International Human Resource Management Policies and Practices for Multinational Enterprises

International Human Resource Management Policies

and Practices for Multinational Enterprises 5th
Tarique Test Bank

To download the complete and accurate content document, go to:

https://testbankbell.com/download/international-human-resource-management-policie
s-and-practices-for-multinational-enterprises-5th-tarique-test-bank/

Visit TestBankBell.com to get complete for all chapters

Chapter 6 International Employment Law, Labor Standards, and Ethics

TRUE/FALSE

1. Employment law and regulation is one of the most important components of the global context for
IHRM.

ANS: T REF: 153

2. The UN plays a relatively insignificant role in establishing employment laws or standards.

ANS: T REF: 157

3. Conventions are international treaties which are legally binding for the member states once they are
ratified by them.

ANS: T REF: 158

4. The General Agreement on Tariffs and Trade (GATT) has replaced the much maligned and outdated
World Trade Organization (WTO).

ANS: F REF: 160

5. EU-wide adoption of social policies does not require unanimous agreement by all European Union
member states.

ANS: F REF: 161

6. EU nationals have the right of residence in only a few EU host countries and the host country can
withhold a residence permit for any national of a member state for any reason.

ANS: F REF: 172

7. American firms that do not certify compliance with basic European privacy laws through the “safe
harbor” procedure can lose their right to do business anywhere in the EU.

ANS: T REF: 173

8. The concept of “employment at will,” as practiced in the U.S. (where the employer, with a few
exceptions, has the right to terminate an employee at will and the employee has the right to quit at any
time for any reason), also exists in most developed countries.

ANS: F REF: 173

9. Inventions and intellectual contributions, which are a result of an individual’s employment, are usually
not considered by the employer to be its property.

ANS: F REF: 177

10. A cosmopolitanism approach requires the reconciliation of seemingly opposing differences in ethical
choices and requires debate, effort, and compromise.
 ANS: T REF: 181.

MULTIPLE CHOICE

1. There are at least three different major legal systems operating in the nations of the world. Overall,
law
a shapes government
.
b establishes rules for behavior
.
c serves as a mediator between people and organisations
.
d all of the above
.

ANS: D REF: 154

2. The common law system, the civil code approach and religious law has its own unique methodologies
for
a creating laws
.
b developing the content of laws
.
c enforcing laws
.
d all of the above
.

ANS: D REF: 155

3. The common law system, adopted in the United States, legislation and statues tend to be quite general
and interpretation about questions or disagreements is done in court, so that legislation establishes
basic principles, with _____________ and __________ determining what people can and cannot do.
a Judges and lawyers
.
b MNEs and SMEs
.
c precedence and practice
.
d all of the above
.
ANS: C REF: 155

4. Understanding the differences between very different legal systems is essential if firms are to know
what to expect and how to act in relation to the law, especially in terms of HR practices such as
_________ which will vary between countries.
a standards proscribing discrimination for various groups
.
b determining holiday and termination standards
.
 c A and B
.
d none of the above
.

ANS: C REF: 156

5. The International Lavour Organization’s (ILO) Declaration on Fundamental Principles and Rights at
Work attempts to establish consensus on basic employment rights, and includes all of the following
EXCEPT
a restricting association and limiting collective bargaining
.
b abolition of child labor
.
c elimination of forced labor
.
d elimination of discrimination in regards to employment
.

ANS: A REF: 156

6. The United Nations Global Compact asks businesses around the world to embrace 10 principles in the
areas of human rights, labor standards, and the environment. The principles that directly involve IHR
include
a businesses should support and respect the protection of internationally proclaimed human
. rights
b businesses should pay appropriate amounts for all forms of forced labour
.
c businesses should improve practices that discriminate various groups
.
d none of the above
.

ANS: A REF: 158

7. The Mercosur/Mercosul “common market” agreement was signed by _________.

a Argentina
.
b Boliva
.
c Columbia
.
d Peru
.
ANS: A REF: 163

8. Which of the following is not an institution within the structure of the EU?
a European Parliament
.
b European Commission
 .
c World Trade Organization
.
d Court of Auditors
.
ANS: C REF: 160

9. _______________ is an emerging interdisciplinary field that aims at influencing foreign government

policy and regulatory decisions that affect global trade.
a International business bargaining
.
b Commercial diplomacy
.
c Private business-government negotiation
.
d Non-government organizational policy-making
.
ANS: B REF: 164

10. IHR policy and decisions are the result of attempting to deal with a “patchwork” of different
legislative powers (national, international, extraterritorial). IHR managers must
a comply with the laws of the countries in which it operates.
.
b comply with international standards and supranational regulations.
.
c comply with the extraterritorial laws of its own country.
.
d all of the above
.
ANS: D REF: 165

11. Which of the following is not legally binding on EU member states?

a Directives
.
b Regulations
.
c Opinions
.
d Decisions
.
ANS: C REF: 166

12. Overall, EU directives have been ____________ effective.

a somewhat
.
b rarely
c moderately
.
d very
 .
ANS: D REF: 168

13. HR’s tactical role in a visa application process consists of

a anticipating roadblocks in the application process.
.
b being aware of the procedure requirements in different countries.
.
c complying with the necessary record keeping and tracking of visas.
.
d all of the above
ANS: D REF: 172

14. Under the 1998 EU directive on the protection of employee privacy, personal data on European
employees _________ transferred out of the EU unless the country in which the data recipient resides
has acceptable privacy protection standards in place.
a generally is not
.
b cannot be
.
c consistently is
.
d none of the above
ANS: B REF: 173

15. On an ethical continuum, ethical ________ suggests that what is right is whatever a society defines as
right.
a relativism
.
b revolution
.
c absolutism
.
d none of these
.
ANS: A REF: 180

SHORT ANSWER

1. If your firm is doing business in Europe, how do HR related European directives impact the member
states and the MNE? Identify three examples of HR practices that would need to be considered in
order to comply.

ANS:
Directives are binding. Member states must transport these into laws of the country, MNE then also
bound.
Scope includes:
1. redundancies
2. fixed-term work
 3. information and consultation
4. working time
5. processing of personal data
6. parental leave, maternity leave
7. social security

REF: 167-168, Exhibit 6.3 166-168.

2. Identify three steps businesses can take to help ensure that their employees behave not only appropri-
ately, but also ethically.

ANS:
1. Develop a clearly articulated set of core values as the basis for global policies and decision-making.
2. Train international employees to ask questions that will help them make business decisions that are
both culturally sensitive and flexible within the context of those core values.
3. Balance the need for policy with the need for flexibility or imagination.

REF: 184

3. What is Corporate Social Responsibility? What does it encourage MNEs to do?

ANS:
1. The continuing commitment by business to not only behave ethically, but also contribute to
the economic development of the communities in which they operate and to improve the qual-
ity of life of their workforces, their families, as well as society at large.
2. CSR encourages MNEs to be aware that they produce both benefits and harm simply by the
fact that they operate globally, and that they therefore should be as concerned about their
global ecological footprints, or impact of their actions on the natural environment as they are
about generating growth and profits.

REF: 184

4. Define sustainability and identify sustainable HR practices. How do they affect employees?

ANS:
Sustainability is meeting the needs of the present without compromising the ability of future genera-
tions to meet their own. Work towards finding the ‘sustainability sweet spot’ which is the common
ground shared by business interests and the interests of the public. For HR this is the place where the
pursuit of organizational interests seamlessly blends with the pursuit of employee interests. HR prac-
tices = are decisions fair to employees; is the decision sustainable in the long run? is the decision
green in terms of pollution and the carbon footprint? Is the decision-making process transparent and
open for scrutiny?

REF: 189

ESSAY QUESTIONS

1. Which employment laws and standards are most important for MNEs to pay attention to? Why?

ANS:
The employment laws and standards most important for MNEs should include:
International Human Resource Management Policies and Practices for Multinational Enterprises

1. immigration regulations
2. data privacy
3. anti-discrimination laws
4. termination laws
5. intellectual property protection.
Answer should note: many of these areas overlap, so IHRM need to know these connections and
consider them when making decisions about workforces in other countries in which they operate.

REF: 171-178

2. You are an IHRM manager and you need to make recommendations to your senior management
team about designing a code of conduct and ensuring effective implementation of ethical standards
of worldwide operations. Explain the important steps in the development of such a code of conduct
and what you would have to do to ensure effective implementation.

ANS:
The proposed steps should include reference to:
1. reasons for developing a global ethics program
2. formalise standards
3. consult all stakeholders
4. choose the words carefully
5. translation of codes
6. translate the ‘ethics code’ training materials
7. designate an ethics officer
8. highlight international law
9. recognise the business case
10. recognise the common threads

REF: 184-185

Visit TestBankBell.com to get complete for all chapters