D358: Global Human Resource Management With 100% accurate expert curated questions & answers (PASSED)

Culture

A characteristic way of behaving and believing that a group of people have developed over time and share in common.

Group's culture

The shared beliefs, values, and behaviors that give a sense of belonging and guide how a group should behave. It provides the capacity to adapt to circumstances and transmit knowledge to succeeding generations.

Three layers of culture

Culture can be divided into three layers: invisible culture, hidden culture, and surface culture.

Surface culture

The outer layer of culture that includes visible aspects such as dress, food, architecture, customs, body language, gestures, etiquette, and gift giving.

Hidden Culture

The underlying beliefs, values, and norms that are not readily apparent but influence behavior. It includes beliefs about child rearing and views of right or wrong.

Invisible Culture

The deepest layer of culture that consists of universal truths and forms the basis for a culture's values and beliefs.

Cultural dimensions

Aspects of culture that can be measured and compared across different societies. They include assertiveness, future orientation, gender differentiation, uncertainty avoidance, power distance, institutional collectivism, in-group collectivism, performance orientation, and humane orientation.

Convergence

The process of modern technology and modernizing industries leading to firms adopting similar 'best practices'.

Divergence

The phenomenon where cultural values and practices of countries continue to exert strong influences on their business and HR practices, resulting in differences between nations.

Cross-vergence

The intermixing of cultural systems between different countries, leading to the emergence of new cultural norms and practices.

Globalization

The balance middle ground view that acknowledges the impact of globalization on cultural convergence and divergence.

Limited research on international and comparative management

The existing research in this field lacks analytical rigor, relies too heavily on descriptions of organizational practices, suffers from expediency, and lacks sustained effort to develop case material.

Forms of IHRM Research

There are four basic forms of research in International Human Resources Management (IHRM).

Group culture's impact on management process

The culture of a group has a significant impact on every aspect of the management process, including decision-making, communication, and conflict resolution.

Forms of cross-cultural research

Universal, Situational, and Convergent are the three fundamental forms of cross-cultural research that explore the impact of culture on various aspects of human behavior and organizations.

Situations where cultural influences impact IHRM

One such situation is recruitment and hiring practices, where cultural differences can affect the selection criteria, interview processes, and candidate preferences.

Factors limiting IHRM research

Factors such as expense, travel, experience, cooperation, time, and investments do not limit IHRM research, but they can pose challenges in conducting comprehensive studies.

International Employee Performance Management System

A system designed to measure the performance of individuals and teams, and set performance expectations aligned with organizational objectives in a global workforce context.

Purpose of International Performance Management

To manage the performance of the global workforce so that performances at individual, team, and organizational levels contribute to strategic global objectives and desired multinational enterprise (MNE) performance.

Influence of Cultural Values on Performance Management

Cultural value dimensions such as power distance, collectivism, and harmony influence the evaluation of performance in an international context.

Exportative Strategy

A strategy that involves developing the Project Management system in the home country and transferring it to foreign units.

Adaptive Strategy

A strategy that involves developing unique Performance Management practices in each foreign unit.

Integrative Strategy

A strategy that combines local Performance Management practices with those within the region and around the world.

Relevance (Guidelines)

Guidelines for ensuring the relevance of performance management practices (refer to Exhibit 12.2).

Acceptability (Guidelines)

Guidelines for ensuring the acceptability of performance management practices (refer to Exhibit 12.2).

Sensitivity (Guidelines)

Guidelines for ensuring the sensitivity of performance management practices (refer to Exhibit 12.2).

Practicality (Guidelines)

Guidelines for ensuring the practicality of performance management practices (refer to Exhibit 12.2).

IA Performance Appraisal Criteria

Qualifications, targets, attitude, and job performance criteria used for performance appraisal (refer to Exhibit 12.3).

IA Performance Evaluation Criteria

Criteria related to the form, frequency, and feedback used for performance evaluation.

Host-Country Managers' View

The perspective of managers in the foreign subsidiary or joint venture, considering geographical, communicative, and cultural distance from the home-country appraiser. Local management opinions are often sought.

Challenge for Global Organizations

The need to develop and utilize skills specific to international jobs, which differ from those in the domestic environment.

Use of Multiple Reviewers

The practice of involving multiple reviewers in performance management to address potential issues and ensure fairness.

Business Strategy and Expectations

The influence of business strategy on the overall expectations for individual employees' performance in specific countries.

International remuneration

Compensation and benefits structure for employees of multinational enterprises (MNEs) in different locations and subsidiaries.

International assignment compensation

Compensation and benefits provided to employees of MNEs who work globally.

International remuneration challenges

Difficulties in determining comparability and accounting for cultural influences on compensation systems in different countries.

National and organizational cultures

Cultural factors that shape how individuals perceive the value of rewards in the compensation system.

Salary benefit ratio

The proportion of compensation allocated to salary versus benefits, influenced by cultural practices, laws, or regulations.

Tax laws

Laws that significantly impact how MNEs structure their compensation and benefits systems.

Sunshine rules

Regulations governing the disclosure of salaries.

International benefits

Additional benefits provided to employees working internationally.

Working hours

The number of hours an employee works per year.

Pension plans

Retirement benefits provided to employees.

Insurance

Coverage for life, disability, and long-term care.

Flexible benefits

Options for employees to choose from within a specified dollar limit.

Equity compensation

Stock options provided to employees as part of their compensation package.

Problems of comparability

Challenges in maintaining salary and benefits comparability for employees transferring between countries and within the organization.

Purpose of international compensation and benefits strategy

To ensure consistency, equity, and reduce barriers to global mobility for employees.

Approaches to compensation

Various methods such as ad hoc negotiations, balance sheet, localization, lump sum, cafeteria, regional, and global plans.

Global compensation and benefits specialists

Professionals who face unique challenges when developing total reward systems for MNEs.

Factors influencing compensation

Economic conditions, labor relations, laws and regulations, and government-provided benefits that impact compensation decisions.

Labor unions

Organizations concerned with job security, compensation, benefits, and worker entitlements.

Comprehensive compensation and benefits program

A program that includes non-salary benefits and their design for employees worldwide.

Multinational Enterprises (MNEs)

Companies operating in multiple countries

Knowledge Sharing

The act of exchanging information and expertise across borders

Development Opportunities

Chances for growth and improvement in a professional setting

Information Technology (IT)

The use of technology for storing, retrieving, and transmitting information

Training Programs

Structured activities designed to enhance employee job skills

Learning Portals

Online platforms that provide access to information and courses

Training and Development (T&D) Courses

Courses aimed at improving employee skills and knowledge

Cross-Cultural Preparation

Preparation for working effectively in different cultural settings

International Assignment Management

The management of work assignments in different countries

Global Mindset

The ability to work and adapt in a global context

Culture Shock

The psychological and emotional response to an unfamiliar culture

Organizational Cultures

The beliefs and values that shape an organization's behavior

Global Competitiveness

The ability to compete effectively in the global market

Global Complexity

Dealing with complex global issues and challenges

Organization Adaptability

The ability of an organization to adapt to changing circumstances

Multicultural Teams

Teams composed of members from different cultural backgrounds

Global Leadership

Leadership in a global business environment

International Training and Development (T&D)

Training and development programs in an international context

Global Organizational Learning

Learning at the organizational level in a global context

Virtual and Global Teams

Teams that are geographically dispersed and work across borders

Contextual Challenges

Challenges specific to the context of a situation

Cultural Diversity

Differences in culture within a team or organization

Recruiting

The process of searching for and attracting qualified applicants to create a pool of candidates for possible hiring.

Selecting

The process of gathering and analyzing information about job applicants in order to choose the most suitable person or persons for the job.

Repatriating

The process of bringing international assignees (IAs) and their families back to their home country from their foreign assignments.

Options for staffing foreign operations

Four common options used by multinational enterprises (MNEs) to staff their foreign operations: secondment, transfer of employment, global employment company, and dual employment.

International recruitment

The function that focuses on identifying and attracting global candidates from within the organization. It includes strategies such as global talent management inventories, in-house global leadership programs, former/current expatriates, nominations, internal job posting/intranet, and international succession planning programs.

Employer reputation

The evaluation by potential candidates of an organization as a desirable place to work and as a desirable option for seeking international experience.

Talent shortages

Shortages of skilled workers that occur in countries during times of economic boom, as well as in times of economic uncertainty.

Selection methods

Methods used to select candidates for international assignments, including interviews, formal assessments, committee decisions, career planning, self-selection, internal job posting and individual bid, recommendations, and assessment centers.

Types of failures with international assignments

Failures that can occur with international assignments, including early return home or termination, as well as compounding factors.

Challenges for MNEs

One challenge for multinational enterprises (MNEs) is managing talent shortages.

Least important selection criteria

The least important criteria for selecting candidates for international assignments are job suitability, cultural adaptability, and desire for international assignment.

Selection methods for international assignments

Methods used to select candidates for international assignments are similar to those used in domestic staffing decisions.

Workforce

The employees of an enterprise.

Labor pool

A pool of potential employees available for recruitment.

Staffing decision

The process of estimating employment needs, recruiting, selecting, and repatriating talent in organizations with operations in different countries.

Factors impacting international workforce planning

Availability of data, population characteristics (shortages and surpluses), labor mobility (emigration and immigration), brain drain, job exporting, and increasing diversity of labor forces and workforces.

International staffing approaches

Different approaches to staffing in multinational enterprises (MNEs): ethnocentric (focus on parent country nationals), polycentric (focus on host country nationals), regiocentric (focus on regional nationals), and geocentric (focus on the best talent regardless of nationality).

Types of international employees

Different categories of employees in MNEs: Parent Country Nationals (PCNs) - employees from the parent country working in foreign subsidiaries, Host Country Nationals (HCNs) - employees from the host country, and Third Country Nationals (TCNs) - employees from a country other than the parent or host country.

Expatriates

Parent Country Nationals (PCNs) transferred to another country to work in a foreign subsidiary or other type of operation of the MNE for more than one year.

Inpatriates

Host Country Nationals (HCNs) relocated to the headquarters of the parent firm, generally for assignments of one year or less, for the purpose of learning the organization and its products and culture.

Purpose of demand-driven assignments

Using expatriates as general managers or directors, for subsidiary start-ups, rolling out new products, technology transfer, problem-solving, functional tasks such as accounting, sales, and manufacturing, and organizational control.

Purpose of learning-driven assignments

Management development, transfer of knowledge, and the socialization of locals into the corporate culture and values.

Brain drain

The phenomenon where educated and skilled citizens leave their home country for jobs with better pay in developed countries, causing a loss of talent for the home country.

Challenges of a diverse workforce

The variety of employees from different backgrounds presents new challenges for the selection, preparation, deployment, and management of a global workforce.

Local hiring in MNE staffing

FALSE. Staffing for multinational enterprises involves hiring at the local level in both the parent country and all foreign locations.