CHAPTER 5: Sourcing Human Resources for Global Markets – Staffing, Recruitment

and Selection

TRUE/FALSE

1. “Assignments as control” is a characteristic of an ethnocentric staffing approach.

ANS: T PTS: 1 TOP: Approaches to Staffing

2. Upon comparing the compensation packages of PCN and HCN employees, given an ethnocentric
approach of staffing, there are little to no differences found in the pay for the two groups.

ANS: F PTS: 1 TOP: Approaches to Staffing

3. A disadvantage of a geocentric policy is it can be expensive to implement because of increased

training and relocation.

ANS: T PTS: 1 TOP: Approaches to Staffing

4. Regional managers may not be promoted to HQ positions in a regiocentric approach to staffing.

ANS: T PTS: 1 TOP: Approaches to Staffing

5. Study of Chinese MNEs has confirmed that Western models of staffing policies are not applicable to
Chinese MNEs.

ANS: F PTS: 1 TOP: Approaches to Staffing

6. A short term international assignment is defined as anything up to 1 year.

ANS: F PTS: 1
TOP: Transferring Staff for International Business Activities

7. Frequent trips to the host country are necessary in a virtual non-standard assignment.

ANS: T PTS: 1
TOP: Transferring Staff for International Business Activities

8. The duration of an expatriate assignment will not necessarily have an impact on the person’s ability to
develop networks.

ANS: F PTS: 1
TOP: Transferring Staff for International Business Activities

9. A key driver in recruiting an inpatriate is the desire to create a global core competency thus increasing
the organizations capability to “think global and act local”.

ANS: T PTS: 1 TOP: The Roles of an Inpatriate

10. Non-expatriates experience fewer stressors than expatriates as they are not responsible for duties at the
home office while on international assignments.
 ANS: F PTS: 1 TOP: The Roles of a Non-Expatriate

11. Traditional assignments for expatriates usually range from 3 months to 1 year in a location.

ANS: F PTS: 1 TOP: The Roles of an Expatriate

12. Virtual assignments rely on communication technologies and such assignees will never visit the host
country.

ANS: F PTS: 1
TOP: Transferring Staff for International Business Activities

13. The U-curve is based on psychological reactions to a cultural adjustment of an international

assignment.

ANS: T PTS: 1 TOP: Selection Criteria

14. The term expatriate failure has been defined as the premature return of an expatriate before the period
of assignment is completed.

ANS: T PTS: 1 TOP: Selection Criteria

15. Many developed countries are changing their legislation to facilitate employment related immigration
which will make international transfer easier.

ANS: T PTS: 1 TOP: Selection Criteria

16. Lack of fluency in the corporate language is rarely a factor in the selection process in a MNE.

ANS: F PTS: 1 TOP: Selection Criteria

17. The “coffee machine” system is a common form of selection process in the UK.

ANS: T PTS: 1 TOP: Expatriate Selection Processes in Practice

18. Job hunting assistance is provided to spouses to find a job in host countries as a means of making an
international assignment more family-friendly.

ANS: T PTS: 1 TOP: Dual Career Couples

19. “Trailers” are the spouses of expatriates.

ANS: T PTS: 1 TOP: Dual Career Couples

20. Most expatriates are recruited externally.

ANS: F PTS: 1
TOP: Recruitment and Selection of International Managers

21. Indirect cost of the failure of an expatriate involving contact with key clients and host government
officials may result in the long term loss of market shares.

ANS: T PTS: 1 TOP: Expatriate Failure and Success

 22. The recruitment process is defined as the process of searching for a sufficient number of
candidates to fill a position.

ANS: T PTS: 1
TOP: Recruitment and Selection of International Managers

MULTIPLE CHOICE

1. Ethnocentric organizations are best characterized by:

a. Key personnel positions are held by headquarter personnel.
b. Subsidiaries are managed by local nationals (HCN)
c. A worldwide integrated business which nationality is ignored in favor of ability
d. Staff may move outside their countries but only within a particular geographic region.
ANS: A PTS: 1 TOP: Approaches to Staffing

2. All of the following is an approach to managing and staffing subsidiaries EXCEPT:

a. Ethnocentric c. Geocentric
b. Polycentric d. Multicentric
ANS: D PTS: 1 TOP: Approaches to Staffing

3. A sound business reason for pursing an ethnocentric staffing policy is:

a. Employment of HCNs is normally less expensive
b. Perceived lack of qualified host nationals (HCN)
c. It supports cooperation and resource sharing across units
d. Reflects the goals of the owners
ANS: B PTS: 1 TOP: Approaches to Staffing

4. Polycentric approaches to international staffing:

a. Uses the “assignment as control” approach to reduce perceived high risk
b. Uses HCNs to manage subsidiaries and they are often promoted to headquarters
c. Can be expensive to implement
d. Has very few divisions in the HR staffing department
ANS: B PTS: 1 TOP: Approaches to Staffing

5. A disadvantage of a polycentric policy is:

a. Employment of HCNs is less expensive
b. Host-country managers have limited opportunities to gain experience outside of their own
country
c. It can produce federalism at a regional rather than country basis
d. Has very few from divisions in the HR staffing department
ANS: B PTS: 1 TOP: Approaches to Staffing

6. A MNE taking a global approach to its operations and recognizing that each HQ and subsidiary makes
a unique contribution with unique competence is described as:
a. Regiocentric c. Geocentric
b. Polycentric d. Multicentic
ANS: C PTS: 1 TOP: Approaches to Staffing

7. Hiring host country nationals for a multinational enterprise have the following advantages EXCEPT:
 a. Language and other barriers are eliminated
b. Government policy may dictate hiring of HCN
c. Hiring cost are reduced
d. Organizational control and coordination is maintained and facilitated
ANS: D PTS: 1 TOP: Approaches to Staffing

8. The most common reason for an international assignment is:

a. Need for control c. To fill a skills gap
b. Less expensive HR cost d. Host government pressures
ANS: C PTS: 1
TOP: Transferring Staff for International Business Activities

9. Key organizational reasons for international staffing assignment include all of the following EXCEPT:
a. Culture exchange c. Management development
b. Position filling d. Organization development
ANS: A PTS: 1
TOP: Transferring Staff for International Business Activities

10. “Extended international assignments” are defined as assignments:

a. Up to 3 months c. 1 to 5 years
b. Up to 1 year d. Over 5 years
ANS: B PTS: 1
TOP: Transferring Staff for International Business Activities

11. Employees on oil rigs would usually be classified as which non-standard assignment?
a. Contractual assignment c. Rotational assignment
b. Commuter assignment d. Virtual assignment
ANS: C PTS: 1
TOP: Transferring Staff for International Business Activities

12. An example of an employee working on a contractual assignment of a non-standard is a/an:

a. Part time loan of an employee for one week to one month
b. Three years assignment to start up a Greenfield site
c. Oil rig worker
d. R&D project team
ANS: D PTS: 1
TOP: Transferring Staff for International Business Activities

13. Traditional expatriate assignments are referred to as a/an:

a. Long term assignment c. Short term assignment
b. Extended assignment d. Contractual assignment
ANS: A PTS: 1
TOP: Transferring Staff for International Business Activities

14. “Bumble Bee” is a description of an expatriate role as:

a. Agent of direct control c. Transferor of corporate values
b. Network builders d. Boundary spanners
ANS: C PTS: 1 TOP: The Roles of an Expatriate
15. Boundary spanning refers to activities that:
a. Expand ownership in a different country
b. Gather information that bridge internal and external organizational contexts
c. Exporting information and technology across country boundaries
d. Expatriates are seldom called on to perform for the organization
ANS: B PTS: 1 TOP: The Roles of an Expatriate

16. All of the following describe a non-expatriate EXCEPT:

a. Person who relocates to another county c. Globetrotter
b. Road warrior d. Flexpatriate
ANS: A PTS: 1 TOP: The Roles of a Non-Expatriate

17. Third country nationals:

a. Provide no assurance the subsidiary will comply with company objectives
b. Provide continuity of management as TCHs stay longer in positions
c. May be better informed than Parent Country Nationals about the host county environment
d. May impose an inappropriate HQ style
ANS: C PTS: 1 TOP: Approaches to Staffing

18. Whether a firm chooses ethnocentric, polycentric, regiocentric or geocentric staffing approach depends
on:
a. Context specificities, local unit specificities, technological specificities and HR policies
b. Context specificities, competitive specificities, company specificities and IHRM practices
c. Context specificities, company specificities, local unit specificities, IHRM practices
d. Cultural specificities, regulatory specificities, local unit specificities, and IHRM practices
ANS: C PTS: 1 TOP: Approaches to Staffing

19. Three key organizational reasons for using the various forms of international assignments are:
a. Position filling, crisis management and organizational development
b. Responding to requests from local employees, management development and
organizational development
c. Position filling, management development and responding to requests by parent company
employees for international assignments
d. Position filling, management development and organizational development
ANS: D PTS: 1
TOP: Transferring Staff for International Business Activities

20. Recruitment is defined as:

a. The process of gathering information for the purpose of evaluating who should be
employed
b. Searching for and obtaining job candidates
c. Promoting employees within the organization to fill international management positions
d. Transferring functional managers to headquarters
ANS: B PTS: 1
TOP: Recruitment and Selection of International Managers

21. How is “expatriate failure” usually defined?

a. Returning home before the period of assignment is completed
b. Lower than expected market shares
 c. A dissatisfaction by the assignee during or after the assignment
d. Communication channels not utilized and implemented as expected
ANS: A PTS: 1 TOP: Expatriate Failure and Success

22. An indirect cost of the failure of an expatriate would be:

a. Relocation expenses c. Loss of market share
b. Exchange rate d. Their replacement cost
ANS: C PTS: 1 TOP: Expatriate Failure and Success

23. The culture adjustment process in an international assignment can be characterized by:
a. An “S” shaped curve c. Cultural shock
b. A “U” shaped curve d. Matrix relationships
ANS: B PTS: 1 TOP: Selection Criteria

24. The selection process of an expatriate places a heavy reliance on:

a. Relevant technical skills c. Marital status
b. Past performances d. Desire to relocate
ANS: A PTS: 1 TOP: Selection Criteria

25. The European Union Social Charter allows for

a. Spousal work permits
b. Expatriate to apply for citizenship
c. Free movement of citizens of member countries within the EU for work
d. Long term assignments
ANS: C PTS: 1 TOP: Selection Criteria

26. A group of multinationals have established an organization called “Permits Foundation” which:
a. Promotes the improvement of work permit regulations for spouses of expatriates
b. Allows multinationals to work foreigners without a VISA
c. Advocates all managers to receive a permit to work in any country
d. Acts as a clearinghouse for work permit complaints
ANS: A PTS: 1 TOP: Selection Criteria

27. Which language is the common corporate language in the world?

a. French c. English
b. Spanish d. Mandarin Chinese
ANS: C PTS: 1 TOP: Selection Criteria

28. According to the text, common corporate language in MNEs is developed to :

a. Expand the use of English
b. Use language as a way of standardizing reporting systems
c. Match the language of the home country
d. Provide an interpreter if managers are not fluent in the common language
ANS: B PTS: 1 TOP: Selection Criteria

29. An emerging constraint on the available pool of candidates which is hindering the recruitment and
selection process of potential employees for international assignment is:
a. The frequency of dual career couples
 b. Personality and psychological tests
c. Equal employment opportunity law
d. The decline of management programs in Universities
ANS: A PTS: 1 TOP: Dual Career Couples

30. A family friendly policy to encourage placement of an expatriate which is logical but not always
acceptable to multinationals is:
a. Inner-company network c. Intra-company employment
b. Job hunting assistance d. Post assignment career support
ANS: C PTS: 1 TOP: Dual Career Couples

31. “Independents” are defined in the text as:

a. Professional women who are self-selected expatriates
b. Trailers
c. Minority foreign female
d. Neither a Democrat or Republican expatriate
ANS: A PTS: 1 TOP: Dual Career Couples

32. Female expatriates tend to be employed by companies:

a. That are small c. In the marketing field
b. With over 1000 employees d. Going into the USA
ANS: B PTS: 1 TOP: Dual Career Couples

33. A major barrier to the selection of female expatriates was found to be:
a. The attitudes of HR directors
b. The lack of qualified females
c. The attitudes of host country coworkers
d. A lack of support by the female expatriates’ family
ANS: A PTS: 1 TOP: Dual Career Couples

SHORT ANSWER

1. What are the four terms to describe MNE approaches to managing and staffing subsidiaries?

ANS:
The four terms to describe MNE approaches to managing and staffing subsidiaries are: ethnocentric,
polycentric, geocentric and regiocentric.

PTS: 1 TOP: Approaches to Staffing

2. What are some advantages and disadvantages of the ethnocentric approach to staffing the MNE?

ANS:
Advantages:
 A perceived lack of qualified host-country nationals (HCNs)
 The need to maintain good communication, coordination and control links with corporate
headquarters.
Disadvantages:
  It limits the promotion opportunities of HCNs, which may lead to reduced productivity and
increased turnover among that group.
 The adaptation of expatriate managers to host countries often takes a long time, during which
PCNs often make mistakes and poor decisions.
 When PCN and HCN compensation packages are compared, the often considerable income
gap in favor of PCNs may be viewed by HCNs as unjustified.
 For many expatriates a key overseas position means new status, authority, and an increase in
standard of living. These changes may affect expatriates’ sensitivity to the needs and
expectations of their host country subordinates which may be quite different to the perceptions
of the PCN manager.

PTS: 1 TOP: Approaches to Staffing

3. There are three key organizational reasons for international assignments. What are these three reasons?

ANS:
The three key organizational reasons for international assignments are: position filling, management
development and organization development.

PTS: 1 TOP: Transferring Staff for International Business Activities

4. Discuss the six roles of an expatriate.

ANS:
The six roles of an expatriate are: as an agent of direct control; as an agent of socialization; as network
builders; as boundary spanners; as language nodes and the transfer of competence and knowledge.

PTS: 1 TOP: The Roles of an Expatriate

5. Why are expatriates considered boundary spanners?

ANS:
Expatriates are considered boundary spanners because they can collect host country information, act as
representatives of their firms in the host country, and can influence agents. For example, attending a
social function at a foreign embassy can provide the expatriate with an opportunity to network, gather
market intelligence and promote the firm’s profile at a high level.

PTS: 1 TOP: The Roles of an Expatriate

6. What are the five stressors impacting non-expatriates?

ANS:

 Home and family issues – such as missing important anniversaries and school events. The
more frequent the travel, the greater the potential for family and marital relationships to be
strained.
 Work arrangements – the ‘domestic’ side of the job still has to be attended to even though the
person is traveling internationally. Modern communications allow work to accompany the
business traveler who is often expected to remain up to date with home-office issues while
away from the office.
 Travel logistics – airline connections, hotel accommodation, and meeting schedules.
  Health concerns – poor diet, lack of physical exercise, lack of sleep, coping with jetlag, and
exposure to viruses and other health problems (e.g. Deep Vein Thrombosis from excessive air
travel).
 Host culture issues – as international business is conducted in other cultural settings, the
person is still expected to be able to operate in unfamiliar environments and handle cultural
differences effectively. However, the limited empirical and anecdotal evidence suggests that
non-expatriates do not receive the same level of cross-cultural training as expatriates – if any.

PTS: 1 TOP: The Roles of a Non-Expatriate

7. What are several factors in an expatriate selection process which are absent in the selection of a
regular, domestic management position?

ANS:
Several factors in an expatriate selection process: technical ability, cross-cultural suitability, family
requirements, country/ cultural requirements, language and MNE requirements.

PTS: 1 TOP: Selection Criteria

8. Discuss the U-Curve phases in the process of adjustment to a foreign culture.

ANS:
Phase 1commences with reactions prior to the assignment – the expatriate may experience a range of
positive and negative emotions such as excitement, anxiety, fear of the unknown or a sense of
adventure. There can be an upswing of mood upon arrival in the assignment country that produces
what has been referred to as the ‘honeymoon’ or ‘tourist’ phase. Then, as the novelty wears off,
realities of everyday life in the foreign location begin to intrude, homesickness sets in, and a
downswing may commence – a feeling that ‘the party is over’ – which can create negative appraisals
of the situation and the location leading to a period of crisis – Phase 2. This can be a critical time, and
how the individual copes with the psychological adjustment at this phase has an important impact in
terms of success or failure. There is a suggestion that ‘failure as an early recall’ may be triggered at
this point. Once past this crisis point, as the expatriate comes to terms with the demands of the new
environment, there is a pulling up – Phase 3 – as the person begins to adjust to the new environment.
This levels off over time to what has been described as healthy recovery – Phase 4.

PTS: 1 TOP: Selection Criteria

9. What are the most common reasons for rejecting an international assignment? Do different countries
have different reasons for assignment rejection?

ANS:
The two most common reasons for rejecting an international assignment are: family concerns and the
partner’s career.

PTS: 1 TOP: Dual Career Couples

10. What are some alternative assignment arrangements applied to address the dual career couple restraints
on the selection process?

ANS:
Important support measures include language training, educational assistance, employer-sponsored
work permits, and assistance with career planning.
Other solutions to the challenge of dual career couples include the following:
  Inter-firm networking – Here the multinational attempts to place the accompanying spouse or
partner in a suitable job with another multinational – sometimes in a reciprocal arrangement.
Alternatively, a local supplier, distributor, or joint venture partner may agree to employ the
accompanying spouse/partner.
 Job-hunting assistance – Here the MNE provides spouse/partner assistance with the
employment search in the host country. This may be done through employment agency fees,
career counseling, or simply work permit assistance. Some may provide a fact-finding trip to
the host location before the actual assignment.
 Intra-firm employment – This is perhaps a logical but often a somewhat difficult solution. It
means sending the couple to the same foreign facility, perhaps the same department. Not all
multinationals (nor all couples) are comfortable with the idea of having a husband and wife
team in the same work location and there can often be significant difficulties obtaining work
visas for such arrangements.
 On-assignment career support.

PTS: 1 TOP: Dual Career Couples

11. Discuss the externally and internally established barriers to females taking international assignments.

ANS:
Varma and Valy-Durbin found that US and Canadian women are interested in and likely to accept
international assignments, though there are response variations between those with children and those
without. However, the women in this study tended to believe that their firms were hesitant to ask them
to accept an international assignment, though supervisors (whether male or female) did not necessarily
share that belief.
Further, performance of female expatriates was found initially to be affected by host country prejudice
regarding the role of women in certain countries – considered as culturally tough assignment locations.
Taking a different approach in her study of Austrian female expatriates, Fischlmayr used the concepts
of external and self-established barriers to explore why women are underrepresented in international
assignments. Through 21 interviews with HR managers and female expatriates in Austrian
multinationals from various industries and positions, Fischlmayr found that attitudes of HR directors
were a major barrier to the selection of female expatriates, though self-established barriers were also
very strong. Females in Austrian companies often had to specifically request an international
assignment whereas their male colleagues were required to take international assignments. Further,
some women regarded their age as a factor in terms of others’ perceptions and expectations about their
behavior. The older the woman, the easier it was to obtain a position overseas.

PTS: 1 TOP: Dual Career Couples