GPHR Exam Dumps : Global Professional in Human Resource

Comprehensive and Detailed Explanation:

Inhigh-power distance cultures(e.g., India, Malaysia, Russia), people are comfortable withhierarchical structuresandsocial inequality. For cross-cultural teams to succeed:

Leaders must bemindful of rank and formality

Deference to seniors is expected

Challenging authority publicly can causeloss of face

GPHR Study Guide Extract – Workforce Relations and Risk Management / Hofstede's Power Distance:

“High-power distance cultures emphasize social hierarchy and authority. Effective cross-cultural collaboration requires sensitivity to these dynamics, including status, seniority, and role expectations.”

Western-style egalitarianism or informal criticism may create discomfort and resistance in such settings.

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.

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.