HRMN 467 Week 3 – Expatriate Adjustment And Global Compensation

PLEASE READ CAREFULLY

– Please cite your work in your responses

– Please use APA (7th edition) formatting

– All questions and each part of the question should be answered in detail (Go into depth)

– Response to questions must demonstrate understanding and application of concepts covered in class,

– Use in-text citations and at LEAST 2 resources per discussion from the school materials that I provided to support all answers. – The use of course materials to support ideas is HIGHLY RECOMMENDED

– Responses MUST be organized (Should be logical and easy to follow)

– Include at least 2 references and include in-text citations.

 

“USING REFERENCES FROM THE CLASS MATERIALS ONLY IS A MUST. IF YOU CAN’T, THEN DON’T ACCEPT THIS OFFER”

At least 250 words for each discussion question is a good measure of a quality post.

“Include the full question before each response.   Break the questions up if there are multiple questions within the main question.  Answer each part separately.”   

When you post your responses, you must use the resources from the class. In the Discussion area, I am really looking for evidence that you read the course material and can apply it (per teacher)

Question 1: Read the attached chapter 2 Expatriate Adjustment and Expatriate Learningwhich summarizes all three theories.  (Read only p. 7 – 26)

This week we learned that:

1. Expatriate adjustment to the cross-cultural environment can be viewed as having three primary dimensions: degree, mode, and
2. The process of adaptation can be explained using the theory of the U-curve and social learning theory.
3. The factors that influence expatriate adjustment have four aspects: individual factors, job-related factors, organizational factors, and non-work factors.

YOUR TASK:

The management team at Holiday Villas is interested in understanding a bit more about the theoretical foundations behind international HR. 

Choose ONE of the three theories and explain it clearly and in detail, IN YOUR OWN WORDS. Make sure to reference the book chapter with page numbers as needed. Do NOT use outside sources,

Include at least 2 references and include in-text citations from the class materials ONLY

Question 2:Read the attached file named Global Compensation

Companies can take one of four approaches to compensation. Which do you think is the best approach? Why?

Frame your post as an argument.

• The home-country-based approach. The objective of a home-based compensation program is to equalize the employee to a standard of living enjoyed in his or her home country. The 2016 Cartus Global Mobility Policy & Practices Survey found that 76 percent of long-term assignments and 75 percent of short-term assignments use a home country pay structure.1 Under this system, the employee’s base salary is broken down into four general categories: taxes, housing, goods and services, and discretionary income.
• The host-country-based approach. With this approach, the expatriate employee’s compensation is based on local national rates. Many companies continue to cover the employee in its defined contribution or defined benefit pension schemes and provide housing allowances. Only 14 percent of long-term assignments and 5 percent of short-term assignments base pay on local rates, according to the Cartus survey.2
• The headquarters-based approach. This approach assumes that all assignees, regardless of location, are in one country (i.e., a U.S. company pays all assignees a U.S.-based salary, regardless of geography). Cartus found that a small percentage of companies use headquarters-based approaches for long-term assignments (4 percent) and short-term assignments (5 percent).3
• Balance sheet approach. In this scenario, the compensation is calculated using the home-country-based approach with all allowances, deductions and reimbursements. After the net salary has been determined, it is then converted to the host country’s currency. Since one of the primary goals of an international compensation management program is to maintain the expatriate’s current standard of living, developing an equitable and functional compensation plan that combines balance and flexibility is extremely challenging for multinational companies. To this end, many companies adopt a balance sheet approach. This approach guarantees that employees in international assignments maintain the same standard of living they enjoyed in their home country. A worksheet lists the costs of major expenses in the home and host countries, and any differences are used to increase or decrease the compensation to keep it in balance.
• Source: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/designingglobalcompensation.aspx (Note that this source requires a paid subscription to SHRM to view the full article.)

Include at least 2 references and include in-text citations from the class materials ONLY