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What is the greatest drawback of using a home-country-based balance sheet versus a headquarters-based balance sheet compensation approach for expatriates?
Comprehensive and Detailed Explanatio n:
A home-country-based balance sheet aligns pay with the employee's home market, but in multinational settings, this can cause inequity among expatriates from different countries.
For example, a German and a Brazilian expatriate on the same assignment may receive very different compensation packages, simply due to home-country salary levels, despite doing the same job.
GPHR Study Guide Extract -- Global Compensation and Benefits / Expatriate Compensation Approaches:
''The home-country balance sheet approach often results in perceived inequities across multinational teams, especially when compensation varies widely based on country of origin.''
A headquarters-based approach is more consistent across assignees, helping manage fairness and parity.
A manager from a high-context culture needs to deliver constructive feedback to a team member from a low-context culture. To successfully deliver feedback, the manager will:
Comprehensive and Detailed Explanatio n:
Low-context cultures (e.g., U.S., Germany) value directness, efficiency, and focus. To match this style, a high-context manager should:
Be punctual and topic-focused
Deliver feedback clearly, without embellishment
Avoid relational detours or vague comments
GPHR Study Guide Extract -- Workforce Relations and Risk Management / High vs. Low Context Communication:
''Low-context communication emphasizes explicit, structured, and goal-oriented exchanges. High-context managers must adapt to deliver clear, timely feedback in these environments.''
What is the most common expatriate pay delivery model?
Comprehensive and Detailed Explanatio n:
The Split Pay model divides an expatriate's salary between:
Home country currency (for obligations like mortgages, retirement)
Host country currency (to cover living expenses)
This ensures that expatriates can meet financial obligations in both jurisdictions, while mitigating currency risks.
GPHR Study Guide Extract -- Global Compensation and Benefits / Expatriate Compensation Delivery Models:
''The split pay method is the most widely used for expatriates, allowing for compensation in both the home and host country currencies. This ensures liquidity and stability in managing personal and professional expenses across borders.''
Lump-sum and reimbursement models are more applicable to relocation or specific allowances, not regular salary delivery.
Which recruitment approach is best suited to achieve rapid hiring of specific skills with enhanced flexibility?
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.''
A technology organization in an expensive labor market is faced with rising costs and a lack of suitable software developers. In order to quickly solve this issue, the best recommendation an HR manager can propose is:
Comprehensive and Detailed Explanatio n:
Offshoring refers to relocating business functions to a different country to reduce labor and operational costs. It's a viable solution when:
The home market is expensive
Local talent is limited
The business seeks long-term operational efficiency
Unlike outsourcing (external third-party provider), offshoring retains internal control but leverages cheaper labor markets.
GPHR Study Guide Extract -- Strategic Global Human Resources / Global Sourcing and Offshoring:
''Offshoring involves moving business operations to another country to leverage cost advantages or labor availability. It maintains organizational control while addressing labor shortages or high costs.''
Joint ventures and acquisitions are more complex and time-intensive, making offshoring the fastest tactical fix.
