MAN6635 International Human Resource Management Midterm Questions & Answers

Internationalization of business - ANSWERSThe ever increasing interaction, interconnectedness and integration of people, companies, culture and countries Internalization of business is driven by - ANSWERS- trade agreements -search for new markets and reduced costs - rapid and extensive global communication -rapid development and transfer of new technology -improving global education and global talent pool - increased travel and migration -knowledge sharing -E-commerce -Homogenization or culture and consumer demands Difference between HRM and IHRM - ANSWERSIHRM includes -Design and structure of the multinational enterprise -international mergers, acquisitions, joint ventures and alliances -International employment law, labor standards and ethics - effects of culture on all aspects of HRM Why is fostering commitment internationally more complex? - ANSWERSThere are two foci of commitment : -The local subsidiary or supervisor -The global organization and HQ management Forms of staffing adjustments - ANSWERS- Work adjustment -Cultural adjustment -Interactional adjustment Work adjustment - ANSWERSdegree of comfort with job responsibilities and performance expectations Cultural adjustment - ANSWERSDegree of comfort with general living conditions, climate, cost of living, and housing Interactional adjustment - ANSWERSdegree of comfort when socializing and interacting with members of the host culture Organizational structure - ANSWERSformally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company -An outcome Organizational design - ANSWERSthe process or style used by management to arrange the components of structure -A process Functional structure - ANSWERSfunctional departmentalization and high centralization -very efficient -tend to be inflexible and insensitive to subtle differences across products regions or clients -most appropriate in stable predictable environments -inappropriate for most MNEs Divisional structure - ANSWERSWorkflow departmentalization and low levels of centralization -not very efficient -tend to be more flexible and innovative -tend to be sensitive to subtle differences across products, regions, or clients Global matrix structure - ANSWERSInvolve two or more lines of reporting (local supervisors and HQ) -allows local and global realities to be reconciled -can allow managers to pursue narrow objectives without regard for other legs of the matrix -can create divided loyalties Elements of organizational structure - ANSWERS-Work specialization -Chain of command -span of control -centralization -formalization Work specialization - ANSWERSthe degree to which tasks in an organization are divided into separate jobs Chain of command - ANSWERSanswers the question "who reports to whom?" and signifies formal authority relationships Span of control - ANSWERSrepresents how many employees each manager in the organization has responsibility for Centralization - ANSWERSrefers to where decisions are formally made in the organization Formalization - ANSWERSthe degree to which rules and procedures are used to standardize behaviors and decisions in an organization mechanistic organization - ANSWERSauthority is centralized, tasks and rules are clearly specified, and employees are closely supervised organic organization - ANSWERSauthority is decentralized, -there are fewer rules and procedures, - networks of employees are encouraged to cooperate and respond quickly to unexpected tasks Organizational design is impacted by - ANSWERSBusiness environment -customers, competitors, suppliers and global presence Company strategy -low cost vs differentiation Company size MNEs must balance two opposing forces: - ANSWERSIntegration (integrating foreign operations with each other and with the parent firm) Local responsiveness (allowing the necessary autonomy and local control needed to meet unique national and cultural interests ) International organization structure - ANSWERSlow levels of worldwide integration low levels of local responsiveness no overseas office or operations generally used for exporting, licensing, or subcontracting Multi-domestic organizational structure - ANSWERS-low levels of worldwide integration -high levels of local responsiveness -subsidiaries in multiple countries operate independently within the country and from the parent company -each national market is specialized for its particular subsidiaries products Global organizational structure - ANSWERS-High levels of worldwide integration -low levels of local responsiveness -structure resembles a centralized hub where foreign subsidiaries are heavily managed and controlled by HQ -products are designed for and marketed to customers all over the world -ethnocentric orientation Transnational organizational structure - ANSWERS-High levels of worldwide integration -high levels of local responsiveness -global focus, resource decisions without reference to national origins, shares ideas and tech with all units on a global scale while cultivating the local character of individual businesses -interdependence of resources and responsibilities across all business units regardless of national boundaries -geocentric orientation -the one we want! Cost strategy and HR - ANSWERS-may minimize labor costs -seek efficiency through employee input -use performance-based compensation -promote internally -have clear and consistent pay grades -specifically define the skills they require and train on these skills -will likely consider global production options