IHRM-International Human Resource Management Quiz

An expatriate
Is an employee transferred out of their home base to the firm’s international operation.
Which of the following is not a category of an employee in an international firm?
Multi-country national
Which department of an organization is the major user of language translation services?
Human resources
Tax equalization policies concerning expatriates are designated to:
Ensure no tax incentives are associated with any particular international assignment.
The direct costs of international assignment failures can be as high as __ times the costs of those for similar failure in a domestic assignment:
One major difference between domestic and international HRM is
Tax equalization
Which of the following is not a function of internal resource management?
Government regulations
Which of the following is not a major external factor that influences IHRM?
Regulatory requirements
Cultural difference is not necessarily equivalent to:
National differences
A multi domestic industry is:
One in which competition in each country is essentially independent of other countries
Examples of a global industry include all of the following except:
Series of linked domestic industries in which rivals compete against each other on a worldwide basis is:
Global Industry
Emnic refers to which kind of specific aspect of concepts or behaviours?
What is a key driver for firms seeking international markets?
A small home market
Which ratio is not part of “index of transnationality”?
Foreign debt to total debt
Which of the following is a global mindset?
To formulate and implement HR policies that develop globally oriented staff.
An asymmetric event is
Terrorist attack on 9/11
All of the following is a difference between international and domestic HR
Less involvement in employee lives
What activity in international human resource would not be required in a domestic environment?
Tax equalization
As foreign subsidiaries matures the local HR activities:
Have broadening responsibilities
Which three dimensions are presented in Morgan’s model of IHRM?
Types of employees, countries and human resource activities.
Differences between domestic and international HRM include:
The cultural environment, the extent of reliance of the multi-national on its home country or domestic market and the attitudes of senior management.
Senior managers with little international experience:
Assume that there is a great deal of transferability between domestic and international HRM practices.
Successful internationalizing the HR function require all except:
Global mindset
In Porter’s value-chain model:
HRM is described as a support activity
HRM in the multinational context contains an overlap between elements of:
Cross-cultural management, comparable human resource and industrial relation systems.
A Japanese citizen working in Hong Jong for a Japanese multinational would be classified as:
A parent country national (PCN)
HRM activities include all of the below EXCEPT:
Personal family planning
International HRM is reflected in
The need for a broader perspective
As a foreign subsidiary matures:
The local HR unit’s responsibilities for planning, training and compensation would broaden.
Cross-cultural management research is based on the assumption that:
There are differences in management practices in various countries and the respective environment explains these differences.
A major criticism of cross-cultural management studies is:
The construct of “culture” is undefined or inadequately defined and/or operationalized at the start of the study.
Stein’s concept of culture consists of:
Artefacts, values and assumptions
Hofstede’s cultural dimensions are:
Power distance, uncertainty avoidance, felinity vs. masculinity, individualism vs. collectivism dynamics.
Individualism vs. Collectivism refers to:
The extent to which individual initiative and responsibility to close family is valued in society as contrasted to group initiative and responsibility to an extended definition of family as socially valued.
Under confucianism dynamics, orientations can be either:
Long-term or short-term.
According to the results of the Hofstede study:
US culture is characterized more by individualist behaviour, like Anglo Saxon countries such as Australia or the United Kingdom.
According to Hofstede, some Asian cultures such as Singapore and Hong Kong:
Score high on uncertainty avoidance and low on power distance.
The cultural context impacts HRM practices:
In the HR practice areas of Recruitment, Selection, Training and Development, Compensation and Task Distribution.
Hofstede identifies a strong tendency or masculinity with a high tendency for uncertainty avoidance in:
The German speaking cluster
Hofstede’s approach to cross cultural management research:
Has been the subject of ongoing debate and criticism
The GLOBE research tries to study the complex relationships between:
Culture, leadership behavior, organizational effectiveness, social co-habitation conditions and the economic success of societies.
The GLOBE study survey contains:
Distinguish between practices (as is) and values (should be)
Results from the GLOBE study were used to distinguish _________ cultural regions.
One criticism of the GLOBE study is
The focus of the study is only in three industries – finance, food and telecommunications.
The GLOBE study:
Distinguishes between organizational cultures and national cultures.
The Trompenaars and Hamplen-Turner study distinguishes three overarching aspects of culture, namely:
Relationships between people, the concept of time and the concept of nature
Trommelaars and Hampden-Turner’s cultural dimensions is Ascription vs:
According to Trompenaars and Hampden-Turner, societies that attempt to control nature to a very high degree are described as having:
Internal control
As applied research, the Trompenaars and Hamden-Turner study:
Has not demonstrated validity nor reliability
According to Trompenaars and H-T, members of specified cultures:
Demand precise, unobjective analysis of circumstances and presentation of results
Hall and Hall’s research emphasizes four cultural dimensions:
Context of communications, spatial orientation, the concept of time and information speed
Hall and Hall’s research
Focuses on the relationship between communication and culture
Hall and Hall, Trompenaars and H-T all:
Focus on offering a practical template allowing individuals to perceive and handle cultural differences.
According to researchers like Barry Gerhart:
Cross-cultural research or emphasizes the influence of culture and business practices.
Cultures develop over time:
Such that surface level artefacts may change relatively quickly, but deeper behaviors and assumptions may take much longer to change
One study by Child, reviewing research on the development of cultures concluded:
Studies on the macro level (organizational structure) found evidence for convergence, or the lessening of differences in cultures
Due to growing interdependence and a high flow of migration:
Culture is not confined to a territorially limited area.
Generational changes in world societies:
Result in potential employees who have been brought up with computers and are fast self-organized learners as in Generation Y
“Born Globals” are:
Company formed with the international market in mind
Typically the initial stage of a firm entering international operations is:
Which category of employee is typically used in key sales subsidiary position in a new developing international company:
Parent Country National
The second stage of a new international company typically involves which department:
Which stage of international operations tend to create a separate international division in a company:
Foreign production/service operations
“Miniature replicas” are:
Subsidiaries structured to mirror that of domestic organizations
Many companies in the developmental stage of internationalization will maintain control by:
Placing PCN in all key positions
The “think global, act local” paradox:
Push for local responsiveness toward global integration
A matrix structure:
Integrated its operations across more than one dimension
One advantage of a matrix structure is
brings conflicts of interest out into the open
A major contributing factor of an unmanageable matrix structure is
Dual reporting requirements
The complex network of interrelated activities in a MNE can be described in the following structure:
Transitional strategies of globalization are characterized by:
Organization form that is characterized by an interdependence of resources and responsibilities across all business units.
A common theme between heterarchy, matrix and transnational is
Staff transfers play a critical role in integrations and coordination
The management of a multi-centerer networked organization is:
The following types of units are regarded in a metanational firm EXCEPT:
Sensing unit, magnet unit and marketing unit.
HR functions are described in the following structural forms EXCEPT for:
Matrix HR
The European path approach to a global matrix tends to emphases:
Worldwide product division approach
Korean conglomerates have a strong preference for
Growth-through-acquisition approach
Clan control is defined as
Social control to supplement or replace traditional structure
Multinational firms are divided into the following regional block EXCEPT:
An important forum for the development of personal networks is
Training programs held in regional centres
Social Capital emphasizes the need for
Contacts and ties that facilitate knowledge sharing.
The process of socializing people so that they come to share a common set of values and beliefs that shapes their behaviour is:
Corporate culture
Transition companies are characterized by:
Medium sized corporate HR department
The matrix structure
Is characterized by a manager who belongs to two units at the same time.
Matrix structures:
Requires managers who know the business in general, who has good interpersonal skills and who candela with ambiguities in responsibilities.
Network multinational structures:
Are loosely coupled political systems
The host-country effect
Refers to the extent to which HRM practice in subsidiaries are impacted by the host country context.
The subsidiary as an integrated player
Creates knowledge but at the same time is recipient of knowledge flows.
Cross-boarder alliances are:
Cooperative agreements between two or more firms from a different national background.
A characteristic of a non-equity cross boarder alliance is:
Each party cooperates as a separate legal entity and bears its own liabilities.
Equity modes of foreign operations can be best described as:
Involving a foreign direct investor purchase of shares of an enterprise in a country other than its own
A major reason to engage in a merger or acquisition is to:
Facilitate the rapid entry into a new market
Typical HR problems arising in cross boarder M&A involve all of the following EXCEPT:
Insufficient capital
The due diligence phase of a M&A is:
An in depth analysis of the benefits of the mergers
Integration planning phase of M&A are all of the following except:
Advising management on dealing with people issues.
Advising management on dealing with people issues normally occur in which M&A phase?
Implementation and assessment phase.
One of the largest mergers in history was between:
Chrysler and Daimler Benz
What is defined as a factor which shapes employees priorities and decisions made?
Which of the following would be considers a resource?
Which expatriate role or characteristic is found to be most important for a successful integration in a M&A activity?
A manager’s industry experience
Performance-related pay is more popular in which country?
Which country tends to have the longest recruitment period?
A perceived “unaffordable luxury” in SMEs is:
An International joint venture is defined as
Separate international companies in which the headquarters or controlling parent is outside of the country of operations.
Shortage of working capital to finance exports is a top barrier to access international markets in
M&A conceptual tool which converts resources into valuable goods and services
The HR managers role as an innovator in a IJV means
Identify talent for executing IJV strategies and adapt to changes.
IJV positions called “functional gatekeepers”:
Protect their firms assets in specific functional areas
Which companies have a difficult challenge to enter foreign markets?
Small to medium companies
Internationalization process theory suggest which person has the most impact on internationalization process of a small to medium enterprise (SME):
All of the following are characteristic of a SME human resource development EXCEPT:
No motivation to report and share information
An option for SMEs to improve Human Resource related issues rapidly is to:
Outsource the HR department
A major difference between merger, acquisition and international joint venture is
Ownership identifications
Learning is small to medium (SME) international firms is characterized by:
the use of formal and informal business networks
In their “partnership role” supporting an IJV, HR managers must:
Take all stakeholders’ needs into account and show a thorough understanding of the business and the markets.
The European Commission’s definition of SME is which of the following?
Small company with less than 50 employees
Many international joint ventures (IJV) fail in the long-term due to:
Lack of interest in the human resource management and cross-culutural management aspects of IJV
The best way to address intercultural conflicts is to:
Take explicit measures to build and maintain the identity of the IJV organization.
Ethnocentric organizations are best characterized by:
Key personnel positions are held by headquarter personnel.
All of the following is an approach to managing and staffing subsidiaries EXCEPT:
A sound business reason for pursing an ethnocentric staffing policy is:
Perceived lack of qualified host nationals (HCN)
Polycentric approaches to international staffing:
Uses HCNs to manage subsidiaries and they are often promoted to headquarters.
A disadvantage of a polycentric policy is:
Host-country managers have limited opportunities to gain experience outside of their own country.
A MNE taking a global approach its operations and recognizing that each HQ and subsidiary makes a unique contribution with unique competence is described as:
Hiring host country nationals for a multinational enterprise have the following advantages EXCEPT:
Organizational control and coordination is maintained and facilitated.
The most common reason for an international assignment is:
To fill a skills gap
Key organizational reasons for international staffing assignment include all of the following EXCEPT:
Culture change
“Extended international assignments” are defined as assignments:
Up to 1 year
Employees on oil rigs would usually be classified as which non-standard assignment?
Rotational assignment
An example of an employee working on a contractual assignment of a non-standard is a/an:
R&D project team
Traditional expatriate assignments are referred to as a/an:
Long term assignment
“Bumble Bee” is a description of an expatriate role as:
Transferor of corporate values
Boundary spanning refers to activities that:
Gather information that bridge internal and external organizational contexts.
All of the following describe a non-expatriate EXCEPT:
Person who relocates to another country.
Third Country nationals:
May be better informed than PCN about the host country environment.
Whether a firm chooses ethnocentric, polycentric, regiocentric or geocentric staffing approach depends on:
Context specificites, company specifites, local unit specifites, IHRM practices.
Three key organizational reasons for using the various forms of international assignments are:
Position filling, management development and organizational development.
Recruitment is defined as:
searching for an obtaining job candidates
How is “expatriate failure” usually defined?
Returning home before the period of assignment is completed.
An indirect cost of the failure of an expatriate would be:
Loss of market share
The culture adjustment process in an international assignment can be characterized by:
A “U” shaped curve
The selection process of an expatriate places a heavy reliance on:
Relevant technical skills
The European Union Social Charter allows for
Free movement of citizens of member countries within the EU for work.
A group of multinationals have establish an organization called “Permits Foundation” which:
Promotes the improvement of work permit regulations for spouses of expatriates.
Which language is the common corporate language in the world?
According to the text, common corporate language in MNEs is developed to:
Use language as a way of standardizing reporting systems.
An emerging constraint on the available pool of candidates which is hindering the recruitment and selection process of potential employees for international assignment is:
The frequency of dual career couples.
A family friendly policy to encourage placement of an expatriate which is logical but not always acceptable to multinationals is
Intra-company employment
“Independents” are defined in the text as:
Professional women who are self-selected expatriates
Female expatriates tend to be employed by companies:
With over 1000 employees
A major barrier to the selection of female expatriates was found to be:
The attitudes of HR directors
“Born globals” are
Company formed with the international market in mind