International Human Resource Management

In: Business and Management

Submitted By AbiolaDairo
Words 2422
Pages 10
This essay will focus on the various factors required when creating equitable pay and benefits packages for a British expatriate managers and engineers, who will be setting up production facilities in Denmark and Spain.
Dowling and Welch (2004) defines an expatriate as ‘an employee who is working and temporarily residing in a foreign country’. This definition is also confirmed according to Harzing (2004) and Hollinshead (2010) they describe an expatriate as “a parent country national (PCN) working in foreign subsidiaries of the MNC for a predefined period, usually of 2-5 years”. (CEO Campbell Soup, quoted in Hollinshead 2010) “Too much emphasis on executives’ technical abilities - too little on cultural skills and family situation”. Baruch (2004) explains expatriates are prone to failure and it is a very risky approach; ‘The use of expatriate employees by organizations in their foreign subsidiaries represents a substantial investment with costs of expatriate failure reaching exorbitant levels ’. When focusing on the theory Trompennaar and Hall both indicate some culture issues that an expatriate may face. There are many reasons as to why an expatriate may not be successful and may return to their home country early this called repatriation, reasons for expats living early could be due to family concerns or the managers or engineers have accepted new position in the company, cultural adjustment challenges, security concerns and also career concerns. There are also number phases that expatriates go through once they are adjusting in there new country. Another fundamental issue could potentially be culture shock.
As this is a brand new facility, the MNC can have a more ethnocentric approach however if it was an existing organisation then they could be more polycentric.
Despite Britain, Denmark and Spain being in Europe they all differ from each other and they are…...

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