Lecture 3 The impact of National Cultures on International HRM Part II

1. What is the impact of values on organizational life? Draw the table with the four columns give an
example (Schneider and Baroux, 2003). 1/2 point for each value under each impact and for each
example. (1/2 x 16 = 8) CLO 4 ______ / 8
Answer:

Organisational Underlying Relevant cultural Example

dimension process trait

Centralisation v. Power Attitudes to power British

decentralisation relationship and authority; trust MNEs allow
more
autonomy

Communication Information- Value of information Swedish firms-

sharing – knowledge open and
as power informal

Planning Time orientation Uncertainty Short-term

avoidance rigorous
planning in
German
firms

Span of control Power Attitudes to power French managers

relationships and authority find matrix
structures difficult

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 2. What is the influence of Hofstede’s dimensions on HR policies? Draw the table giving the issue
and the cultural determinant (Schneider & Baroux, 2003; Papalexandis & Panayotpoulou, 2004)
CLO 1 (2 points x 4 = 8) ______ / 8
Answer:

Issue Cultural determinant

External recruitment Individualism vs. collectivism

(in collectivist cultures it is hard for externally recruited

candidates to get into ‘strong social networks and cope with the
resistance’ (Papalexandris, 2004: 499)

Appraisal a conversation Power distance

between colleagues?

Fixed or variable salary? Uncertainty avoidance

Individual/ Team dual bonuses? Individual vs. collective

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Lecture 5: International People Resourcing Part I
3. International organizations must manage opportunistic behavior. What is the major problem in
international business? (1 point). What is opportunistic behavior? (1 point). What are the four
costs in preventing opportunistic behaviour? (4 points) What is the short-term staffing solution?
(2 points) CLO 1 ____ / 8
Answer:

A major problem in international business is ensuring that local employees or

assignees comply with the requirements of HQ
Opportunistic behavior’: self-interest in a situation where is behavior hard to
monitor.
Costs incurred in preventing opportunistic behavior include:
 Selection costs
 Training and socialization costs
 Performance monitoring
 Enforcement in the event of a breach of contract.
In the short-term, sending expatriates offers a means of controlling these risks.
A short-term staffing plan focuses on the immediate needs of the company. ...
Many companies turn to a temporary workforce for short-term staffing needs,
especially if the need is only for a specific project or short period.

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 4. There are motives for expatiation.
a. (a) Discuss the three ‘classic’ reasons. (3x2 = 6 points)

‘Position filling’
To fill positions that cannot be staffed locally because of a lack of technical or managerial skills,

‘Management development’
To support management development, enabling ‘high potentials’ to acquire international experience and
occupy senior positions,

‘Organizational development’
In practice, to exert control and coordination throughout the business by having senior positions in
subsidiaries occupied by individuals sharing the culture and behaviors of the (national) headquarters.

b. (b) Kosseck and Ozeki (1995) identifies three strategic concerns as to the role of
corporate HR. Describe one of the three. (CLO 2 _____ / 8

5. The international roles appear to be less concerned with control and coordination, and
more to do with the quality of company operations.
a. ‘Deploying employees effectively in the global arena.’

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Lecture 5 Organizational Culture & Performance Management of International Staff Part II
6. (a) What is organizational culture? (4 points)

Organizational culture includes an organization's expectations, experiences, philosophy, as

well as the values that guide member behavior, and is expressed in member self-image, inner
workings, interactions with the outside world, and future expectations.

(b) How does culture effect performance? Draw the diagram and label it (4 points) CLO 4
_____ / 8

Organizational culture includes an organization's expectations, experiences, philosophy, as

well as the values that guide member behavior, and is expressed in member self-image, inner
workings, interactions with the outside world, and future expectations.

Organizational behavior is the study of both group and individual performance and action within
an enterprise. ... The way an individual behaves and behavior as a group have two perspectives
− internal and external.
Organizational performance means the actual output or results of an organization as measured
against its intended outputs (or goals and objectives).

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7. (a) What is performance appraisal? (4 points)

• A communication instrument aimed to evaluate each individual's contribution, To determine

ability and achievement with reasonable accuracy and consistency, To help identify obstacles to
top performance

(b)What is performance management in an international context? (4 points) CLO 4 _____ / 8

• A process that enables the multinational to evaluate and continuously improve individual,
subsidiary unit and corporate performance, against clearly defined, pre- set goals and targets

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Lecture 6 International HRM Strategies & Perlmutter’s Typology of IHRM
8. Discuss why cross-cultural management is important today. (2 points) There are two areas that
MNEs need to focus on in managing across cultures. What are they? (2 points) Each country has
five areas, which are important in cross-cultural management – list them. (1 x 5 = 5 points) CLO
2 _____ / 8

• In this day and age, it is all the more important to be familiar with cultural differences, and
understand their implications for managing people in the global business environment.

Managing across cultures may mean:

• – Crossing national boundaries: separating others from the self. A nation is like a human
body with an immune system: repelling alien “invaders” that may penetrate into the
interior.
• – Crossing cultures within national contexts: high-context culture and low-context culture is a
measure of how explicit the ... Hall and Hall proposed a "spectrum" of national cultures
from "High-Context cultures" to "Low-Context Cultures. This has been expanded to
further ...

– Each country has its own:

• Laws
• Business customs
• Work Ethics
• Workforce characteristics
• Political climate

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9. There are five areas organizations should focus on in managing cultures – what are they? (2.5
points) CLO 2 ____ / 8

 Organisations reflect societal attitudes, values and expectations,

 People differ – relationship to the world, one’s place in society, social protocols, sense of time,
orientation towards action
 Different product standards
 Different customer needs and tastes
 Subsidiaries know local market needs and management practices better than headquarters.

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10. What is the concept of “fit” in global assignments? CLO 1 _____ / 8

• “Fit” is the degree to which staffing policies are congruent with the:
– Strategic plan of the organization
– Work-related values of the foreign culture
• Internal fit: making sure staffing policies facilitate the work values and motivation of employees
– synchronization to the home office. is when the organizational systems, structure and
technology are aligned with the Human Resource systems of the organization. In
internal fit all the internal elements of the organization complement and reinforce each
other.
• External fit: the degree to which policies match the context in which the organization is
operating and it is the alignment between the organization and its environment. When the
strategies of the organization are aligned to the HR systems of the organization to be in
sync the external environment it is called external fit.

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 11. There are three HRM strategies for international staffing. Discuss Ethnocentric approach and why
a MNE would choose it. Why is it not a good choice? CLO 2 _____ / 8

The Ethnocentric Approach is one of the methods of international recruitment wherein, the HR
recruits the right person for the right job for the international businesses, based on the skills
required and the willingness of the candidate to mix with the organization's culture.

In Ethnocentric Approach, the key positions in the organization are filled with the ... Mission,
vision, objectives are formulated by the MNC's at their headquarters and the ... Select a page,
Accounting · Banking · Business · — Business Statistics ... The culture of the parent company can
be easily transferred to the subsidiary ...

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 12. The legal and ethical climate is discussed. Why is important for MNEs? CLO 2 ____ / 8

nfluence the degree of global labor standard compliance and ethical practices ... Ardichvili and
Jondle, 2009), MNCs face complex legal compliance dilemmas ... as a vital element in
establishing the organizations' ethical climate and culture and Sometimes, MNCs can be more
opportunistic in capitalizing on the loopholes/lacunas exist in the host country’s legislative
framework

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Lecture 7: Cross-border I-HRM organizational Issues Managing Multicultural & Global Teams
13. (a) What are the differences between a formal work group and a team? Draw the table and list 4 items
for each. CLO 4 (1 x 1 point = 4 points)

A work team has members who work interdependently on a specific, common goal to produce an
end result for their business. ... Once again, the differences are subtle, but the main thread is a team
works together and shares in the outcome, while a group is more independent of each other.

(b) There are four different types of teams. List two out of the four and briefly describe them. (2 x 2
= 4 points) CLO 4

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 14. (a) Discuss at least two issues with multicultural teams. (2 x 2 = 4 points)

One central issue for internationally-operating businesses is how to ensure that teams made up of
people from different cultures can function effectively.

In particular, will the ‘norming’ and ‘storming’ phase raise particular difficulties.

(b) Gibbs (2006) describes ‘global teams’ and some mechanisms to make them effective. Write brief
definition. (2 points). Gibbs suggests coordination mechanisms – briefly discuss one. (2 points). CLO
4 ____ / 8

• ‘Global teams’ (GTs): ‘virtual, culturally diverse, structurally dynamic, and whose
members collaborate on a global scale

Cultural liaisons’ – individuals who act as ‘cultural mentors’ and ‘boundary spanners’ (people who
build organizational linkages).

Identification – problem because of multiple allegiances: needs high investment in team building,
including some face-to-face

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