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HRCI GPHR Exam - Topic 2 Question 110 Discussion

What strategy balances global efficiency and local responsiveness?
B) Transnational
A) Multinational
C) Regional
D) Multidomestic

HRCI GPHR Exam - Topic 2 Question 110 Discussion

Actual exam question for HRCI's GPHR exam
Question #: 110
Topic #: 2
[All GPHR Questions]

What strategy balances global efficiency and local responsiveness?

Show Suggested Answer Hide Answer
Suggested Answer: B

Comprehensive and Detailed Explanatio n:

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).


Contribute your Thoughts:

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Desire
4 days ago
I feel like A) Multinational could also fit, but it seems more focused on local markets rather than balancing both.
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Stephaine
9 days ago
I remember practicing a question like this, and I think it was about how companies adapt to local markets while still being efficient globally.
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Jerry
14 days ago
I think the answer might be B) Transnational, but I'm not entirely sure how it balances efficiency and responsiveness.
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