8/9/2019 An Organization is in the Growth Stage of the Organizational Life Cycle

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 An organization is in the growth stage of the organizational life cycle. It has five locations, one in the U.S. (headquarters), two in Asia, one in South America, and one in Euroe. !he comany has decided to utilize a geograhic organizational structure. Although the foreign locations are relatively new, each office has focused on "uilding "oth technical and managerial talent within itsown site. !herefore, each location is fully oerational each running fairly indeendently. 

#owever, once a year the e$ecutive team from headquarters visits each office to meet with the managers at each site to discussthe coming fiscal year%s strategic goals and o"&ectives. 'hich of the following factors does ! lay a factor in determining theglo"al staffing aroach in this scenario*

•  A) Strategic lans identified "y headquarters

• +) airly locally resonsive strategy vs. glo"al integration across locations

• -) elative maturity of each glo"al location

• /) 0lo"al growth strategy of organization

• [Ans: D]

• In this scenario, the comany is li1ely in the multinational stage of glo"alization. #owever, this categorization does not

indicate the cororate glo"al growth strategy. E$amles of glo"al growth strategies are mergers 2 acquisitions, greenfieldoerations, strategic alliances, &oint ventures, franchising, contract manufacturing, "uilding turn1ey oerations, andmanagement contracts.

• #owever, some factors that may influence the overall glo"al staffing aroach in this scenario are the firm%s localization

strategy and the relative maturity of each glo"al location. Since the offices seem relative indeendent and mature in"uilding technical and managerial talent com"ined with a fairly locally resonsive strategy, the organization may considerursuing a olycentric aroach to staffing.

• #owever, other factors that may imact the overall glo"al staffing aroach are e$ternal factors, e$ected levels of social

resonsi"ility, and I! caa"ilities. It is always the case that deartmental lans and o"&ectives should align with thestrategic organizational lans.

 A Singaore3"ased restaurant chain is e$eriencing henomenal growth. !he chain offers a unique service for demograhicse$eriencing the growth of two3erson income families. It offers a variety of afforda"le, healthy alternatives to the fast food chains.!he cororate headquarter is trying to decide whether to offer one single line of roducts shared throughout each chain or to offerone single line of roducts shared "y each region. !his scenario is an e$amle of which of the following tyes of tensions commonin glo"al e$ansion*

•  A) 0lo"al integration vs. local resonsiveness

• +) Activity measure vs. results measure

• -) 4alue creation measure vs. standardization

• /) 5ocalization vs. rivatization

• [Ans: A]

• !he scenario a"ove is an e$amle of the tension that occurs "etween glo"al integration vs. local resonsiveness during

glo"al e$ansion. 0lo"al integration (also referred to as standardization) refers to the standardization of olicies,rocesses, systems, and eole across "orders.

• n the other hand, local resonsiveness (also referred to as localization) refers to the need to adat olicies, rocesses,

and systems to the local culture and conte$t. In contrast, activity, results, and value creation are all ways to evaluate a"usiness. inally, rivatization is the rocess of changing a u"lic entity or enterrise to rivate control and ownershi.

'hich of the following stages of glo"alization is an organization li1ely in if it is ursuing a olycentric staffing aroach*

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•  A) !ransnational

• +) /omestic

• -) 6ultinational

• /) 0lo"al

• [Ans: C]

• 7olycentric staffing is an international staffing method where the locals have the oortunity to fil l in 1ey ositions in their

own country "ecause of the "elief that local managers have a good understanding of the local culture and language.

•  According to the +artlett and 0hoshal framewor1, there are five stages of glo"alization that enterrises may go through. In

the first 8domestic8 stage, cororations focus on domestic sales and international sales ma1e u a small ortion of totalrevenue.

• /uring the second 8international8 hase, although the focus still remains on domestic sales, one or a few international

divisions may "e added to oversee glo"al oerations and growth. International growth related to foreign oerations is often

more oortunistic.

• In the third 8multinational8 stage, a firm usually has several offices throughout the world. #owever, each of the offices are

treated almost as searate units where 1ey decisions are made "y headquarters, the locals manage most of the day3to3day oerations and organizational strategy is often oorly coordinated "etween national sites.

• /uring the fourth 8glo"al8 hase, all offices are managed as if one unit develoing one shared strategic "usiness lan.

!alent often moves readily from one location to another as secific needs arise, and the world is viewed as one mar1etinstead of multile regional mar1ets. #owever, similar to "eing in the 8multinational8 stage, 1ey strategic decisions aremade "y headquarters.

• inally, in the last 8transnational8 hase, organizations achieve the eitomy of glo"alization where decisions and lanning

is made across "orders, "ut local offices are a"le to retain their fle$i"ility. !hey have intensive organization3wide

coordination and shared decision3ma1ing. If a comany has decided to ursue a olycentric staffing aroach, it is li1ely inthe multinational stage, where locals manage most of the day3to3day oerations. If a cororation were in the glo"al ortransnational hases, they would li1ely utilize a geocentric staffing method. n the other hand, a firm in the domestic orinternational stages would ro"a"ly engage in ethnocentric staffing aroaches.

'hich of the following stages of the International Assignment 7rocess model is the most critical in determining the success of aninternational assignment*

•  A) Assessment and selection

• +) 7re3dearture rearation

• -) n assignment

• /) -omleting the assignment

• [Ans: A]

• Similar to filling any osition, the assessment and selection stage is the most critical in determining the success of an international

assignment. After finding the most suita"le candidate, the re3dearture rearation, training while on assignment, and assisting in

comleting the assignment can fall into lace readily.

• !he International Assignment 7rocess model involves five stages9 (:) assessment and selection, (;) management and assignee decision,

() comleting the assignment.

• /uring the assessment and selection hase, selection criteria should reflect those success factors relevant to the entire scoe of the

international assignment. /uring the management and assignee decision ste, the cororation ma1es their final decision and documents

the assignment lan in detail. !he assignee then decides whether or not to ta1e the assignment. !he re3dearture rearation stage is

filled with a countless num"er of details in regards to the move, the required wor1 ermits, and cross3cultural training. nce the e$atriate

is on assignment, they should receive an orientation and continual suort to assist in the initial culture shoc1 and ad&ustment. inally,

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after the e$atriate has comleted the assignment, the comany should hel them transition into their new role, whether it is on another

international assignment, "ac1 into their home country, or the assignee is localized into the host country.

 A U.S. "ased high tech comany has "uilt a 2/ office in +angalore, India. our years have assed since the greenfield oerationwas successfully "uilt. /uring this time, the new location has ta1en on higher riority engineering ro&ects and has trained anddeveloed managerial s1ills of its newly recruited managers in +angalore. 

#eadquarters wants the office to ta1e on a new engineering ro&ect that would e$and its "usiness "y adding a new roduct line.!his ro&ect has "een identified as the most imortant o"&ective for the cororation in the mid3term. #owever, the site still lac1stechnical 1nowledge in a articular area. 'hich of the following tyes of international assignments is the most aroriate in order

to fill this 1nowledge ga*

•  A) 5ong3term e$atriation

• +) 5ocalized transfer 

• -) International commuting

• /) Short3term assignment

• [Ans: D]

• In order to determine the most aroriate tye of international assignment, we need to identify the 1ey characteristics of each of them.

5ong3term e$atriation refers to someone temorarily wor1ing in a country and culture other than that of their u"ringing and?or legal

residence for a eriod of one or more years. n the other hand, a localized transfer is an emloyee that simly stays ut in the host

country and is a"sor"ed "y that overseas "usiness unit. In contrast, international commuting occurs when an emloyee travels often to

the home country.

inally, a short3term assignment descri"es relocations for a short3term assignment for a eriod of at ma$imum :; months. In this

scenario, it would "e most "eneficial to ursue a short3term assignment. It allows for continual technical guidance on the ro&ect, unli1e

during international commuting. In addition, a short3term assignment allows for the efficient reallocation of that 1nowledge "ase once the

ro&ect is done, unli1e a localized transfer or long3term e$atriation.

 A U.S. "ased high tech comany has "uilt a 2/ office in +angalore, India. our years have assed since the greenfield oerationwas successfully "uilt. /uring this time, the new location has ta1en on higher riority engineering ro&ects and has trained anddeveloed managerial s1ills of its newly recruited managers in +angalore. 

#eadquarters wants the office to ta1e on a new engineering ro&ect that would e$and its "usiness "y adding a new roduct line.!his ro&ect has "een identified as the most imortant o"&ective for the cororation in the mid3term. #owever, the site still lac1stechnical 1nowledge in a articular area. 'hich of the following tyes of international assignments is the most aroriate in orderto fill this 1nowledge ga*

•  A) 5ong3term e$atriation

• +) 5ocalized transfer 

• -) International commuting

•

/) Short3term assignment

• [Ans: D]

• In order to determine the most aroriate tye of international assignment, we need to identify the 1ey characteristics of each of them.

5ong3term e$atriation refers to someone temorarily wor1ing in a country and culture other than that of their u"ringing and?or legal

residence for a eriod of one or more years. n the other hand, a localized transfer is an emloyee that simly stays ut in the host

country and is a"sor"ed "y that overseas "usiness unit. In contrast, international commuting occurs when an emloyee travels often to

the home country.

inally, a short3term assignment descri"es relocations for a short3term assignment for a eriod of at ma$imum :; months. In this

scenario, it would "e most "eneficial to ursue a short3term assignment. It allows for continual technical guidance on the ro&ect, unli1e

during international commuting. In addition, a short3term assignment allows for the efficient reallocation of that 1nowledge "ase once the

ro&ect is done, unli1e a localized transfer or long3term e$atriation.

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