Introduction
Multinational corporations should implement adequate models for their human resources, marketing, and managerial processes. Using the case of the Chicago Food and Beverage Company (CFB Co.), this paper examines the major issues revolving around human resources (HR), compensation methods, and staffing frameworks for international companies. The presented insights can be embraced by managers who want to have successful multinational businesses.
Case Analysis
Staffing Frameworks
The recognizable staffing framework in this case study is that of home-country national. This model is used to hire employees from a company’s home country to work in another nation. These workers are given the name “expatriates” (Bodolica & Waxin, 2007). One of the main characteristics of this framework is that employees from the company’s parent country are hired to offer services in a foreign region. Another one is that expatriates tend to have greater organizational control. They are also supported to gain additional experience in the targeted foreign markets. This framework has several advantages. The first one is that expatriates can implement the intended strategy much faster. The approach also increases the morale of different workers in the host nation. It can also deliver positive results within a short period.
The use of this staffing framework has the potential to affect Paul Fierman’s ability to get things done. This is the case because he has to take time before adapting to the foreign market or environment. The professional might also lack the required cultural competencies for the host country. The problem of the language barrier can affect the effectiveness and performance of Paul’s followers. This model is also associated with reduced employee morale. This means that Paul might be unable to offer the right support to different workers in Vietnam (Nazir, Shah, & Zaman, 2014). These challenges can result in reduced productivity and profitability.
This corporation should consider a better staffing framework to address every challenge. The use of the host-country national framework will deal with the issues affecting the company’s performance. For example, the appointed manager in Vietnam will be able to communicate with his or her followers efficiently (Francina, 2018). The model will ensure that the newly-hired leader does not complain due to poor remunerations. Every obstacle arising from local cultural values will be dealt with using this strategy.
Paul’s Expectations
The presented case study indicates that Paul wants the managerial job to maximize his competencies in international relations. Such skills will be useful as he plans to pursue his career at the company. However, what stands out from the case study is that Paul might not be the right candidate for this position. This is the case because he is unaware of the cultural attributes, practices, and communicational models embraced by different people in the host country (Bodolica & Waxin, 2007). The company has not recorded positive results since he lacks adequate competencies in international affairs.
This case study explains why expatriate management is something that should be pursued using evidence-based approaches. This is the case because the targeted workers should be empowered and guided to pursue their roles diligently. Leaders should inform them about their roles and duties before accepting the outlined job. Expatriate recruitment policy should, therefore, be done professionally. Qualified, skilled, and self-motivated persons should be identified and attracted to these positions to minimize complaints (Francina, 2018). The selected individuals should also be conversant with the major issues, language skills, and cultural aspects associated with the host country.
Compensation Methods
This case study outlines some expatriate compensation methods. These include negotiation, international, and balance sheet methods. The negotiation approach allows workers to bargain and receive competitive compensation. It is also effective for the company since it ensures that the needs of different workers are fulfilled. However, the model can result in unfair salaries and compensations. The international approach ensures that workers are rewarded for their competencies and experiences. This model is also applicable in a wide range of settings since expatriates are required to work in different countries or regions. The disadvantage is that this method can be discriminatory since some host countries tend to have different living costs or expenditures (Sarkiunaite & Rocke, 2015). The balance sheet method allows companies to offer competitive salaries to employees in foreign countries. This model also guides companies to balance the salaries of their expatriates. The disadvantage is that this method can affect the earnings of different individuals undertaking international assignments. This is the case because they have to incur numerous costs.
The U.S. headquarters’ human resources manager should formulate a powerful expatriate compensation or satisfaction policy. The current strategy should be expanded to increase the benefits and allowances available to all expatriates. This system appears to offer different benefits to individuals who are tasked with international assignments. There is also a need to consider the needs of expatriates’ family members (Nazir et al., 2014). Educational needs for their children and insurance policies can also be considered. A uniform compensation policy would be appropriate for empowering all expatriates to support this company’s business model.
Conclusion
The case of Paul has exposed some of the challenges experienced by expatriates whenever working in foreign nations. Companies should, therefore, focus on these obstacles to redefine their expatriate compensation models. Appropriate staffing frameworks should also be considered depending on the skills and competencies of the targeted employees.
References
Bodolica, V., & Waxin, 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.
Francina, A. M. (2018). A study on trends and challenges in global HRM. International Journal of Engineering Technology Science and Research, 5(1), 356-362.
Nazir, T., Shah, S. F., & Zaman, K. (2014). Review of literature on expatriate compensation and its implication for offshore workforce. Iranian Journal of Management Studies, 7(2), 203-221.
Sarkiunaite, I., & Rocke, D. (2015). The expatriate experience: The factors of international assignment success. Transformations in Business & Economics, 14(1), 20-47.