SHRM-CP (HR in the Global Context) Exam: Navigating the Complexities of International HR, Exams of Business Administration

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SHRM-CP( HR in the global context) Exam 35 Questions with

Verified Answers

Globalization - CORRECT ANSWER Status of growing interconnectedness and interdependency among countries, people, markets, and organizations worldwide. The Diaspora ( Global remittances) - CORRECT ANSWER Monies sent back home by migrants working in foreign countries. Demographic dichotomy - CORRECT ANSWER the workforce in emerging economies is becoming young while the workforce in developed countries is rapidly aging Reverse Innovation - CORRECT ANSWER Innovations created for or by emergingeconomy markets and then imported to developed-economy markets. hyperconnectivity - CORRECT ANSWER the increasing digital interconnection of people and things. the digital/virtual aspect of gloablization's accelerating interconnectedness "Push factors" of globalization - CORRECT ANSWER - having exhausted market opportunities in their home countries

• increased cost of operations and labor and intensifying compeition
• shortfalls in natural resources and the need for specific skills not available locally.
• domestic govt. regulations
• trade agreements increase compeition for domestic firms as foreign competitors enter the market
• enterprises may be drawn abroad by partners in their supply chain

"Pull" factors in globalization - CORRECT ANSWER - More control over their business by developing a multinational presence -control brand image by opening subsidaries in host countries

• promote outward foreign investment
• opening markets and promoting workforce mobility Global integration (GI) - CORRECT ANSWER emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations. Local responsiveness (LR) - CORRECT ANSWER emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems. How organizations can achieve global integration - CORRECT ANSWER 1. Assignees (employees who work outside their home countries)

2. Standardized processes
3. performance targets and rewards
4. shared vision and values How organizations can achieve Local responsiveness - CORRECT ANSWER emphasis on local customers, products, partners and labor sources. -Ability to respond to local customer needs -efficiency gained from using local substitutes -ability to remain compliant with local law Upstream strategies - CORRECT ANSWER -decisions are made at HQ -decisions apply to strategy and coordination

• Workforce alignment -organizational development
• sharing of knowledge and experience Downstream strategies - CORRECT ANSWER - decsions are made at local level -decisions aim at adapting strategic goals and plans to local realities (LR)
• agreements for local workforce groups

-adjustments to standard policies on working conditions and local legal requirements Identity alignment - CORRECT ANSWER Extent to which diversity is embraced in management of people, products/ services, and branding.

• Unless the corporate brand is well established, localized offerings may dilute brand , local approaches may diffuse core identity Process alignment - CORRECT ANSWER Extent to which underlying operations such as IT, finance, or HR integrate across locations. -businesses built through aquisitions often have seperate processes Multinational enterprise (MNE) - CORRECT ANSWER Organization that owns or controls production or services facilities in one or more countries other than the home country. International (globalization strategy) - CORRECT ANSWER a firm exports a product or service to foreign countries. company may open production facilties but the product/services are developed in home country Multidomestic (globalization strategy) - CORRECT ANSWER the org is a decentralized portfolio of subsidaries. goals and strategies are developed locally. Global (globalization strategy) - CORRECT ANSWER the firm views the world as a single, global market and offers global products that have little or national variation. Strategy, ideas enmanate from HQ Transnational (globalization strategy) - CORRECT ANSWER the firm locates its value chain activities in the most advantageous geographic locations. subsidaries are allowd to adapt global products/services to local markets Perimutter's orientations and global strategy: Ethnocentric: - CORRECT ANSWER HQ maintains tight control over subsidaries

Perimutter's orientations and global strategy: Polycentric - CORRECT ANSWER subsidaries are allowed a large measure of independence as long as they are profitable "many best ways" Perimutter's orientations and global strategy: Regiocentric - CORRECT ANSWER subsidaries are grouped into regions. Strategic coordination is high within the region. Perimutter's orientations and global strategy: Geocentric - CORRECT ANSWER subsidaries are neither satelites nor independent bodies setting their own course. HQ and subsidaries participate in a network. Offshoring - CORRECT ANSWER relocating processes or production to another country. Reasons: lower cost, closer proximity to neccessary production resources, more favorable economic climate for coporate taxation, financial incentive ( direct cash payment) Onshoring (home-shoring) - CORRECT ANSWER Relocation of business processes or production to a lower-cost location inside the same country as the business. near-shoring - CORRECT ANSWER a company contracting a part of business processes or production to an external company in a country that is relatively close (e.g., within the same own region). More likely to have shared cultural values and similar mindset Skills needed for global HR - CORRECT ANSWER 1. develop a strategic view of the org

2. develop a global organizational culture
3. secure and grow a safe and robust talent supply chain
4. use and adapt HR technology
5. develop meaningful metrics
6. develop policies and practices to manage risk

Approaches to global assignments: strategic- systematic - CORRECT ANSWER 1. approach global assignments as long term investments

2. develop executives w/ essential global perspectives
3. increase the effectiveness of crtical coordination and control functions between home office and foreign operations
4. effectively disseminate info, technology throughout the org Approaches to global assignments: Tactical- reactive - CORRECT ANSWER 1. approach global assignments as a short term expense
5. focus on quick fix approach
6. randomly perform some functions and focus attention as problems arise
7. fail to integrate org of values, technology International assignee ( IA) - CORRECT ANSWER an employee who is being reassigned to an international jurisdiction Global Assignee Assessment and selection - CORRECT ANSWER 1. develop the selection criteria
8. involve the right people
9. choose the best selection methods and tools
10. complete the assessment/ make a recommendation Repatriation - CORRECT ANSWER Process by which employees returning from international assignments reintegrate into their home country's culture, conditions and employment. Redeployment - CORRECT ANSWER Process by which an organization moves an employee out of an international assignment; can involve moving back to the home country, moving to a different global location, or moving to a new location or position in the current host country.

In " Managing the Global workforce", other reasons for offshoring include - CORRECT ANSWER - access to talent

• round the clock shifts (operating 24hrs a day)
• taking advantage of time zone differences