FAU Multinational Corporation Vulnerability Knowledge Network Resource Loss Reply
1- Within the global context, multinational corporations are continuously pursuing different opportunities to not only grow as a corporation but also expand the skillset of their employees. International assignments are seen as a prime opportunity to develop individuals within this particular context. Such operators can foster skills such as organizational learning while also fostering innovation, the transfer of knowledge, cultural values/norms and developing a global perspective (Dowling et al., 2017). Such a cadre of workers is considered essential to MNCs due to the vast knowledge and experience acquired via international assignments. As these individuals continue to specialize and develop their skills, they can also assist the corporation and its supporting staff due to their expertise within the global setting. In order to establish the appropriate compensation policies, it is important to note that multinational corporations must first identify the main objectives needed. More specifically, it is imperative for the organizations to understand the impact of their reward strategies and the success of such reward packages depend greatly upon the best fit of their packages to the employee's preferences (Nazir, Hussain Shah & Zaman, 2014). The aforementioned must adequately reflect the supporting staff that makes up the corporation in order to better translate their own importance to the company. This is not only beneficial to the employee but also the corporation as it is an avid reflection of HRM.Additionally, the company's policies would also need to be compared to the laws, regulations and common practices of both the host and home countries of to mirror suitable cultural values/norms (Liu & Perez, 2012). References: Dowling, P. J., Festing, M., & Engle, A. D., Sr. (2017). International Human Resource Management (7th ed.). Cengage Learning. Liu, Y., & Perez, K. (2012). HUMAN RESOURCES MANAGEMENT CHALLENGE FOR A FOREIGN COMPANY DOING BUSINESS IN THE UNITED STATES. Journal of the International Academy for Case Studies, 18(1), 73-75. Retrieved from https://search.proquest.com/scholarly-journals/hum... Nazir, T., Hussain 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), 189-207. Retrieved from https://search.proquest.com/scholarly-journals/rev...------------2-How does an international assignment assist in developing a cadre of international operators?According to Dowling, Festing, and Engle (2017), international assignments have been recognized for quite some time as important assignments for developing international expertise. Among the expected outcomes are increases in both management development and organizational development (Dowling et al., 2017). Regarding management development, the expatriate gains international experience which assists in career progression (Dowling et al., 2017), especially among large MNCs who view an expatriate assignment as almost a prerequisite to senior management levels. From an organizational development standpoint, expatriates provide MNCs with a stock of global knowledge, skills and abilities it can leverage into future growth (Dowling et al., 2017), as well as providing the firm with a global mindset and outlook (Dowling et al., 2017). Park, Abbott, and Werner (2014) also make an interesting contribution to the discussion on the benefits of expatriate assignments by stating that successful expatriates are more apt to be able to understand the thoughts, motives, and feelings of others and why they think and feel the way they do. This is known as perspective-taking (Park et al., 2014), and has shown to be beneficial in both intra-personal and interpersonal relationships as well as leading to higher-level outcomes regarding cooperative behavior (Park et al., 2014).Why is it necessary to have such a cadre of workers?In an increasingly global business environment, many MNCs find themselves in dire need of employees who can work effectively across multiple geographical boundaries (McNulty & De Cieri, 2016). Well developed, global thinking managers provide MNCs with leadership that is both oriented toward global markets and comfortable exercising leadership in international cultures (Jones, Lyu, Runyan, Fairhurst, and Youn-Kyung, 2014). Additionally, successful expatriates often go on to partner with others to form international teams of future top-level talent well positioned to lead future international efforts of MNCs (Dowling et al., 2017). However, given that most MNCs manage expatriate talent with a decidedly short-term focus (McNulty et al., 2016) action should be taken to shift MNC strategy away from this misalignment toward a more long-term focus where the long-term benefits to both the expatriate and the MNC are carefully managed in order to produce strategic benefits, and return on investment, for both (McNulty et al., 2016).What should the main objectives be for a multinational with regard to its compensation policies?Long seen as a mechanism to develop and reinforce a global corporate culture, compensation practices are viewed as a mechanism for corporate control (Dowling et al., 2017) that links performance outcomes with cost (Dowling et al., 2017). Despite this long-held viewpoint, expatriate compensation packages seek to balance several competing needs (Dowling et al., 2017):Consistency with the overall strategy, structure, and business needs of the MNC. The need to attract and retain staff in areas where the needs of the MNC are greatest. The ability to effect international transfers in the most cost-effective manner possible. Equity and ease of administration. The needs of the employee, predictably, can sometimes be quite different than the needs of the MNC according to Dowling et al. (2017):Financial protection in terms of benefits, social security and living costs in the foreign country. The opportunity for financial advancement whether through income or savings. Ancillary costs such as housing, education of children, and home leave must be addressed. In light of these competing requirements, MNCs must decide between the standardization or individualization of expatriate compensation packages according to Warneke & Schneider (2011). Warneke et al. (2011) recommend a hybrid approach that is, generally speaking, standardized in most respects but also allows for limited individualization with regard to salary, the compensation system, and the timeframe.Reference:Dowling, P., Festing, M., & Engle, A. D., Sr. (2017). International Human Resource Management (7th ed.). Andover, UK: Cengage Learning EMEA.Jones, R. P., Lyu, J., Runyan, R., Fairhurst, A., Kim, Y., & Jolly, L. (2014). Cross Cultural Consensus: Development of the Universal Leadership Model. International Journal of Retail & Distribution Management, 42 (4), 240-266.Park, J.H., Abbott, J.L., & Werner, S. (2014). A Perspective-Taking Model for Global Assignments. Journal of Global Mobility, 2 (3), 280-297.McNulty, Y., & De Cieri, H. (2016). Linking Global Mobility and Global Talent Management: The Role of ROI. Employee Relations, 38 (1), 8-30.Warneke, D., & Schneider, M. (2011). Expatriate Compensation Packages: What do Employees Prefer? Cross Cultural Management: An International Journal, 18 (2), 236-256.