MAN6635 EXAM 2 QUESTIONS AND ANSWERS
How to determine how much labor is needed - CORRECT ANSWER✅✅Benchmarking, statistical
methods, subject matter experts
Benchmarking - CORRECT ANSWER✅✅a process by which a company compares its performance with
that of high-performing organizations
Statistical Methods - CORRECT ANSWER✅✅Looking at "leading indicators". Example: sales this year
correlate with labor demand next year
Subject matter experts - CORRECT ANSWER✅✅"Educated Guesses" taking into account factors such as
new product launches, changes with competitors, etc.
Methods for Correcting Surplus - CORRECT ANSWER✅✅Downsize, reduce pay, demotions, transfers,
early retirement, wait for natural attrition, hiring freeze
Methods for correcting shortage - CORRECT ANSWER✅✅Existing people work harder, temporary
employees, outsource, promote from within, decrease voluntary turnover, recruit and hire new people
Workforce - CORRECT ANSWER✅✅Enterprises employees
Labor force - CORRECT ANSWER✅✅The pool of potential employees from which the firm attracts and
hires its workforce
Challenges of International Staffing - CORRECT ANSWER✅✅- Availability of data (about labor forces)
- Increasing diversity of labor forces
- Brain Drain (citizens leaving countries for jobs with better pay)
- Lack of suitable candidates for management
- Populations Characteristics (ex. aging population)
,Approaches to MNE Staffing - CORRECT ANSWER✅✅Ethnocentric, Polycentric, Global
Ethnocentric Staffing Approach - CORRECT ANSWER✅✅- Fill key managerial positions with HQ staff
- Done when local management skill is insufficient
- Pro: HQ familiar with company
- Con: Risk of poor adaptation
Polycentric Staffing Approach - CORRECT ANSWER✅✅- Fill key managerial positions with locals
- Done when company wants to "act local"
- Pro: local managers familiar with area
- Con: Difficulty coordinating activities between subsidiary and HQ
Global Staffing Approach - CORRECT ANSWER✅✅- Best managers recruited from within or outside of
the company regardless of nationality
- Pro: largest pool of applicants
- Con: Lack of managers who want to work all around the world
International Business Strategy - CORRECT ANSWER✅✅- No overseas office or operations
- Generally used for exporting, licensing or subcontracting
- Ethnocentric
- Send managers from HQ
Multi-domestic Business Strategy - CORRECT ANSWER✅✅- Subsidiaries in multiple countries operate
independently within each country, independently of operations in other countries, and often fairly
independent of parent company HQ
- Polycentric
- Hire locally
Global Business Strategy - CORRECT ANSWER✅✅- Unified strategy implemented for all countries
regardless of culture or national differences
, Positives of recruiting from within - CORRECT ANSWER✅✅- Creates a well-known sample of applicants
- Reduces labor costs
- Allows vacancies to be filled quickly
- Enhances employee development
- Enhances company reputation
Negatives of recruiting from within - CORRECT ANSWER✅✅- Creates another vacancy
- Being good at a job does not necessarily mean you will be good at supervising or doing it abroad
External Recruitment Sources - CORRECT ANSWER✅✅- Referrals
- Advertisements
- Employee agencies
- Our competitors
- Colleges and Universities
Recruitment - CORRECT ANSWER✅✅Involves searching for and attracting qualified applicants to create
an applicant pool
Selection - CORRECT ANSWER✅✅Focuses on gathering and analyzing information about applicants in
order to select the most suitable person or persons for the job
Repatriation - CORRECT ANSWER✅✅The process of bringing an international assignee and their family
back home from foreign assignment
Types of Selection Measures - CORRECT ANSWER✅✅- Resumes & references
- Background checks
- Cognitive ability tests
- Personality Inventories
How to determine how much labor is needed - CORRECT ANSWER✅✅Benchmarking, statistical
methods, subject matter experts
Benchmarking - CORRECT ANSWER✅✅a process by which a company compares its performance with
that of high-performing organizations
Statistical Methods - CORRECT ANSWER✅✅Looking at "leading indicators". Example: sales this year
correlate with labor demand next year
Subject matter experts - CORRECT ANSWER✅✅"Educated Guesses" taking into account factors such as
new product launches, changes with competitors, etc.
Methods for Correcting Surplus - CORRECT ANSWER✅✅Downsize, reduce pay, demotions, transfers,
early retirement, wait for natural attrition, hiring freeze
Methods for correcting shortage - CORRECT ANSWER✅✅Existing people work harder, temporary
employees, outsource, promote from within, decrease voluntary turnover, recruit and hire new people
Workforce - CORRECT ANSWER✅✅Enterprises employees
Labor force - CORRECT ANSWER✅✅The pool of potential employees from which the firm attracts and
hires its workforce
Challenges of International Staffing - CORRECT ANSWER✅✅- Availability of data (about labor forces)
- Increasing diversity of labor forces
- Brain Drain (citizens leaving countries for jobs with better pay)
- Lack of suitable candidates for management
- Populations Characteristics (ex. aging population)
,Approaches to MNE Staffing - CORRECT ANSWER✅✅Ethnocentric, Polycentric, Global
Ethnocentric Staffing Approach - CORRECT ANSWER✅✅- Fill key managerial positions with HQ staff
- Done when local management skill is insufficient
- Pro: HQ familiar with company
- Con: Risk of poor adaptation
Polycentric Staffing Approach - CORRECT ANSWER✅✅- Fill key managerial positions with locals
- Done when company wants to "act local"
- Pro: local managers familiar with area
- Con: Difficulty coordinating activities between subsidiary and HQ
Global Staffing Approach - CORRECT ANSWER✅✅- Best managers recruited from within or outside of
the company regardless of nationality
- Pro: largest pool of applicants
- Con: Lack of managers who want to work all around the world
International Business Strategy - CORRECT ANSWER✅✅- No overseas office or operations
- Generally used for exporting, licensing or subcontracting
- Ethnocentric
- Send managers from HQ
Multi-domestic Business Strategy - CORRECT ANSWER✅✅- Subsidiaries in multiple countries operate
independently within each country, independently of operations in other countries, and often fairly
independent of parent company HQ
- Polycentric
- Hire locally
Global Business Strategy - CORRECT ANSWER✅✅- Unified strategy implemented for all countries
regardless of culture or national differences
, Positives of recruiting from within - CORRECT ANSWER✅✅- Creates a well-known sample of applicants
- Reduces labor costs
- Allows vacancies to be filled quickly
- Enhances employee development
- Enhances company reputation
Negatives of recruiting from within - CORRECT ANSWER✅✅- Creates another vacancy
- Being good at a job does not necessarily mean you will be good at supervising or doing it abroad
External Recruitment Sources - CORRECT ANSWER✅✅- Referrals
- Advertisements
- Employee agencies
- Our competitors
- Colleges and Universities
Recruitment - CORRECT ANSWER✅✅Involves searching for and attracting qualified applicants to create
an applicant pool
Selection - CORRECT ANSWER✅✅Focuses on gathering and analyzing information about applicants in
order to select the most suitable person or persons for the job
Repatriation - CORRECT ANSWER✅✅The process of bringing an international assignee and their family
back home from foreign assignment
Types of Selection Measures - CORRECT ANSWER✅✅- Resumes & references
- Background checks
- Cognitive ability tests
- Personality Inventories
