HRCI Global Professional in Human Resource GPHR HRCI Exam Practice Test
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Question 1
Who has the primary responsibility for the success of an organization's diversity strategy?
Answer : C
Comprehensive and Detailed Explanatio n:
While HR plays a key role in developing and executing diversity initiatives, the success of any D&I strategy depends on active leadership by senior management. Their responsibilities include:
Setting the tone at the top
Allocating resources
Embedding diversity in strategic planning
Without visible commitment from top leaders, D&I efforts may be seen as symbolic or lacking authority.
GPHR Study Guide Extract -- Strategic Global Human Resources / Diversity and Inclusion Strategy:
''Senior leadership commitment is the cornerstone of an effective global diversity initiative. It signals organizational values and drives change from the top down.''
HR facilitates execution, but ownership lies with executive leadership.
Question 2
Which compensation approach pays expatriates consistent with host-country employees?
Answer : B
Comprehensive and Detailed Explanatio n:
Localization means that expatriates are paid like local employees in the host country, often with some transitional support or legacy benefits. It involves:
Paying in local currency
Adjusting to local compensation levels
Removing expatriate premiums over time
GPHR Study Guide Extract -- Global Compensation and Benefits / Localization Strategy:
''Localization is a compensation model in which the expatriate is placed on the host-country payroll and paid according to local market conditions, sometimes with transitional benefits.''
This is increasingly used for long-term international employees or those who choose to remain abroad.
Question 3
A fast-growing global tech firm is considering entering the Latin American market through acquisition. HR is asked to provide due diligence insights on labor risks. Which of the following would pose the GREATEST risk to business continuity post-acquisition?
Answer : C
In many Latin American countries, unions hold significant legal power, and collective bargaining is legally mandated. Failure to engage unions can lead to:
Work stoppages
Legal action
Long-term reputational damage
Other options (language, payroll, leave policies) are manageable operational challenges, not strategic risks.
GPHR Concept: Labor relations --- especially legal union mandates --- are high-risk areas in M&A due diligence.
Question 4
Multinational organizations' targeted investment in their elite talent may likely result in: (Select TWO options.)
Answer : A, B
Comprehensive and Detailed Explanatio n:
High training and upskilling expenditure -- Elite talent investments involve executive coaching, global assignments, leadership development programs, etc., which require significant financial investment.
Unlocking staff potential -- These efforts often aim to prepare high-potentials for leadership succession, improving organizational resilience and global readiness.
GPHR Study Guide Extract -- Talent and Organizational Development / High-Potential Talent Development:
''Strategic investment in top talent focuses on leadership pipeline development. This often involves substantial upskilling, mentorship, and exposure to strategic roles to unlock long-term potential.''
While there may be perception risks, the core outcomes are upskilling and future readiness.
Question 5
Employment relationships for most employees in Europe are primarily governed by:
Answer : B
Comprehensive and Detailed Explanatio n:
In most European countries, the individual employment contract is a legally binding document that governs the employee-employer relationship. These contracts define:
Pay and benefits
Notice periods
Work hours
Termination conditions
This is a core difference from U.S. at-will employment, where terms are often less formalized and can be unilaterally changed or terminated.
GPHR Study Guide Extract -- Workforce Relations and Risk Management / Regional Legal Differences:
''In Europe, employment contracts are standard and enforceable under national labor law. They define the terms and conditions of employment, ensuring clarity and legal protection for both parties.''
The Data Protection Directive regulates personal data, not employment contracts.
Question 6
The most important reason for organizations to customize benefit programs by country is to:
Answer : A
Comprehensive and Detailed Explanatio n:
Global benefit programs must be customized to match local employee expectations, cultural values, and legal requirements. What motivates or supports employees in one country may not be relevant---or even legal---in another.
In Japan: retirement plans and job security
In the U.S.: health insurance
In the UK: paid leave and flexibility
GPHR Study Guide Extract -- Global Compensation and Benefits / Benefits Customization:
''Effective benefit strategies are driven by employee needs and local market expectations. Customization ensures relevance, compliance, and employee engagement across geographies.''
Standardization may lead to non-compliance or disengagement in local markets.
Question 7
When developing a cross-cultural team that includes members from high-power distance societies, what is critical to the success of the team?
Answer : C
Comprehensive and Detailed Explanatio n:
In high-power distance cultures (e.g., India, Malaysia, Russia), people are comfortable with hierarchical structures and social inequality. For cross-cultural teams to succeed:
Leaders must be mindful of rank and formality
Deference to seniors is expected
Challenging authority publicly can cause loss of face
GPHR Study Guide Extract -- Workforce Relations and Risk Management / Hofstede's Power Distance:
''High-power distance cultures emphasize social hierarchy and authority. Effective cross-cultural collaboration requires sensitivity to these dynamics, including status, seniority, and role expectations.''
Western-style egalitarianism or informal criticism may create discomfort and resistance in such settings.
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