MAN6635 EXAM 2 WITH CORRECT
QUESTIONS AND ANSWERS
How to determine how much labor is needed - ANSWER-Benchmarking, statistical
methods, subject matter experts
Benchmarking - ANSWER-a process by which a company compares its performance
with that of high-performing organizations
Statistical Methods - ANSWER-Looking at "leading indicators". Example: sales this year
correlate with labor demand next year
Subject matter experts - ANSWER-"Educated Guesses" taking into account factors
such as new product launches, changes with competitors, etc.
Methods for Correcting Surplus - ANSWER-Downsize, reduce pay, demotions,
transfers, early retirement, wait for natural attrition, hiring freeze
Methods for correcting shortage - ANSWER-Existing people work harder, temporary
employees, outsource, promote from within, decrease voluntary turnover, recruit and
hire new people
Workforce - ANSWER-Enterprises employees
Labor force - ANSWER-The pool of potential employees from which the firm attracts
and hires its workforce
Challenges of International Staffing - ANSWER-- Availability of data (about labor forces)
- Increasing diversity of labor forces
- Brain Drain (citizens leaving countries for jobs with better pay)
- Lack of suitable candidates for management
- Populations Characteristics (ex. aging population)
Approaches to MNE Staffing - ANSWER-Ethnocentric, Polycentric, Global
Ethnocentric Staffing Approach - ANSWER-- Fill key managerial positions with HQ staff
- Done when local management skill is insufficient
- Pro: HQ familiar with company
- Con: Risk of poor adaptation
Polycentric Staffing Approach - ANSWER-- Fill key managerial positions with locals
- Done when company wants to "act local"
- Pro: local managers familiar with area
, - Con: Difficulty coordinating activities between subsidiary and HQ
Global Staffing Approach - ANSWER-- Best managers recruited from within or outside
of the company regardless of nationality
- Pro: largest pool of applicants
- Con: Lack of managers who want to work all around the world
International Business Strategy - ANSWER-- No overseas office or operations
- Generally used for exporting, licensing or subcontracting
- Ethnocentric
- Send managers from HQ
Multi-domestic Business Strategy - ANSWER-- Subsidiaries in multiple countries
operate independently within each country, independently of operations in other
countries, and often fairly independent of parent company HQ
- Polycentric
- Hire locally
Global Business Strategy - ANSWER-- Unified strategy implemented for all countries
regardless of culture or national differences
Positives of recruiting from within - ANSWER-- Creates a well-known sample of
applicants
- Reduces labor costs
- Allows vacancies to be filled quickly
- Enhances employee development
- Enhances company reputation
Negatives of recruiting from within - ANSWER-- Creates another vacancy
- Being good at a job does not necessarily mean you will be good at supervising or
doing it abroad
External Recruitment Sources - ANSWER-- Referrals
- Advertisements
- Employee agencies
- Our competitors
- Colleges and Universities
Recruitment - ANSWER-Involves searching for and attracting qualified applicants to
create an applicant pool
Selection - ANSWER-Focuses on gathering and analyzing information about applicants
in order to select the most suitable person or persons for the job
Repatriation - ANSWER-The process of bringing an international assignee and their
family back home from foreign assignment
QUESTIONS AND ANSWERS
How to determine how much labor is needed - ANSWER-Benchmarking, statistical
methods, subject matter experts
Benchmarking - ANSWER-a process by which a company compares its performance
with that of high-performing organizations
Statistical Methods - ANSWER-Looking at "leading indicators". Example: sales this year
correlate with labor demand next year
Subject matter experts - ANSWER-"Educated Guesses" taking into account factors
such as new product launches, changes with competitors, etc.
Methods for Correcting Surplus - ANSWER-Downsize, reduce pay, demotions,
transfers, early retirement, wait for natural attrition, hiring freeze
Methods for correcting shortage - ANSWER-Existing people work harder, temporary
employees, outsource, promote from within, decrease voluntary turnover, recruit and
hire new people
Workforce - ANSWER-Enterprises employees
Labor force - ANSWER-The pool of potential employees from which the firm attracts
and hires its workforce
Challenges of International Staffing - ANSWER-- Availability of data (about labor forces)
- Increasing diversity of labor forces
- Brain Drain (citizens leaving countries for jobs with better pay)
- Lack of suitable candidates for management
- Populations Characteristics (ex. aging population)
Approaches to MNE Staffing - ANSWER-Ethnocentric, Polycentric, Global
Ethnocentric Staffing Approach - ANSWER-- Fill key managerial positions with HQ staff
- Done when local management skill is insufficient
- Pro: HQ familiar with company
- Con: Risk of poor adaptation
Polycentric Staffing Approach - ANSWER-- Fill key managerial positions with locals
- Done when company wants to "act local"
- Pro: local managers familiar with area
, - Con: Difficulty coordinating activities between subsidiary and HQ
Global Staffing Approach - ANSWER-- Best managers recruited from within or outside
of the company regardless of nationality
- Pro: largest pool of applicants
- Con: Lack of managers who want to work all around the world
International Business Strategy - ANSWER-- No overseas office or operations
- Generally used for exporting, licensing or subcontracting
- Ethnocentric
- Send managers from HQ
Multi-domestic Business Strategy - ANSWER-- Subsidiaries in multiple countries
operate independently within each country, independently of operations in other
countries, and often fairly independent of parent company HQ
- Polycentric
- Hire locally
Global Business Strategy - ANSWER-- Unified strategy implemented for all countries
regardless of culture or national differences
Positives of recruiting from within - ANSWER-- Creates a well-known sample of
applicants
- Reduces labor costs
- Allows vacancies to be filled quickly
- Enhances employee development
- Enhances company reputation
Negatives of recruiting from within - ANSWER-- Creates another vacancy
- Being good at a job does not necessarily mean you will be good at supervising or
doing it abroad
External Recruitment Sources - ANSWER-- Referrals
- Advertisements
- Employee agencies
- Our competitors
- Colleges and Universities
Recruitment - ANSWER-Involves searching for and attracting qualified applicants to
create an applicant pool
Selection - ANSWER-Focuses on gathering and analyzing information about applicants
in order to select the most suitable person or persons for the job
Repatriation - ANSWER-The process of bringing an international assignee and their
family back home from foreign assignment
