The staffing framework of the Chicago Food and Beverage Company

Question 1 

The staffing framework in the case of the Chicago Food and Beverage Company is based on ethnocentric staffing. Through this framework, the parent company will staff the most important positions in its foreign subsidiaries using expatriates from the company’s home country (Tian, 2016). The main advantage of using an ethnocentric staffing strategy is that the company believes the expatriates will have much higher ability to represent the home office interest and ensure that the international office aligns themselves with the company’s home headquarters . Additionally, the framework reduces any form of communication barriers resulting from language or cultural differences. In addition, the company has the ability to transfer employees with a good performance record that will allow it to have some form of predictability

Question 2 

According to Bodolica and Waxi (2007), despite the fact that Paul’s contract stated he would stay in Asia for three years, the staffing framework employed still affected him greatly. The first problem arising from the staffing involved the compensations. According to Paul, he was receiving a small compensation package as compared to other expatriates. It is an indication that Paul’s employee satisfaction rates were very low. He did not have the necessary employee motivation to help in carrying out his duties as a manager to the CFB’s branch in Vietnam. Additionally, cultural differences between him and the employees were frustrating his work. Despite having the necessary education to hold such a position, he lacked the experience of working abroad. The only international experience he had was when he was part of a students’ exchange program at Oxford, Great Britain. As a result, of this, his subsidiary was facing a decline in employee motivational rates, revenues, local management was not cooperative among other employee-related complications. It is an indication that Paul was facing cultural and language barriers that made it hard for him to manage his employees and drive the subsidiary towards profitability accompanied by an increased employee morale and participation rate. Furthermore, having not lived far away from his family, Paul was suffering from increased rates of homesickness. This is evident from the fact that he missed his family and friends. Moreover, the climatic conditions of Haiphong were unbearable. In general, this staffing framework did not work out for Paul.

Question 3 

Chicago Food and Beverages Company could have adopted a polycentric or geocentric staffing framework. According to the polycentric staffing framework, it will see the firm hiring the nationals from the host country beginning from the less senior position such as mail room clerks all the way to the senior positions such as managing directors. The main advantage of employing this staffing framework is that the nationals from the host country have an extensive experience and knowledge on the various rules and regulations governing businesses thus do not require any form of education (Tian, 2016). More importantly, the employees being locals from the host country, they are bound not to face any form of cultural or language barriers that can impact their job productivity, satisfaction, and motivational rates. In the case of a geocentric staffing framework, the company will hire top management without regarding their nationality status as long as they have the necessary skills (Tian, 2016). Through this, it has the ability to promote creativity and innovation that are vital for the growth of a company. However, the main disadvantage of this staffing frameworks is that the management will still face setbacks before fully adapting to the country’s culture. As a result, the best staffing framework for Chicago Foods and Beverages Company is polycentric.

Question 4 

According to Paul, he wanted to advance his career into the general management position at Chicago Food and Beverages Company. Additionally, Paul wanted to improve his financial position that would aid his family in the long run. Basing on Paul’s educational background, he has a Bachelor’s Degree in marketing from the Johnson Business School. Additionally, he also undertook a Master of business administration in international management from Harvard Business School. It is an indication that Paul’s education gives him the ability to hold the expatriate position. This is mainly due to the fact that he as a graduate level educational background in international management. In relation to his experience level, Paul has served as product vice-manager in the marketing department of Chicago Foods and Beverages Company. He later became the carbonated non-alcoholic beverages manager’s position in the US market and Eastern American Region for two years. He also served as the manager for the carbonated and non-carbonated drinks in the entire USA market. It shows that Paul has huge experience in the management field thus can perfectly fit the expatriate position requirement despite not having any experience from an international management perspective (Bodolica & Waxi, 2007).

Question 5 

As a result of increased globalization, companies around the world are increasing their foreign operations away from their homes. Through this, it allows the companies to capture huge markets for their products or services that will bring about increased revenues. Nonetheless, every firm must have management in place that will oversee the overall functioning of the firm. The best means that an organization can ensure it has the best management in place is by employing an expatriate management style. It will ensure that it advances creativity, innovation and align the home headquarters interest with the foreign subsidiary. Nevertheless, this style of management has its setbacks arising from cultural and language barriers and low level of international management experience. The individuals who serve as expatriate managers will thus and up facing high levels of reduced motivation, and satisfaction thus resulting in poor job performances.

According to the expatriate recruitment policy, the company should put a lot of factors into consideration. The firm should not just use an individual educational background in determining whether he/she can fill an expatriate position. The policy should include additional factors such as their emotional intelligence levels, local culture interest, compensation packages and their levels of flexibility. This will ensure that people with high international management abilities fill the positions.

Question 6 

The home country compensation approach is one that will ensure the expatriate gets benefits that are similar to those of his/her native country (Bodolica & Waxi,2007). The main advantage of this compensation is that it will provide the expatriate with a similar purchasing power as that of a manager in the position in the home country. Nonetheless, the main disadvantage of this method is that it has re-entry complications and is not flexible. Moreover, in the case of similar employees, they are not always considered as seen in the case of Paul and other expatriates who had dissimilar packages yet the same assignments.

The international compensation method is used when one has more than six years’ experience as a manager (Bodolica & Waxi, 2007). The advantage of this strategy is that one receives benefits befitting their level of experience. Nonetheless, the packages are mostly standardized and thus makes it hard for the expatriates to engage in any form of negotiation with the company.

The negotiation compensation approach is one that allows the expatriate and company to come into a common ground in relation to the package (Bodolica & Waxi, 2007). The advantage of this package is that it will ensure both pares are fully satisfied in the long run for it is based on mutual agreements. Nonetheless, the method is time-consuming as not parties may take a lot of time before arriving at an agreement.

Question 7 

It is vital for the human resource department at CFB to re-evaluate their current expatriate compensation packages. The benefits offered must be in line with the needs of the expatriates. In order tonsure that the satisfaction rates are higher, they should re-organize the remuneration packages by ensuring that expatriates with similar assignments are on the same level to avoid any dissatisfactions. The levels of experience and academic qualification should also be used when formulating a compensation package

Concept Discussion 

The current business environment is one marred by increased rates of competition. In order to have a competitive advantage, businesses are engaging in international expansion as they aim at targeting new markets. Once a business moves into a foreign nation, it must have in place a management that will ensure it operates as required. As seen from the course, a considerable number of expatriate managers lack the international experience that will allow them in successfully driving a business towards profitability. This is based on an amalgamation of various factors such s increase employee productivity and good relationships with locals and also employees. Therefore, for one to fruitfully become an expatriate, it is vital to have an awareness of the various cultural and even languages of the respective nation. This will make it as for one to engage with the employees and locals from a local point of view. The communication barriers are the main drivers of reduced barriers and thus should be eliminated. More importantly, as a manager, having low satisfaction rates can negatively affect the overall productivity of an organization. It is important that any issues arising from compensations are aired to the human resource department. This will make it possible for a negotiation to occur between one and the HRM department and thus making it possible to come up with a better remuneration package.

References

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.

Tian, X. (2016). Managing international business in China . Cambridge University Press.