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HRCI GPHR Exam
Global Professional in Human Resources (Page 4 )

Updated On: 7-Feb-2026
Page 4 of 27
PDF with 204 Questions

An organization based in Germany has appointed a Turkish citizen to its Amsterdam office.
While enrolling their children into a Dutch school, personal data concerning health is given to the school authorities. Under the European Union (EU) General Data Protection Regulation (GDPR), which of the following is the primary legal concern?

  1. Storage minimization
  2. Purpose limitation
  3. Data accountability
  4. Data limitation

Answer(s): B

Explanation:

Comprehensive and Detailed

Under the GDPR, Purpose Limitation refers to the principle that personal data must be collected for specified, explicit, and legitimate purposes and not further processed in a manner incompatible with those purposes.

In this case, providing health data during school enrollment must be aligned with a clearly defined, legitimate reason--like ensuring medical safety for the child. Any processing beyond that intent may breach the purpose limitation.

GPHR Study Guide Extract ­ Workforce Relations and Risk Management / Global Compliance and Data Protection:

"The GDPR mandates that organizations must ensure that personal data is collected for specific, explicit, and legitimate purposes and not further processed in a manner incompatible with those purposes (purpose limitation). This principle is central to lawful data processing under EU law."

This is distinct from data minimization (collecting only necessary data), which may also apply but isn't the primary concern here.



What strategy balances global efficiency and local responsiveness?

  1. Multinational
  2. Transnational
  3. Regional
  4. Multidomestic

Answer(s): B

Explanation:

Comprehensive and Detailed

The Transnational strategy is designed to combine global integration (efficiency) with local responsiveness. Organizations using this model operate with a decentralized structure that empowers local units while also standardizing core functions globally to maintain synergy and competitive advantage.

GPHR Study Guide Extract ­ Strategic Global Human Resources / Global Organizational Structures:

"A transnational model aims to simultaneously achieve global efficiency and local responsiveness. It incorporates elements of centralization for cost and quality consistency, while also allowing subsidiaries the flexibility to adapt to local markets."

This approach differs from multinational (focused more on local autonomy) and global (focused on standardization over localization).



High-potential managers in foreign subsidiaries are linked with executives at headquarters. This style of mentoring is called:

  1. expatriate
  2. international
  3. interfunctional
  4. reverse

Answer(s): B

Explanation:

Comprehensive and Detailed

This is an example of international mentoring, where high-potential local managers in global locations are paired with senior leaders at headquarters. The goal is to develop leadership pipelines and integrate global talent with the organization's strategic core.

GPHR Study Guide Extract ­ Talent and Organizational Development / Global Leadership Development:

"International mentoring programs help connect high-potential talent in regional offices with executive leadership at headquarters. This not only aids career development but also ensures the integration of global talent into succession planning."

Reverse mentoring is the opposite--junior or tech-savvy employees mentor senior leaders, often in digital skills or cultural awareness.



Recommendations on employment standards from the Organization for Economic Cooperation and Development (OECD):

  1. are more stringent than International Labour Organization (ILO) conventions.
  2. are passed to the United Nations (UN) for a binding vote.
  3. establish voluntary guidelines for member countries.
  4. must be ratified by member countries within 1 year of publication.

Answer(s): C

Explanation:

Comprehensive and Detailed

The OECD does not enforce legal mandates. Instead, it issues voluntary guidelines that member countries are encouraged to adopt. These recommendations cover corporate responsibility, employment standards, and ethical 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 guidelines advisory, unlike ILO conventions, which can be ratified and legally binding.



Which of the following factors favor the implementation of a furlough over a layoff strategy in addressing a financial crisis? (Select TWO options.)

  1. Reduction of office rental and mortgage costs
  2. Reduction of Information Technology (IT) costs
  3. Increased near-term labor demands anticipated
  4. Reduction of incentive payments for employees
  5. Significant portions of the workforce are lower-skilled employees

Answer(s): A,C

Explanation:

Comprehensive and Detailed

Reduction of Office Rental and Mortgage Costs ­ If the workforce is furloughed, operations can be paused, reducing overhead costs, including rent and utilities, particularly in non-essential or closed facilities.

Increased Near-Term Labor Demands Anticipated ­ Furloughs are temporary; they preserve the workforce for a quick return to operations, ideal when business recovery is expected soon.

GPHR Study Guide Extract ­ Workforce Relations and Risk Management / Downsizing and Alternative Workforce Strategies:

"Furloughs are temporary suspensions of employment where employees retain their jobs and benefits but are not actively working. They are advantageous when short-term cost reduction is needed, and the organization anticipates a rebound in labor demand."

Layoffs, by contrast, are often permanent and lead to longer rehiring cycles and potential loss of skilled labor.






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