The American multinational Chicago Food and Beverage Company (CFB Co.) has affiliates in Europe, North America, and Asia. In this case study about the challenges of managing international assignments, the administration of the expatriate managers of this multinational company is considered. The case study specifically focuses on the recruitment and compensation (Bodolica & Waxi, 2007). Internationalization strategies, as well as the orientation of headquarters concerning the policy of human resource management across the globe, raise issues that are addressed question-wise in this study.
Which staffing framework do you recognize in this case study? Explain its characteristics and the advantages to using this type of framework?
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The staffing framework for this multinational American company is ethnocentric (Lakshman, Lakshman & Estay, 2017). This form of staffing framework incorporates recruitment positions for the highest ranks in the foreign subsidiaries. The ex-pats must be from the mother country of the company. The many advantages of this staffing format are that the expatriates often agitate for the goals of the home office in the foreign land. Also, there is clear communication since there are no cultural barriers.
Would this type of staffing framework affect Paul’s ability to get things done? Why, or why not?
An ethnocentric staffing framework would affect the effectiveness of Paul working in CFB Vietnam. Initially, Paul did not have experience in expatriate roles. Again, Paul was not conversant with the reality of the then business. The book he bought before going to Vietnam only informed him of political as well as cultural trends of the country while the economic trends had already shifted. Therefore, Paul couldn’t have things done as expected.
Explain if any of the other staffing frameworks would be any better? What can you recommend to the company’s headquarters in this sense?
Polycentric staffing would be a much better framework in this scenario. In this case, the company would have hired Vietnam nationals for the position. This would include the entire team comprising of Vietnamese; from clerks to the highest rank (Bodolica & Waxi, 2007). I would advise the company headquarter to consider this form of staffing since it works well in developed countries and both Europe and Asia are developed. Polycentric staffing is appropriate for developed countries since it is easier to locate highly educated staff.
Why does Paul want this job? Is Paul a good candidate for this expatriate position?
Mike Shannon was the initial Managing Director of the company in Vietnam. Unfortunately, health problems forced him to return to the U.S. Consequently, the position became vacant which Paul develops an interest to after Mike incites him to send an application. Therefore, Paul sensed that he will be getting an excellent compensation offer for the post. According to Shannon, Paul is competent enough for the position. The only challenge with Paul that Mike senses are his inadequate experience of international matters. However, Mike believes that Paul can gain experience from the forthcoming expatriation training. Therefore, with the experience he had gained from the company alongside high recommendations, Paul was an appropriate candidate for the expatriate position.
What comments can you make on expatriate management in general? And what comments can you make on the expatriate recruitment policy in particular?
Expatriate management must be well strategized for success. For instance, Paul experienced throat-cutting challenges in his roles as an expatriate due to limited or lack of training. If Paul Fierman was well-coached and had close contact for consultations, he would be a position to easily overcome the challenges (Bodolica & Waxi, 2007). Also, it can be better when natives are considered during the staffing process, especially the top managerial positions since they are conversant with business trends across the country. When an expatriate is hired from the home country of the company to another country, it would be important if the specialist is thoroughly coached for the position despite his managerial excellence in the company. For instance, the prowess of Paul Fierman on other managerial shouldn’t be considered and assumed he would perform the same in expatriate position. The policy should also initially outline all the compensation offers for the position to allow applicants to commit to them and not be surprised.
What are the different expatriate compensation methods you recognized in the text? What are the advantages and disadvantages of these different expatriate compensation methods?
The company expatriates are managed by Chicago human resources sector. This department decides on which compensation approach to assume over the expatriates. For instance, in 2002, the department adopted both mixed and a new compensation method. The approach proposed various compensation schemes to junior as well as to senior expatriates. The compensation approach for the senior expatriates merited the senior expatriates’ international compensation methods. Also, the junior expatriates benefited from the compensation approach since they were compensated using a home country approach that applies the balance sheet method. The method is not favorable to senior expatriates since the benefits cease once the expatriation period is over (Bodolica & Waxi, 2007). Also, the junior expatriates do not enjoy much since they are no better than the home employees because the compensation rate is similar.
What do you suggest to the U.S. headquarters’ human resources manager in order to improve the expatriate satisfaction/compensation?
Every person has some imaginations towards any dimension of life. For instance, a junior staff would imagine that the seniors often relax in the office enjoying themselves and have little to do with company jobs. However, when nominated to those offices, to their astonishment they realize there is a lot to do. This is a similar scenario in compensation. Therefore, the office of human resource management in U.S. headquarter should consider interviewing the expatriates before granting them the positions. The interview should entail questions such as, “what is your expectation on the compensation benefits in this position?” Also, the interviewees should be asked whether they will be comfortable to work with the company’s compensation approach.
References
Lakshman, S., Lakshman, C., & Estay, C. (2017). The relationship between MNCs’ strategies and executive staffing. International Journal of Organizational Analysis , 25 (2), 233-250.
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
