International Management Final Exam

A global firm’s success or failure is increasingly dependent upon ________, which cannot be duplicated.
Human Resources
According to the “Best International Human Resource Management Practices Project,” which of the following is a skill sought universally in the selection process?
Getting along with other
According to research, ________ has been the most frequently cited reason for the failure of expatriate managers who work in foreign subsidiaries of U.S. or European companies.
Inability of the spouse to adjust
All of the following are most likely components of an expatriate’s total compensation package EXCEPT ________.
Performance based pay
Which of the following terms refers to employees who work and live in a foreign country but remain citizens of the country where the employing organization is headquartered?
Expatriates
A state of disorientation and anxiety that results from not knowing how to behave in an unfamiliar culture is called ________.
Culture Shock
Which of the following is the most likely reason that Japanese expatriates are successful?
All of the above
Recruiting managers from Latin America for a position in Brazil is an example of which staffing approach?
Regiocentric
The direct cost alone of a failed expatriate assignment is estimated to be ________.
$200,000 – $1.2 million
Fred, an American, works as a manager at his firm’s headquarters in New York. He recently learned that he has been assigned to manage the firm’s subsidiary office in Tokyo and that he will be relocating to Japan within the next six weeks. This is an example of the ________ staffing approach.
Ethnocentric
….. is/are the most common reasons given by Mexican workers for absenteeism and for failing to return to work.
Family Reasons
…… involves the ability to inspire and influence the thinking, attitudes, and behavior of people anywhere in the world.
Effective Global Leadership
Effective human resource management of a company’s global cadre ends with….
successful repatriation of the executive into company headquarters
In the Middle East, …….plays a major role in all aspects of life, including work
Religion
Reverse culture shock occurs primarily because of the difficulty of……..
Reintegrating into the organization
There are various categories of resources, both people and processes, which IHR managers and others must develop and maintain; in particular it is essential for them to…..
Develop effective global management teams
Which of the following is the primary benefit for a firm that carefully manages its expatriates’ careers?
retaining managers with global experience and skills
Which of the following is true, according to the MOW research study on work centrality?
The Japanese hold work to be very important in their lives
As women continue to move up the corporate ladder, the accompanying spouse is often male, estimated at more than …… percent.
25
For most people, the basic meaning of work is tied to ………
Economic Necessity
Key managerial positions are filled with people from headquarters, i.e., parent-country nations (PCNs).
Enthnocentric
Enthnocentric Advantages
PCN familiarity with company goals products, technology, policies, and procedures.

Dealing with inadequate local managerial skills and of maintaining close control

Enthnocentric Disadvantages
Lack of opportunities and development for local managers, and poor adaptation and lack of effectiveness of expatriates in foreign countries
Often used with a multinational strategy and fills key positions with host country nationals (HCNs).

HCNs are local managers hired to fill key positions in their own country

Polycentric
Polycentric Advantages
Helps companies to “act local”, can be less expensive than using PCNs, and can help stave off problems in sensitive political situations.

Achieved by acquiring foreign firms

Polycentric Disadvantages
Polycentric approach include difficult coordinating activities and goals between the subsidiary and parent company, conflicting loyalties from local mangers, and headquarters managers do not gain overseas experience.
The best managers are recruited from within or outside of the company, regardless of nationality (i.e., third county nationals (TCNs).
Global Staffing
Global Staffing Advantages
Providing a greater pool of qualified and willing applicants from which to choose, which can further develop a global executive cadre.

TCNs tend to more culturally flexible, bi or multilingual, and viewed as an acceptable compromise between headquarters and local managers.

Can be more cost effective to transfer and pay managers form some countries than from others because their pay scale and benefits packages are lower.

Global Staffing Disadvantages
Global staffing approach is easier said than done, as there can difficulty in finding high-quality manager who are willing to transfer frequently around the world.
Truly becoming global and move away from the concepts of host and home country
Transpatriates
Recruiting is done on a regional basis.

Approach can produce a mix of PCNs, HCNs, and TCNs depending on the needs of the company or the product strategy.

Regiocentric
5 Expatriate Success Factors
1. Job Factor
2. Relational Dimensions
3. Motivational State
4. Family Situation
5. Language Skills
Contingency Model of Selection/Training Variable
1. Area Studies
2. Culture Assimilators
3. Language Training
4. Sensitvity Training
5. Field experiences
Contributions to expatriate Failure
a. Poor selection
b. Poor preparation and planning from entry and reentry transitions of the manager and his or her family.
c. Adjustment of spouse
d. Insufficient compensation and financial support
e. Poor programs for career support and repatriation
4 Stages of Culture Shock
1. Honeymoon phase
2. Irritation and Hostility Phase
3. Gradual Adjustment
4. Biculturalism
Includes positive attitudes and excitement and may last up to several weeks.
Honeymoon Phase
Crisis stage when cultural differences result in problems at home and work.

Homesickness, and many expatriates never get past this phase.

Irritation and Hostility Phase
Recovery in which the expatriate begins to understand and predict patterns of behavior, use the language, and accepts his or her new life
Gradual Adjustment
Expatriate and family members grow to accept and appreciate local people and practices and are able to function effectively in two cultures.

Many people never get to this stage, and but operate acceptable at the third stage

Biculturalism
Manger is transferred to another part of the country where there are cultural differences

The “shock” comes from feeling like an “immigrant” in one’s own country.

Subculture Shock
Training Techniques to assist overseas assignees
1. Area Studies
2. Culture Assimilators
3. Language Training
4. Sensitivity Training
5. Field Experiences
6. Host-family surrogate
Are collections of managers in or from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement
Global Management Teams
Effective human resource management of a company’s global cadre does not end with the overseas assignment. It ends with the successful repatriation of the executive into company headquarters.
Preparation, Adaptation, and Repatriation
Occurs primarily because of the difficulty of reintegrating into the
Reverse Culture
When firms seek the spouses opinion about the international assignment and the expected standard of living

When the spouse initiates his or her own perdeparture training

Role of the expatriate spouse
The exit transition from the home country, the success fo which will be determined largely by the quality of preparation the expatriate has received

The entry transition to the host country, in which successful acculturation will depend largely on monitoring and support

The entry transition back to the home country or to a new host country, in which the level fo reverse culture shock and the ease of re-acculturation will depend on previous stages of preparation and support.

Expatriate Retention
A mentor program to monitor the expatriate’s career path while abroad and upon repatriation

The establishment of a special organizational unit for the purposes of career planning and continuing guidance for the expatriate.

A system of supplying information and maintaining contact with the expatriate so that he or she may continue to feel a part of the home organization

3 phases of transition for successful socialization to new culture
Role of Repatriation in Developing a global management cadre
1. Managerial Skills
2. Tolerance for ambiguity
3. Ability to work with and manage others
4. Learn new technology, local marketing, and competitive information
Represent a horizontal networked structure, with people around the world conducting meetings and exchanging information via the internet, enabling the organization to capitalize on 24-hour productivity.
Virtual Transnational Teams
Advantages of international teams
Cost savings are frequently offset by their challenges.
Disadvantages of international teams
Geographic dispersal, cultural difference, language and communication, and technology.
Women are dis-proportionally underrepresented in expatriate assignments

Different opportunities for women may reflect the cultural expectations of the host countries

Role of women in international management
Japanese women at work statistics
60% of women not employed
8.9% represent women as managerial workers
Refers to the process through which managers and workers determine their workplace relationships. The process may be though verbal agreement or through a union’s written labor contract, which has been reached through collective bargaining between workers and managers.
Labor Relations
The participation of labor in the affairs of the firm, especially as this affects performance and well-being

The role and impact of unions in the relationship

Specific human resource policies in terms of recruitment, training, and compensation

3 main dimensions of the labor management relationship
Cross-cultural Motivation
1. High uncertainty avoidance
2. High Power Distance
The Meaning of Work
a. A needed income
b. Interest and satisfaction
c. Contacts with others
d. A way to serve society
e. A mean s of keeping occupied
f. Status and prestige
g. Thai work for work is ngan, which is the same as the word for play
Islamic Work Ethic
a. Laziness is a vice
b. Dedication to work is a virtue
c. Justice and generosity in the workplace are necessary
d. Life has no meaning without work
e. More leisure time is good for society
Motivation in mexica
a. Family is of central importance
b. Males – work is its ability to help them fulfill breadwinner
c. Motivation occurs through training examples, cooperation, and subtle shaming
d. Everyone works together
Global Leaders role and environment
a. Involves the ability to inspire and influence the thinking, attitudes, and behavior or people anywhere in the world.
b. Representative of the parent firm
c. The manager of the local firm
d. Resident of the local community
e. Citizen of either the host country or of another country
f. A member of a profession
g. Member of a family
Effective leadership varies across cultures

People have accepted images of what a leader should be

Cross-Culture Leadership
Needs are determined largely by the cultural context of values and attitude in which he or she lives and works. The needs then determine the meaning of work for that employee. That means in that employees life can then lead to the design of a culturally appropriate jbo context and reward system to guide individuals and group employee job behavior to meet mutual goals.
Role culture plays in motivational process
5 categories of the reward system in all culture
1. Financial
2. Social Status
3. Job Content
4. Career
5. Professional