Currently, various staffing frameworks are employed by major corporations that operate within the universal market. In this case, Chicago food and Beverage Corporation uses the ethnocentric staffing structure for its undertakings within the Asian market. Ethnocentric staffing is regarded as the parent firm hiring a management team that originates from the same country as the company. The employed staff are known as expatriates. Several advantages are accredited to this type of framework. Foremost, delegating personnel originating from the same nation as the company enables the company to retain the control and management of profits. This is because personnel may possess explicit knowledge of the firm’s programs and processes. Delegating critical roles to the expatriates guarantees adherence to the company’s guidelines during an operation outside the company’s home nation. Moreover, having expatriates is because they have an in-depth comprehension of the corporation’s productivity, work ethics, and client service.
An ethnocentric staffing framework is regarded as an ultimate framework that can be used in operation in foreign nations. Paul, who was employed by the corporation to oversee the operations in Vietnam, ought to yield a positive outcome as the New General Director in Haiphong, Vietnam. However, the ethnocentric framework would impact Paul due to the existing organizational culture and strategies. Ultimately, Paul would be disappointed with the financial condition of his expatriation pact, relations with colleagues, continually trying to salvage the corporation, and challenges with his spouse’s ability to adapt to the surroundings.
This structure does not take into account an individual’s experience that one may have worked internationally. This is likely to affect Paul’s performance since he is not familiar with how a foreign national operates. It turns out that expatriates’ employment ought to be expensive, as seen from Paul’s engagement with expatriates that earn higher compensations than what he earns. However, the firm fails to sufficiently address Paul’s grievances, leaving him to handle all the challenges alone and, therefore, does not produce the desired outcomes.
In this case, the corporation could utilize a diverse approach, such as the region-centric staffing framework. This structure allows the company to engage the services of staff from within the surrounding area that are familiar with the culture, resulting in fewer challenges in adjusting to the culture. Another framework that may be similar to the region-centric structure is the polycentric staffing structure. This mode of employment allows the company to engage management staff from the host nation, thus eliminating the aspect of culture shock. However, due to the lack of skilled management within the foreign nation, the most viable framework would be the centric framework. Other Asian nations such as China, Thailand, Philippines, and South Korea are all considered as suitable options for the company to employ members of staff to facilitate the expansion of operations in the Vietnam region.
Paul desires to take the job for various reasons. Foremost, he needed the job to expand his resume when considering the aspect of working for organizations in foreign nations. This meant that Paul would have a chance to advance his career. Additionally, Paul wants the job since he believes that he will be entitled to better compensation and better living standards in Vietnam. Moreover, Paul has an in-depth understanding of the company’s prospects and processes. However, based on Paul’s education and job experience, he is not suitable for the expatriate position. The company requires an individual who is highly qualified and competent, knows more about international operations, and is ready to adapt to diverse cultures. Paul did not consider the adjustments that his family would have to undertake that may have adverse effects such as stress. Such a prominent position should not be used as a mode of learning about the workplace. In this case, the company should consider an individual that has the experience to benefit the corporation.
Expatriate management comprises of advantages and disadvantages when incorporated in various areas in regards to culture. The aspect of culture and religion has an impact on an individual’s preference. Therefore, imposing the parent company’s culture on individuals may affect the company’s business transactions and eventually, the company’s expected outcomes. For instance, some cultures treasure individualism, while others advance the aspect of collectivism. In this case, expatriates may find it challenging to be conversant with trade regulations due to variation across nations. This may lead to constant legal hurdles, hence increasing the company’s expenditure. Expatriate recruitment policies are costly as expatriates are entitled to higher compensation. This may also deny qualified individuals from the host nation from accessing top-level positions. Relying on staff from the corporation’s country of origin may hamper the invention. I believe that polycentric and geocentric methods are essential in the existing international market.
In the case study, there are two methods of compensation. They entail the balance sheet method and the global market method. The balance sheet approach refers to making the rate of assignments done internationally, similar to working in the country of origin. But also at equally guaranteeing employees preserve similar living standards similar to the home nation. According to Bodolica and Waxi (2007), Paul was inexperienced compared to other expatriates, leading to a calculation of his compensation based on this approach. The other approach entails the global market approach, which is rewarding for expatriates, frequently comprising substantial bonuses to attract top and qualified staff. In the case study, Paul is compensated based on the balance sheet approach since he is a low-level expatriate. It establishes a base salary, including an option of offering expatriates specific residences and other allowances.
In this case, the employee ought to responsible for developing a compensation package since the best package is one that an individual creates on his own. Numerous corporations tend to provide inexpensive options to fill the positions quickly without considering an individual’s level of expertise. We dwell in a diverse globe whereby every individual values different prospects. The development of compensation packages is founded on an individual’s liking, while the anticipated outcome is making people feel treasured as part of the team. Corporations that consider the needs of employees are guaranteed a better outcome. It is essential for companies to budget for these packs to attract qualified individuals for their duties. Another aspect is that people should not only prepare for interviews but also negotiating skills on expatriate compensation. Therefore, the provision of a flexible compensation process generates a more receptive environment.
Bodolica, V., & Waxi, M. (2007). Chicago food and Beverage Company: The challenges of managing international assignments. Journal of the International Academy for Case Studies, 13(3), 31-42. Retrieved from http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/A166823446/ITOF?u=oran95108&sid=ITOF&xid=598691f1
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