Free HRCI GPHR Practice Exam with Questions & Answers | Set: 4

Comprehensive and Detailed Explanation:

Arbitrationis a formal process where aneutral third-party (arbitrator)makes abinding decisionon a dispute. It is:

Quicker and more private than litigation

Often contractually agreed upon

Common in international labor contexts

GPHR Study Guide Extract – Workforce Relations and Risk Management / Alternative Dispute Resolution (ADR):

“Arbitration is used when parties agree to resolve disputes outside court through a neutral arbitrator whose decision is binding. It is particularly valuable in international employment disputes.”

Mediationisnon-binding, focused on facilitated negotiation.Conciliationis similar but even less formal.

Comprehensive and Detailed Explanation:

ARealistic Job Preview (RJP)gives candidates abalanced viewof the role, including both positive and challenging aspects. This helps set accurate expectations, leading to:

Better job fit

Reduced turnover

Increased job satisfaction

Especially in high-volume, high-turnover roles like call centers, RJPs help filter out candidates who may struggle with the job’s demands.

GPHR Study Guide Extract – Talent Acquisition and Mobility / Recruitment Strategies:

“Providing realistic job previews reduces early-stage attrition by aligning candidate expectations with the actual work environment. This approach improves quality of hire and employee engagement.”

OJT and peer interviews are onboarding or selection tools, while tours do not address expectation alignment.

Comprehensive and Detailed Explanation:

The leading cause ofexpatriate failureisinability of the family to adjustto the host country. Even when the employee is well-prepared professionally, their assignment can collapse due to:

Spouse isolation or lack of career opportunities

Children’s difficulty adapting to local schools

Overall family dissatisfaction with the new environment

GPHR Study Guide Extract – Global Talent Acquisition and Mobility / Causes of Expatriate Failure:

“Family adjustment issues are the most frequent reason for expatriate assignment failure. The inability of a spouse or children to adapt to the new location leads to early repatriation and loss of investment.”

Language and culture are important, but they are typically addressable with training and support.Family well-being is foundational.

Comprehensive and Detailed Explanation:

Competitive Advantage– Diverse teams bringbroader perspectives, creativity, and innovation, leading toenhanced problem-solving and decision-making, which gives organizations astrategic edgein the global market.

Changing Labor Force Demographics– Global organizations must respond toincreasing workforce diversity, driven by global mobility, migration, and aging populations. Recognizing and preparing for this shift is a strategic imperative.

GPHR Study Guide Extract – Strategic Global Human Resources / Cultural Diversity and Global Workforce Trends:

“Cultural diversity fosters innovation and enables organizations to respond effectively to diverse customer needs. Global demographic shifts, such as aging populations and increased migration, necessitate inclusive strategies to remain competitive.”

Legal compliance (AAP) is more reactive and location-specific, not strategic from a global HR perspective.

Comprehensive and Detailed Explanation:

Thefirst strategic stepin selecting a global site is to assemble across-functional evaluation teamthat includes:

HR (for labor and talent factors)

Legal (for compliance and risk)

Finance (for cost analysis)

Operations and leadership

This ensures abalanced, comprehensive assessmentof all business, legal, and cultural implications.

GPHR Study Guide Extract – Strategic Global Human Resources / Site Selection Strategy:

“Establishing a multidisciplinary team enables organizations to analyze site options holistically. It integrates HR, compliance, legal, and operational insights to guide informed decision-making.”

Looking atwages or labor marketscomes next—but without a team, the process lacks strategic alignment.

Local labor law compliance, including severance and contract enforceability, is critical in Brazil and must be addressed before finalizing the merger. This affects costs, liabilities, and restructuring feasibility.

GPHR Concept:Legal and regulatory risk analysis is a core part of global M&A due diligence.

Comprehensive and Detailed Explanation:

TheOECDdoes not enforce legal mandates. Instead, it issuesvoluntary guidelinesthatmember countries are encouraged to adopt. These recommendations covercorporate responsibility,employment standards, andethical labor practices.

GPHR Study Guide Extract – Workforce Relations and Risk Management / International Employment Standards:

“OECD guidelines are voluntary principles and standards for responsible business conduct addressed to multinational enterprises. They are non-binding and are designed to complement existing labor laws and ILO conventions.”

This makes OECD guidelinesadvisory, unlikeILO conventions, which can beratifiedandlegally binding.

Comprehensive and Detailed Explanation:

AThird-Country National (TCN)is an employee who isnot from the home country (where the company is headquartered) nor from the host country (where the work is being done).

Utilizing TCNs signals ageocentric staffing philosophy, which is the hallmark of a truly global organization. It focuses on selecting thebest talent regardless of nationality, promotingdiversity, global integration, and flexibility.

GPHR Study Guide Extract – Global Talent Acquisition and Mobility / Staffing Models:

“The use of third-country nationals reflects a geocentric model. Organizations operating at this level seek the best person for the job irrespective of national origin, supporting a truly global mindset.”

In contrast,ethnocentric organizationsrely onparent-country nationals (PCNs)to manage foreign subsidiaries.

Comprehensive and Detailed Explanation:

Indiaranks high onpower distance, a cultural dimension that indicates acceptance of unequal power distribution in society and organizations. In such cultures:

Clear hierarchies are respected

Employees often expect direction from senior management

Reporting lines are strictly followed

Therefore, organizations in India are more successful when operating within aformal, defined hierarchy.

GPHR Study Guide Extract – Workforce Relations and Risk Management / Hofstede’s Cultural Dimensions:

“High power distance cultures, such as India, emphasize structured hierarchies and defined reporting relationships. Employees are less likely to challenge authority and more likely to expect top-down communication.”

In contrast, countries likeDenmarkorAustraliaexhibit low power distance and favor flat organizational structures.