Management Section 1 Assessment | 2026
UPDATE | WITH COMPLETE SOLUTION
As a company expands its operations worldwide, a strategic decision has
been made to gather the best international human resources (IHR)
management talent from throughout the company in order to provide
centralized HR support to all branches.
Which organizational setting of IHR management does this represent? -
ANSWERS-Headquarters of multinationals. A "headquarters of
multinationals" setting for IHR management involves concentrating HR
expertise at a centralized headquarters (HQ) location and then providing HR
support to the entire organization from the HQ to the subsidiaries.
A multinational enterprise (MNE) based in the United States has a very open
culture where it is acceptable to question leadership decisions in an open
environment. The MNE decides to open an office in a country where the
culture is very hierarchical.
Which cultural dimension does this conflict represent? - ANSWERS-Power
distance. Power distance is the degree of acceptance that a subordinate will
have regarding a management decision.
The cultural structure in a foreign country accepts inequality and rigid
hierarchies.
Which type of culture is this? - ANSWERS-High power distance. High power
distance cultures have higher levels of inequality and are more willing to
accept those inequalities without question.
An international company is opening a new location in the Middle East after
successfully expanding into Canada and Europe. The company has a set of
policies that it needs to review and augment for local differences.
, What is the legal system that should be included in this review? -
ANSWERS-Religious. In the Middle East, many countries uphold Sharia—
Islam based law—in their local legislations, whereas in North America and
western Europe much of the law is based on Christian religion.
What is the key driver in the development of international business? -
ANSWERS-Global internet, social media, and news. Media in various forms
are now shared everywhere and participated in by everyone, creating global
expectations as well as impacting brands and reputations instantly.
A global company has chief executive officers (CEOs) in the Americas,
Europe, the Middle East, and Africa. It also has a global center of excellence
for various business functions, which gives direction for the technical
expertise, support, and decisions for each of these functions.
Which organizational structuring method has this company combined with
the matrix structure? - ANSWERS-Geographic. The organization is set up
partly in a geographic way, with regional CEOs and a group of functions that
do not report into the business but into the global functions; this is a typical
matrix structure. It is a combination of geographic and matrix structure.
A multinational enterprise (MNE) has offices globally that are primarily
staffed by nationals in those countries. The organizational structure shows
functional areas reporting to the headquarters' leadership, with each foreign
subsidiary retaining autonomy regarding its own business and product
delivery needs.
Which type of organizational structure does this represent? - ANSWERS-
Multidomestic. A multidomestic firm has subsidiaries in multiple countries,
with these subsidiaries typically operating independently within each
country, independently of operations in other countries, and often
independently even of the parent company headquarters.
An internet software company in the United States is expanding its
operations internationally. The company is offering rotational assignments to
current employees from the U.S. to establish each office before hiring local
staff in each country.