D358- Global Human Resource
Management Section 1 Assessment
Questions and Answers.
What is the key driver in the development of international business? - Answer 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? - Answer 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? - Answer 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.
How will the human resources (HR) department support these rotational employees? - Answer
By securing work visas and housing for the employees. HR in the U.S. works with attorneys in
both the United States and sometimes in other countries to procure visas and housing for U.S.
employees.
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? - Answer
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? - Answer 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? - Answer 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? - Answer 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.
A company completes an international merger and acquisition with the creation of the new
policies and organizational structure, and it has just finished communicating the details of the
work to its stakeholders.
Which phase of the international merger and acquisition process is completed by these actions?
- Answer Combination and integration. The combination and integration phase completes
the actual merger or acquisition, creates the new organizational structure and policies, and
communicates all this to stakeholders.
A multinational enterprise (MNE) has a business strategy that emphasizes a unified approach
throughout its global operations but also localizes its products and services in each country to
appear more like a local firm.
Which type of business strategy does this represent? - Answer Transnational. A transnational
firm has a global focus, but rather than developing global products and services, the
transnational works hard to localize, to be seen not as a global firm but as a local firm.
An international human resources manager (IHRM) is tasked with outsourcing a global payroll
process to be rolled out to all countries where the U.S.-based multinational enterprise (MNE)
has a presence. In reviewing each country's human resources (HR) policies and processes, the
IHRM is surprised to discover important differences with local requirements and restrictions,
which are risks for a global payroll process failure.
Which local incompatibility is a risk to the rollout? - Answer HR Systems. Countries have their
own labor law requirements with regards to salary deductions, government contributions, and
Management Section 1 Assessment
Questions and Answers.
What is the key driver in the development of international business? - Answer 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? - Answer 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? - Answer 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.
How will the human resources (HR) department support these rotational employees? - Answer
By securing work visas and housing for the employees. HR in the U.S. works with attorneys in
both the United States and sometimes in other countries to procure visas and housing for U.S.
employees.
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? - Answer
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? - Answer 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? - Answer 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? - Answer 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.
A company completes an international merger and acquisition with the creation of the new
policies and organizational structure, and it has just finished communicating the details of the
work to its stakeholders.
Which phase of the international merger and acquisition process is completed by these actions?
- Answer Combination and integration. The combination and integration phase completes
the actual merger or acquisition, creates the new organizational structure and policies, and
communicates all this to stakeholders.
A multinational enterprise (MNE) has a business strategy that emphasizes a unified approach
throughout its global operations but also localizes its products and services in each country to
appear more like a local firm.
Which type of business strategy does this represent? - Answer Transnational. A transnational
firm has a global focus, but rather than developing global products and services, the
transnational works hard to localize, to be seen not as a global firm but as a local firm.
An international human resources manager (IHRM) is tasked with outsourcing a global payroll
process to be rolled out to all countries where the U.S.-based multinational enterprise (MNE)
has a presence. In reviewing each country's human resources (HR) policies and processes, the
IHRM is surprised to discover important differences with local requirements and restrictions,
which are risks for a global payroll process failure.
Which local incompatibility is a risk to the rollout? - Answer HR Systems. Countries have their
own labor law requirements with regards to salary deductions, government contributions, and
