International Management, 9e (Deresky) Chapter 10 Developing a Global Management Cadre 1) In order to maximize a firm's global human resources, IHR managers need to ________. A) promote the role of women in international management B) develop line supervisors through extensive training programs C) acquire low-cost resources D) promote their organizations through word-of-mouth communication Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 2) 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 ________. A) minimize long-term retention and use of international cadre B) develop culturally homogeneous teams C) develop effective global management teams D) consider host-country labor relations system as essentially anarchic Answer: C Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Interpersonal relations and teamwork 1 Copyright © 2017 Pearson Education, Inc. 3) Felix Johnson is a senior HR manager in a global conglomerate. He believes that an important factor contributing to international competitiveness is the ability of an organization to maximize its global human resources in the long run. With which of the following is Felix most likely to agree? A) Outsourcing is the most logical method of achieving economies of scale and maximizing benefits. B) Extensive training programs are unlikely to help organizations improve the quality of their workers. C) The promotion of women in international management is unlikely to positively impact an organization's competitiveness in the global business arena. D) Maximizing long-term retention through career management increases the odds in favor of global competitiveness. Answer: D Difficulty: 3: Challenging Chapter: 10 Skill: Application LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 4) Neil Grahams is a strategic HR advisor in an American MNC. He believes that in today's globalized economy, both the knowledge and management resources as well as the skilled and unskilled employee resources, central to the success of an organization, are dispersed around the world. According to him, an organization can significantly improve global competitiveness by maximizing its global human resources in the long run. With which of the following is Neil most likely to agree? A) that maximizing long-term retention adversely affects the ability of an organization to maximize its global human resources in the long run B) that IHR managers must develop effective global management teams to improve global competitiveness C) that women have little or no role to play in international management D) that the use of international cadre through career management is unlikely to improve global competitiveness Answer: B Difficulty: 3: Challenging Chapter: 10 Skill: Application LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 2 Copyright © 2017 Pearson Education, Inc. 5) Effective human resource management of a company's global cadre ends with ________. A) allocation of an overseas assignment to the executive B) successful repatriation of the executive into company headquarters C) preparing the executive for cultural differences D) providing foreign-language training to the executive Answer: B Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Application of knowledge 6) In the context of the study conducted by Lazarova and Caligiuri, which of the following refers to a top-five ranked practice for successful repatriation? A) providing foreign-language training B) assistance on tax payments C) preparing the expatriate to adjust in the host country D) career planning sessions Answer: D Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 7) In the context of the study conducted by Lazarova and Caligiuri, which of the following refers to the most important HRM practice for successful repatriation? A) continuous communication with the home office B) financial and tax assistance C) agreement about position upon repatriation D) visible signs that the company values international experience Answer: D Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 3 Copyright © 2017 Pearson Education, Inc. 8) The management of the reentry phase of the career cycle, if not handled adequately, ________. A) can lead to culture shock B) can lead to the negation of the long-term benefits of that executive's international experience C) is most likely to nullify the monetary benefits associated with the executive's international experience D) is most likely to decrease general apathy toward overseas assignments Answer: B Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 9) The psychological process of readapting to one's home culture after working in a host-country culture is called ________. A) social loafing B) assimilation effect C) reverse culture shock D) expatriate failure Answer: C Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 10) "The longer a person is away, the more difficult it is to get back into the swing of things." In the context of repatriation, this often leads to ________. A) reverse culture shock B) expatriate retention C) assimilation D) segregation Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 4 Copyright © 2017 Pearson Education, Inc. 11) An expatriate manager who returns after a few years from an overseas assignment to find that there is no position for him in his home country office experiences a(n) ________. A) reverse culture shock B) expatriate failure C) cognitive dissonance D) assimilation effect Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 12) Jade International is a highly diversified global firm with headquarters in New Jersey. It manufactures a variety of products ranging from home security systems to automotive components. Jade's 100,000 employees work at facilities located in more than 60 countries around the world. Jade frequently sends American managers overseas to manage the firm's foreign facilities. The HR department is considering the idea of redesigning Jade's expatriate support services program. Which of the following, if true, best supports Jade's decision to provide assistance to trailing spouses in finding jobs overseas? A) Jade puts great emphasis on promoting the role of women in global management. B) The majority of Jade's expatriate managers have long-term international experience. C) Jade has lost a significant chunk of its global cadre in the recent past owing to its failure to offer feasible options to address the dual-career couples dilemma. D) Female managers at Jade have reported discriminatory treatment while on overseas assignments. Answer: C Difficulty: 3: Challenging Chapter: 10 Skill: Critical Thinking LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Reflective thinking 5 Copyright © 2017 Pearson Education, Inc. 13) Which of the following is a recommendation by Tung for a successful repatriation program? A) offering support for dealing with family issues on early returns from assignment B) assigning additional professional responsibilities to the expatriate C) establishing a special organizational unit for the purposes of career planning and continuing guidance for the expatriate D) allowing the expatriate to choose alternate career paths Answer: C Difficulty: 3: Challenging Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 14) ________ is one of the informal means that firms often use to help the trailing spouse find a position at the same location. A) Intercompany networking B) Organizational shuffling C) Predeparture training D) Global management Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Application of knowledge 15) As women continue to move up the corporate ladder, the accompanying spouse is often male—estimated at more than ________ percent. A) 85 B) 5 C) 25 D) 50 Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Application of knowledge 6 Copyright © 2017 Pearson Education, Inc. 16) Which of the following is the primary benefit for a firm that carefully manages its expatriates' careers? A) creating global opportunities for junior managers B) retaining managers with global experience and skills C) maintaining close connections with national subsidiaries D) recruiting fresh college graduates for global management positions Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 17) Which of the following best explains the attrition rate for expatriates? A) The skills of expatriates are not marketable because of their time spent overseas. B) Expatriates are usually relegated to junior positions upon returning to their home country. C) Expatriates feel unappreciated and dissatisfied both during and after the assignment and leave the company. D) Expatriates receive less compensation overseas than they receive domestically. Answer: C Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 18) ________ are all about learning how to deal with a wide range of people, to adapt to their cultures through compromise, and not to be a dictator. A) Multiple perspectives B) Tolerance levels C) Technical skills D) Managerial skills Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 7 Copyright © 2017 Pearson Education, Inc. 19) Lauryn, an American national, was sent to Japan on an assignment. According to her, it was during this time that she learned to understand situations from the viewpoint of local employees and business people. As an expatriate, which of the following skills did Lauryn attain? A) multiple perspectives B) ability to work with others C) tolerance for ambiguity D) technical skills Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Application LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 20) ________ is an acquired skill that refer(s) to making decisions with less information and more uncertainty about the process and the outcome. A) Technical skills B) Managerial skills C) Multiple perspectives D) Tolerance for ambiguity Answer: D Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 21) Jeff Richards works for an American MNC. For more than 10 years, Jeff was posted in the company's subsidiary in Ghana. Upon returning to his home country a few months ago, Jeff reported that his international experience had substantially enhanced his skills of making decisions with less information and more uncertainty about the outcome. In this instance, Jeff alludes to which of the following acquired skills? A) tolerance for ambiguity B) technical skills C) managerial skills D) multiple perspectives Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Application LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 8 Copyright © 2017 Pearson Education, Inc. 22) A repatriated manager says, "I learned to understand situations from the viewpoint of local employees and businesspeople when I worked overseas." Which of the following acquired skills is the manager referring to in this instance? A) technical skills B) multiple perspectives C) managerial skills D) tolerance for ambiguity Answer: B Difficulty: 3: Challenging Chapter: 10 Skill: Application LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 23) ________ pointed out that expatriate experience not only brings about knowledge about cultural differences but also creates insights about HQ—subsidiary relations from which ideas about improving business could be derived. A) Adler B) Tung C) Berthoin D) Gupta Answer: C Difficulty: 3: Challenging Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 24) According to Berthoin, which of the following types of knowledge gained abroad helps in understanding the differences in customer preferences? A) knowledge about why B) knowledge about when C) knowledge about what D) knowledge about who Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 9 Copyright © 2017 Pearson Education, Inc. 25) According to Berthoin, which of the following exemplifies knowledge about when? A) knowledge about the effect of timing B) knowledge about relationships created over the life of an assignment C) knowledge about management skills D) knowledge about differences in customer preferences Answer: A Difficulty: 3: Challenging Chapter: 10 Skill: Application LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Analytical thinking 26) In the globalized economy, the knowledge and management resources required for the firm to succeed are no longer concentrated in a single region but are distributed around the world. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 27) IHR managers are responsible for developing effective global management teams. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Interpersonal relations and teamwork 28) For a firm, the ability to develop a globally experienced top management team depends largely on the success of expatriates' assignments. Answer: TRUE Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Interpersonal relations and teamwork 10 Copyright © 2017 Pearson Education, Inc. 29) Effective human resource management of a company's global cadre ends with the successful repatriation of the executive into company headquarters. Answer: TRUE Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 30) According to the study by Lazarova and Caligiuri, career planning sessions are associated with successful repatriation. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 31) Reverse culture shock occurs primarily because of the difficulty of reintegrating into the organization. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Critical Thinking LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 32) Feelings of alienation due to the loss of contact with family, friends, and daily life speed up the resocialization process. Answer: FALSE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 11 Copyright © 2017 Pearson Education, Inc. 33) To maximize the long-term use of their global cadre, companies need to make sure that the foreign assignment and the reintegration process are positive experiences. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 34) Typically, firms use highly formal means to help the accompanying spouse find a position at the same location. Answer: FALSE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Reflective thinking 35) The attrition rate for expatriates is considerably higher than that of non-expatriates. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 12 Copyright © 2017 Pearson Education, Inc. 36) According to research, what practices should firms follow when making international assignments in order to ensure a high degree of job satisfaction and limited turnover? Answer: Black and Gregersen's research of 750 U.S., European, and Japanese companies concluded that those companies reporting a high degree of job satisfaction and strong performance, and experiencing limited turnover, used the following practices when making international assignments: 1. They focus on knowledge creation and global leadership development. 2. They assign overseas posts to people whose technical skills are matched or exceeded by their cross-cultural abilities. 3. They end expatriate assignments with a deliberate repatriation process. A successful repatriation program starts before the assignment. The company's top management must set up a culture conveying the message that the organization regards international assignments as an integral part of continuing career development and advancement, and that it values the skills of the returnees. The company's objectives should be reflected in its long-range plans, commitment, and compensation on behalf of the expatriate. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-1: To appreciate the importance of international assignments in developing top managers with global experience and perspectives AACSB: Diverse and multicultural work environments 37) According to Lazarova and Tarique, which of the following conditions must be met for the successful transfer of knowledge between repatriates and firms? A) The repatriates must have valuable knowledge to transfer. B) The repatriates must have low tolerance for ambiguity. C) The organization must promote the role of women in global management. D) The organization must successfully resolve the dual-career dilemma. Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Diverse and multicultural work environments; Analytical thinking 13 Copyright © 2017 Pearson Education, Inc. 38) According to Lazarova and Tarique, organizations need to ________ in order to facilitate knowledge transfer. A) provide mentoring to repatriates B) resolve the dual-career dilemma C) have the right tools to capture knowledge D) encourage low tolerance for ambiguity among repatriates Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Analytical thinking 39) ________ is optimized when career opportunities provided by the organization are congruent with repatriate career goals and aspirations. A) Team management B) Organizational efficiency C) Productivity D) Knowledge transfer Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Application of knowledge 40) Making decisions with more information and less uncertainty about the process and the outcome is referred as tolerance for ambiguity. Answer: FALSE Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Application of knowledge 14 Copyright © 2017 Pearson Education, Inc. 41) Learning patience and tolerance, realizing that managers abroad are in the minority among local people, and learning to communicate more with others and empathize with them implies that an executive has acquired considerable tolerance for ambiguity. Answer: FALSE Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Analytical thinking 42) Knowledge transfer is optimized when career opportunities provided by the organization are congruent with repatriate career goals and aspirations. Answer: TRUE Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Diverse and multicultural work environments 43) A successful repatriation program starts after the first phase of the assignment has been completed. Answer: FALSE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Diverse and multicultural work environments 44) The manner in which multicultural interaction affects the firm's operations depends on its level of international involvement, its environment, and its strategy. Answer: TRUE Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Diverse and multicultural work environments 15 Copyright © 2017 Pearson Education, Inc. 45) What are the long-term consequences of an ineffective repatriation program? Answer: The long-term implications of ineffective repatriation practices for any particular company are clear: few good managers will be willing to take international assignments because they will see what happened to their colleagues. If a certain manager lost out on promotion opportunities while overseas and is now, in fact, worse off than before he or she left, the only people willing to take on foreign assignments in the future will be either those who have not been able to succeed on the home front or those who think that a stint abroad will be like a vacation. In fact, research has shown that employees commonly see overseas assignments as negative career moves in some U.S. multinational companies. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Diverse and multicultural work environments; Analytical thinking 46) Discuss Tung's support systems to ensure a successful repatriation program. Answer: Research into the practices of successful U.S., European, Japanese, and Australian multinational corporations (MNCs) indicates the use of one or more of the following support systems, as recommended by Tung, for a successful repatriation program: 1. A mentor program to monitor the expatriate's career path while abroad and upon repatriation. 2. As an alternative to the mentor program, the establishment of a special organizational unit for the purposes of career planning and continuing guidance for the expatriate. 3. A system of supplying information and maintaining contacts with the expatriate so that he or she may continue to feel a part of the home organization. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Diverse and multicultural work environments 16 Copyright © 2017 Pearson Education, Inc. 47) What are the three phases of the expatriate transition process? Briefly describe each phase. Answer: The overall transition process experienced by the company's international management cadre over time comprises three phases of transition and adjustment that must be managed for successful socialization to a new culture and resocialization back to the old culture. These phases are: (1) the exit transition from the home country, the success of which will be determined largely by the quality of preparation the expatriate has received; (2) the entry transition to the host country, in which successful acculturation (or early exit) will depend largely on monitoring and support; and (3) the entry transition back to the home country or to a new host country, in which the level of reverse culture shock and the ease of re-acculturation will depend on previous stages of preparation and support. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Application of knowledge 48) According to Berthoin, what are the different types of knowledge that can be gained abroad by global managers? How can firms ensure that they experience long-term benefits from this knowledge? Answer: Berthoin described five types of knowledge gained abroad: 1. Knowledge about what (e.g., differences in customer preferences) 2. Knowledge about why (e.g., understanding how culture differences affect cross-cultural understanding) 3. Knowledge about how (e.g., management skills such as delegating responsibilities) 4. Knowledge about when (e.g., knowledge about the effect of timing) 5. Knowledge about who (e.g., relationships created over the life of an assignment) The management of the reentry phase of the career cycle is as vital as the management of the cross-cultural entry and training. Otherwise, the long-term benefits of that executive's international experience may be negated. A company may derive many potential benefits from carefully managing the careers of its expatriates. By helping managers make the right moves for their careers, the company will be able to retain people with increasing global experience and skills. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-2: To recognize the need to design programs for the careful preparation, adaptation, and repatriation of the expatriate and any accompanying family, as well as programs for career management and retention, thereby also transferring knowledge to and from host operations AACSB: Application of knowledge 17 Copyright © 2017 Pearson Education, Inc. 49) For sharing resources and managing the transnational transfer of knowledge, it is essential for MNCs to maximize their human assets in the form of ________ teams. A) virtual management B) regional management C) niche management D) global management Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 50) The term ________ describes a collection of managers in or from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement. A) global management team B) niche management team C) virtual management team D) strategic management team Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 51) Which of the following must an international team avoid if it wants to achieve the individual and collective goals of the team members? A) developing a global perspective B) providing means to communicate corporate culture C) causing the global enterprise to disintegrate D) disseminating the corporate culture Answer: C Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 18 Copyright © 2017 Pearson Education, Inc. 52) Which of the following is/are particularly important in joint ventures for the purposes of strategic planning, implementation, and production? A) ethnocentric hiring strategy B) dual-career couples C) multicultural teams D) rigid repatriation policies Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 53) The members of ________ interact through computer-mediated communication systems and are linked together across time, space, and organizational boundaries. A) virtual teams B) primary groups C) local teams D) cliques Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 54) ________ enable cost effective, rapid knowledge sharing and collaboration, but are fraught with cross-cultural and logistical challenges. A) Virtual global teams B) Organizational cliques C) Local work teams D) Organizational lobbies Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 19 Copyright © 2017 Pearson Education, Inc. 55) Which of the following is true with regard to virtual teams? A) Advances in communication hinder virtual global teams. B) Virtual teams do not offer cost advantages. C) Cultural misunderstandings are fairly rare occurrences across virtual teams. D) The members of virtual teams interact through computer-mediated communication systems. Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 56) Which of the following refers to a language- and communication-related issue that poses a challenge to many virtual global teams? A) lack of face-to-face meetings to establish trust or for cross-interaction processes such as brainstorming B) variable skill levels and willingness to interact through virtual media C) lack of visibility of nonverbal cues D) variations in attitudes and expectations toward time Answer: C Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork; Written and oral communication 57) ________ operate(s) outside the formal structure, focusing on innovation and improvement. A) Strategic teams B) Primary groups C) Parallel global virtual teams D) The top management Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 20 Copyright © 2017 Pearson Education, Inc. 58) Which of the following is NOT an operational challenge for global virtual teams? A) organizational objectives B) geographic dispersal C) culture differences D) technology Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 59) According to a survey of Alcoa's virtual team members, successful team leaders ________. A) have the ability to convey goals and resolve conflicts B) are more likely to use autocratic power C) are more likely to discourage innovation D) have limited international experience Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 60) ________ is the ability to build teams and resolve conflicts. A) External alignment B) External vision C) Task facilitation D) Interpersonal facilitation Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 21 Copyright © 2017 Pearson Education, Inc. 61) ________ is the ability to convey goals and train team members to use the collaborative technology effectively. A) External alignment B) Resource acquisition C) Task facilitation D) Interpersonal facilitation Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 62) The ability to mesh the team's activities with the organization's goals is called ________. A) task facilitation B) interpersonal facilitation C) resource acquisition D) external alignment Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 63) Which of the following is considered essential in light of the increasing proliferation of foreign subsidiaries and joint ventures? A) nurturing autocratic leadership B) acquiring resources C) increasing the power distance D) developing effective transnational teams Answer: D Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 22 Copyright © 2017 Pearson Education, Inc. 64) According to the Joshi study, the most critical conflicts related to transnational teams are between ________. A) subsidiaries B) expatriates C) headquarters and subsidiaries D) headquarters and expatriates Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 65) Which of the following is an advantage of a synergy? A) minimized cross-cultural exchanges B) exposure to different viewpoints C) greater complexity in the workplace D) varying managerial styles Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 66) According to a study of global teams by Govindarajan and Gupta, which of the following is the most important task in developing a successful global business team? A) clarifying the objectives of the team B) aligning the goals of each team member C) cultivating trust among all team members D) ensuring that team members have essential skills Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 23 Copyright © 2017 Pearson Education, Inc. 67) According to a study of global teams by Govindarajan and Gupta, which of the following is critical to the success of global business teams if they want to minimize conflict and encourage cooperation? A) aligning goals of individual team members B) obtaining clarity regarding team objectives C) ensuring that the team possesses necessary knowledge and skills D) cultivating trust among team members Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 68) Which of the following is a recommendation made by Govindarajan and Gupta for improving global teamwork? A) rotating and diffusing team leadership B) conducting all meetings in a single location C) disassociating rewards from team performance D) discouraging social networking among managers from different countries Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 69) Which of the following is NOT a recommendation made by Govindarajan and Gupta for improving global teamwork? A) minimize global exposure for all team members B) cultivating a culture of trust C) linking rewards to team performance D) building social networks among managers from different countries Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 24 Copyright © 2017 Pearson Education, Inc. 70) A comparative study of European project groups in several countries by Sylvie Chevrie revealed three main strategies for dealing with the challenge of achieving cross-cultural collaboration in multinational horizontal projects. Which of the following is one of those strategies? A) minimizing trial-and-error processes B) drawing upon individual tolerance and self-control C) linking compensation to individual achievement D) keeping disparate members isolated from the core organizational processes Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 71) A comparative study of European project groups in several countries by Sylvie Chevrie revealed three main strategies for dealing with the challenge of achieving cross-cultural collaboration in multinational horizontal projects. Which of the following is NOT one of those strategies? A) drawing upon individual tolerance and self-control B) setting up transnational cultures C) linking rewards to individual achievement D) trial-and-error processes coupled with personal relationships Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 72) Research indicates that teleconferencing and videoconferencing is the best way to kick off a virtual team project. Answer: TRUE Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Written and oral communication 25 Copyright © 2017 Pearson Education, Inc. 73) A horizontal networked structure, with people around the world conducting meetings and exchanging information via the Internet, thus enabling the organization to capitalize on 24-hour productivity is called a virtual global team. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 74) Task facilitation is the ability to convey goals and train team members to effectively use the collaborative technology. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 75) What are global management teams? Why are they important to global firms? Answer: The term global management team describes a collection of managers in or from several countries who must rely on group collaboration if each member is to experience optimum success and goal achievement. Therefore, global teamwork is vital, as are the pockets of crosscultural teamwork and interactions that occur at many boundaries. For the global company, worldwide competition and markets necessitate global teams for strategy development, both for the organization as a whole and for the local units to respond to their markets. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 26 Copyright © 2017 Pearson Education, Inc. 76) What are some of the operational challenges for global virtual teams with respect to language and communication? Answer: Since the teams are composed of members from different nationalities and culture, there are translation difficulties, or at least variations in accents, semantics, terminology, and jargon. Lack of personal and physical contact inhibits trust- and relationship-building in many countries. Also, the social dynamics change. Additionally, lack of visibility of nonverbal cues makes interpretation difficult and creates two-way noise in the communication process. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 77) What are some of the skills that are necessary for leaders of virtual global teams? Answer: Successful virtual global team leaders have the following skills: (1) interpersonal facilitation, the ability to build teams and resolve conflicts; (2) task facilitation, the ability to convey goals and train team members to use the collaborative technology effectively; (3) resource acquisition; and (4) external alignment/vision, the ability to mesh the team's activities with the organization's goals. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 27 Copyright © 2017 Pearson Education, Inc. 78) Discuss the conflicts associated with transnational teams. Answer: Teams comprising people located in far-flung operations are faced with oftenconflicting goals of achieving greater efficiency across those operations, responding to local differences, and facilitating organizational learning across boundaries. Conflicts arise based on cultural differences, local work norms and environments, and varied time zones. A study by Joshi et al. of a 30-member team of human resource (HR) managers in six countries in the AsiaPacific region showed that network analysis of the various interactions among team members can reveal when and where negative cross-cultural conflicts occur, and thus provide top management with information for conflict resolution, so a higher level of synergy may be attained among the group members. The advantages of synergy include a greater opportunity for global competition (by being able to share experiences, technology, and a pool of international managers) and a greater opportunity for cross-cultural understanding and exposure to different viewpoints. The disadvantages include problems resulting from differences in language, communication, and varying managerial styles; complex decision-making processes; fewer promotional opportunities; personality conflicts, often resulting from stereotyping and prejudice; and greater complexity in the workplace. Difficulty: 3: Challenging Chapter: 10 Skill: Concept LO: 10-3: To become familiar with the use of Global Management Teams to coordinate crossborder business AACSB: Interpersonal relations and teamwork 79) Overall, more managerial opportunities are available for ________ women than for women in most other countries. A) Russian B) Chinese C) Arabian D) American Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-4: To recognize the varying roles of women around the world in international management AACSB: Diverse and multicultural work environments 28 Copyright © 2017 Pearson Education, Inc. 80) The reasons for the different opportunities for women among various countries can often be traced to ________. A) the inadequate education systems of the host countries B) the cultural expectations of the host countries C) the predominantly agricultural economies of the host countries D) the lack of adequate technology in the host countries Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-4: To recognize the varying roles of women around the world in international management AACSB: Diverse and multicultural work environments 81) Research on expatriate assignments continues to show that ________. A) the number of dual-career couples is steadily declining B) linking rewards to team performance decreases the overall productivity of teams in the long run C) females are disproportionately underrepresented in expatriate assignments D) encouraging trial-and-error processes adversely affects cross-cultural collaboration Answer: C Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-4: To recognize the varying roles of women around the world in international management AACSB: Diverse and multicultural work environments 82) Opportunities for indigenous female employees to move up the managerial ladder in a given culture depend on the ________. A) values and expectations regarding the role of women in that society B) ability of women to perform in cross-cultural teams in that culture C) success of male managers in integrating global teams in that culture D) overall quality of life in that culture Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-4: To recognize the varying roles of women around the world in international management AACSB: Diverse and multicultural work environments 29 Copyright © 2017 Pearson Education, Inc. 83) The process through which managers and workers determine their workplace relationships is known as ________. A) assimilation B) labor relations C) collective bargaining D) international human resources management Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-4: To recognize the varying roles of women around the world in international management AACSB: Diverse and multicultural work environments 84) Opportunities for indigenous female employees to move up the managerial ladder in a given culture do not depend on the values and expectations regarding the role of women in that society. Answer: FALSE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-4: To recognize the varying roles of women around the world in international management AACSB: Diverse and multicultural work environments 85) ________ refers to a process of negotiations between workers and managers. A) Picketing B) Segregating C) Social security D) Collective bargaining Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Diverse and multicultural work environments 30 Copyright © 2017 Pearson Education, Inc. 86) One of the main dimensions of the labor-management relationship that a manager must consider is ________. A) specific human resource policies in terms of recruitment, training, and compensation B) the role of mentoring bodies in the relationship C) advertising and promotional strategies D) repatriation policies and procedures Answer: A Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 87) Which of the following is a constraint frequently placed on management by organized labor? A) restrictions on the repatriation of capital B) limits on the firm's ability to vary employment levels when necessary C) rigid requirements for bargaining with global unions D) restrictions on borrowing from private banks Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 88) Which of the following is the most likely reason for falling union membership in industrialized countries? A) a decrease in the proportion of white-collar and service workers as proportionate to manufacturing workers B) rising proportion of temporary and part-time workers C) the declining popularity of unions among the older generations D) a reduced number of firms offshoring white-collar jobs Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 31 Copyright © 2017 Pearson Education, Inc. 89) The traditional trade union structures in Western industrialized societies have been in ________, representing all grades of employees in a specific industry. A) craft unions B) general unions C) industrial unions D) conglomerate unions Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 90) ________ represent members in several industries. A) Industry unions B) General unions C) Craft unions D) Conglomerate unions Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 91) ________ unions are based on certain occupational skills. A) General B) Craft C) Industry D) Conglomerate Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 32 Copyright © 2017 Pearson Education, Inc. 92) Which of the following is one of the forces working toward convergence in labor systems? A) successful repatriation B) internal competitive forces C) decreased open trade D) political changes Answer: D Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Reflective thinking 93) ________ occurs as the migration of management and workplace practices around the world reduce workplace disparities from one country to another. A) Convergence B) Segregation C) Diversification D) Codetermination Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Diverse and multicultural work environments 94) The mission of the International Labor Organization is to ________. A) develop and nurture global union leaders B) file lawsuits on behalf of workers C) promote low-skilled and semiskilled laborers as opposed to highly-skilled laborers worldwide. D) ensure that humane conditions of labor are maintained Answer: D Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 33 Copyright © 2017 Pearson Education, Inc. 95) Convergence occurs as ________ is sought, such as for the EC countries, and as competitive pressures in free-trade zones, such as the NAFTA countries, eventually bring about demands for some equalization of benefits for workers. A) segregation B) harmonization C) homogenization of the workforce D) cultural assimilation Answer: B Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Reflective thinking 96) Which of the following refers to a force that favors global convergence? A) technological standardization B) political ideology C) social systems D) national labor relations systems and traditions Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Information technology 97) Which of the following is a force that establishes or maintains divergent systems? A) technological standardization B) declining role of unions C) collective bargaining methods D) global competitiveness Answer: C Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 34 Copyright © 2017 Pearson Education, Inc. 98) Which of the following terms refers to the participation of labor in the management of a firm? A) codetermination B) parochialism C) assimilation D) differentiation Answer: A Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 99) The prevailing labor relations system in a country is important to the international manager because it can constrain the strategic choices and operational activities of a firm operating there. Answer: TRUE Difficulty: 1: Easy Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 100) Define labor relations. What are the three main dimensions of the labor-management relationship that a global manager needs to consider? Answer: The term labor relations refers to the process through which managers and workers determine their workplace relationships. This process may be through verbal agreement and job descriptions, or through a union's written labor contract that has been reached through negotiation in collective bargaining between workers and managers. The three main dimensions of the labor-management relationship that the manager will consider are: (1) the participation of labor in the affairs of the firm, especially as this affects performance and well-being; (2) the role and impact of unions in the relationship; and (3) specific humanresource policies in terms of recruitment, training, and compensation. Difficulty: 2: Moderate Chapter: 10 Skill: Concept LO: 10-5: To understand the variations in host-country labor relations systems and the impact on the manager's job and effectiveness AACSB: Application of knowledge 35 Copyright © 2017 Pearson Education, Inc.