BUSMHR 3200 FINAL EXAM QUESTIONS AND
VERIFIED ACCURATE ANSWERS
Global Expanding - Answers - A typical change that many companies and employees
face
Billions of new customers; New opportunity
Can operate with lower labor costs
Constant production: Teams with members in different time zones can work around the
clock
The Context of Global HRM - Answers - •
Many organizations now operate across a number of different countries
•All HRM functions, adapted to the international setting
-Labor regulations, workforce quantity and quality, etc.
Two added complexities for global HRM compared to domestic HRM - Answers - -Must
choose a mixture of international employees
-Must decide the extent of adaptation to local conditions
Which of the following statements correctly reflects a challenge in global HRM that
involves labor regulations, workforce quality, and employee mixture? - Answers -
Understanding local labor regulations is essential for hiring a balanced mix of host and
parent country employees while ensuring quality.
Multinational Strategy - Answers - Organizations can take different approaches to how
they manage their employees across different subsidiaries
-Ethnocentric
-Polycentric
-Geocentric
Ethnocentric Approach(home/parent country) pcns - Answers - •
This strategy believes that the best work approaches and practices are those of the
home country.
•All aspects of HRM for managers and technical workers tend to follow the parent
organization's home-country HRM practices
•Benefits
-Consistency
-Economies of scale
Polycentric Approach(host country) hcns - Answers - •This strategy views that the
managers in the host country know the best work approaches and practices.
,•Firms treat each country-level organization separately for HRM purposes and adopt
localized HRM practices.
Benefits:
-Alignment with local contexts
-Fewer language and cultural barriers
-Lower cost (e.g., lower local labor costs)
Geocentric Approach(world-oriented view) Combinations of PCNs, HCNs, and third
country nationals (TCNs) - Answers - •Firms take a world-oriented view that focuses on
using the best approaches and people from around the globe.
•Best people from anywhere
-Recruit and select (employee-level) worldwide
-Assign the best managers to international assignments regardless of nationality
Best business strategy, technique from anywhere
Parent country nationals (PCNs) - Answers - employees from the country in which the
organization is based (Headquarters) (e.g., Japanese engineers at Honda Marysville,
Ohio, U.S.)
Host country nationals (HCNs) - Answers - employees from the country in which the
subsidiary is based (e.g., American salespeople at Honda dealerships in the U.S.)
Third country nationals (TCNs) - Answers - employees who are working in a different
country (i.e. Not a PCN or TCN) (e.g., Indian tech experts at Samsung Semiconductor,
Austin,TX, USA)
A company, which has its headquarters in India, has branches
in the United States. A German manager works in a facility in
the United States. In this scenario, India is the _____ country,
and German is the _____ country. - Answers - parent; third
Advantages and Disadvantages of PCNs - Answers - Familiarity with the parent
organization's goals, objectivities, policies and practice
Technical and managerial competence
Effective liaison and communication with parent
country staff
Difficulties in adapting to the foreign language and the socioeconomic, political, cultural
and legal environment
Excessive costs involved in selecting and developing expatriate managers
Family adjustment problems
Advantages and Disadvantages of HCNs - Answers - Familiarity with the
socioeconomic, political and legal environment and with business practices in the host
country
Lower costs incurred in hiring staff in comparison to PCNs and TCNs
, Provides opportunities for advancement and promotion to local nationals and increases
their commitment and motivation
Difficulties in exercising effective control over the subsidiary's operation
Communication difficulties in dealing with the parent company
Lack of opportunities for the home country's internationals to gain international and
cross cultural experiences
Advantages and Disadvantages of TCNs - Answers - Perhaps the best compromise
between securing needed technical and managerial expertise and adapting to a foreign
cultural environment
TCNs are usually career international business managers with a wealth of experience
TCNs are usually less expensive to maintain than PCNs
TCNs may be better informed about their host environment than PCNs
Local nationals are impeded in their efforts to upgrade their own ranks and assume
managerial positions
Which of the following statements accurately describes the
ethnocentric approach in international HRM? - Answers - It emphasizes the use of
parent country nationals to fill
positions abroad.
It disregards cultural differences by using a one-size-fits-all
management style.
Which of the following is a key advantage of employing
host-country nationals for managerial roles in
international businesses? - Answers - They are more likely to adapt to and navigate
local
market conditions effectively.
Determinants of Global HRM Strategy - Answers - Institutions and National culture
Institutions - Answers - -National labor laws (e.g., employment-at-will vs. strong
restrictions for dismissal)
•HCN will work well if relevant regulations of host countries are highly country specific.
-Structure, density, and role of trade unions (e.g., union establishment in the U.S. and
other countries)
-Educational and vocational set-up
•HCN will work well if local education is important for employee knowledge of the
subsidiaries.
-Professional associations
•HCN will work well if employees' network in the local professional associations is
important to do business.
-Politics
VERIFIED ACCURATE ANSWERS
Global Expanding - Answers - A typical change that many companies and employees
face
Billions of new customers; New opportunity
Can operate with lower labor costs
Constant production: Teams with members in different time zones can work around the
clock
The Context of Global HRM - Answers - •
Many organizations now operate across a number of different countries
•All HRM functions, adapted to the international setting
-Labor regulations, workforce quantity and quality, etc.
Two added complexities for global HRM compared to domestic HRM - Answers - -Must
choose a mixture of international employees
-Must decide the extent of adaptation to local conditions
Which of the following statements correctly reflects a challenge in global HRM that
involves labor regulations, workforce quality, and employee mixture? - Answers -
Understanding local labor regulations is essential for hiring a balanced mix of host and
parent country employees while ensuring quality.
Multinational Strategy - Answers - Organizations can take different approaches to how
they manage their employees across different subsidiaries
-Ethnocentric
-Polycentric
-Geocentric
Ethnocentric Approach(home/parent country) pcns - Answers - •
This strategy believes that the best work approaches and practices are those of the
home country.
•All aspects of HRM for managers and technical workers tend to follow the parent
organization's home-country HRM practices
•Benefits
-Consistency
-Economies of scale
Polycentric Approach(host country) hcns - Answers - •This strategy views that the
managers in the host country know the best work approaches and practices.
,•Firms treat each country-level organization separately for HRM purposes and adopt
localized HRM practices.
Benefits:
-Alignment with local contexts
-Fewer language and cultural barriers
-Lower cost (e.g., lower local labor costs)
Geocentric Approach(world-oriented view) Combinations of PCNs, HCNs, and third
country nationals (TCNs) - Answers - •Firms take a world-oriented view that focuses on
using the best approaches and people from around the globe.
•Best people from anywhere
-Recruit and select (employee-level) worldwide
-Assign the best managers to international assignments regardless of nationality
Best business strategy, technique from anywhere
Parent country nationals (PCNs) - Answers - employees from the country in which the
organization is based (Headquarters) (e.g., Japanese engineers at Honda Marysville,
Ohio, U.S.)
Host country nationals (HCNs) - Answers - employees from the country in which the
subsidiary is based (e.g., American salespeople at Honda dealerships in the U.S.)
Third country nationals (TCNs) - Answers - employees who are working in a different
country (i.e. Not a PCN or TCN) (e.g., Indian tech experts at Samsung Semiconductor,
Austin,TX, USA)
A company, which has its headquarters in India, has branches
in the United States. A German manager works in a facility in
the United States. In this scenario, India is the _____ country,
and German is the _____ country. - Answers - parent; third
Advantages and Disadvantages of PCNs - Answers - Familiarity with the parent
organization's goals, objectivities, policies and practice
Technical and managerial competence
Effective liaison and communication with parent
country staff
Difficulties in adapting to the foreign language and the socioeconomic, political, cultural
and legal environment
Excessive costs involved in selecting and developing expatriate managers
Family adjustment problems
Advantages and Disadvantages of HCNs - Answers - Familiarity with the
socioeconomic, political and legal environment and with business practices in the host
country
Lower costs incurred in hiring staff in comparison to PCNs and TCNs
, Provides opportunities for advancement and promotion to local nationals and increases
their commitment and motivation
Difficulties in exercising effective control over the subsidiary's operation
Communication difficulties in dealing with the parent company
Lack of opportunities for the home country's internationals to gain international and
cross cultural experiences
Advantages and Disadvantages of TCNs - Answers - Perhaps the best compromise
between securing needed technical and managerial expertise and adapting to a foreign
cultural environment
TCNs are usually career international business managers with a wealth of experience
TCNs are usually less expensive to maintain than PCNs
TCNs may be better informed about their host environment than PCNs
Local nationals are impeded in their efforts to upgrade their own ranks and assume
managerial positions
Which of the following statements accurately describes the
ethnocentric approach in international HRM? - Answers - It emphasizes the use of
parent country nationals to fill
positions abroad.
It disregards cultural differences by using a one-size-fits-all
management style.
Which of the following is a key advantage of employing
host-country nationals for managerial roles in
international businesses? - Answers - They are more likely to adapt to and navigate
local
market conditions effectively.
Determinants of Global HRM Strategy - Answers - Institutions and National culture
Institutions - Answers - -National labor laws (e.g., employment-at-will vs. strong
restrictions for dismissal)
•HCN will work well if relevant regulations of host countries are highly country specific.
-Structure, density, and role of trade unions (e.g., union establishment in the U.S. and
other countries)
-Educational and vocational set-up
•HCN will work well if local education is important for employee knowledge of the
subsidiaries.
-Professional associations
•HCN will work well if employees' network in the local professional associations is
important to do business.
-Politics
