Which of the following is not a category of an employee in an international firm

(c)The Three Types of Employees of an International FirmHost-country Nationals (HCNs), Parent-country Nationals (PCNs), andThird-country Nationals (TCNs).The following example will provide you with an insight on the way in which acompany utilises its three types of employees.Example:IBM employs Australian citizens (HCNs) in its Australian operations, oftensends US citizens (PCNs) to Asia-Pacific countries on assignments, and maysend some of its Singapore employees on an assignment to its Japaneseoperations (as TCNs).Morgan defines international HRM as an interplay among these three dimensionshuman resource activities, types of employees, and countries of operation.InternationalHRMinvolvesthesameactivitiesasdomesticHRM(e.g., procurement refers to HR planning and staffing); however, domestic HRMis involved with employees within only a single national boundary. Thecomplexities of operating in different countries and employing different nationalcategories of workers are a key variable that differentiates domestic andinternational HRM, rather than any major differences between HRM activitiesperformed.Figure 1.2: Models of international HRMSource: Adapted from P.V. Morgan (1986).International human resource management

International Business: The New Realities, 4e (Cavusgil) Chapter 17 Human Resource Management in the Global Firm

1. ________ are citizens of the country where the MNE's subsidiary is located. A) Third-country nationals B) Expatriates C) Host-country nationals D) Parent-country nationals Answer: C Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

2. ________ are typically the largest proportion of workers hired abroad and usually work in manufacturing, assembly, basic service activities, clerical work, and other nonmanagerial functions. A) Home-country nationals B) Parent-country nationals C) Third-country nationals D) Host-country nationals Answer: D Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

3. Richard Johnson, an American citizen, is a senior manager in a telecom company based in Texas. He is currently posted in and works from the company's subsidiary in Uganda, Africa. Richard is a ________. A) host-country national B) parent-country national C) third-country national D) repatriate Answer: B Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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1. In which of the following situations is the employee considered a host-country national? A) a French MNE sends a French employee to work in its Canadian subsidiary B) a Japanese MNE sends an American employee to work at its Hong Kong subsidiary C) a Chinese MNE employs a Chinese citizen for its subsidiary in Singapore D) an American MNE employs a Mexican citizen for its subsidiary in Mexico Answer: D Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

2. Which of the following best describes an expatriate? A) an employee who is assigned to live and work in a foreign country for an extended period B) an employee who returns to his home country after a foreign assignment C) an employee hired on a temporary basis by an MNE D) an employee who is a host-country national Answer: A Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

Employee Categories (Scenario) Styleco Inc. is an international manufacturer of leather wallets and briefcases. Based in Canada, the firm has subsidiaries throughout Europe and Asia. High-level Styleco employees are often re- located for months at a time to foreign offices depending on the needs of the firm. Shelly Eaton, a Canadian, has been sent to manage the Styleco office in Italy. Raj Patel, an Indian, is an experienced software designer who is on assignment for Styleco in its Paris office. Keiko Tran of Japan is employed as a manager in Styleco's Tokyo office. Marcus Field is a Canadian working at the Styleco headquarters in Ontario as a manufacturing engineer.

1. Which of the following employees is most likely a host-country national? A) Shelly Eaton B) Raj Patel C) Keiko Tran D) Marcus Field Answer: C Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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1. Which of the following issues most likely complicates international human resource management? A) equal education opportunities B) health benefit reimbursement C) political risk and terrorism D) vacation and travel policies Answer: C Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

2. All of the following refer to key tasks of IHRM EXCEPT ________. A) developing global managers B) assessing job performance of expatriates C) evaluating internal accounting practices and audits D) handling labor disputes and strikes Answer: C Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

3. International human resource managers support subsidiary managers by providing IHRM guidelines and by hiring, training, and evaluating employees for international operations. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

4. Parent-country nationals (PCNs) are citizens of the country where the MNE's subsidiary is located. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

5. Avoiding country bias, nepotism, and other local practices and cultivating a global mindset are some of the significant challenges of the international staffing policy. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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1. Host-country nationals (HCNs) are citizens of the country where the MNE is headquartered. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking; Diverse and Multicultural Work

2. Foreign subsidiaries are never staffed from the home country. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

3. Margaret Lee, an American and a private bank employee from New York, is assigned to work and reside in Paris for five years. She is most likely to be known as a repatriate in Paris. Answer: FALSE Diff: 2: Moderate Skill: Application Objective: 17-1: Understand the strategic role of human resources in international business AACSB: Analytical Thinking

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1. Briefly describe the three types of managers commonly found in the foreign subsidiaries of MNEs. What are the distinctive traits of managers with a global mind-set? Answer: There are three types of managers commonly found in the foreign subsidiaries of MNEs:

1. Parent-country nationals (PCNs). These managers are citizens of the country where the MNE is headquartered. They are also called "home-country nationals."
2. Host-country nationals (HCNs). They are citizens of the country where the MNE's subsidiary is located. They are typically the largest proportion of workers hired abroad and usually work in manufacturing, assembly, basic service activities, clerical work, and other nonmanagerial functions.
3. Third-country nationals (TCNs). They are citizens of countries other than the home or host country. They typically work in management and are usually hired because of their special knowledge or skills. A geocentric orientation is synonymous with a global mind-set. Managers with a global mind-set are open to multiple cultural and strategic realities on both global and local levels. They do not force headquarters business methods on foreign subsidiaries. Diff: 2: Moderate Skill: Synthesis Objective: 17-1, 17-2: Understand the strategic role of human resources in international business, Explain international staffing policy AACSB: Analytical Thinking

1. Firms prefer HCNs when ________. A) the host country environment is complex B) the host country has no specialized knowledge to share C) the parent country is keen on maintaining full control over foreign operations D) managers located in the headquarters adopt a dominantly ethnocentric approach to hiring Answer: A Diff: 2: Moderate Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Diverse and Multicultural Work

2. Under which of the following circumstances would an MNE most likely hire a parent- country national? A) when the MNE wants to maintain strong control over its foreign operations B) when the MNE wants to benefit substantially from specialized knowledge available in the host country C) when the MNE wants to transfer specific knowledge or corporate culture from third countries to host-country operations D) when the host country environment is complex Answer: A Diff: 2: Moderate Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

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1. For which of the following activities would parent-country nationals most likely be employed? A) marketing B) creating a global culture C) research and development D) sales Answer: C Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

2. An MNE would most likely employ a host-country national when ________. A) it has substantial knowledge regarding upstream value-chain activities B) it emphasizes R&D and manufacturing C) it wants to maintain strong control over local operations D) it needs specialized knowledge about the local market Answer: D Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

3. ________ refers to searching for and locating potential job candidates to fill the firm's needs. A) Retrenchment B) Recruitment C) Codetermination D) Repatriation Answer: B Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

4. ________ refers to an employee's ability to function effectively with those from different cultural backgrounds or in different cultural contexts. A) Reverse culture shock B) Ethnocentrism C) Cultural intelligence D) Cultural pluralism Answer: C Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

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1. Which of the following most likely occurs as a result of expatriate failure? A) culture shock B) diminished careers C) acculturation D) knowledge sharing Answer: B Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

2. ________ tends to worsen culture shock. A) The ability to speak more than one language B) Proximity to family C) Inadequate cross-cultural skills D) High adaptability Answer: C Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

International Management Qualifications (Scenario) Core Computer Corporation (CCC) recently opened a customer service facility in New Delhi, India. Managers of the Texas-based firm have been displeased with the local manager hired to run the New Delhi facility because of a variety of problems that took place. CCC managers believe that a representative from the headquarters should manage the Indian facility for one year in order to train personnel and to improve the quality of customer service. Two CCC executives have expressed a desire to work and live in India: Craig Springer and Devon Parks. The CCC human resources department is comparing the qualifications and characteristics of the two men in order to determine which candidate would be the most successful in India.

1. Which of the following would be the most important for human resources managers to determine before deciding who should manage the New Delhi facility? A) Which candidate possesses the ability to be a flexible and sensitive leader with superior cross- cultural knowledge? B) Which candidate best understands CCC corporate culture in Texas? C) Which candidate is the most knowledgeable about CCC's products? D) Which candidate has mentored the most CCC interns and new employees over the past three years? Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Environments and Reflective Thinking

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1. Which of the following, if true, would strengthen the argument in favor of hiring a local manager for the New Delhi facility? A) Indians are mostly multilingual. B) Local connections are crucial to achieve success in the local marketplace in India. C) CCC wants to have strong control over all its foreign operations. D) The quality of labor in New Delhi is no lesser than that in Texas. Answer: B Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Environments and Reflective Thinking

2. Which of the following most supports hiring Craig Springer as manager for CCC's facility in New Delhi? A) Craig handles work-related stress mostly by exercising and spending time with friends. B) Craig has served as a manager for six months in CCC's office in Beijing. C) Craig learned to speak fluently in Spanish and French from his past assignments in Europe. D) Craig is able to work independently with little direction. Answer: D Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Environments and Reflective Thinking

3. Which of the following, if true, most seriously undermines the argument in favor of hiring Devon Parks as manager for CCC's facility in New Delhi? A) Devon has few local connections in New Delhi where success is largely determined by local connections and networking. B) CCC wants to maintain strong control over all its foreign operations including India. C) Devon is capable of working independently and with little direction. D) CCC has significantly benefitted in the past by hiring PCNs for training local managers in Asia. Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking; Environments and Reflective Thinking

4. Typically, country laws do not dictate how many employees can come from nonlocal sources. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

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1. What are the principal characteristics of managers who are best suited to working in foreign environments? Answer: Managers best suited to working in foreign environments typically have the following characteristics:

1. Job knowledge. In distant locations, managers need sufficient knowledge of the administrative and technical dimensions of their job and organization to fulfill company goals and objectives.
2. Self-reliance. Having an entrepreneurial orientation, a proactive mind-set, and a strong sense of innovativeness are important because expatriate managers frequently function with increased independence abroad and limited support from headquarters.
3. Adaptability. The manager should adjust well to foreign cultures. The most important traits are cultural empathy, flexibility, diplomacy, and a positive attitude for overcoming stressful situations.
4. Interpersonal skills. The best candidates get along well with others. Building and maintaining relationships is key, particularly for managers who interact with numerous colleagues, employees, local partners, and government officials.
5. Leadership ability. The most successful managers view change positively. They skillfully manage threats and opportunities that confront the firm. They collaborate with employees to implement strategies and facilitate successful change.
6. Physical and emotional health. Living abroad can be stressful. Expatriates must learn to adapt to the local culture. Medical care is often different and may be difficult to access.
7. Spouse and dependents prepared for living abroad. The candidate's spouse and other family members need the desire and ability to cope with unfamiliar environments and cultures. Diff: 2: Moderate Skill: Concept Objective: 17-2: Explain international staffing policy AACSB: Analytical Thinking

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1. In a short essay, discuss the connection between expatriate assignment failure and culture shock. What are the different components of training designed to prepare expatriates for assignments abroad? Answer: Human resource managers need to prepare expatriates and their families to live and work effectively in new cultural environments. Employees should be trained to understand local government regulations, cultural norms, and language differences, and to adapt to local customs such as gift giving and business dining. Expatriate assignment failure, the employee's premature return from an international assignment, may occur because an employee is unable to perform well or because his or her family has difficulty adjusting. Such failure is costly to company productivity and goals, and adds to the costs of relocating. Failure can also affect expatriates themselves, leading to diminished careers or problems in their family lives. As many as one-third of foreign assignments end prematurely due to expatriate assignment failure. The rate is particularly high among employees assigned to countries with substantial culture and language differences. A leading cause of expatriate assignment failure is culture shock-confusion and anxiety experienced by a person who lives in a foreign culture for an extended period. It can affect the expatriate or family members and results from an inability to cope with the differences experienced in a foreign environment. Inadequate language and cross-cultural skills tend to exacerbate culture shock, as the expatriate is unable to function effectively in the foreign environment or fails to communicate well with locals. Most expatriates and their families who experience culture shock overcome it, usually within a few months. But a few give up and return home early. Training consists of three components: (1) area studies: factual knowledge of the historical, political, and economic environment of the host country; (2) practical information: knowledge and skills necessary to function effectively in a country, including housing, health care, education, and daily living; and (3) cross-cultural awareness: the ability to interact effectively and appropriately with people from different language and cultural backgrounds. Diff: 2: Moderate Skill: Synthesis Objective: 17-2, 17-3: Explain international staffing policy, Know about preparation and training of international employees AACSB: Analytical Thinking

2. Area studies refer to ________. A) technical knowledge pertaining to a firm's core competencies B) factual knowledge of the historical, political, and economic environment of the host country C) factual knowledge about a firm's foreign subsidiaries D) knowledge pertaining to daily living abroad Answer: B Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

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1. Which of the following sums up the goal of training Conrad for his assignment in Romania? A) increasing Conrad's effectiveness abroad B) ensuring a smooth repatriation for Conrad C) decreasing the per-unit cost of production D) enhancing overall freedom for employees Answer: A Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

2. Which of the following is the term used to describe an expatriate's return to his/her home country following completion of a foreign assignment? A) repatriation B) reverse culture shock C) national integration D) codetermination Answer: A Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

3. ________ refers to the tendency to view other cultures through the lens of your own culture. A) Codetermination B) Self-reference criterion C) Segregation D) Cross-cultural awareness Answer: B Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

4. Which of the following best summarizes the goal of cross-cultural awareness training for expatriates? A) It enables expatriates to cope with reverse-culture shock. B) It enables expatriates to share knowledge with host-country nationals more effectively. C) It enables expatriates to significantly upgrade their technical skills. D) It enables expatriates to effectively communicate with local customers and employees and be sensitive to the host-country's culture. Answer: D Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

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1. Critical incident analysis examines ________. A) a situation under which an MNE is forced to relocate operations abroad B) an episode in which tension arises between employee and foreign counterpart due to a cross- cultural misunderstanding C) an episode in which tension arises between an employee and a manager with regard to performance evaluation D) a critical situation in which the internal stakeholders of a firm fail to reach a consensus with regard to a common issue Answer: B Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

2. Training programs designed for preparing employees for assignments abroad consist of area studies, practical information, and cross-cultural awareness. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

3. Cross-cultural awareness training tends to lower intercultural sensitivity and effectiveness. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

4. Critical incident analysis examines an episode in which tension arises between an employee and a foreign counterpart due to a cross-cultural misunderstanding. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 17-3: Know about preparation and training of international employees AACSB: Analytical Thinking

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1. In a short essay, explain why some international firms chart global career paths for employees, and discuss the reasons women still do not enjoy equal access to senior management positions in most countries. Answer: Many firms create career development programs that provide high-potential employees with opportunities to gain experience both at headquarters and in the firm's operations around the world. They do this because, as the firm generates an increasing proportion of sales and earnings from abroad, it needs globally experienced employees capable of managing company operations worldwide. This approach broadens the pool of global talent for managerial positions and visibly demonstrates top management's commitment to global strategy. Women still do not enjoy equal access to senior management positions in most countries. Even in the advanced economies, they are sometimes not afforded the same opportunities for education and training as their male colleagues. Although evidence suggests just as many women seek international positions as men, relatively few are asked to fill expatriate positions. There are several reasons for this. First, senior managers may assume women do not make suitable leaders abroad or that foreign men do not like reporting to female managers. Firms are reluctant to send women to locations where the demarcation between male and female roles is sharp. Even obtaining a work visa can prove problematic in certain male-dominated countries. In many countries, male managers drink together, go to sports events, or enjoy the night life. Some women may feel uncomfortable in such all-male settings. Having children and other family obligations can disrupt career paths. Although flexible and part-time work policies are often beneficial to women's progress up the corporate ladder, not all companies provide such opportunities. Finally, because women currently occupy relatively few top management positions (in Europe, they hold only 15-25 percent of senior executive posts), there are fewer women with sufficient experience to be sent abroad for important positions. Diff: 2: Moderate Skill: Synthesis Objective: 17-3, 17-6: Know about preparation and training of international employees, Describe diversity in the international workforce AACSB: Analytical Thinking

2. Which of the following most likely complicates international performance appraisals? A) overproduction B) distance from the headquarters C) lack of general consensus among managers with regard to reward systems D) cost of doing business abroad Answer: B Diff: 1: Easy Skill: Concept Objective: 17-4: Discuss performance appraisal and compensation of international employees AACSB: Analytical Thinking

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1. ________ makes performance evaluations more complex in the international context. A) The problem of noncomparable outcomes B) Inadequate cross-cultural skills C) Overproduction D) Knowledge sharing Answer: A Diff: 1: Easy Skill: Concept Objective: 17-4: Discuss performance appraisal and compensation of international employees AACSB: Analytical Thinking

2. ________ is a formal process for assessing how effectively employees perform their jobs. A) Performance planning B) Performance management C) Performance appraisal D) Performance guarantee Answer: C Diff: 1: Easy Skill: Concept Objective: 17-4: Discuss performance appraisal and compensation of international employees AACSB: Analytical Thinking

3. Base remuneration is also referred to as ________. A) incentives B) allowance C) wages D) benefits Answer: C Diff: 1: Easy Skill: Concept Objective: 17-4: Discuss performance appraisal and compensation of international employees AACSB: Analytical Thinking

4. Which of the following refers to the additional payment that allows the expatriate to maintain a standard of living similar to that at home? A) allowance B) benefits C) base remuneration D) wages Answer: A Diff: 1: Easy Skill: Concept Objective: 17-4: Discuss performance appraisal and compensation of international employees AACSB: Analytical Thinking

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What are the three categories of employees of an international firm?

Which of the following are the main international HRM practices in organizations?

Which three dimensions are presented in Morgan's model of Ihrm?

What activity of international human resources is not required in a domestic environment?