International HRM
SAMPLE EXAM (with solutions)...................................................................................................................... 2
TOPIC 1 – HRM AND INTERNATIONALIZATION.......................................................................................... 4
TOPIC 2 – ORGANIZATION STRUCTURES OF MNEs................................................................................. 9
TOPIC 3 – COUNTRY OF ORIGIN EFFECTS ON HRM: US, JAPAN, AND EUROPE ............................... 11
TOPIC 4 – HOST COUNTRY EFFECTS ON HRM AND INDUSTRIAL RELATIONS ................................. 15
TOPIC 5 – FRAMEWORKS FOR UNDERSTANDING CROSSNATIONAL HRM ........................................ 21
TOPIC 6 – THE AMERICAN BUSINESS SYSTEM AND HRM IN AMERICAN MNEs ................................. 23
TOPIC 7 – THE BRITISH BUSINESS SYSTEM AND HRM IN BRITISH FIRMS ......................................... 25
TOPIC 8 – SOCIAL DEMOCRATIC MODELS OF HRM AND IR IN GERMANY AND AUSTRIA ............... 30
TOPIC 9 – HRM IN AFRICA ......................................................................................................................... 35
TOPIC 10 – EXPATS .................................................................................................................................... 40
, SAMPLE EXAM (with solutions)
1. We discussed the case of strong institutions and strong firms. Which country does not fall under this
combination?
1. US
2. UK
3. Germany
4. Greece
2. Which of the following statements about the US is wrong?
1. During the immigration wave of 1848-1920, European immigrants were trying to escape from
the vested aristocracy that owned the factories
2. The US market is a liberal market
3. There are no antitrust regulations on the US market
4. The civil rights movements has stimulated a culture of equal opportunities on the job market
3. We discussed the case of dormitory labor in China. What did we conclude?
1. Workers accept the dormitories because they do not have much other option
2. Workers are more productive when using dormitory labor compared to owning their own house
far away from their rural family
3. Workers adapt faster to the values of the company when using dormitory labor instead of
owning their own apartment in the city
4. Workers who live in dormitories are more independent than workers who own an apartment
in the city
4. We discussed the case of AB Inbev, the world’s biggest brewer that calls itself the coldest organization
in the world. Which of the following concepts did we associate with AB Inbev?
1. Country-of-origin effect
2. Host-country effect
3. Cooperative culture
4. High power distance
5. Which of the following statements is false?
1. In case of a restructuring, MNE’s are often more inclined to cut jobs abroad than in the home
country
2. Most expats in large MNE’s are third country nationals
3. Socioeconomic colonialism is linked to the country-of-origin effect
4. Strong institutions weaken the country-of-origin effect
6. We discussed the idea that an organization should not pay for social security or a company car, but
rather use pay-for-performance instead. Those who perform well will have the money to spend on
social security or a car as they please. This idea links most closely with
1. The American view on HR
2. The German view on HR
3. The Japanese view on HR
4. The Chinese view on HR
7. We discussed the McDonalds case when talking about the country-of-origin effect. Which of the
following statements is false?
1. McDonalds recruited workers from disadvantaged groups
2. McDonalds stimulated industry union membership to avoid turnover
3. McDonalds preferred young workers in its US restaurants
4. McDonalds varied its recruitment strategies in different parts of the world
2
,8. We discussed the case of child benefits in Europe. To which discussion is this topic in fact referring?
1. Differences in power distance
2. Differences in groupism
3. Differences in unionism
4. Differences in living standards
9. Why was the seniority based wage system so important for Japanese MNEs?
1. To avoid international taxation systems
2. To create respect for the older workers
3. To stimulate turnover at higher management levels
4. To facilitate membership of industry unions
10. Which critique on the Japanese lifetime employment philosophy is correct?
1. This culture only lasted until the second world war
2. This culture made Japanese companies less effective than the American competitors
3. This culture was possible for the big MNE’s, but was not representative for all Japanese
companies
4. This culture was in conflict with the three pillar approach
3
, TOPIC 1 – HRM AND INTERNATIONALIZATION
Introduction
• HRM is not similar in any part of the world, there are many variances. People do HR differently,
depending on where they are in the world.
Strong and weak
• Refers to strong and weak institutions/firms, depending on who is in control. Is it the government
(strong institutions)?
• Several possible combinations:
1. Strong institutions and weak firms
§ Governments enact policies and impose them in firms. The government is in control
and says what needs to be done and the firms just need to follow that lead.
§ Example: Australian government sets a maximum of weekly hours that people can
work for.
§ Example: Same for Western world (38-40h/week). Eg. French workers get ‘right to
disconnect’ from emails out of hours – BBC News.
§ Example: Extreme case: China before the reform / North-Korea today. Government
appoints workers, firms have no control over hiring and firing. Thus, HR could not be
located at firm level. Is this still realistic in today’s organizations? It is. See next
example.
§ Example: US political appointments. First column people are being appointed by the
government. They are not being selected by a panel of specialists, no they are being
given to these departments by the government.
§ Example: Politics and economy: Erdogan names son-in-law head of Turkey’s finance
ministry. A way of politicians to get control over the finance industry. Again an example
of organizations not being able to decide who works for them.
4
SAMPLE EXAM (with solutions)...................................................................................................................... 2
TOPIC 1 – HRM AND INTERNATIONALIZATION.......................................................................................... 4
TOPIC 2 – ORGANIZATION STRUCTURES OF MNEs................................................................................. 9
TOPIC 3 – COUNTRY OF ORIGIN EFFECTS ON HRM: US, JAPAN, AND EUROPE ............................... 11
TOPIC 4 – HOST COUNTRY EFFECTS ON HRM AND INDUSTRIAL RELATIONS ................................. 15
TOPIC 5 – FRAMEWORKS FOR UNDERSTANDING CROSSNATIONAL HRM ........................................ 21
TOPIC 6 – THE AMERICAN BUSINESS SYSTEM AND HRM IN AMERICAN MNEs ................................. 23
TOPIC 7 – THE BRITISH BUSINESS SYSTEM AND HRM IN BRITISH FIRMS ......................................... 25
TOPIC 8 – SOCIAL DEMOCRATIC MODELS OF HRM AND IR IN GERMANY AND AUSTRIA ............... 30
TOPIC 9 – HRM IN AFRICA ......................................................................................................................... 35
TOPIC 10 – EXPATS .................................................................................................................................... 40
, SAMPLE EXAM (with solutions)
1. We discussed the case of strong institutions and strong firms. Which country does not fall under this
combination?
1. US
2. UK
3. Germany
4. Greece
2. Which of the following statements about the US is wrong?
1. During the immigration wave of 1848-1920, European immigrants were trying to escape from
the vested aristocracy that owned the factories
2. The US market is a liberal market
3. There are no antitrust regulations on the US market
4. The civil rights movements has stimulated a culture of equal opportunities on the job market
3. We discussed the case of dormitory labor in China. What did we conclude?
1. Workers accept the dormitories because they do not have much other option
2. Workers are more productive when using dormitory labor compared to owning their own house
far away from their rural family
3. Workers adapt faster to the values of the company when using dormitory labor instead of
owning their own apartment in the city
4. Workers who live in dormitories are more independent than workers who own an apartment
in the city
4. We discussed the case of AB Inbev, the world’s biggest brewer that calls itself the coldest organization
in the world. Which of the following concepts did we associate with AB Inbev?
1. Country-of-origin effect
2. Host-country effect
3. Cooperative culture
4. High power distance
5. Which of the following statements is false?
1. In case of a restructuring, MNE’s are often more inclined to cut jobs abroad than in the home
country
2. Most expats in large MNE’s are third country nationals
3. Socioeconomic colonialism is linked to the country-of-origin effect
4. Strong institutions weaken the country-of-origin effect
6. We discussed the idea that an organization should not pay for social security or a company car, but
rather use pay-for-performance instead. Those who perform well will have the money to spend on
social security or a car as they please. This idea links most closely with
1. The American view on HR
2. The German view on HR
3. The Japanese view on HR
4. The Chinese view on HR
7. We discussed the McDonalds case when talking about the country-of-origin effect. Which of the
following statements is false?
1. McDonalds recruited workers from disadvantaged groups
2. McDonalds stimulated industry union membership to avoid turnover
3. McDonalds preferred young workers in its US restaurants
4. McDonalds varied its recruitment strategies in different parts of the world
2
,8. We discussed the case of child benefits in Europe. To which discussion is this topic in fact referring?
1. Differences in power distance
2. Differences in groupism
3. Differences in unionism
4. Differences in living standards
9. Why was the seniority based wage system so important for Japanese MNEs?
1. To avoid international taxation systems
2. To create respect for the older workers
3. To stimulate turnover at higher management levels
4. To facilitate membership of industry unions
10. Which critique on the Japanese lifetime employment philosophy is correct?
1. This culture only lasted until the second world war
2. This culture made Japanese companies less effective than the American competitors
3. This culture was possible for the big MNE’s, but was not representative for all Japanese
companies
4. This culture was in conflict with the three pillar approach
3
, TOPIC 1 – HRM AND INTERNATIONALIZATION
Introduction
• HRM is not similar in any part of the world, there are many variances. People do HR differently,
depending on where they are in the world.
Strong and weak
• Refers to strong and weak institutions/firms, depending on who is in control. Is it the government
(strong institutions)?
• Several possible combinations:
1. Strong institutions and weak firms
§ Governments enact policies and impose them in firms. The government is in control
and says what needs to be done and the firms just need to follow that lead.
§ Example: Australian government sets a maximum of weekly hours that people can
work for.
§ Example: Same for Western world (38-40h/week). Eg. French workers get ‘right to
disconnect’ from emails out of hours – BBC News.
§ Example: Extreme case: China before the reform / North-Korea today. Government
appoints workers, firms have no control over hiring and firing. Thus, HR could not be
located at firm level. Is this still realistic in today’s organizations? It is. See next
example.
§ Example: US political appointments. First column people are being appointed by the
government. They are not being selected by a panel of specialists, no they are being
given to these departments by the government.
§ Example: Politics and economy: Erdogan names son-in-law head of Turkey’s finance
ministry. A way of politicians to get control over the finance industry. Again an example
of organizations not being able to decide who works for them.
4
