James answers
•
•
17-15. Assuming they began by opening just one or two stores in Mexico, what
do you see as the main HR-related challenges Jack and Jennifer would have to
address?
Jack and Jennifer would have to address the rules and regulations of operating a
business in Mexico. In addition, they will have to be able to speak Spanish and have
translators in place to break down the communication barriers. The company has to
send an expatriate to Mexico. Complicating these decisions are the cultural, political,
legal, and economic differences among countries and their peoples.
17-16. How would you go about choosing a manager for a new Mexican store
if you were Jack or Jennifer? For instance, would you hire someone locally or
send someone from one of your existing stores? Why?
I would send an expatriate manger from the United States because the manger will
be familiar with our rules and regulations, operating procedures, and he can use his
previous knowledge and skills to train the local managers that will be a successor
from Mexico. If I start off with a new local manager I cannot expect him to operate
the company efficiently and effectively like a well-rounded trained manager that is
already familiar with the company operations.
17-17. The cost of living in Mexico is substantially below that of where Carter is
now located: How would you go about developing a pay plan for your new
manager if you decided to send an expatriate to Mexico?
First of all, the manager will start with his salary he is currently making. Then, I would
pay him an extra 25 percent on top of his salary for relocating to the new site.
Thirdly, I will pay for all of the manager travel expenses and per diem along with
housing and utilities. A cost of living and hardship allowance will also be included in
the package. The manager children education would be taking into considerations.
17-18. Present a detailed explanation of the factors you would look for in your
candidate for expatriate manager to run the stores in Mexico.
I would look for a manager with the mentality to strive for excellence and only settle
for greatness. In additions, some who is self-motivated and has the ability to lead an
organization through the good, the bad, and the ugly. I wand an expatriate manger
that can speak Spanish fluently. I need an energetic, hardworking, honesty manager
that believes in rules, regulations, and procedures.
Mary answers
•
Chapter 17 discussion:
17-15 Assuming they began by opening just one or two stores in Mexico, what do
you see as the main HR-related challenges Jack and Jennifer would have to address?
Some of the HR related challenges in Mexico would be things like language,
adapting to the culture, the motivation level and the morale of Mexican workers
because they tend to be a bit low and they also tend to need more motivation to get
the work done. One may also have to deal with the bias and discrimination.
17-16 How would you go about choosing a manager for a new Mexican store if you
were Jack or Jennifer? For instance, would you hire someone locally or send
someone from one of your existing stores? Why?
I think it would be better to appoint a manager from your store because as stated in
my earlier comment about the motivation of the Mexican worker's. It can become
very difficult in hiring a local manager that lacks the motivation as a manager. The
manager that is sent from the American store can stay over there for a short period
of time so that they can make sure that the local manager is properly trained and
knows all the requirements of managing the business. This will be cost effective in
the long run.
17-17 The cost of living in Mexico is substantially below that of where Carter is now
located: How would you go about developing a pay plan for your new manager if
you decided to send an expatriate to Mexico?
First thing is that I would consider is the fact that the manager that is sent to Mexico
had to make sacrifices to do this so I wouldn't recommend reducing their
salary. One must keep in mind that this manager will be returning back home after a
short period so they will still need to keep up their home and other expenses that
they had before leaving. I would also consider paying this employee and additional
supplement for the training involved and pay for their room and board while in
Mexico. You have to also consider that this employee is still employed by an
American company.
17-18 Present a detailed explanation of the factors you would look for in your
candidate for expatriate manager to run the stores in Mexico?
You will need the employee who exemplifies great customer service, very motivated
with high morale, self initiative, great leadership skills and who has the ability to
train, coach and mentor the Mexican employees. A person who is tech savvy,
multilingual and displays the ability to work under pressure and shows respect for all
cultures and one who can break through language barriers. Also this person must
be flexible and be willing to adapt to environment changes.
Kandy answers
o
17-15. I believe one of the major barriers the two will have to overcome is the culture
variance and the language barrier. There will also be some other political, legal and
economic differences as well. Labor laws associated with Mexico may also have an
impact on opening a store in Mexico, so Jennifer and Jack need to be educated on
the legal side most importantly. Economic systems vary where people travel, and
Mexico is no different. Differences in economic systems tend to translate into
differences in human resource management policies. Some HR practices that vary
are the wage systems, working hours, and termination of employees.
17-16. If I were to open another store in Mexico, to begin with I would send
someone from my home store there to get things started and train the new
manager. I would interview candidates and see if they possess the technical
requirements needed to complete the job, and look for someone who also has
intelligence and people skills, in order for our store to be successful. Background
checks and a drug screen would also be mandatory for every candidate that we
interview.
17-17. I would not reduce the salary of the manager, instead I would offer a
premium, such as 5% or 10% additional to their base pay-rate. Room and utilities
would be paid for, as well as travel expenses. Hardship allowances, for having to
travel to a new country and the potential conditions of the new location would also
be offered.
17-18. When l am choosing a candidate, I would examine resumes that list the
qualities that I am looking for in a potential employee. Candidates would also
undergo a 3-step interview process that allows me to get to know the employee
more. Background checks and a drug screen would also be another factor that plays
a role in who I would choose. Qualities such as experience will the general public,
preferably in the cleaning business, honesty, and a strong work ethic are what I
would be looking for also. One who understands the culture and is fluent in the
native language are also additional characteristics I would look for. Having someone
that possesses these traits and one who knows the culture and language will help
bring better business because they can relate and understand the the people of the
area.
Willie answer
•
17-15. There would be a lot of things that they would have to address. The biggest
one would be the language barrier. Jack and Jennifer would then have to decide if
they hire people in Mexico that already know the language, or to bring employees
from stores in the Unites States and relocate them because they already know how
the store operates. They would also have to address the different laws that Mexico
has when wanting to start a business, as well as the labor laws. Not knowing if they
have to provide certain benefits and how things operate over there would be a big
issue for them.
17-16. I would send someone locally. It might cost more money to relocate them,
but they would know how everything operates and not have to be trained. Before
sending them over there I would get them together with someone and try and teach
them some of their language so they would not be completely clueless. You would
save a lot of money on training employees also. The manager could train all
employees on what to do rather than having to pay someone else to do. Or having
to train the new manager on everything, and then having to train all employees. That
would take a lot of time to do.
17-17. I would use the balance sheet approach. It is the most common approach to
formulating expatriate pay. The expatriate should enjoy the same standard of living
he or she would have at home. The balance sheet has four groups of expensesincome taxes, housing, goods and services, and discretionary expensed. The
employer would estimate all of these expenses in the expat’s home country and in
the host country. The employer would then pay any differences. This would be the
least stressful option for the employer and employee. It also makes the most sense.
The base salary should be in the same range as the home country salary.
17-18. Store Manager in Mexico Qualifications:
To understand the local labor markets
To be able to efficiently run the store with employees that might speak a different
language than you
Be understanding and patient
To identify how to reduce attrition
You must be a people person and be able to deal with the public
Must be able properly train all employees and let them know how things should be
done and what is expected of them
Brandi answers
•
17-15
It is necessary to learn about the country, the home and also the host country tax
rules and the local market conditions which are very crucial in Mexico. Taking an
example Mexico's pace of life is very slow therefore business results could not be
expected immediately.
They also need to have a local knowledge of the investment environment and also
good information on the legal and accounting framework, taking an example when
paying taxes is a laborious process in Mexico, taking some 337 hours of business
time per year.
Based on the differences the feasibility of doing the business is to be identified.
Accordingly, they have to decide on overall HR budget and also a short term
assignment policy can be established at the start. Periodically the existing process
needs to be evaluated for adherence and also the improvement.
17-16
Global staffing approach is to be decided, ethnocentric or the polycentric or
geocentric. In Mexico, local employees are commonly recruited through informal
methods of the personal referral. But the company would find it difficult to find
references. Local labor conditions, minimum wages are to be studied. The decision is
to be taken whether to take labor on employee rolls or contract. Taking an example
that it takes 412 days to enforce a contract and there are 38 procedures involved in
doing so, making it a complex task. Mexico has an acquired right law. Under this law
employees attain a right to compensation practices that have been in effect for two
years. So the company needs to decide on the strategy accordingly.
17-17
In Mexico, compensation is part of the broad framework of the social security system
that encompasses disability and life insurance, retirement pensions, unemployment
and old age, health and maternity insurance, occupational risk and day care worker.
All such necessary benefits need to be ensured while designing compensation
benefits. These benefits amount to the company contribution of 45% of the
employee's salary.
17-18
The company is to decide on the necessity of sending the expatriate to the new
country. Further, there are other issues involved. Expatriate selection, compensation,
and benefits to be offered, to align it along home state employees or host country
employees, the safety and security issues and many others. A proper communication
needs to be established between home and the host country.
It is insecure in some border areas of Mexico. It also requires being taken care that
the expatriate does not come back before completing an assignment.
Jessica answers
•
17-15. Assuming they began by opening just one or two stores in Mexico,
what do you see as the main HR-related challenges Jack and Jennifer will have
to address?
The first thing Jack and Jennifer will need to do is research the legalities
and regulations they will need to account for when opening locations in Mexico. For
example, they would need to account for employment laws, tax laws, tariffs,
etc… Jack and Jennifer will most likely need to ensure that a separate “international”
policy is created for the Mexico locations to ensure that the U.S. employment
policies are merged with the Mexican policies and the details around ensuring both
country’s regulations are met in all instances will need to be ironed out.
They will also need to look into the cultural differences between the U.S.
and Mexico and ensure that those differences would not impede success for Carters
in Mexico. For instance, they will need to first ask the question, will people use a
cleaning facility for their clothing or would the locals find it offensive in some
way? Will Jack need to build relationships with “power holders” in the community in
order to set up shop? Do individuals in this culture typically take initiative and think
outside the box to solve challenges or do they rely mostly on leadership to relay
decisions before acting? Are they typically on time or have a more relaxed view of
the clock? Will they expect a siesta after lunch and if so, what will be the total hours
they are used to working each day? Does it align with U.S. policy?
A training program will need to be created for the employees in Mexico to
ensure that these employees are as aware of the company’s policies as the U.S.
location employees. Someone will most likely need to travel to these stores to first
recruit and hire new employees, train them on how to use the equipment and ensure
they are facilitating the business in alignment with the company’s vision and mission
statement. Additionally, it will be very important for communication between the
Mexico locations and the U.S. headquarters to be easy and on a regular basis so that
the international locations don’t feel isolated from the U.S. locations and all
procedures are in alignment no matter the physical location of the store.
Recruitment is also a challenge because Jack and Jennifer are stateside. If
they use expatriates, the cost will be high and they will need to recruit individuals
who are willing to move to another country; they may also have family that will need
to be willing to move and adaptable to other cultures. If they use locals, they will
need to have a thorough recruitment, testing and interviewing process to ensure
that quality individuals are selected as these folks will be the face of the company in
another country. They could advertise via websites like www.careerbuilder.com,
www.monsterjobs.com, and any other online resources that are highly used in the
community and would most likely be very successful in taking out an ad in the local
paper.
They will also need to account for the different types of healthcare and
insurance programs are available to employees in Mexico. Jack and Jennifer will
need to determine if the company benefits transfer to Mexico or if they will need a
completely new plan for these international locations.
17-16. How would you go about choosing a manager for a new Mexican store
if you were Jack or Jennifer? For instance, would you hire someone locally or
send someone from one of your existing stores? Why?
I would choose a local manager for the new Mexican store. My logic here
is the cost of sending an expatriate would be very high due to the cost of living
differences between Mexico and the U.S., legal procedural hurdles and necessary
cultural adaptation training. Choosing the manager from the locals makes the most
sense because no adjustments would be needed to account for the difference in cost
of living – Jack and Jennifer would just need to research the market in Mexico and
price the manager job accordingly. Additionally, a local manager would not have an
issue adapting to the culture there because they are already immersed in that culture
and can even possibly help Jack and Jennifer maneuver any pitfalls that may arise
due to their vast knowledge of the area, community leadership and the culture. A
local manager would also have an easier way of recruiting other local employees to
work in the Mexican stores as they will be at location. However, it will be important
for Jennifer and Jack to train these new local managers and keep an open dialog on
expectations to ensure the Mexican store locations are in line with the company
direction and policies.
17-17. The cost of living in Mexico is substantially below that of where Carter
is now located: How would you go about developing a pay plan for your new
manager if you decided to send an expatriate to Mexico?
o
o
o
o
o
o
o
Base Salary: Since the cost of living in Mexico is lower, there is no need to adjust
the salary up so the plan would take into account the current base salary and
keep it whole.
Tax Differences: The company will need to ensure they are in compliance with
local tax laws so will need to submit the taxes each month on the employee’s
behalf.
Housing Allowance: Since the employee is living in another country on the
company’s behalf, a housing allowance will be guaranteed and will be calculated
based on the cost-of-living in the employee’s region/city of residence.
Children’s Education Allowance: Premium education is costlier in Mexico, so
the employee will be eligible for an education allowance.
Healthcare: Private Healthcare will be provided to the employee to ensure
adequate local coverage and benefits.
Profit Sharing: In Mexico, profit sharing is a legal requirement so 6% will be
added to the employee’s paycheck each month for profit sharing.
Annual Bonus: An annual bonus will be provided to the employee each year
based on a combination of performance ratings, level in the company and
company profit. This will incent employees to grow and be engaged in the
store’s success.
17-18. Present a detailed explanation of the factors you would look for in your
candidate for expatriate manager to run the stores in Mexico.
I would look for the following factors in my candidate:
o
o
o
taking the initiative – this individual will be in an unfamiliar country by
themselves most likely and having to think of solutions and make decisions with
minimal reliance on company leadership
honest and high integrity – because this individual will be bringing in local
employees to work in the stores, they will be in a position of power and should
be trusted to be honest with employees and customers and show integrity in the
way they do things. They will be the face of Carters in these new locations and
will need to bring a positive light to the company.
out-going – since they will be building relationships and meeting people who
Carters will depend on for supplies, workforce labor, as well as customers, they
will need to be able to interact with people effectively
o
o
o
emotionally stable/mature – this will need to be an individual that people look up
to and want to follow as well as being able to handle possible negative situations
that will need to be resolved collaboratively and the pressure of building up new
business in a foreign country
adaptable to new experiences and cultures – the biggest challenge for
expatriates are adaptability to new cultures so this person will need to show their
willingness to work with others with different cultures as well as quickly
learn/understand cultural differences and respect them
fluent in Spanish – the second largest hurdle to overcome is language barriers so
the expatriate will need to be fluent in Spanish as to ensure minimal obstacles
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