Sales Management: Shaping Future Sales Leaders (Tanner/Honeycutt/Erffmeyer)

Chapter 8 Recruiting and Selecting the Right Salespeople

8.1 Multiple Choices

1) The cost to a company of hiring a wrong salesperson is:

A) Largely metaphorical, and affects morale more than anything else
B) No more than the cost of hiring a wrong employee for any other job
C) an issue sales managers do not need to think about
D) enough to put the company in serious financial trouble
E) several times more than the salesperson's salary
Answer: E
Diff: 3 Page Ref: 160
Objective: LO1

2) The first step a sales manager needs to perform, before he or she can start conducting a
job analysis for available sales positions to fill, is to:
A) offer a position to one or more applicants
B) identify the traits a salesperson needs to have to do the job successfully
C) attract enough applicants to have a good pool to interview
D) determine how many salespeople are needed
E) offer the sales position to one or more applicants
Answer: D
Diff: 2 Page Ref: 162
Objective: LO1

3) The turnover rate for salespeople is:

A) approximately the same as the turnover rate for employees as a whole
B) slightly higher than the turnover rate for employees as a whole
C) much higher than the turnover rate for employees as a whole
D) slightly lower than the turnover rate for employees as a whole
E) much lower than the turnover rate for employees as a whole
Answer: C
Diff: 1 Page Ref: 162
Objective: LO1

4) The annual percentage of employees that leave a company, for whatever reason, is called
the:
A) attrition rate
B) turnover rate
C) variable rate
D) controllable rate
E) uncontrollable rate
Answer: B
Diff: 1 Page Ref: 163
Objective: LO1

5) Which of the following is an uncontrollable reason for sales force turnover?

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A) marriage
B) retirement
C) transfer
D) promotion
E) termination
Answer: A
Diff: 3 Page Ref: 163
Objective: LO1

6) Why should a company analyze its turnover rate?

A) A low turnover rate shows that a company is not running as efficiently as it could be, and
some employees should be let go.
B) A low turnover rate indicates that the company is too generous with employees or is not
requiring enough of them.
C) A high turnover rate indicates that the company has an underdeveloped or unnecessary
product, and it should spend more money on research and development.
D) A high turnover rate costs a company money in hiring processes and training, so
analyzing the rate allows companies to fix problems to save money.
E) A high turnover rate highlights problems with the chain of command, and a company
should consider flattening the organization.
Answer: D
Diff: 2 Page Ref: 164
Objective: LO1

7) If a company has a higher turnover rate than the standard turnover rate for its industry,
the company should:
A) assume that the industry figures are skewed
B) examine what makes the company different and work to fix those weaknesses
C) interview sales managers at other companies to figure out how they hire employees that
stay longer
D) increase starting salaries for salespeople to retain the ones they hire
E) require new hires to sign a contract for at least two years
Answer: B
Diff: 2 Page Ref: 164
Objective: LO1

8) A job analysis is an analysis of the:

A) job market in the company's industry
B) national employment rates
C) employees in the same job function within a company, comparing their performances
D) ways a given job in a company could be made more efficient
E) duties, behaviors, and activities of a person in a sales position
Answer: E
Diff: 2 Page Ref: 164
Objective: LO2

9) The purpose of a detailed job analysis by a manager is to:

A) have everything about a job in writing so employees can not later sue the company if
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they are terminated
B) streamline processes that an employee does repeatedly
C) codify the necessary skills and qualities for the job so a manager can hire a candidate with
those skills and qualities
D) make sure duties and processes are documented so that a replacement can step in
quickly when an employee quits
E) discover if there are job functions that are not being adequately covered by employees
Answer: C
Diff: 2 Page Ref: 165
Objective: LO2

10) All of the following are elements that are likely to appear in a job description EXCEPT:
A) the age of the ideal candidate
B) the products or services the employee will be selling
C) the tasks and responsibilities of the job
D) the relationship between the employee and others in the organization
E) the compensation method and amount
Answer: A
Diff: 2 Page Ref: 165
Objective: LO2

11) Managers who rush through the hiring process and assume that they can fix any
problems with a candidate during the training process:
A) have never gone through the process of attempting to train subpar employees
B) may find that the problems cannot be corrected and the hire is a mistake
C) will have to fire that employee eventually for incompetence
D) should not be in a managerial position with the company
E) need to be supervised closely by the human relations department
Answer: B
Diff: 1 Page Ref: 166
Objective: LO3

12) The process firms use to find and hire the best qualified candidates for an open sales
position is called:
A) job analysis
B) marketing
C) recruiting
D) hiring
E) networking
Answer: C
Diff: 1 Page Ref: 166
Objective: LO3

13) A company can figure out how many applicants it will likely need to fill the number of
sales positions it needs to fill by:
A) looking at the number of sales positions it needs to fill, then multiplying that times the
number of job applicants it received the last time it filled a sales position
B) looking at the number of applicants it has received, then calculating the ratio of good
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applicants to bad applicants, and dividing that by the number of positions it needs to fill
C) looking at the percentage of applicants that have experience and multiplying that by the
percentage of applicants that have the degree of education requested, and dividing that
number into the number of positions they have to fill
D) looking at the percentage of applicants it has traditionally offered positions to, and
multiplying that by the percentage of those applicants who have accepted those positions,
and dividing that number into the number of positions they have to fill.
E) looking at the percentage of new hires that stay with the company for more than a year
and multiplying that times the number of applicants they have received for the last sales
position they advertised, then dividing that number into the number of positions they have
to fill
Answer: D
Diff: 3 Page Ref: 166
Objective: LO3

14) If a company is not finding enough applicants for sales positions, it is likely that:
A) they are not the leaders in the industry
B) they need to offer more training for new hires
C) they have no analyzed the job effectively enough
D) the applicants they do find are of good quality
E) the sources they are using are a bad fit
Answer: E
Diff: 2 Page Ref: 166
Objective: LO3

15) When a an internal candidate is hired into a sales position, the hiring manager now has
to:
A) retrain the employee in company procedures and policies
B) worry that the employee will want to be promoted or transferred
C) make sure the employee does not reveal confidential information from the previous
position to a new manager
D) ask the other salespeople, who may have been external hires, to accept this new co-
worker
E) fill the position that this candidate is vacating to join the sales staff
Answer: E
Diff: 2 Page Ref: 167
Objective: LO3

16) The difference between internal candidates and external candidates is that:
A) internal candidates are candidates that already work for the company, while external
candidates come from outside the company
B) internal candidates are candidates that come from outside the company, while external
candidates already work for the company
C) internal candidates are candidates that have sales experience, while external candidates
are candidates without sales experience
D) internal candidates are candidates without sales experience, while external candidates
are candidates that have sales experience
E) internal candidates come from the same branch or division of the company, while
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external candidates come from a different division of the same company
Answer: A
Diff: 1 Page Ref: 166-7
Objective: LO3

17) Companies spend time and money searching for external candidates because:
A) internal candidates do not have the diversity required for a sales force
B) internal candidates cost more money in salaries and commissions than do external
candidates
C) companies are required by law to conduct searches for external candidates for sales
positions
D) external candidates tend to be more qualified than internal candidates, and there are
more external candidates available
E) external candidates do not have preexisting misconceptions about the company
Answer: D
Diff: 2 Page Ref: 167
Objective: LO3

18) What does networking mean in the context of hiring sales employees?
A) connecting computers and other technology together so everything works seamlessly
B) connecting job-seekers with each other so they can pool their resources
C) connecting potential job candidates to potential employers by introductions from mutual
acquaintances
D) taking professional development classes at conferences
E) taking job-searching classes at local college business departments
Answer: C
Diff: 1 Page Ref: 167
Objective: LO3

19) What is one way a company can encourage its employees to refer their friends who are
excellent candidates for sales positions?
A) Give extra vacation time to employees who give the names of qualified friends and family
members.
B) Offer a bonus to employees whose friends are hired and stay for at least a year.
C) Encourage employees to invite friends and family members to company events.
D) Request referrals to friends during employees' annual or semi-annual reviews.
E) Ask employees to mention the company to career development offices at the colleges or
universities they attended.
Answer: B
Diff: 2 Page Ref: 168
Objective: LO3

20) What is a way to qualify applicants coming from newspaper advertisements?

A) Ignore all resumes sent in without cover letters.
B) Specify in the advertisement that only qualified applicants should send in resumes.
C) Focus on placing the ads in newspapers near major universities to attract a more
educated applicant base.
D) Place the ads in as many newspapers as possible so you will receive as many applications
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as possible.
E) Provide specific information about the job duties and personal characteristics needed so
that applicants will qualify themselves.
Answer: E
Diff: 2 Page Ref: 168
Objective: LO3

21) While executive recruiters may prescreen applicants for sales positions, what is one
disadvantage of using recruiters, from the company's standpoint?
A) The candidates do not always know which company they're applying to.
B) The candidates may not have all the qualities the company requires for an employee in
that position.
C) The candidates are not always serious about the job, as they may have responded to the
recruiter's call out of politeness.
D) The recruiter receives a significant amount of money from the company for placing a
candidate.
E) The recruiter may try to steal the company's own employees even as they place
candidates with that company.
Answer: D
Diff: 3 Page Ref: 169
Objective: LO3

22) Which of the following sources of external applicants is an excellent source of almost
exclusively entry-level applicants?
A) internet job sites (such as Monster and Career Builder)
B) trade shows
C) college career fairs
D) recruiters
E) referrals
Answer: C
Diff: 1 Page Ref: 169
Objective: LO3

23) Which of the following is an advantage of finding job applicants at a job fair, career
conference, or trade show?
A) Applicants who show up in person to a career fair may be more educated than those who
search for jobs using recruiters, the internet, or other methods.
B) The first contact with the applicant is also an initial personal screening.
C) The process of asking applicants to fill out applications runs more smoothly at a job fair
than in an office setting.
D) Applicants who travel all the way to a conference are less likely to quit if offered the job.
E) It is easier to conduct a group interview when the applicants are all in one place already.
Answer: B
Diff: 2 Page Ref: 170
Objective: LO3

24) When searching for candidates to fill a sales position, it is more important to find:
A) good-quality candidates than many candidates
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B) many candidates than a few good-quality candidates
C) candidates that have already been screened by a recruiter
D) candidates with previous experience in sales
E) candidates that have been sales managers themselves
Answer: A
Diff: 2 Page Ref: 170
Objective: LO3

25) What is the first step in the process of selecting a candidate for a sales position?
A) giving the candidate tests
B) interviewing the candidate personally
C) checking the candidate's background information
D) having the candidate fill out an application form
E) conducting a physical exam, if necessary
Answer: D
Diff: 2 Page Ref: 170-1
Objective: LO4

26) How can managers use the information a job applicant puts on the application during
the interview?
A) The manager can try to assess if the applicant has written correct information by
observing the applicant's body language.
B) The manager can compare the applicant's resume and application to see if they match.
C) The manager can verify the applicant's dates of employment by calling former employers.
D) The manager can avoid asking questions about any topics that may be sensitive to the
applicant, like gaps in employment history.
E) The manager can ask questions following up on things the applicant has written.
Answer: E
Diff: 2 Page Ref: 171
Objective: LO4

27) All of the following are questions that are illegal to ask a job applicant EXCEPT:
A) "Are you married?"
B) "What religion are you?"
C) "Were you ever in the army?"
D) "Are you a man or a woman?"
E) "How old are you?"
Answer: C
Diff: 3 Page Ref: 171
AACSB: Multicultural and Diversity Understanding
Objective: LO4

28) Research has shown that a better measure of a candidate's potential for success as a
salesperson than personality or aptitude testing is:
A) the applicant's grades in college
B) a personal interview
C) a physical examination
D) a written essay
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E) IQ testing
Answer: A
Diff: 2 Page Ref: 173
Objective: LO4

29) What does "structured interview" mean in a hiring context for a sales position?
A) an interview in which the interviewer and applicant take turns speaking to each other
B) an interview in which the applicant is asked questions based on a standardized script
C) an interview in which all the applicants are brought in to the same room and asked
questions together
D) an interview in which an applicant is asked to role-play a sales situation
E) an interview in which the applicant is required to ask questions of the interviewer
Answer: B
Diff: 1 Page Ref: 175
Objective: LO4

30) What is one of the greatest benefits of using a structured interview process for
applicants for a sales position?
A) Without having to deviate from a script, the interviewer can spend more time observing
the applicants' body langauge.
B) Applicants can find the list of questions to be asked on the internet and can prepare for
them.
C) The interviewing process can be delegated to an employee with no interviewing
experience.
D) It is easy to record and compare applicants' responses to evaluate them after the
interview.
E) Interviewers do not have to discuss applicants' hobbies with them.
Answer: D
Diff: 2 Page Ref: 175
Objective: LO4

31) Why is it important for sales managers to check references on job applicants?
A) Applicants lie routinely on job applications and managers should just account for this in
their hiring process.
B) Applicants who do not have excellent grades in college will not be able to handle the pace
of sales.
C) Applicants who lie about their backgrounds may not be trustworthy as employees.
D) A company may be liable for the criminal actions of an employee if they did not check the
references of the employee before hiring him or her.
E) The reference that a job applicant lists will be people who are likely to say only positive
things about him or her, so calling references is not an effective way of determining a
candidate's true character.
Answer: C
Diff: 2 Page Ref: 177
AACSB: Ethical Understanding and Reasoning Abilities
Objective: LO4

32) A sales manager needs to know if a salesperson can lift 40-pound boxes of product as
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part of the sales process. What is a legal way the manager can determine this during the
interview process?
A) Look at the applicant and make a judgement based on how strong the applicant looks.
B) Require the applicant to take a physical examination as part of the application process.
C) Ask a private search firm to obtain the applicant's medical records.
D) Ask the applicant, "Do you have strong arms?"
E) Ask the applicant, "The job requires routinely lifting 40-pound boxes. Would you be able
to do that consistently?"
Answer: E
Diff: 2 Page Ref: 177
AACSB: Multicultural and Diversity Understanding
Objective: LO4

33) All of the following are elements contained in a formal job offer letter EXCEPT:
A) disciplinary policy
B) responsibilities of the position
C) start date
D) salary
E) vacation allowance
Answer: A
Diff: 2 Page Ref: 178
AACSB: Communication Abilities
Objective: LO4

34) After an applicant has accepted a position with a hiring company, what is the purpose of
sending the new hire employee handbooks and company-branded materials such as pens
and apparel and having current employees make contact with the new hire?
A) to let the new hire know the company has a budget for branded materials
B) to build commitment in the new hire
C) to show the new hire how he or she will be expected to treat valued customers
D) to make sure the new hire learns all the corporate procedures before coming to work on
the first day
E) to ask the new hire to do a sample presentation on the product the first day of work
Answer: B
Diff: 2 Page Ref: 179
Objective: LO4

35) Diversity in hiring is important to make the sales force match the customer base. By the
year 2050, what percent of Americans will be from a non-Anglo background?
A) 80
B) 75
C) 60
D) 55
E) 50
Answer: E
Diff: 2 Page Ref: 179
AACSB: Multicultural and Diversity Understanding
Objective: LO5
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36) Changes in demographics mean that companies that want to attract and retain excellent
candidates will need to institute corporate policies that:
A) provide flexibility and support for non-traditional families and older workers
B) support Spanish-speaking salespeople
C) require a higher percentage of new hires to be non-Anglo people
D) encourage employees to use public transportation to get to work or drive energy-
efficient vehicles
E) pay more into Social Security and FICA as the population gets older
Answer: A
Diff: 3 Page Ref: 179
AACSB: Multicultural and Diversity Understanding
Objective: LO5

37) What is a potentially difficult issue that must be navigated when a company hires
salespeople from diverse backgrounds?
A) Candidates from other cultural backgrounds may not be as qualified as the candidates
who come from the majority cultural background.
B) Candidates from other cultural backgrounds often have worked harder to get where they
are and need to be recognized for that in the workplace.
C) Candidates from other cultural backgrounds may not make the expected responses or
body language during the interviewprocess.
D) Companies cannot expect the same level of sales performance from these candidates so
their evaluation methods must be different.
E) Companies may have to change their corporate cultures to put more emphasis on
unfamiliar holidays and customs.
Answer: C
Diff: 2 Page Ref: 180
AACSB: Multicultural and Diversity Understanding
Objective: LO5

38) All of the following are negative effects of a sales manager's rushing to hire someone to
fill an open sales position EXCEPT:
A) filling job positions with similar candidates instead of encouraging diversity
B) hiring someone who doesn't have the ability to do the job well
C) ending up in a worse position than if the manager hadn't hired anyone at all for the
position
D) paying the new hire a salary that applies to a different position than the one they were
hired for
E) costing the company money for hiring, training, and then firing an improper candidate
Answer: D
Diff: 2 Page Ref: 180
Objective: LO6

39) Which of the following is NOT a common hiring mistake made by managers?
A) rushing to hire someone to fill a slot
B) failing to require applicants to undergo physical exams during the interview process
C) not analyzing the job properly before looking for someone to fill it
D) not finding a large enough applicant pool
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E) failing to conduct background checks
Answer: B
Diff: 2 Page Ref: 180 and 182
Objective: LO6

40) To streamline the hiring and selection process, sales managers should use a matrix to:
A) evaluate the sources of job applicants and their criteria
B) rank employees hired over the previous ten years
C) record information about different newspapers
D) submit corporate listings to collegiate job fairs
E) list the employees they would like to be evaluated by the human resources department
Answer: A
Diff: 1 Page Ref: 182
Objective: LO1

8.2 True/False

1) Hiring good salespeople is a simple matter of placing some ads and then picking the best
people who send in resumes.
Answer: FALSE
Diff: 1 Page Ref: 162
Objective: LO1
a
2) A company with a high turnover rate of salespeople should examine why so many people
are leaving.
Answer: TRUE
Diff: 2 Page Ref: 164
Objective: LO1

3) Without doing a detailed job analysis, a manager may have a hard time attracting quality
applicants and hiring a good salesperson.
Answer: TRUE
Diff: 2 Page Ref: 165
Objective: LO2

4) A company with a history of hiring salespeople should be able to determine a formula

based on this history that tells the manager how many applicants the manager needs to
attract for every sales position the company needs to fill.
Answer: TRUE
Diff: 3 Page Ref: 166
Objective: LO3

5) Internal candidates are always better for sales positions than are external candidates,
because internal candidates are familiar with the product and company.
Answer: FALSE
Diff: 2 Page Ref: 166-7
Objective: LO3

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6) Of all the ways to attract applicants for positions, advertising in the newspaper is still the
bzzest way.
Answer: FALSE
Diff: 2 Page Ref: 168
Objective: LO3

7) A personal interview starts out with the manager asking routine personal questions about
thez applicant's age, educational background, marital status, children, religion, etc.
Answer: FALSE
Diff:z 3 Page Ref: 171
AACSB: Multicultural and Diversity Understanding
Objective: LO4

8) A structured interview allows the manager and others involved in the hiring process to
compare an applicant's answers to a standard set of questions to the answers given to those
questions by other applicants.
Answer: TRUE
Diff: 1 Page Ref: 175
Objective: LO4

9) It is important for managers to make an effort to hire diverse candidates so that the
company's sales force reflects the demographics of the general population.
Answer: TRUE
Diff: 1 Page Ref: 179
AACSB: Multicultural and Diversity Understanding
Objective: LO5

10) Hiring the wrong people to fill sales positions is not a high-stakes mistake, because the
bad hires will still learn everything they need to know in training.
Answer: FALSE
Diff: 2 Page Ref: 180
Objective: LO6

8.3 Short Answer

1) Is the cost to the company of hiring a wrong person for a sales position high or low?
Why?
Answer: The cost to the company is high (as high as $300,000 per bad hire) because time
and money are lost on the process of recruiting, hiring, training, missed sales, bad
relationships, and firing costs.
Diff: 3 Page Ref: 160
Objective: LO1

2) Why is there such a high turnover rate in sales, relative to other job positions?
Answer: The turnover rate in sales is high because sales positions are hard to fill, so
managers sometimes take whoever they can find. This means the person might not be a
good match for a job. In addition, if training is inadequate, the person will not know how to
deal with the duties of the job, and will leave. If many older salespeople are leaving, it may
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be because there is no good career path with a company.
Diff: 2 Page Ref: 163-4
Objective: LO1

3) Why is it so vital for a manager to be thoughtful and perform a job analysis when hiring
for a new sales position?
Answer: A job analysis tells the manager exactly who he or she is looking for. Without one,
the manager is rushing and may or may not end up with someone who can do the job. Even
with good training, someone without the basic characteristics and skills for the job will not
be a good fit.
Diff: 2 Page Ref: 165
Objective: LO2

4) Is there a way a company can determine how many applicants it needs to attract to fill
the open sales positions is has? Discuss this idea.
Answer: Yes. a company should look at its hiring history for similar positions and find out
the percentage of applicants that they ultimate made job offers to. Then, look at the
percentage of candidates who were offered jobs that accepted the offer. Multiply the two
percentages together. Then take the number of positions that need to be filled, and divide it
by that number (the multiplied percentages). That tells how many applicants they will need
to fill those positions.
Diff: 3 Page Ref: 166
Objective: LO3

5) What are the advantages and disadvantages of hiring internal candidates for sales
positions?
Answer: Advantages are that the candidate already knows the product and company, and
will need less time in training about those two things. In cases of specialized products, a
candidate who has worked on the technical side of things brings an enormous value as a
salesperson with that tech knowledge. Disadvantages are that internal candidates probably
don't have any sales experience. Also, the hiring manager will now have to recruit someone
to fill the position the internal candidate is vacating to go into sales.
Diff: 2 Page Ref: 166-7
Objective: LO3

6) What are some benefits of hiring people referred to the company by friends or
relatives?
Answer: Assuming the company trusts the moral character and work ethic of the referring
employee, people referred by an employee are likely to be trustworthy and have good
working skills as well. In addition, workplace morale is improved when co-workers form
friendships, so hiring friends of current employees can increase company morale. Offering a
bonus to a referring employee if a hired friend stays on for a year or more helps ensure that
employees only refer friends who are serious about working for the company.
Diff: 2 Page Ref: 167-8
AACSB: Analytic Skills
Objective: LO3

7) Discuss the differences between the kinds of applicants that will come in from a

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newspaper ad vs. postings on online job boards. Do these differences indicate anything
about future job performance?
Answer: In general, applicants who apply online from online postings will have familiarity
and fluency in computer and internet technology, while there is no way to know about the
technological fluency of applicants who come from newspaper ads. This could be an issue in
hiring for a position, if the sales position requires heavy use of technology (CRM systems,
scheduling software, etc.) and the person needs to be familiar with basic functions and
systems.
Diff: 3 Page Ref: 168-70
AACSB: Reflective Thinking Skills
Objective: LO3

8) List the steps to selecting a candidate for a sales position.

Answer: 1. Candidate completes application form. 2. Test the candidate. 3. Personally
interview the candidate. 4. Verify background information. 5. Have physical exam
performed, if necessary.
Diff: 2 Page Ref: 170-1
Objective: LO4

9) What are some kinds of tests managers may give candidates? What is the most recent
predictor of success in a sales position?
Answer: Managers can give personality tests, aptitude tests, intelligence tests, emotional
intelligence tests, psychological tests, and ability tests. The best recent predictor of success
is not a test, but the applicant's college grades.
Diff: 2 Page Ref: 171-3
Objective: LO4

10) What is the purpose of doing a personal interview with a candidate? What can be
learned in a personal interview that can't be gleaned from applications and resumes?
Answer: Managers have the chance to learn about the candidate's personality during an
interview, as well as ask for more information about attitudes, accomplishments, and
experience, and see the candidate's reactions to certain questions and situations.
Diff: 2 Page Ref: 174-7
Objective: LO4

11) What is the difference between a structured interview and a semi-structured

interview? Which type works better for which type of candidates?
Answer: A structured interview is an interview that is conducted through a script of
standard questions. It is best for candidates for sales positions. A semi-scripted interview is
based on a script, but the interviewer asks non-scripted follow-up questions to get more
information. It is better for higher-level candidates.
Diff: 2 Page Ref: 175-6
Objective: LO4

12) How can a manager determine if a candidate is lying on a resume or application?

Answer: The manager should conduct a background check by calling all the candidates'
references, and asking those references for the names of other people to check with. A
manager can also check with the candidate's college or university about grades, and
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conduct criminal or financial background checks.
Diff: 2 Page Ref: 177
Objective: LO5

13) Discuss some of the difficulties that can occur during the hiring process with
candidates from cultural backgrounds other than the background of the manager.
Answer: Candidates may not give the same kinds of answers to standard interview
questions, they may be more formal in demeanor and interaction, they may be more
humble and self-effacing, they may not make eye contact, and they may not speak unless
asked a direct question. If a manager is not aware that these are just cultural differences,
the manager may see the candidate as less qualified.
Diff: 3 Page Ref: 179-80
AACSB: Multicultural and Diversity Understanding
Objective: LO5

14) Explain some common hiring mistakes a manager can make.

Answer: A manager can rush to hire someone, not really think about what kind of person is
needed for the position by performing a job analysis, not attracting enough applicants, not
planning well for interviews, not doing a comprehensive interview, and not performing
background checks.
Diff: 2 Page Ref: 180-2
Objective: LO6

15) What are the three types of employees a company can hire to represent them in
foreign countries? Which type tends to have stronger loyalty to the company? Which type
has better local knowledge?
Answer: Companies can hire expatriates, local nationals, and their-country nationals. Expats
have greater loyalty to the company, and local nationals have better local knowledge.
Diff: 1 Page Ref: 181
AACSB: Multicultural and Diversity Understanding
Objective: LO5

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