Questions for the GPHR were updated on : Nov 21 ,2025
During a global expansion, an organization uses a matrix structure combining regional managers and
functional leads. HR notices confusion among employees about reporting lines and decision-making
authority. What is the BEST HR strategy to clarify accountability?
B
Explanation:
Matrix structures benefit from clearly defined dual KPIs and accountability systems. Aligning
performance with both dimensions clarifies expectations and mitigates power struggles.
GPHR Concept: In matrix organizations, performance management must support dual-reporting
clarity.
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?
C
Explanation:
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 of the following global mobility metrics best supports strategic workforce planning?
D
Explanation:
Retention of repatriates ensures return on investment and supports leadership continuity. It reflects
effectiveness in career planning and reintegration.
GPHR Concept: Repatriate retention is a key success indicator in global mobility lifecycle
management.
Which of the following best demonstrates a geocentric staffing approach in a multinational
organization?
C
Explanation:
A geocentric approach is talent-focused, not nationality-based. It seeks the best fit for the role,
supporting agility and inclusion in global talent strategies.
GPHR Concept: Geocentricity promotes a global mindset and diversity in leadership.
An HR leader is developing a global leadership development program. What is the most effective
way to ensure it supports global strategy and succession planning?
C
Explanation:
Linking assessments to strategic objectives ensures the program is future-oriented and supports a
global talent pipeline. It reinforces leadership readiness and performance alignment.
GPHR Concept: Leadership development must be strategically integrated with business and
succession planning.
A company operating in multiple high-inflation countries must adjust its expatriate compensation
system to retain assignees. What is the MOST appropriate compensation mechanism to apply?
B
Explanation:
A home-country balance sheet with Cost-of-Living Adjustments (COLA) provides stability while
addressing inflation volatility. It preserves purchasing power and consistency.
GPHR Concept: COLA protects expatriates from currency depreciation and inflation fluctuations.
A European technology firm with operations in Brazil is preparing for a merger with a U.S.-based
competitor. What HR issue should be addressed FIRST during the due diligence process?
B
Explanation:
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.
In the context of a transnational business model, which HR approach best supports knowledge
sharing across regional and global teams?
C
Explanation:
Cross-border teams with shared leadership responsibilities foster global collaboration and
knowledge transfer. This aligns with the transnational model, which balances global integration with
local responsiveness.
GPHR Concept: Transnational HR strategies emphasize cross-functional, cross-border collaboration.
An international corporation has implemented a dual-career policy for expatriate families. What is
the primary strategic benefit of this policy in global talent management?
C
Explanation:
Dual-career support addresses a top cause of expatriate failure: family dissatisfaction. Helping
spouses continue their careers promotes assignment success and retention.
GPHR Concept: Family support directly impacts expatriate engagement, longevity, and return on
investment.
A global energy firm is experiencing increased compliance issues in several developing countries
where it has recently expanded. To strengthen global governance, the CHRO is asked to standardize
the company’s code of conduct. What is the MOST effective way HR can ensure adoption across
diverse cultural environments?
C
Explanation:
Standardization is important, but for effective adoption, the code must resonate culturally. Aligning
global standards with local ethics and values builds relevance and commitment.
GPHR Concept: Global policies should be localized for cultural alignment while upholding core
principles.
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?
C
Explanation:
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.
A global financial services company has adopted a geocentric staffing model and is now experiencing
challenges with integrating talent from diverse backgrounds into strategic leadership roles. Which of
the following should HR implement to best support leadership alignment across cultures?
B
Explanation:
A cross-cultural mentoring program helps leaders understand and navigate cultural differences while
building relationships that promote inclusive global leadership. It also supports retention and
pipeline development.
HQ-based training (A) can reinforce ethnocentric dynamics
Standardized KPIs (C) ignore local relevance
Relocation support (D) is logistical, not developmental
GPHR Concept: In a geocentric model, leadership development must incorporate cultural awareness
and inclusive mentoring.
An international manufacturing firm is implementing a centralized HR information system to replace
multiple regional systems. Resistance is strong among EMEA and APAC subsidiaries due to concerns
about data privacy, workflow changes, and perceived loss of autonomy. What should HR do FIRST to
address this resistance while supporting the global strategy?
D
Explanation:
Engaging regional stakeholders early demonstrates respect for local autonomy and builds buy-in. This
approach helps surface concerns and tailor the rollout effectively.
Training (A) and communication (C) are essential after initial engagement
Data compliance (B) is a compliance necessity, not a change management step
GPHR Concept: Global technology rollouts must balance standardization with regional customization
through stakeholder engagement.
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?
C
Explanation:
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.
Which recruitment approach is best suited to achieve rapid hiring of specific skills with enhanced
flexibility?
A
Explanation:
Comprehensive and Detailed Explanatio n:
Outsourcing recruitment enables organizations to:
Scale quickly
Access specialized talent pools
Meet project-based or urgent hiring needs
It offers speed and flexibility, especially in niche or technical fields.
GPHR Study Guide Extract – Global Talent Acquisition and Mobility / Recruitment Solutions:
“Outsourcing is an effective solution for rapidly filling skill gaps and providing flexibility in hiring,
especially for short-term or project-specific needs.”