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web.groovymark@gmail.com
- December 14, 2024
Question 21
What does “human capital” refer to in multinational enterprises?
a) The total number of employees in a global subsidiary
b) The knowledge, skills, and abilities of employees that contribute to organizational success
c) The financial capital invested in a foreign subsidiary
d) The centralization of decision-making at headquarters
Correct Answer: b) The knowledge, skills, and abilities of employees that contribute to organizational success
Explanation: Human capital refers to the collective knowledge, skills, and abilities of employees that add value to a multinational enterprise, making effective talent management a key component of global HR strategy.
Question 22
What is the significance of “workforce mobility” in a global HR context?
a) Reducing the cost of expatriate assignments
b) The ability of employees to move between different countries and locations for work
c) Centralizing decision-making at headquarters
d) Standardizing compensation packages across subsidiaries
Correct Answer: b) The ability of employees to move between different countries and locations for work
Explanation: Workforce mobility refers to the capacity of employees to relocate for international assignments, a key element of global HR strategies that allows multinational enterprises to deploy talent where it is needed most.
Question 23
In global HR, what does “regiocentrism” mean?
a) Centralizing HR practices at headquarters
b) Adapting HR practices regionally, with a focus on similarities between countries in the same region
c) Implementing home-country practices in all global subsidiaries
d) Hiring third-country nationals for key global positions
Correct Answer: b) Adapting HR practices regionally, with a focus on similarities between countries in the same region
Explanation: Regiocentrism involves managing HR practices with a regional approach, where the focus is on the similarities and common practices across countries within the same geographic region, balancing local responsiveness and global integration.
Question 24
What is the role of “virtual teams” in multinational enterprises?
a) Teams that work together in the same physical location
b) Geographically dispersed teams that collaborate using technology across different countries
c) Teams that centralize decision-making at headquarters
d) Teams that standardize compensation packages across subsidiaries
Correct Answer: b) Geographically dispersed teams that collaborate using technology across different countries
Explanation: Virtual teams are composed of employees who are located in different countries or regions but collaborate and communicate through digital platforms, making them essential for multinational enterprises operating across time zones and borders.
Question 25
What is the impact of “cultural diversity” on global HR management?
a) It reduces the need for expatriate assignments
b) It introduces new challenges in managing cross-cultural communication, decision-making, and employee relations
c) It centralizes decision-making at headquarters
d) It standardizes compensation packages across subsidiaries
Correct Answer: b) It introduces new challenges in managing cross-cultural communication, decision-making, and employee relations
Explanation: Cultural diversity in global HR management presents both opportunities and challenges, as it requires sensitivity to different cultural values, communication styles, and expectations, affecting how employees collaborate and interact across borders.
Question 26
What is the purpose of “knowledge sharing” in multinational enterprises?
a) To centralize decision-making at headquarters
b) To facilitate the transfer of information, skills, and expertise across different countries and subsidiaries
c) To standardize compensation packages across subsidiaries
d) To reduce the cost of expatriate assignments
Correct Answer: b) To facilitate the transfer of information, skills, and expertise across different countries and subsidiaries
Explanation: Knowledge sharing enables multinational enterprises to leverage the expertise and experience of employees across different locations, improving innovation, problem-solving, and overall organizational performance.
Question 27
What is the significance of “local responsiveness” in global HR strategy?
a) Reducing the cost of expatriate assignments
b) The ability of multinational enterprises to adapt to local markets, cultures, and regulations in different countries
c) Centralizing decision-making at headquarters
d) Standardizing compensation packages across subsidiaries
Correct Answer: b) The ability of multinational enterprises to adapt to local markets, cultures, and regulations in different countries
Explanation: Local responsiveness refers to how well multinational enterprises can tailor their products, services, and HR practices to meet the specific needs and preferences of the local market, ensuring compliance with local regulations and customer expectations.
Question 28
What is the role of “training and development” in global HR management?
a) To reduce the cost of expatriate assignments
b) To enhance employees’ skills and knowledge to meet the needs of the global organization
c) To centralize decision-making at headquarters
d) To standardize compensation packages across subsidiaries
Correct Answer: b) To enhance employees' skills and knowledge to meet the needs of the global organization
Explanation: Training and development programs are essential in global HR management, helping employees acquire the skills, knowledge, and competencies needed to operate effectively in the global marketplace
Question 29
What is “cosmopolitanism” in the context of global HR ethics
a) The belief that what is right or wrong is defined by society
b) The ability to reconcile opposing ethical choices and find common ground across cultures
c) The process of centralizing decision-making at headquarters
d) The reduction of compensation packages for expatriates
Correct Answer: b) The ability to reconcile opposing ethical choices and find common ground across cultures
Explanation: Cosmopolitanism refers to the approach of finding ethical solutions that take into account different cultural perspectives and values, promoting understanding and compromise in multinational enterprises.
Question 30
In global HR, what does “divestiture” mean?
a) The process of acquiring a foreign subsidiary
b) The process of separating or selling off a business unit or subsidiary
c) The centralization of decision-making at headquarters
d) The standardization of compensation packages across subsidiaries
Correct Answer: b) The process of separating or selling off a business unit or subsidiary
Explanation: Divestiture involves the sale or disposal of a subsidiary or business unit, often as part of a restructuring strategy in multinational enterprises.
Question 31
What is the significance of “corporate governance” in global HR?
a) It centralizes decision-making at headquarters
b) It provides a framework for how decisions are made in an organization, ensuring accountability and transparency
c) It reduces the cost of expatriate assignments
d) It standardizes compensation packages across subsidiaries
Correct Answer: b) It provides a framework for how decisions are made in an organization, ensuring accountability and transparency
Explanation: Corporate governance establishes the rules and practices for how decisions are made within a company, ensuring that management is accountable to stakeholders and that ethical standards are maintained across global operations.
Question 32
What does “standardization” refer to in global HR management?
a) The ability to adapt HR practices to local conditions
b) The application of the same HR policies and practices across all subsidiaries of a multinational enterprise
c) The reduction of expatriate assignments
d) The centralization of decision-making at headquarters
Correct Answer: b) The application of the same HR policies and practices across all subsidiaries of a multinational enterprise
Explanation: Standardization involves implementing consistent HR practices across all locations of a multinational enterprise to ensure alignment with corporate objectives, simplify processes, and maintain equity among employees.
Question 33
What is “organizational design” in the context of multinational enterprises?
a) The process of developing new products and services
b) The formal arrangement of components such as headquarters, subsidiaries, and business units
c) The centralization of decision-making at headquarters
d) The reduction of compensation packages for expatriates
Correct Answer: b) The formal arrangement of components such as headquarters, subsidiaries, and business units
Explanation: Organizational design refers to how multinational enterprises structure their operations, including the relationships between headquarters and subsidiaries, to achieve strategic objectives and maintain efficient global operations.
Question 34
What is the role of “ethical absolutism” in global HR ethics?
a) The belief that what is right or wrong is defined by society
b) The belief in universal ethical standards that apply in all circumstances and cultures
c) The process of centralizing decision-making at headquarters
d) The reduction of compensation packages for expatriates
Correct Answer: b) The belief in universal ethical standards that apply in all circumstances and cultures
Explanation: Ethical absolutism holds that there is a single set of ethical principles that apply universally, regardless of cultural differences, guiding multinational enterprises in maintaining consistent ethical behavior across global operations.
Question 35
What is the “iron law of social responsibility”?
a) The belief that companies should focus solely on profit maximization
b) The principle that a company’s social responsibility is commensurate with its social power
c) The centralization of decision-making at headquarters
d) The reduction of expatriate assignments
Correct Answer: b) The principle that a company's social responsibility is commensurate with its social power
Explanation: The iron law of social responsibility states that as a company gains more power and influence in society, its social responsibility increases proportionally, obliging it to contribute positively to the communities in which it operates.
Question 36
What is “institutional collectivism” in the context of cultural dimensions?
a) The degree to which individuals prioritize personal goals over group goals
b) The extent to which a society relies on social norms and rules to regulate behavior
c) The process of centralizing decision-making at headquarters
d) The standardization of compensation packages across subsidiaries
Correct Answer: b) The extent to which a society relies on social norms and rules to regulate behavior
Explanation: Institutional collectivism refers to the degree to which a society values collective action and relies on formal institutions, such as laws and regulations, to guide behavior and decision-making in both social and business contexts.
Question 37
What is the role of “flexibility-security nexus” in European labor markets?
a) It focuses on centralizing decision-making at headquarters
b) It emphasizes balancing labor market flexibility with employee security to promote competitiveness
c) It standardizes compensation packages across subsidiaries
d) It reduces the cost of expatriate assignments
Correct Answer: b) It emphasizes balancing labor market flexibility with employee security to promote competitiveness
Explanation: The flexibility-security nexus seeks to provide the necessary labor market flexibility that allows businesses to compete globally while also ensuring that employees retain legislative protections and job security.
Question 38
What is the significance of “global mindset development” in multinational enterprises?
a) It reduces the need for expatriate assignments
b) It equips employees with the ability to understand and appreciate cultural differences in the global context
c) It centralizes decision-making at headquarters
d) It standardizes compensation packages across subsidiaries
Correct Answer: b) It equips employees with the ability to understand and appreciate cultural differences in the global context
Explanation: Global mindset development prepares employees to navigate and succeed in the diverse and interconnected global business environment by fostering cultural sensitivity, adaptability, and a broader worldview.
Question 39
What is the purpose of “global HR information systems” (HRIS)?
a) To centralize decision-making at headquarters
b) To manage and store global HR data, providing a centralized platform for HR processes
c) To standardize compensation packages across subsidiaries
d) To reduce the cost of expatriate assignments
Correct Answer: b) To manage and store global HR data, providing a centralized platform for HR processes
Explanation: Global HR information systems (HRIS) provide a centralized, technology-driven platform for managing HR data and processes across multiple countries, ensuring consistency and efficiency in global HR operations.
Question 40
What is the “power distance” dimension in Hofstede’s cultural framework?
a) The degree to which individuals prioritize personal goals over group goals
b) The extent to which a society accepts unequal distribution of power and hierarchy in organizations
c) The process of centralizing decision-making at headquarters
d) The standardization of compensation packages across subsidiaries
Correct Answer: b) The extent to which a society accepts unequal distribution of power and hierarchy in organizations
Explanation: Power distance refers to how comfortable individuals and societies are with unequal power dynamics, influencing workplace hierarchies, decision-making authority, and employee relationships within multinational enterprises.
