1. Which staffing framework type do you recognize in this study? Explain its characteristics and the advantages to using this type.
Staffing frameworks are the procedures that set the standards for selection of staff to serve various roles in the organization and the implications that these procedures have on the current and future business plans. In the case of multinational companies, the staffing framework determines the ratio of local workers to that of expatriates in their subsidiaries. An ethnocentric orientation staffing framework is apparent in this case. Paul Fierman and his predecessor Mike Shannon, both expatriates from the US, occupied the General Director position at Chicago Food and Beverage Company subsidiary in Vietnam. The ethnocentric staffing framework denies the subsidiary decisional autonomy, implying that strategic decisions are made at the headquarters while the expatriate employees are appointed to fill the top managerial positions (Bodolica, & Waxin, 2007).
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The main characteristic of the ethnocentric staffing framework is the decision making in regard to the management of international positions in the subsidiaries. The decisions on recruitments and selections are made at the parent company headquarters. The ethnocentric orientation also values the parent company culture over the culture of the subsidiary location, consequently, top managers are expatriates tasked with the role of enhancing the parent company culture. The benefits of this policy are the preservation of the established culture of the parent company. Employees also get an opportunity to gain international experience while enhancing their leadership and creative skills. Uniformity and continuity of operations are achieved due to centralized decision making on the production of goods and the markets to venture.
2. Would this type of staffing framework affect Paul’s ability to get things done? Why, or why not?
Certainly, the ethnocentric staffing framework impacts on Paul’s ability to perform his duties at the company. This framework emphasizes the parent company’s appointee skills and abilities to further the company’s interests in a different company. Irrespective of the experience and talents of the expatriate, the new location poses a myriad of challenges that may not be easily understood by a foreigner. Failure to adapt to these challenges may become Paul’s undoing in Vietnam. Additionally, the framework adopted by the current company undervalues the skills and abilities of local employees limiting them to low-level managerial positions and other less enticing positions. The employees are likely to become demotivated and sabotage the efforts of the top management as in Paul’s case. Furthermore, employees feel detached from the company’s decision-making process due to the company’s policy of centralized decision making. The outcomes of the ethnocentric oriented policy are the lack of corporation by employees causing low productivity and failure to meet business goals as narrated by Paul.
3. Explain if any of the other staffing frameworks would be any better?
Selecting a staffing framework that is favorable to Paul’s situation can make the difference in enhancing the company’s strategies and meeting its goals. A short-term staffing framework is well suited for Paul’s situation due to his experience and purpose for taking up the position. Short-term staffing involves placing an expatriate employee in a managerial position for a period not exceeding two years while gauging their performance against other factors such as their willingness to continue in that position. Paul decided to take up the job to gain experience in international managerial affairs. In light of that, the company should have placed him under a short-term contract not exceeding one year. The period if favorable since Paul would be motivated to prove his ability within this period while being offered an opportunity to negotiate for better terms at the end of the period. Engle & Crowne (2014) posited that short-term international assignments are more fulfilling owing to the opportunities that the assignments present to expatriates at the end of the period. Hence, Paul’s lack of motivation after only six months would be avoided by placing him on a short-term assignment.
4. Why does Paul want this job? Is Paul a good candidate for this expatriate position?
Paul’s suitability for the expatriate position is highly debatable. While key considerations in his selection for the position were his previous experience with the company together with his excellent academic qualifications, a master’s degree in international management, he lacks experience in international management. Although this weakness could be mitigated by his strong drive to gain the much-needed experience, his personal ambitions are a major obstacle. Paul is motivated to take up the position due to the expected high compensation and better living conditions. This belief is a major source of frustration when takes up the job since the living conditions and the compensation is not what he had expected. Other self-interests also make Paul an inappropriate candidate for the position. The frustrations that his family go through in their new environment significantly affect the level of satisfaction with his job.
5. What comments can you make on expatriate management in general? And what comments can you make on the expatriate recruitment policy in particular?
Companies’ inclination towards the use of expatriates to fill managerial positions in foreign countries is for purposes of expanding their business culture to these subsidiaries. Therefore, having people with previous experience in the workings of these culture suits their needs of extending their culture. Expatriate management needs to focus on achieving the results from a managerial standpoint when using expatriates in these positions. Exercising caution when selecting the expatriate is necessary for fulfilling the business needs of the company.
The type of recruitment policy applied to select expatriates it a huge determinant of the success of the expatriate managers in their new positions. Mechanisms for identifying the well-suited candidate for the position is a necessity in the expatriate recruitment policy. The process should consider vital factors such as individual talents, experience, personal values and ability to adjust to the new environment, individual concerns and motivations for taking up the position (Al Ariss, Cascio & Paauwe, 2014). In Paul’s case, individual motivations and personal issues are a major undoing, hence the recruitment policy for Chicago Food and Beverage Company is inappropriate.
6. What are the different expatriate compensation methods you recognized in the text? What are the advantages and disadvantages of these different expatriate compensation methods?
Paul’s compensation is far less than that of his fellow expatriates living in Hong Kong. The expatriates have better living conditions that Paul’s. These differences are a major source of frustration for Paul hence affecting his performance at work. An appropriate compensation strategy for the company would maintain competiveness in comparison to that offered by others in similar positions (Bodolica, & Waxin, 2007). Since the company’s package to Paul does not meet this condition, Paul is right to feel disadvantaged in that regard.
The benefit of this different method of compensation method is that Paul can make significant savings on fuel costs while avoiding other inconveniences related to movement. However, the package is still limiting due to the unfulfilling financial part. Provision of a car and housing does not significantly impact on Paul’s financial needs. Paul can hardly enjoy the luxuries of his fellow expatriates in almost similar position due to his weak compensation package.
7. What do you suggest to the U.S. headquarters’ human resources manager in order to improve the expatriate satisfaction/compensation?
Uniformity in expatriate compensation should be a consideration for the U.S. headquarters for human resources. Working in a foreign country limits the social activities of the expatriates hence their compensation should be modeled to cover this inconvenience. Steps such as paid-for weekend or holiday interactions with citizens of the US living in the country will help to ease the pressure due to the distance from their families. Organizations should also be compelled to cater to the needs of the expatriate's immediate family according to their preferred needs. Such a move would ease the personal problems that expatriate fo through hence freeing them to concentrate on their jobs.
References
Al Ariss, A., Cascio, W. F., & Paauwe, J. (2014). Talent management: Current theories and future research directions. Journal of World Business , 49 (2), 173-179.
Bodolica, V., & Waxin, M. F. (2007). Chicago Food and Beverage Company: The challenges of managing international assignments. Journal of the International Academy for Case Studies , 13 (3), 31-34.
Engle, R. L., & Crowne, K. A. (2014). The impact of international experience on cultural intelligence: An application of contact theory in a structured short-term programme. Human Resource Development International , 17 (1), 30-46.
