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OSU BUSMHR 2000 - TBChap017

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Chapter 17Global Human Resource Management True / False Questions 1. The human resource management function can help a firm achieve its primary strategic goals of reducing the costs of value creation and adding value by better serving customer needs. True False 2. An expatriate manager is a citizen of one country who is working abroad in one of thefirm’s subsidiaries. True False 3. For a firm to outperform its rivals in the global marketplace, the performance appraisal systems it uses must measure the perceptions that it wants to encourage. True False 4. Organizational architecture refers to an organization's norms and value systems. True False 5. It is believed that a firm attains higher performance when its employees are predisposed toward its value systems by their personality type. True False 6. In international businesses, a geocentric staffing policy is one in which all key management positions are filled by parent-country nationals. True False 7. In international businesses, firms pursue a polycentric staffing policy because they see it as the best way to maintain a unified corporate culture. True False 17-1© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.8. In international businesses, a disadvantage of an ethnocentric staffing policy is that itproduces resentment in host-country nationals. True False 9. An international firm that adopts a polycentric staffing policy is more likely to suffer from cultural myopia. True False 10. In international businesses, a polycentric staffing policy increases the costs of value creation. True False 11. International firms pursuing an ethnocentric staffing policy may be better able to create value from the pursuit of experience curve and location economies than firms pursuing other staffing policies. True False 12. The major drawback with a polycentric staffing policy is the gap that can form between host-country managers and parent-country managers due to language barriers. True False 13. A polycentric staffing approach is effective only for international firms pursuing a transnational strategy and inappropriate for other strategies. True False 14. The fact that many countries want foreign subsidiaries to employ their citizens limits a firm's ability to pursue a geocentric policy. True False 15. For international firms, an ethnocentric staffing approach is compatible with a localization strategy. True False 16. International firms that have a broad geographic scope are the most likely to have a geocentric mind-set. True False 17-2© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.17. Citizens of a foreign country working in the home country of their multinational employer are known as repatriates. True False 18. Expatriate failure represents the failure of a firm's selection policies to identify individuals who will not thrive abroad. True False 19. According to a study by R.L. Tung, the most important reason for expatriate failure among U.S. multinationals is difficulty coping with a new environment. True False 20. According to Mendenhall and Oddou, human resource managers must equate domestic performance with overseas performance potential. True False 21. Expatriate managers who lack others-orientation tend to treat foreign nationals as if they were home-country nationals. True False 22. According to Mendenhall and Oddou, expatriates with perceptual ability tend to be judgmental and evaluative in interpreting the behavior of host-country nationals. True False 23. Historically, most international businesses have been more concerned with management development than with training. True False 24. It is important that the spouse of an expatriate manager, and perhaps the whole family, be included in cultural training programs. True False 25. Transnational firm managers need not be able to detect pressures for local responsiveness because it is not part of their skill set. True False 17-3© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.26. Bringing managers together in one location for extended periods and rotating them through different jobs in several countries help the firm build an informal management network. True False 27. Unintentional bias makes it easy to evaluate the performance of expatriate managersobjectively. True False 28. Home-office managers are unbiased while evaluating the performance of expatriate managers. True False 29. From a strategic perspective, a compensation system must reward managers for taking actions that are consistent with the strategy of the enterprise. True False 30. In terms of expatriate pay, the income statement approach equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home. True False 31. An expatriate's base salary is normally lower than the base salary for a similar position in the home country. True False 32. Unless a host country has a reciprocal tax treaty with the expatriate's home country, an expatriate must pay income tax to both the home- and host-country governments. True False 33. A concern of organized labor is that an international business keeps highly skilled tasks in its home country and farm out low-skilled tasks to foreign plants. True False 34. An impediment to cooperation between national unions is the wide variation in union structure. True False 17-4© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.35. Historically, most international businesses have centralized international


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