GPHR Global Employee Relations 1 — Questions and Answers
Question 1: What is the primary purpose of a works council in European countries?
- To replace trade unions entirely
- To provide employees a formal voice in workplace decisions (Correct answer)
- To set executive compensation
- To manage payroll processing
Correct answer: To provide employees a formal voice in workplace decisions
Works councils give employees a formal, legally recognized forum to consult with management on workplace issues such as restructuring and working conditions.
Question 2: Which international body sets core labor standards that multinational employers are expected to uphold globally?
- World Trade Organization (WTO)
- International Labour Organization (ILO) (Correct answer)
- United Nations Development Programme (UNDP)
- World Bank
Correct answer: International Labour Organization (ILO)
The ILO establishes international labor standards through conventions covering freedom of association, forced labor, child labor, and discrimination.
Question 3: A multinational company faces a wildcat strike at its subsidiary in Brazil. What should the global HR professional do first?
- Terminate the striking employees immediately
- Consult local legal counsel to understand Brazilian labor law protections (Correct answer)
- Issue a global policy prohibiting strikes
- Escalate to headquarters security
Correct answer: Consult local legal counsel to understand Brazilian labor law protections
Brazilian labor law provides significant protections for striking workers, so consulting local legal counsel is the critical first step before taking any action.
Question 4: What distinguishes 'collective bargaining' from 'individual bargaining' in global employment relations?
- Collective bargaining applies only to executive contracts
- Collective bargaining involves negotiating terms with a recognized union or employee body on behalf of a group (Correct answer)
- Individual bargaining is illegal in most countries
- Collective bargaining covers only wages, not working conditions
Correct answer: Collective bargaining involves negotiating terms with a recognized union or employee body on behalf of a group
Collective bargaining is the process where an employer negotiates employment terms with a representative body acting on behalf of a group of employees.
Question 5: Which approach best supports positive global employee relations in a multinational organization?
- Applying the home country's labor practices uniformly worldwide
- Developing consistent global principles while adapting to local laws and norms (Correct answer)
- Delegating all employee relations entirely to local managers with no global oversight
- Avoiding collective agreements in all countries where possible
Correct answer: Developing consistent global principles while adapting to local laws and norms
Effective global employee relations balances a consistent set of global principles and values with flexibility to comply with and respect local legal and cultural requirements.
Question 6: What is 'co-determination' as practiced in Germany?
- A method of joint venture formation between two companies
- Employee representation on a company's supervisory board to participate in strategic decisions (Correct answer)
- A performance review system requiring manager and employee joint sign-off
- A dual-currency payroll system
Correct answer: Employee representation on a company's supervisory board to participate in strategic decisions
German co-determination (Mitbestimmung) law requires large companies to give employee representatives seats on the supervisory board, giving workers a voice in major corporate decisions.
GPHR Global Employee Relations 1
What is the primary purpose of a works council in European countries?