger overseas responsibilities
inability of spouse to adjust

An expatriate's willingness to use the ____ (home or host?) country language is the definition of
willingness to communicate within the others-orientation. host

Three major reasons for expatriate failure in Japan include: Lack of technical competence
Inability of spouse to adjust
Inability to cope with responsibilities

What three things are mentioned in the text as reasons spouses fail to adjust to international
postings? loss of network of friends
unable to work
language differences

What are the four dimensions identified by Mendenhall and Oddou that predict success in a
foreign posting? perceptual ability
self-orientation
others-orientation
cultural toughness

Based on Mendenhall and Oddou's dimension known as _____ the more effectively an expatriate
can interact with host-country nationals, the more likely he or she is to succeed. others-
orientation

Expatriates with high self-esteem, self-confidence, and mental well-being are more likely to
succeed in a foreign posting. Which of Mendenhall and Oddou's dimensions does this represent?
Self-orientation

As defined in the text, perceptual ability is synonymous with the ability to ______.
empathize

Developing steadfast friendships with host-country nationals is an aspect of which dimension in

Mendenhall and Oddou's model? Others-orientation

According to Mendenhall and Oddou, ______ refers to the relationship between the foreign
country and how well an expatriate can deal with living there. cultural toughness

What two factors are particularly important in the others-orientation dimension identified by
Mendenhall and Oddou? Willingness to communicate
Relationship development

According to some researchers, a manager who demonstrates cognitive complexity and a

cosmopolitan outlook has a(n) global mindset
Which dimension identified by Mendenhall and Oddou refers to understanding why people of
other countries behave the way they do? Perceptual ability

Once a manager has been selected for an international posting, the next step is to train him or
her in the responsibilities of the specific job.

Jacob's company assigned him to work in Indonesia for three years. He and his family moved
from their home in Atlanta to Indonesia and quickly adapted to their new living arrangements.
Mendenhall and Oddou would say that Jacob demonstrates ______. cultural toughness

Which two types of training have been found to reduce expatriate failure? Language training
Cultural training

Eleanor's company is providing her with training in the social and business practices of the
country of Morocco. She will be working there for the next two years and it is important for her
to understand these practices. This demonstrates expatriate ______ training. cultural

_____ is considered the language of world business. English

According to the text, what three things help managers develop a global mindset? Grow up in a
bicultural family
Learn foreign languages as a part of family life
Live in a foreign country

When the Petersons were posted to Thailand for a management opportunity, they quickly joined
the expatriate community to learn the ins and outs of living in the Thai culture. Their actions
represent a form of ______ training. practical

Once an expatriate manager has been selected, what is the next step in the management
development process? training

The process that involves preparing expatriate managers to return to their home-country
organization is called ______. repatriation

Expatriate failure can be reduced through training, but despite the known benefits of training,
one study showed that only about ______ of managers sent on an expatriate assignment receive
training prior to departure. 30%

True or false: Repatriated employees are guaranteed the same job with the same company when
they return to the home country. False

In her new position as global marketing manager, Shayla will be interacting with local managers
to develop marketing campaigns. Shayla wants to be able to understand the viewpoints of each of
these managers. Which type of training will best help Shayla be successful in her interactions
with host-country nationals? cultural
Companies using a _____ strategy are more likely to foster management development as these
managers must be able to detect pressures for local responsiveness. Transnational

True or false: Language training can help improve an employee's effectiveness in a foreign
posting. True

A system that is used to evaluate the performance of managers against stated criteria a firm
considers necessary to attain a competitive advantage is called a(n) ______ system.
performance appraisal

A company that helps the expatriate manager and family ease into day-to-day life in the host
country by ensuring access to a support network of friends is providing ______ training.
practical

______ should be seen as the final link in the process of selection and training expatriate
managers. Repatriation

Host-nation managers may exhibit a form of ______ bias as a result of their own cultural frame
of reference when giving a performance appraisal to an expatriate. Unintentional

According to a study on repatriated employees, 40% of them leave their firms within 3
years of arriving home.

True or false: Hard data allows a manager to evaluate an expatriate based on things such as
cultural awareness and the ability of the expatriate to work with local managers. False

More and more international businesses are incorporating management development techniques.
This is especially evident in companies using a(n) _____ strategy. transnational

A firm's performance appraisal systems are a critical part of its _____ systems. control

A problem that arises when a home-office manager evaluates the performance of an expatriate is
______, which can be alleviated by receiving input from on-site managers.cultural bias

The two issues that impact compensation practices in an international business are _____ and
_____. how expatriate managers should be paid.
how compensation should be adjusted to reflect economic circumstances.

In many cases, which two groups are responsible for evaluating the performance of expatriate
managers? Home-office managers
Host-nation managers

The lack of a manager's mobility among national operations in ______ firms implies that pay can
and should be kept country-specific. polycentric
Kevin's evaluation of the performance of his international manager based in Belgium was based
solely on the profitability and market share established by the office. Kevin used ______ data in
his evaluation. hard

Saturn Energy Corp. carefully examined the cost of living in the Netherlands before it
determined compensation for the manager it was sending from the US. It wanted to be sure the
manager would be able to enjoy the same standard of living in the Netherlands as at home. The
company is using the _____ approach to determine compensation. balance sheet

According to most expatriates, more weight should be given to the ______ manager's evaluation
than to the ______ manager's assessment during a performance evaluation.on-site; off-site

It typically costs a firm _____ to post someone to a foreign country than what it costs to keep
that person in the home office. more

When focusing on the strategic perspective, no matter what compensation system is used,
international managers should be rewarded for following the corporate strategy.

Recent survey results suggest that US CEOs earn roughly ______ -times the pay of non-US
CEOs. two

Foreign service premiums typically range from ______ to ______ of base salary after tax.10%;
30%

The ______ approach to expatriate compensation seeks a balance of purchasing power between
the home and host countries. balance sheet

When Trevor's company transferred him to Tokyo, it provided him with a compensation package
that included a(n) ______ allowance to ensure that Trevor would live in the same manner as he
did at home. cost of living

What are three components of a typical expatriate compensation package? Benefits

Foreign service premium
Tax differentials

The four types of allowances that are often included in an expatriate's compensation are
hardship, housing, cost of living, and ______. education

Often an expatriate will receive extra compensation for working outside his or her country of
origin. This is referred to as a foreign service premium

When an expatriate is sent to a country where basic amenities such as health care, schools, and
retail stores are minimal compared to the employee's home country, a company will often
provide the expatriate with a(n) ______ allowance. hardship
Double taxation can be an issue for an expatriate when a(n) ______ tax treaty is not in place.
reciprocal

Which type of allowance ensures that an expatriate will enjoy the same standard of living in a
foreign post as he or she would at home? Cost-of-living

How are medical and pension benefits typically treated for expatriates? Many firms provide
the same level of benefits they would receive at home.

What are two allowances that are typical in expatriate compensation? Education
Housing

It has been evidenced that the presence of diversity in the workplace increases employee
satisfaction. The text notes that in the case of minority workers, improved satisfaction occurs
when representation exceeds at least _____ of the workforce. 15%

A(n) ______ allowance is typically provided to an expatriate who is sent to a location that is
deemed difficult because of a lack of basic services or amenities. hardship

The imbalance that is present between men and women in the workplace tends to get _____
within upper levels of an organization. bigger

After she accepted the foreign posting for her company, Alysha realized that there wasn't a
reciprocal tax treaty with the host government. This means that Alysha will have to pay
income tax in both nations

The ______ function of an international firm usually addresses international labor relations.
HRM

Providing medical and pension benefits for expatriates may be ______ costly for the firm
because benefits are not tax deductible out of the country. more

The main way unions gain bargaining power is by ______ within a company. disrupting
production

The threat to unions from an MNC keeping highly-skilled tasks in the home country and farming
out the low-skilled tasks to foreign plants is that it is ____ (easy or hard?) for the company to
switch production facilities, reducing the bargaining power of organized labor. easy

What are two ways a diverse workforce will improve workplace performance? diversity can
increase employee satisfaction about the workplace
a diverse customer set may appreciate interacting with similarly diverse employees

Organized labor _____ had much success in responding to the bargaining power of MNCs.
has not
Based on the findings of the Mercer study discussed in the text, it appears that today, women are
_____ at all levels in the labor force around the world. Underrepresented

What group benefited from the establishment of international trade secretariats in the 1960s?
organized labor

The HRM function tries to ______ between the firm and organized labor. minimize conflict

In ______, most union leaders take a moderate political stance. Germany

What are two ways unions disrupt production and derive their bargaining power? Strikes
Refusing to work overtime

Domestic unions encounter particular challenges with multinational firms. What are three of
those challenges? the company can move production to another country
an international company can import employment practices and contractual agreements from its
home country
only low-skilled tasks might be sent to another country

What three actions has organized labor attempted in order to deal with the increased bargaining
power of MNCs? establish international labor organizations
lobby for national legislation to restrict MNCs
achieve international regulations on MNCs

______ were established in the 1960s to allow unions to bargain transnationally with MNCs.
International trade secretariats

True or false: Today, the level of centralized input into labor relations practices is increasing.
True

In ______, many unions are controlled by left-wing socialists who view collective bargaining as
a form of class conflict. Italy

Historically, most international businesses ______ the labor relations duties to local managers
because labor laws and union power varied so much between countries. decentralized