1. Which best characterizes today's global organization?
A) Any organization with operations in both developed and emerging economies and established cultural diversity to achieve success B) Any large multinational corporation with global subsidiaries, vast resources, and a network of mobile global subject matter experts C) Any organization, large or small, whose processes, actions, and decisions are firmly rooted in a carefully conceived global strategy D) Any organization that is grossing more than $1 million and doing business in more than two countries and that has a diversity of thought
2. Which is critical for HR to understand when considering forces for globalization?
A) Determining whether a force is political, technological, economic, or social B) Identifying whether a force will have a positive or negative impact C) Learning whether a force's origin is an emerging or a developed economy D) Understanding which forces are significant to the organization and to HR responsibilities
3. Which critical role does HR need to assume in light of globalization?
A) Overseeing workforce management policy shifts due to increased offshoring B) Balancing an organization's global strategy with policy localization to reflect national cultures and laws C) Ensuring that an organization's global strategy isn't influenced by its workforce's local cultures D) Ensuring that local management isn't prejudiced by global policies
4. How does hyperconnectivity assist an organization in achieving its strategic goals?
A) Through the digital interconnection of people and things, any time and any place B) Through the economic interconnection between emerging and developed economies C) Through the interconnection of all PESTLE forces: political, economic, social, technological, legal, and environmental D) Through the significant increase in the speed of broadband connections
5. Which characterizes globalization?
A) Global markets, economies, and technologies are increasingly interconnected. B) Technology has become globalization's single shaping force. C) Developed economies play an increasingly dominant role in globalization. D) Global interconnections reached a peak in the 1980s and 1990s and have since decreased.
6. Which major role does HR play in supporting global strategic management?
A) Creating HR policies that reinforce global inclusion versus local responsiveness B) Ensuring that subsidiaries' workforces retain their local identities C) Partnering to create the organization's global strategy D) Defining strategies for local subsidiaries
7. How does the demographic dichotomy bring new attention to generational differences?
A) By encouraging innovation in emerging markets and then importing that knowledge to developed markets B) By allowing for mass migration of individuals from their homeland to multiple destinations C) By identifying educational and skills dividends and deficits between emerging and developed economies D) By enhancing investment opportunities into equipment and organizations for a younger generation
8. Global Strategy Which of the following is a 'push' factor for global expansion?
A) Workforce mobility B) Need for new markets C) Greater strategic control D) Special financing terms for investments
9. Which of the following is considered a 'pull' factor in attracting organizations toward globalization?
A) Government policies B) Need for new markets C) Greater strategic control D) Globalized supply chain
10. Which is a benefit to a global organization of having a geocentric approach to its compensation and benefits strategy?
A) It infuses dominant beliefs and practices from the parent company to each of the host-country locations. B) It allows the home country to exercise control over the benefit offerings in order to lower the cost of benefit administration. C) It provides a single, cohesive approach that allows leaders to look at benefit offerings on a broader scale. D) It helps in selecting benefits from within a particular region that match the needs of the host-country location.
1. Right Answer: C Explanation: Because of technologies and the growing ease of doing business across borders, a global organization is no longer defined by its size or physical presence in multiple countries but by its global strategy.
2. Right Answer: D Explanation: An HR professional's goal in considering any aspect of globalization is to strive to understand which globalization events, forces, and trends are significant for a given organization and for HR responsibilities in that organization. Whatever the force's type or origin, its impact will be unique for that organization.
3. Right Answer: B Explanation: Globalization has made the role of HR more critical and more complex. In developing and implementing global strategies, global HR must constantly balance standardization of policies influenced by the organization's values and global strategy with the need to localize these policies through programs and practices that reflect organizational and national cultures and local laws.
4. Right Answer: A Explanation: The World Economic Forum defines hyperconnectivity as the 'increasing digital interconnection of people—and things—anytime and anyplace.' It is the purely digital/virtual aspect of globalization's 'accelerating interconnectedness.'
5. Right Answer: A Explanation: The integration of markets, nation-states, and technologies is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before.
6. Right Answer: C Explanation: HR can support strategic management by helping to create global strategy, aligning HR activities with it, adapting the activities to local needs, and enhancing communication between the organization and its stakeholders.
7. Right Answer: C Explanation: In the growing demographic dichotomy, developed countries are facing an aging workforce while emerging economy workforces are much younger. So globalization has brought new attention to generational, as well as cultural, diversity. The diaspora of increased global migration has made the workforce increasingly diverse in all countries.
8. Right Answer: B Explanation: Organizations are pushed toward globalization in reaction to changes in the business environment (such as limited market opportunities in their home countries). The other factors listed here are 'pull' factors. Organizations are pulled toward globalization through the promise of achieving greater organizational value.
9. Right Answer: C Explanation: Pull factors are those attractions to globalization that support what an organization wants to achieve--in this case, greater control over strategic goals. The other factors are 'push' factors, ones that oblige an organization to go global to remain competitive.
10. Right Answer: C Explanation: In a geocentric organization, an international company is seen as a team, with management talent coming from any location in the enterprise. The strategic plan is to balance the global strategy with local culture and regulations.
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