Term
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Definition
| an employee who is working and temporarily residing in a foreign country. Many firms prefer to call such employees ‘international assignees’. |
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Term
| Tax equalization policies concerning expatriates are designed to _____ |
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Definition
| to ensure that there is no tax incentive or disincentive associated with any particular international assignment. |
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Term
| The administration of tax equalization policies is |
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Definition
| complicated by the wide variations in tax laws across host countries and by the possible time lag between the completion of an expatriate assignment and the settlement of domestic and international tax liabilities |
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Term
| The direct cost of international assignment failures can be as high as _____ |
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Definition
| three times the domestic salary plus relocation expenses, depending on currency exchange rates and location of assignments. |
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Term
| Know the differences between HRM and IHRM |
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Definition
| the complexity of operating in different countries and employing different national categories of workers is a key variable that differentiates |
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Term
| Know the differences between HRM and IHRM Dowling argues that the complexity of international HR can be attributed to six factors: |
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Definition
1. More HR activities.
2. The need for a broader perspective.
3. More involvement in employees' personal lives.
4. Changes in emphasis as the workforce mix of expatriates and locals varies.
5. Risk exposure.
6. Broader external influences. |
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Term
* The cultural environment.
* The industry
* The extent of reliance on the home-country domestic market.
* The attitudes of senior management. |
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Definition
Know the four variables that moderate the differences between HRM and IHRM |
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Term
| Cultural difference is not necessarily equivalent to ___ |
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Definition
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Term
| A multidomestic industry is one in which…… |
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Definition
| competition in each country is essentially independent of competition in other countries. Traditional examples include retailing, distribution and insurance |
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Term
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Definition
a firm's competitive position in one country is significantly influenced by its position in other countries.
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Term
| What is a key driver for firms seeking international markets? |
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Definition
A small home market.
It is frequently assumed that a global market perspective would be dominant in the firm's culture and thinking. However, size is not the only key variable when looking at a multinational – the extent of reliance of the multinational on its home-country domestic market is also very important. |
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Term
| What is an “asymmetric event”? |
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Definition
| threats that our political, strategic, and military cultures regard as unusual. |
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Term
What is an “asymmetric event”?
In terms of trying to define asymmetric events,
Gray notes that they tend to be: |
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Definition
* Unmatched in our arsenal of capabilities and plans. Such events may or may not appear truly dangerous, but they will certainly look different from war as we have known it.
* Highly leveraged against our particular assets – military and, probably more often, civil.
* Designed not only to secure leverage against our assets, but also intended to work around, offset, and negate what in other contexts are our strengths.
* Difficult to respond to in a discriminate and proportionate manner. |
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Term
| Know the activities of IHRM |
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Definition
* More HR activities
* The need for a broader perspective
* More involvement in employees’ personal lives
* Changes in emphasis as the workforce mix of expatriates and locals varies
* Risk exposure
* Broader external influences |
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Term
| Successful internationalizing the HR function requires….. |
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Definition
The challenge for the corporate HR manager who wishes to contribute to the internationalization of the desired ‘global mindset ’.
This goal requires a HR manager who is able to think globally and to formulate and implement HR policies that facilitate the development of globally oriented staff. |
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Term
*Human resource planning
* Staffing(recruitment, selection, placement)
* Performance management
* Training & Development
* Compensation and benefits
* Industrial relations
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Definition
Know the HRM activities….. |
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Term
| Cross-cultural management research is based on the assumption that…. |
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Definition
| there are differences between management practices in various countries and that the respective environment is of particular significance in explaining these differences. This perspective rejects the approach of researchers who assume universal transferability of management knowledge – i.e. a universalistic, culture-free approach to management. |
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Term
| A major criticism of cross-cultural management studies is____ |
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Definition
| Cross-cultural studies are generally subject to the problem of not doing justice to a dynamic, context-sensitive concept of culture. |
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Term
Power distance
Uncertainty Avoidance
Femininity vs. Masculine
Individualism vs. collectivism
Confucianism dynamics
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Definition
| Hofstede’s cultural dimensions are _____ |
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Term
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Definition
| is the acceptance of members of a culture that power is not distributed equally. Countries with high power distance accept hierarchical structure with little need for people to justify their place in the system whereas countries with low power distance value equality and demand justification for formal power. |
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Term
| Uncertainty Avoidance dimension |
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Definition
| is the extent to which the members feel threatened by uncertainty and lack of structure and avoid it. Behavior codes are strict and any deviance from norms is rigidly shunned. Countries with low uncertainty avoidance, practices give way to principles allowing form more tolerance of deviations. Hofstede suggests that this allows for more innovations. |
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Term
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Definition
| says that a culture can be more feminine or masculine. Cultures with higher masculinity comprises the pursuit of financial success, heroism, and strong performance pursuit. Feminine cultures prefer quality of life, modesty and interpersonal relationships. This allows for greater flexibility in roles. |
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Term
| Individualisms vs. collectivism |
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Definition
| describes the extent to which individual initiative and caring for oneself and the nearest relatives is preferred by a society as opposed to public assistance or extended family. In individualistic cultures there are more casual networks and each person is responsible for themselves. Collectivist cultures have closer more clearly denied systems of relationships. Company cultures with high level of collectivist orientation structure reward systems in a group-oriented way while individual company cultures reward systems are focused on the individual aspects. |
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Term
| Under Confucianism dynamics, orientations can be either ____ or _____ |
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Definition
| long-term or short-term in nature |
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Term
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Definition
* Great endurance to pursue goals
* Ranking based on status
* Modern adaptions to traditions
* Respect of social & status obligations within certain limits
* High savings rates and high investment activity
* Readiness to subordinate oneself to a purpose
* Feeling of shame |
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Term
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Definition
* Personal candor and stability
* Avoiding loss of face
* Respect of social status obligations w/o the consideration of costs
* Low savings rates and low investment activity
* Expectations of quick profit
* Respect for traditions
* Greetings, presents and courtesies based on reciprocity |
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Term
| Hofstede’s study is classified or based on _____ |
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Definition
- Preliminary theoretical considerations and statistical analyses, which can be used to describe cultural differences between countries.
- 116,000 surveys from IBM employees.
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Term
| What are the criticisms of the Globe study? |
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Definition
* The scales do not measure what they should, and the further differentiation of the Hofstede’s original 5 dimensions
* Widespread equivalence f culture to nation can be a source of concern as well |
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Term
- High vs. Low Context Communication
- Spatial orientation
- Monochrome vs. polychrome concept of time
- Information Speed
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Definition
Hall and Hall’s research emphasizes four cultural dimensions
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Term
| High vs. Low Context Communication: |
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Definition
| Cultures differ in the way their members communicate with each other. In High Context cultures, a more indirect form of expression is common, where the receiver must decipher the content of the message from its context, whereas in so-called Low Context cultures the players tend to communicate more to the point and verbalize all- important information. Examples of High Context cultures are Japan as well as France. Germany is more of a Low Context culture. |
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Term
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Definition
| The focus of this dimension is on the distance between people of various cultures when communicating. Distance that is adequate for members of one culture, may feel intrusive for members of another culture. |
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Term
| Monochrome vs. polychrome concept of time : |
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Definition
| One side of the spectrum is dominated by processes, where one thing is done after the other. In the oppossite side of the spectrum actions occur at the same time. |
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Term
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Definition
| This dimension focuses on whether information flow in groups is high or low during communication. Thus, in the USA people tend to exchange personal information relatively quickly, while in Europe such a rate of information exchange would require a more extended acquaintance. |
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Term
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Definition
| formed expressly with the international market in mind |
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Term
| What is the typical initial stage of a firm entering international operations? |
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Definition
Export. As such, it rarely involves much organizational response until the level of export sales reaches a critical point. Of course, simple exporting may be difficult for service companies (such as legal firms) so that they may be forced to make an early step into foreign direct investment operations (via a branch office, or joint venture). Exporting often tends to be handled by an intermediary (for example, a foreign agent or distributor) as local market knowledge is deemed critical. As export sales increase, however, an export manager may be appointed to control foreign sales and actively seek new markets. |
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Term
| Which stage of international operations tend to create a separate international division in a company? |
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Definition
| foreign production/service operations where all international activities are grouped |
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Term
| “Miniature replicas” are ______ |
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Definition
| foreign subsidiaries structured to mirror that of the domestic organization, established by the firm with the spread of international activities The subsidiary managers report to the head of the international division, and there may be some informal reporting directly to the various functional heads. For example, there may be contact between the HR managers in the two country subsidiaries, and the HR manager at corporate headquarters, regarding staffing issues. |
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Term
| Explain the “think global, act local” paradox |
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Definition
The increasingly complex international environment – characterized by global competitors, global customers, universal products, rapid technological change and world-scale factories – push the multinational toward global integration while, at the same time, host governments and other stakeholders (such as customers, suppliers and employees) push for local responsiveness.
To facilitate the challenge of meeting these conflicting demands, the multinational will typically need to consider a more appropriate structure, and the choice appears to be either: the matrix; the mixed structure; the heterarchy; the transnational; or the multinational network. |
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Term
| Know the advantages of a matrix structure |
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Definition
* conflicts of interest are brought out into the open,
* Each issue with priority in decision-making has an executive champion to ensure it is not neglected.
In other words, the matrix is considered to bring into the management system a philosophy of matching the structure to the decision-making process. |
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Term
| The management of a multi-centered networked organization is ____ |
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Definition
complex. Apart from the intra-organizational network (comprising headquarters and the numerous subsidiaries), each subsidiary also has a range of external relationships (involving local suppliers, customers, competitors, host governments and alliance partners). The management of both the intra-organizational and inter-organizational spheres, and of the total integrated network, is crucial to global corporate performance. It involves what has been termed a less-hierarchical structure, featuring five dimensions: |
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Term
| multi-centered networked organization involves what has been termed a less-hierarchical structure, featuring five dimensions: |
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Definition
* Delegation of decision-making authority to appropriate units and levels.
* Geographical dispersal of key functions across units in different countries.
* Delayering of organizational levels.
* De-bureaucratization of formal procedures.
* Differentiation of work, responsibility and authority across the networked subsidiaries. |
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Term
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Definition
| describes social control as a legitimate control system to supplement or replace traditional structural, bureaucratic control |
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Term
| Social capital emphasizes the need for _____ |
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Definition
| contacts and ties, combined with norms and trust, that facilitate knowledge sharing and information exchanges between individuals, groups and business units |
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Term
| The matrix structure is characterized by ______ |
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Definition
| continues to be the only organizational form which fits the strategy of simultaneous pursuit of multiple business dimensions, with each given equal priority … [The] structural form succeeds because it fits the situation’. |
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Term
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Definition
| consists of pattern ways of thinking feeling and reacting acquired and transmitting mainly by symbols the distinctive achievements of human groups including their embodiments in artifacts; the essential core of culture consists of traditional …ideas and especially their attached values. |
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Term
| “Culture is mental programming or |
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Definition
| software of the mind” Hofstede |
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Term
| A monochrome concept of time |
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Definition
| is dominated by processes, where one thing is done after the other, |
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Term
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Definition
| these actions occur at the same time. |
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Term
| Cultures with higher masculinity |
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Definition
| comprises the pursuit of financial success, heroism, and strong performance pursuit. |
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Term
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Definition
| prefer quality of life, modesty and interpersonal relationships. This allows for greater flexibility in roles. |
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Term
| Multidomestic industry examples |
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Definition
- retailing
- distribution
- insurance
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Term
| include commercial aircraft, semiconductors and copiers |
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Definition
| Examples of Global Industry |
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