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SHRM-CP WORKPLACE Questions - Part 4
1. Which is a primary goal of a transnational organization?
A) To develop ideas that are shared with subsidiaries
B) To create a loose federation of subsidiaries
C) To build strong local and global identities
D) To develop standardized policies and practices
2. What HR task is typically associated with a multidomestic corporation?
A) Coordinating HR activities between the home and host countries
B) Building a common corporate culture across all operations
C) Administering payroll and benefits
D) Facilitating knowledge exchange throughout the organization
3. According to Perlmutter's headquarters orientations, what structural strategy describes a company in which host-country nationals usually staff and manage the local subsidiary?
A) Ethnocentric
B) Geocentric
C) Polycentric
D) Regiocentric
4. Which is most likely to be an outcome of a total rewards strategy in an organization with a geocentric approach to management?
A) Accounting for local cultural and legal norms in the local administration of the total rewards strategy
B) Overlooking important cultural differences as headquarters total rewards policies are adjusted for local application
C) Modifying headquarters total rewards policies for local application only when it is required by local laws
D) Giving full autonomy to individual regions in the development of the total rewards strategy
5. Enterprises are attracted to global expansion by certain opportunities but also pushed into it by certain conditions. Which is an example of a 'push' factor in globalization?
A) Proximity to resources and materials
B) Favorable country-specific trade agreements
C) Better labor supplies in other countries
D) Current home-country market saturation
A) To develop ideas that are shared with subsidiaries
B) To create a loose federation of subsidiaries
C) To build strong local and global identities
D) To develop standardized policies and practices
2. What HR task is typically associated with a multidomestic corporation?
A) Coordinating HR activities between the home and host countries
B) Building a common corporate culture across all operations
C) Administering payroll and benefits
D) Facilitating knowledge exchange throughout the organization
3. According to Perlmutter's headquarters orientations, what structural strategy describes a company in which host-country nationals usually staff and manage the local subsidiary?
A) Ethnocentric
B) Geocentric
C) Polycentric
D) Regiocentric
4. Which is most likely to be an outcome of a total rewards strategy in an organization with a geocentric approach to management?
A) Accounting for local cultural and legal norms in the local administration of the total rewards strategy
B) Overlooking important cultural differences as headquarters total rewards policies are adjusted for local application
C) Modifying headquarters total rewards policies for local application only when it is required by local laws
D) Giving full autonomy to individual regions in the development of the total rewards strategy
5. Enterprises are attracted to global expansion by certain opportunities but also pushed into it by certain conditions. Which is an example of a 'push' factor in globalization?
A) Proximity to resources and materials
B) Favorable country-specific trade agreements
C) Better labor supplies in other countries
D) Current home-country market saturation
1. Right Answer: C
Explanation: A transnational corporation builds strong local and global identities. Ideas flow not only from headquarters to the subsidiaries but among subsidiaries and to headquarters. Localized processes and practices meet cultural and legal requirements in each market, and knowledge and experience are shared globally.
2. Right Answer: A
Explanation: A multidomestic corporation is similar to a portfolio of independent businesses. Headquarters is in the home country, but over time the divisions achieve more autonomy. At this stage, HR is involved in coordinating HR activities, with the goal of consistency while remaining flexible with local law and culture.
3. Right Answer: C
Explanation: In a polycentric staffing orientation, host-country nationals (HCNs) staff and manage the local subsidiary. HCNs are not usually promoted to headquarters positions
4. Right Answer: A
Explanation: In a geocentric organization, an international company is seen as a single global business, with management talent coming from any location in the enterprise. The strategic plan is global in orientation, while the need to balance global strategy with local culture and regulations is well understood.
5. Right Answer: D
Explanation: An organization may begin to globalize if its current market is completely saturated, offering no potential for significant growth. Global expansion will allow the continuous growth in revenue that management and/or investors may require.
Explanation: A transnational corporation builds strong local and global identities. Ideas flow not only from headquarters to the subsidiaries but among subsidiaries and to headquarters. Localized processes and practices meet cultural and legal requirements in each market, and knowledge and experience are shared globally.
2. Right Answer: A
Explanation: A multidomestic corporation is similar to a portfolio of independent businesses. Headquarters is in the home country, but over time the divisions achieve more autonomy. At this stage, HR is involved in coordinating HR activities, with the goal of consistency while remaining flexible with local law and culture.
3. Right Answer: C
Explanation: In a polycentric staffing orientation, host-country nationals (HCNs) staff and manage the local subsidiary. HCNs are not usually promoted to headquarters positions
4. Right Answer: A
Explanation: In a geocentric organization, an international company is seen as a single global business, with management talent coming from any location in the enterprise. The strategic plan is global in orientation, while the need to balance global strategy with local culture and regulations is well understood.
5. Right Answer: D
Explanation: An organization may begin to globalize if its current market is completely saturated, offering no potential for significant growth. Global expansion will allow the continuous growth in revenue that management and/or investors may require.
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