What is the best way to ensure an organization complies with the Foreign Corrupt Practices Act (FCPA)?
Answer : D
Comprehensive and Detailed Explanatio n:
One of the two main provisions of the FCPA is the accounting provision, which mandates that companies:
Maintain accurate books and records
Implement internal controls to detect and prevent bribery
This requirement helps uncover unauthorized payments and ensures financial transparency.
GPHR Study Guide Extract -- Workforce Relations and Risk Management / Compliance with FCPA:
''Organizations must maintain detailed and accurate books and records. This serves as a safeguard against bribery and demonstrates compliance with anti-corruption statutes.''
While policies and penalties matter, financial transparency through accounting is foundational and enforceable under the law.
A key characteristic of organizational culture is:
Answer : C
Comprehensive and Detailed Explanatio n:
Organizational culture is a long-term influencer of employee behavior. It shapes:
Norms
Decision-making styles
Expectations for how people interact
It evolves slowly and is reinforced through rituals, leadership behavior, and peer expectations, not just documents.
GPHR Study Guide Extract -- Strategic Global Human Resources / Organizational Culture:
''Culture reflects shared values and behaviors that guide how people work and make decisions. It is deeply embedded and not easily changed by formal communication alone.''
Culture cannot be rapidly changed or fully defined through policies.
Which of the following are fundamental elements for communicating to a global workforce? (Select TWO options.)
Answer : C, D
Comprehensive and Detailed Explanatio n:
Global communication must be both structured and sensitive:
Structure: Ensures consistency across languages and time zones. Structured communication avoids confusion and helps align expectations, especially in low-context cultures (e.g., U.S., Germany).
Sensitivity: Acknowledges cultural differences, including communication preferences, decision-making styles, and feedback practices. Without it, messages may offend or be misinterpreted.
GPHR Study Guide Extract -- Strategic Global Human Resources / Global Communication Strategies:
''Effective global communication requires both structure---to ensure clarity across languages---and sensitivity---to respect cultural norms and foster inclusive dialogue. Misaligned communication can undermine trust and productivity.''
Openness and intuition are style-based and not always applicable across all cultures or hierarchical contexts.
A U.S. organization has a shipload of fresh vegetables and fruit sitting on the dock in a foreign country. The organization's local distribution manager pays the dock master to ensure that the shipment is sorted and loaded onto the refrigerated trucks in a timely manner. Has the organization's representative violated the Foreign Corrupt Practices Act (FCPA)?
Answer : D
Comprehensive and Detailed Explanatio n:
Under the FCPA, it is illegal to provide anything of value to a foreign government official to gain an unfair business advantage. In this case:
The dock master is a government employee
The payment was made to expedite services (even if routine), which is interpreted as a bribe
GPHR Study Guide Extract -- Workforce Relations and Risk Management / Anti-Corruption Laws and Compliance:
''The FCPA prohibits U.S. individuals and entities from bribing foreign officials. This includes payments made to secure or expedite services, especially when they provide a business advantage.''
Grease payments are narrowly defined and controversial. This scenario likely exceeds that exception.
A global pharmaceutical company is restructuring its compensation framework to support innovation across its R&D units located in the U.S., Switzerland, and Singapore. HR is tasked with developing a globally integrated yet locally relevant pay-for-performance system. Which of the following should be the primary consideration when designing this strategy?
Answer : C
To drive innovation across borders, HR must align incentives with what motivates performance in each region --- which varies culturally. In collectivist cultures, group bonuses may be more effective; in individualistic ones, personal performance metrics are better motivators.
Uniform bonuses (A) and HQ-focused profit-sharing (D) can cause disengagement in other regions
Industry benchmarks (B) help with pay levels but not motivation structure
GPHR Concept: Performance and reward systems must support both global strategy and local motivational frameworks.
A U.S.-based MNC expands into India and receives backlash for failing to accommodate local religious holidays. What should HR do to ensure cultural integration in global policies?
Answer : C
Balancing global consistency with local cultural observance is essential. A flexible, inclusive calendar respects diversity while maintaining HR policy structure.
GPHR Concept: Culturally responsive HR practices improve engagement and reduce cultural missteps.
Which is the most important factor in HR's effectiveness at the global level?
Answer : A
Comprehensive and Detailed Explanatio n:
Flexibility is crucial in global HR to accommodate the diverse regulatory, cultural, and business environments across countries. This includes being able to adjust policies, benefits, and communications to local contexts while aligning with global strategies.
GPHR Study Guide Extract -- Strategic Global Human Resources / Designing Global HR Strategies:
''Flexibility is essential in developing global HR strategies. HR must be agile in adapting practices to meet the needs of different markets while ensuring alignment with corporate objectives. A one-size-fits-all approach often fails to resonate across diverse cultures and legal systems.''
Centralization may hinder local responsiveness, and while systems and data sharing are important, adaptability remains the cornerstone.