Human Resource Management Concepts Quiz

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Questions and Answers

What is the purpose of a hiring freeze in an organization?

  • To eliminate the need for job sharing.
  • To reduce salaries of existing employees.
  • To increase the number of part-time positions available.
  • To prevent any new employees from being hired. (correct)

Which of the following describes job sharing?

  • A single job role is divided among multiple part-time workers. (correct)
  • Employees take turns covering shifts for each other.
  • One employee is given multiple roles within a company.
  • Two full-time workers combine their duties into one part-time position.

What does the term 'furlough' refer to in the workplace?

  • A permanent reduction in an employee's salary.
  • Mandatory unpaid time off from work for employees. (correct)
  • A program to offer early retirement incentives.
  • A temporary assignment to work in a different department.

How does retraining employees help an organization during financial difficulties?

<p>It allows the company to lay off fewer workers. (C)</p> Signup and view all the answers

What is the benefit of utilizing a contingent workforce?

<p>To reduce seasonal layoffs by hiring temporary workers. (C)</p> Signup and view all the answers

Which cultures are considered highly collectivist?

<p>Ecuador and Guatemala (C)</p> Signup and view all the answers

In societies with high power distance, how is power distributed?

<p>Unequally and hierarchical (B)</p> Signup and view all the answers

Which of these countries is associated with low uncertainty avoidance?

<p>Denmark (D)</p> Signup and view all the answers

Which characteristic defines highly masculine cultures?

<p>Achievement and materialism (A)</p> Signup and view all the answers

What is a multi-domestic strategy in corporate international business?

<p>Developing foreign markets by adapting products for local needs (A)</p> Signup and view all the answers

Which strategy focuses on creating products specifically for certain markets?

<p>Multinational strategy (A)</p> Signup and view all the answers

What is the main characteristic of a global strategy?

<p>Standardizing products and services worldwide (A)</p> Signup and view all the answers

Which IHRM approach emphasizes flexibility and adaptation to local needs?

<p>Adaptive (A)</p> Signup and view all the answers

Which example best represents the exportive IHRM approach?

<p>Coca-Cola shipping its product unchanged (B)</p> Signup and view all the answers

Which of the following is a benefit of Cross-Cultural Training (CCT)?

<p>Enhanced interpersonal skills (A)</p> Signup and view all the answers

What is the main focus of the integrative IHRM approach?

<p>Piggybacking on another company's success (C)</p> Signup and view all the answers

What common feature do Starbucks and Microsoft share in their global strategies?

<p>Offering the same products in all locations (D)</p> Signup and view all the answers

What characteristic distinguishes the adaptive IHRM approach from the others?

<p>Focus on flexibility and local responsiveness (A)</p> Signup and view all the answers

Which of the following is considered the number one predictor of job performance in the context of the five-factor personality model?

<p>Conscientiousness (C)</p> Signup and view all the answers

What is a suggested method for facilitating the transfer of HR practices to different cultural contexts?

<p>Explain the intent behind the practices (C)</p> Signup and view all the answers

Which personality trait from the five-factor model refers to an individual's tendency for emotional stability?

<p>Neuroticism (A)</p> Signup and view all the answers

In the context of selecting global manager candidates, what additional competency is necessary besides personality traits?

<p>Self-maintenance competencies (B)</p> Signup and view all the answers

What approach is recommended in dealing with employees who struggle to embrace a new HR practice that may not fit their cultural context?

<p>Do not blame employees for the failure (C)</p> Signup and view all the answers

What defines a merger in the context of organizations?

<p>Two organizations of equal status join together. (A)</p> Signup and view all the answers

Which of the following best describes an acquisition?

<p>A powerful company takes over a less powerful one. (C)</p> Signup and view all the answers

What is an example of interpersonal arrogance in a merger context?

<p>Claiming that your team members are more skilled. (C)</p> Signup and view all the answers

What is a potential impact on surviving personnel after downsizing?

<p>Feelings of guilt and reduced work motivation. (C)</p> Signup and view all the answers

Which strategy aims for long-term organizational change during downsizing?

<p>Systematic change. (A)</p> Signup and view all the answers

What is an example of procedural justice in an organizational context?

<p>Structured process for deciding who will be laid off. (B)</p> Signup and view all the answers

What type of company operates in multiple countries but maintains a designated headquarters?

<p>Multinational companies. (D)</p> Signup and view all the answers

What is a common reason for an organization to consider downsizing?

<p>Introduction of new technology. (D)</p> Signup and view all the answers

Which of the following is a key characteristic of successful downsizing?

<p>Selective workforce reduction with long-term emphasis. (C)</p> Signup and view all the answers

What type of change addresses work processes and roles during organizational restructuring?

<p>Work redesign. (B)</p> Signup and view all the answers

What happens to employees who experience job loss during downsizing?

<p>They are likely to suffer emotional and physical stress. (D)</p> Signup and view all the answers

Which HRM strategy focuses on maintaining strong communications post-downsizing?

<p>Employee engagement initiatives. (A)</p> Signup and view all the answers

What is the purpose of outplacement programs?

<p>To provide job-search assistance to terminated workers. (D)</p> Signup and view all the answers

What does global integration emphasize in international companies?

<p>Uniform corporate culture across all operations. (A)</p> Signup and view all the answers

What is a key disadvantage of managing HR globally?

<p>Understanding local cultural, legal, and economic differences (A)</p> Signup and view all the answers

What are wholly-owned subsidiaries?

<p>Subsidiaries fully owned and controlled by the parent company (B)</p> Signup and view all the answers

Which of the following roles do expatriates often serve in multinational companies?

<p>Boundary spanners connecting headquarters and local operations (C)</p> Signup and view all the answers

What contributes to cultural adjustment for expatriates?

<p>Understanding transportation and health systems (A)</p> Signup and view all the answers

When preparing expatriates for assignments, which of the following is crucial?

<p>Cultural training to understand local differences (D)</p> Signup and view all the answers

What is a common reason organizations face challenges in motivating and managing employees internationally?

<p>Cultural differences and varying workforce demographics (B)</p> Signup and view all the answers

Which adjustment type is primarily concerned with feeling comfortable in one's new tasks?

<p>Work adjustment (A)</p> Signup and view all the answers

Why is it important for organizations to approach employee separations methodically?

<p>To ensure compliance with national labour laws (D)</p> Signup and view all the answers

What is an expatriate?

<p>A person living and working in a different country than their origin (B)</p> Signup and view all the answers

Which factor is considered a risk when managing employees in global operations?

<p>Political turmoil and health risks (B)</p> Signup and view all the answers

What can significantly motivate expatriates during their assignments?

<p>Culturally appropriate extrinsic rewards (A)</p> Signup and view all the answers

What are third-country nationals?

<p>Workers from a country other than the parent or host country (D)</p> Signup and view all the answers

What does the term 'culture shock' refer to?

<p>The feeling of disorientation when entering a new culture (D)</p> Signup and view all the answers

Flashcards

Temporarily stopping production

A company may temporarily stop production to reduce costs. Employees are not paid during this period.

Retraining employees

Instead of layoffs, a company might invest in training employees for new roles to keep them employed.

Offering early retirement

A company may offer incentives for employees to retire early, reducing workforce costs.

Hiring Freeze

A company may reduce the number of employees hired for a specific period.

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Unpaid time off

A company may ask employees to take unpaid leave voluntarily for a certain period.

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Collectivism

Emphasizes loyalty to the group, face saving, and cooperation within the in-group.

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Power Distance

Degree to which the society accepts power in the society is distributed unequally and hierarchy is naturally distributed.

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Uncertainty Avoidance

Degree to which the society feels uncomfortable with uncertainty and risk and emphasizes procedures or traditions to deal with it.

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Multi-Domestic Strategy

Focuses on selling goods to foreign nationals by adapting products to specific foreign markets.

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Domestic Strategy

A business strategy that focuses on expanding into international markets by exporting goods to new regions.

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Cross-cultural perception

Understanding how different countries perceive each other, taking into account their unique traditions and norms.

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Adapting HR practices to different cultures

The practice of adapting HR practices to suit the specific cultural contexts of different countries. This involves understanding local customs and traditions and ensuring that practices are culturally appropriate.

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Five-factor personality model (OCEAN)

A model that describes five essential personality traits: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism/Emotional Stability.

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Trainability

The ability of an individual to learn new skills and reach a specific level of performance. This is a critical factor when selecting global managers.

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Self-maintenance competencies

Abilities related to personal well-being, such as eating, sleeping, and staying hydrated, are crucial for global managers. These abilities help individuals thrive in demanding situations.

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Multinational strategy (market-specific)

A strategy that focuses on creating products specifically tailored to the needs of individual markets.

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Global strategy (standardized)

A strategy aimed at minimizing costs by offering the same standardized product or service globally.

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Strategic IHRM Fit

The degree to which the different components of an organization align and work together effectively.

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Adaptive IHRM

An IHRM approach where operations adapt to local market conditions and demands.

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Exportive IHRM

An IHRM approach characterized by exporting a standardized product or service globally, maintaining consistency across locations.

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Integrative IHRM

An IHRM approach focused on integrating with existing companies or operations in foreign markets.

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Cross-Cultural Training (CCT)

Training programs that aim to equip employees with skills necessary for effective communication and interaction in diverse cultural environments.

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Benefits of Cross-Cultural Training

CCT can help employees develop interpersonal skills and an understanding of common phrases and communication styles in different cultures.

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Merger

Two organizations of equal status and power combine to form a single entity.

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Acquisition

A more powerful company takes control of a less powerful company, absorbing it into its structure.

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Parent Culture

The cultural values and practices of the acquiring company are imposed on the acquired company.

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Parents' Arrogance

The acquiring company believes their methods and practices are superior to the acquired company's.

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Interpersonal Arrogance

A feeling of superiority based on personal qualities and skills.

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Cultural Arrogance

A feeling of superiority based on the belief that your way of doing things is the best.

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Managerial Arrogance

A feeling of superiority based on the belief that your company's leadership and management are superior.

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Strategic and Organizational Fit

How well the business strategies, financial goals, and organizational cultures align between two companies.

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Downsizing

Activities aimed at improving a company's efficiency, productivity, and competitiveness by reducing workforce size, redesigning work, and changing systems.

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Surviving Personnel

Employees who remain in the company after downsizing.

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Terminated Personnel

The stress and psychological impact on employees who have been laid off.

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Learned Helplessness

Decreased sense of responsibility, lack of motivation, and emotional exhaustion due to overwhelming stress.

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Workforce Reduction

A short-term downsizing strategy that reduces the number of employees.

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Work Redesign

A medium-term downsizing strategy focused on improving work processes and eliminating unnecessary functions, products, or services.

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Systematic Change

A long-term downsizing strategy that changes the organization's culture, values, and employee attitudes.

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Home-country nationals

Individuals from the country where the subsidiary is located who have a good understanding of the foreign culture.

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Parent-country nationals

Individuals from the company's headquarters who are well-versed in its products, services, and corporate culture.

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Third-country nationals

Individuals from a third country with extensive international experience and knowledge of the corporate culture from previous work with company branches.

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Repatriation

The process of returning to one's home headquarters or subsidiary after an international assignment.

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Organizationally assigned expatriates

Employees who are sent by the company to work in an overseas operation for a predetermined period, often longer than 6 months.

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Self-initiated expatriates

Skilled professionals who move to different countries for a specific period with the goal of gaining overseas work experience.

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Expatriate assignment

The feeling of discomfort and stress associated with being an expatriate, involving adjustment to a new culture, work, and social interactions.

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Cultural adjustment

The feeling of disorientation people experience when entering a new culture, including things like transportation, entertainment, the healthcare system, education, and living conditions.

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Work adjustment

Feeling comfortable with one's work tasks and responsibilities in a new environment.

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Interactional adjustment

Feeling at ease when interacting with local people both inside and outside work.

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Inpatriates

Employees from a subsidiary country working in the headquarters location, facilitating knowledge transfer from local operations to the headquarters.

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Global mindset

Individuals with an open mind about different cultures, a sense of adventure, comfort with ambiguity, and a non-judgmental attitude towards people from other cultures.

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Culture shock

The state of being uncomfortable and disoriented when experiencing a new culture.

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Cultural training

Training to help expatriates understand and adapt to the cultural differences of their new location.

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Relocation assistance

Assistance provided to expatriates in relocating to a new country, including things like housing, transportation, and school arrangements.

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Study Notes

International HRM Challenges and Opportunities

  • International companies: These companies export and import goods, but their investments are within their home country.
  • Multinational companies: Operate in multiple countries, with clearly designated headquarters in their home country.
  • Transitional companies: Have operations in multiple countries but do not consider any one country as the center of their operations.
  • Offshoring: Producing goods or services overseas.
  • Outsourcing: Moving some company operations to another company.
  • Global integration: Establishing a common corporate culture to do business globally.
  • Local differentiation: Transferring practices across units through the use of people, information technology, standardized procedures, and rules while centralizing particular decisions in one area.
  • People-Based: Transferring managers, meetings, and using expatriates.
  • Information-Based: Centralized information technology, intranets, and the internet.
  • Formalization-Based: Standardization of work procedures, rules, policies, and manuals.
  • Centralization-Based: Shifting decision-making to headquarters, defining goals and objectives.

Issues in International HRM

  • Projecting global competence supply.
  • Forecasting global competence needs.
  • Developing a blueprint to establish global competence pools within companies.
  • Strategic international HRM: HRM issues, functions, policies, and practices result from the strategic activities of multinational enterprises and affect international concerns and goals of those enterprises.

Dimensions of Culture (Hofstede)

  • Individualism vs. Collectivism: Degree to which individuals define themselves as individuals vs. through their relationships.
  • Power Distance: Degree to which society accepts unequal distribution of power.
  • Uncertainty Avoidance: Degree to which society feels uncomfortable with uncertainty and risk.
  • Masculinity vs. Femininity: Masculine cultures embrace values like achievement and materialism, while feminine cultures emphasize modesty and quality of life.

Corporate International Business Strategies

  • Domestic strategy: Internationalizing by exporting goods overseas.
  • Multi-domestic strategy: Concentrates on developing foreign markets.
  • Global strategy: Aims to introduce products in target countries with minimum cost.

Strategic IHRM

  • Fit: Degree to which needs, demands, goals, and/or structure of one component are consistent with another.
  • Adaptive approach: Flexibility to respond to dynamic competitive environments.
  • Exportive approach: Transferring a product to a specific location while maintaining its characteristics.
  • Integrative approach: Collaboration with other companies to expand reach.

Cross-Cultural Training (CCT)

  • Positive influences: Expatriate self-development, interpersonal skills, cross-cultural perception.
  • Cross-cultural perception: How countries view each other and their cultural norms.
  • Cross-cultural training: Enabling the transfer of HR practices to diverse cultural contexts.

Selection of Global Managers

  • Personality: Five-factor model (OCEAN) including openness, conscientiousness, extraversion, agreeableness, and neuroticism/emotional stability.
  • Trainability: An individual's ability to acquire new skills.
  • Other personal characteristics: Self-maintenance competencies and relationship/interpersonal skills.
  • Guidelines for effective training: Assess training needs, clarify goals, plan, implement, and evaluate training.

Managing HR Globally

  • Advantages: Access to a wider talent pool and transfer of expertise.
  • Disadvantages: Understanding cultural, legal, and economic differences.
  • Home-country nationals: Individuals from the subsidiary country with in-depth cultural knowledge.
  • Parent-country nationals: Headquarters individuals familiar with firm products and services and corporate culture.
  • Third-country nationals: Individuals from a third country with previous international experience.
  • Motivating global employees: Offering extrinsic rewards and compensation that are culturally relevant.

Internationalization

  • Subsidiaries: Need close coordination with the parent company.
  • Global companies: Give subsidiaries greater autonomy to target regional markets.
  • Whole-owned subsidiaries: Full control over overseas operations.
  • Joint venture: Cooperation of multiple companies to form a new entity.
  • Strategic alliances: Partnerships with other companies.
  • Managing expatriates: People living and working in a different country from their home.
  • Types of expatriates: Organizationally assigned and self-initiated.
  • Expatriate assignments: Need for cultural and work adjustments.

Benefits and Downsides of Expatriates

  • Benefits: Career development, diffusion of knowledge, direct and indirect knowledge sharing, building employees' skills, and aiding collaboration between countries.
  • Downsides: Over-reliance on expatriates for specific tasks.
  • Cultural training: Important to help expatriates with cultural shock, improve communication, and create a supportive environment.
  • Relocation assistance: Important factors to consider for the long-term success of the employee and their family.

Managing Employee Separations

  • Involuntary turnover: Discharge initiated by the organization.
  • Dismissals: Occur when an employee fails to meet the minimum standards.
  • Costs of dismissal: Financial and reputational costs.
  • Layoffs: Involuntary removal of employees due to reorganizing, restructuring, or economic reasons.

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