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web.groovymark@gmail.com
- December 14, 2024
Question 01
Which of the following best describes “institutional collectivism”?
a) The extent to which individuals in a society express pride and loyalty in organizations or families
b) The degree to which social institutions minimize unpredictability of future events through rules and norms
c) The extent to which individuals prioritize group harmony over personal goals
d) The degree to which societies tolerate uncertainty and ambiguity
Correct Answer: b) The degree to which social institutions minimize unpredictability of future events through rules and norms
Explanation: Institutional collectivism refers to the extent to which societies enforce social rules and norms to alleviate uncertainty and instability in the future, often through government, religious, or other institutional frameworks.
Question 02
What is the primary focus of “humane orientation” in Hofstede’s cultural dimensions?
a) The level of assertiveness and competitiveness in a society
b) The extent to which individuals are rewarded for being altruistic and caring
c) The emphasis on achieving personal goals over group harmony
d) The degree to which societies value strict gender roles
Correct Answer: b) The extent to which individuals are rewarded for being altruistic and caring
Explanation: Humane orientation measures how much a society rewards individuals for being altruistic, generous, and caring toward others, emphasizing values like fairness, kindness, and social support.
Question 03
Which of the following terms describes the tendency for firms to adopt a combination of local and global HR practices?
a) Ethnocentrism
b) Polycentrism
c) Cross-vergence
d) Convergence
Correct Answer: c) Cross-vergence
Explanation: Cross-vergence refers to the blending of cultural systems from different countries, resulting in a hybrid of local and global HR practices that meet both local needs and global standards.
Question 04
What does the concept of “local responsiveness” involve in international HRM?
a) Centralizing decision-making at headquarters
b) Customizing HR practices to meet the specific needs of the local workforce
c) Hiring only host country nationals for senior leadership roles
d) Standardizing HR policies across all global subsidiaries
Correct Answer: b) Customizing HR practices to meet the specific needs of the local workforce
Explanation: Local responsiveness is the practice of adapting HR policies and practices to meet the specific cultural, legal, and market conditions in each country where a company operates.
Question 05
What is a key advantage of using “balance sheet” compensation for expatriates?
a) It simplifies the expatriate compensation process
b) It ensures that expatriates maintain a standard of living similar to their home country
c) It reduces overall costs for the company
d) It standardizes compensation packages across all subsidiaries
Correct Answer: b) It ensures that expatriates maintain a standard of living similar to their home country
Explanation: The balance sheet approach aims to maintain expatriates’ standard of living by providing allowances and adjustments that cover the cost of living differences between their home and host countries.
Question 06
Which of the following best describes “codetermination”?
a) A system where employees are represented in the decision-making process of a company
b) A strategy for determining global compensation for expatriates
c) The process of localizing global HR practices to suit cultural norms
d) A method for evaluating the performance of inpatriates
Correct Answer: a) A system where employees are represented in the decision-making process of a company
Explanation: Codetermination refers to the practice of allowing employees to participate in significant corporate decisions, often by including employee representatives on the company’s board of directors.
Question 07
What does “in-group collectivism” measure in the context of cultural dimensions?
a) The extent to which societies reward innovation and change
b) The degree to which individuals express pride and loyalty in their organizations or families
c) The emphasis on individual achievement and personal goals
d) The level of tolerance for ambiguity and risk in decision-making
Correct Answer: b) The degree to which individuals express pride and loyalty in their organizations or families
Explanation: In-group collectivism refers to how much individuals prioritize loyalty and commitment to their families, teams, or organizations, often placing group harmony above personal goals.
Question 08
What is the main purpose of “host-country national” staffing in international assignments?
a) To bring in expatriates from the headquarters to manage subsidiaries
b) To use local talent who understand the cultural and legal environment of the host country
c) To hire third-country nationals for temporary roles
d) To centralize decision-making at the parent company level
Correct Answer: b) To use local talent who understand the cultural and legal environment of the host country
Explanation: Host-country nationals (HCNs) are employed because they possess local knowledge and understanding of the cultural and legal context, which can improve subsidiary operations and ensure compliance with local regulations.
Question 09
In international human resource management, what does “third-country national” (TCN) refer to?
a) An expatriate from the home country working in a foreign subsidiary
b) A national from a country other than the parent or host country, employed by a multinational enterprise
c) A local employee working at the parent company’s headquarters
d) An employee hired for short-term assignments in the host country
Correct Answer: b) A national from a country other than the parent or host country, employed by a multinational enterprise
Explanation: Third-country nationals (TCNs) are individuals from countries other than the parent or host country, often employed for their specialized skills or experience in international assignments.
Question 10
What is one of the main benefits of adopting a “regiocentric” approach to staffing in multinational enterprises (MNEs)?
a) It prioritizes hiring from the parent country
b) It allows for the use of local talent across a region to manage subsidiaries
c) It ensures that only expatriates are hired for leadership roles
d) It centralizes decision-making at the headquarters
Correct Answer: b) It allows for the use of local talent across a region to manage subsidiaries
Explanation: The regiocentric approach focuses on hiring talent from within a region, rather than strictly from the home or host country, allowing for a broader talent pool and more regional integration.
Question 11
What does the “adaptive strategy” of international performance management involve?
a) Using a standardized global approach to performance management
b) Customizing performance management practices to align with the cultural norms of each foreign unit
c) Combining local and global performance management practices
d) Conducting performance reviews only at the headquarters
Correct Answer: b) Customizing performance management practices to align with the cultural norms of each foreign unit
Explanation: The adaptive strategy focuses on tailoring performance management practices to reflect the cultural, legal, and business environment of each local subsidiary.
Question 12
What is the purpose of an “equity-based international combination” in multinational enterprises?
a) To form a contractual partnership between two companies
b) To acquire equity in another company, leading to joint ownership and management
c) To create a temporary alliance without legal commitment
d) To standardize compensation and benefits across subsidiaries
Correct Answer: b) To acquire equity in another company, leading to joint ownership and management
Explanation: Equity-based international combinations involve one company purchasing a share in another, leading to shared ownership, management, and decision-making between the two firms.
Question 13
Which of the following best describes a “phantom stock” plan?
a) A type of equity compensation where employees receive company stock at a discounted rate
b) A simulated equity plan where employees are granted fictitious stock units tied to the value of the company’s real stock
c) A plan where employees are allowed to purchase company stock before an IPO
d) A retirement plan that includes company stock as part of the benefits package
Correct Answer: b) A simulated equity plan where employees are granted fictitious stock units tied to the value of the company’s real stock
Explanation: Phantom stock plans grant employees units that reflect the company’s stock value, but no actual shares are issued. Employees benefit from any increase in stock value, often as part of their compensation package.
Question 14
What is the primary challenge in managing “divergence” in multinational enterprises (MNEs)?
a) Ensuring that local subsidiaries follow parent company practices
b) Managing the differences in cultural and legal requirements across countries
c) Standardizing compensation packages across all subsidiaries
d) Implementing centralized decision-making at the headquarters
Correct Answer: b) Managing the differences in cultural and legal requirements across countries
Explanation: Divergence refers to the strong influence of local cultural values and practices, which can create challenges for multinational enterprises in standardizing HR practices across various countries.
Question 15
What is one of the key goals of “global workforce analytics” in international human resource management (IHRM)?
a) To reduce the cost of expatriate assignments
b) To analyze workforce data for effective decision-making on a global scale
c) To centralize payroll and benefits for all subsidiaries
d) To improve performance management in foreign subsidiaries
Correct Answer: b) To analyze workforce data for effective decision-making on a global scale
Explanation: Global workforce analytics involves using data and metrics to evaluate workforce trends, performance, and HR practices across different regions, helping multinational enterprises make informed decisions.
Question 16
Which of the following describes the “cafeteria plan” in international compensation?
a) A standardized compensation package offered to all expatriates
b) A plan that allows employees to choose from a range of benefit options within a set budget
c) A system that provides expatriates with free meals during assignments
d) A method of calculating the cost of living allowance for expatriates
Correct Answer: b) A plan that allows employees to choose from a range of benefit options within a set budget
Explanation: A cafeteria plan gives employees the flexibility to select benefits that best suit their needs from a range of available options, allowing for greater customization of their compensation package.
Question 17
What does the concept of “flexibility-security nexus” refer to in the European labor market?
a) The balance between providing flexible working conditions and ensuring job security for employees
b) The integration of expatriates into host country labor markets
c) The level of control headquarters have over local subsidiaries
d) The process of ensuring legal compliance in different labor markets
Correct Answer: a) The balance between providing flexible working conditions and ensuring job security for employees
Explanation: The flexibility-security nexus refers to the balance required in European labor markets to remain competitive globally, offering flexible working conditions while still maintaining job security protections for employees.
Question 18
Which of the following is a key benefit of using “region-based” compensation plans for expatriates?
a) They reduce the complexity of managing expatriate compensation
b) They ensure that expatriates are compensated equally across all countries
c) They adjust compensation based on the region’s cost of living and market conditions
d) They centralize expatriate compensation decisions at the headquarters
Correct Answer: c) They adjust compensation based on the region’s cost of living and market conditions
Explanation: Region-based compensation plans allow companies to tailor expatriate compensation packages according to the specific economic conditions and cost of living in each region, ensuring fairness and competitiveness.
Question 19
In the context of global HR, what is meant by “geocentrism”?
a) A focus on hiring only local talent
b) A strategy that seeks to integrate local and global best practices
c) An emphasis on using home-country HR policies across all subsidiaries
d) A preference for hiring only host-country nationals
Correct Answer: b) A strategy that seeks to integrate local and global best practices
Explanation: Geocentrism involves adopting the best practices from around the world, regardless of their origin, to create a unified approach to managing HR in multinational enterprises.
Question 20
Which of the following is a characteristic of “second-generation expatriates”?
a) Employees who are naturalized citizens of their current country of residence
b) Employees who have previously completed an international assignment and are sent on another
c) Employees who were born in the host country but work for the parent company
d) Employees who were born to expatriate parents and are sent on foreign assignments
Correct Answer: d) Employees who were born to expatriate parents and are sent on foreign assignments
Explanation: Second-generation expatriates are individuals born to expatriate parents and sent on their own international assignments, often leveraging their unique cultural and international experience.
