GLOBAL STRATEGY AND LEADERSHIP (GSL)
CONDENSED STUDY NOTES
Human Resource Management (HRM) - (answer)The set of activities directed at attracting,
developing, and maintaining the effective workforce necessary to achieve a firm's objectives.
IHRM - (answer)International human resources management-increasingly recognized as a major
determinant of success or failure in international business.
Firm's Strategy - (answer)Should dictate the organizational structure and staffing needs of the firm.
Expatriates - (answer)Employees assigned to work and live in a country other than their own native
country. Historically selected based on their domestic performance.
Ethnocentric staffing approach - (answer)Focuses on selecting and training expatriate managers.
Likely to be used when a company notes an inadequacy of local managerial skills and determines a
high need for close communication and coordination with the headquarters.
Polycentric staffing approach - (answer)When a company believes in filling key positions at foreign
subsidiaries with locals (people from the host country) "acting local".
Geocentric staffing approach - (answer)Global staffing approach-hire the best person regardless of
nationality. Provides a greater pool of qualified and willing applicants from which to choose.
Regiocentric staffing approach - (answer)Likely to produce a mix of HCN and TCNs according to the
needs of the company.
Parent country national (PCNs) - (answer)A manager from the home country headquarters. They are
familiar with company goals, products, technology, policies and procedures.
Third country nationals (TCNs) - (answer)When placed in key positions are perceived by employees
as acceptable compromises between headquarters and local managers.
Host country nationals (HCNs) - (answer)An employee who is a citizen of a country in which an
organization's branch or plant is located, but the organization is headquartered in another country.
, Transpatriate - (answer)Increasingly replacing the term expatriate due to the global staffing
approach.
Inpatriates - (answer)Managers with extensive global experience who are transferred to the
organization's headquarters.
Psychological capital - (answer)The ability to function successfully in the host country through
internal acceptance of different cultures and a strong desire to learn from new experiences.
Stress tolerance - (answer)Greatest predictive value of determining expat success according to Tye
and Chen.
Global mindset attributes of successful expats - (answer)Cognitive complexity, psychological capital,
and the ability to build trusting relationships with local stakeholders.
Expatriate failure - (answer)The early return of an expat manager to the home country because of
the inability to perform in the overseas assignment.
Expatriate preparation - (answer)Should include cultural training, familiarity with everyday matters,
and language instruction.
Host country training technique - (answer)Exposed trainees to the kinds of situations they are likely
to encounter which are critical to successful interactions.
Culture shock - (answer)A state of disorientation and anxiety that results from not knowing how to
behave in an unfamiliar culture.
Honeymoon stage of culture shock - (answer)New arrivals are fascinated by aspects of the new
culture.
Gradual adjustment stage of culture shock - (answer)The expat and his or her family come to
understand and predict patterns of behavior, use the language, deal with daily activities and accept
their new life.
Homesickness - (answer)Most likely a characteristic of the irritation and hostility stage of culture
shock.
CONDENSED STUDY NOTES
Human Resource Management (HRM) - (answer)The set of activities directed at attracting,
developing, and maintaining the effective workforce necessary to achieve a firm's objectives.
IHRM - (answer)International human resources management-increasingly recognized as a major
determinant of success or failure in international business.
Firm's Strategy - (answer)Should dictate the organizational structure and staffing needs of the firm.
Expatriates - (answer)Employees assigned to work and live in a country other than their own native
country. Historically selected based on their domestic performance.
Ethnocentric staffing approach - (answer)Focuses on selecting and training expatriate managers.
Likely to be used when a company notes an inadequacy of local managerial skills and determines a
high need for close communication and coordination with the headquarters.
Polycentric staffing approach - (answer)When a company believes in filling key positions at foreign
subsidiaries with locals (people from the host country) "acting local".
Geocentric staffing approach - (answer)Global staffing approach-hire the best person regardless of
nationality. Provides a greater pool of qualified and willing applicants from which to choose.
Regiocentric staffing approach - (answer)Likely to produce a mix of HCN and TCNs according to the
needs of the company.
Parent country national (PCNs) - (answer)A manager from the home country headquarters. They are
familiar with company goals, products, technology, policies and procedures.
Third country nationals (TCNs) - (answer)When placed in key positions are perceived by employees
as acceptable compromises between headquarters and local managers.
Host country nationals (HCNs) - (answer)An employee who is a citizen of a country in which an
organization's branch or plant is located, but the organization is headquartered in another country.
, Transpatriate - (answer)Increasingly replacing the term expatriate due to the global staffing
approach.
Inpatriates - (answer)Managers with extensive global experience who are transferred to the
organization's headquarters.
Psychological capital - (answer)The ability to function successfully in the host country through
internal acceptance of different cultures and a strong desire to learn from new experiences.
Stress tolerance - (answer)Greatest predictive value of determining expat success according to Tye
and Chen.
Global mindset attributes of successful expats - (answer)Cognitive complexity, psychological capital,
and the ability to build trusting relationships with local stakeholders.
Expatriate failure - (answer)The early return of an expat manager to the home country because of
the inability to perform in the overseas assignment.
Expatriate preparation - (answer)Should include cultural training, familiarity with everyday matters,
and language instruction.
Host country training technique - (answer)Exposed trainees to the kinds of situations they are likely
to encounter which are critical to successful interactions.
Culture shock - (answer)A state of disorientation and anxiety that results from not knowing how to
behave in an unfamiliar culture.
Honeymoon stage of culture shock - (answer)New arrivals are fascinated by aspects of the new
culture.
Gradual adjustment stage of culture shock - (answer)The expat and his or her family come to
understand and predict patterns of behavior, use the language, deal with daily activities and accept
their new life.
Homesickness - (answer)Most likely a characteristic of the irritation and hostility stage of culture
shock.
