Question one
When multinational enterprises invest in any foreign country, they should consider the legal compensation laws of that country. The compensation practices differ from one country to another. Multinational firms should understand these foreign country compensation practices so that, when they invest in any country, they are able to carry out the compensation practice according to the law of that country.Multinational firms have their own compensation procedure and are also guided by the international policies of human resource management. The study of a foreign country’s compensation laws helps the firms to harmonize the three aspects of compensation. It also helps the firms abide by the economic, legal and socio-cultural requirements in the host country.
Question two
Multinational companies decide to provide benefits after considering certain factors. First, the company considers its profit margins and the taxation rates. If the profits are large and the firm is doing well, the company can award more benefits. The legal system is also a major factor. The company may provide benefits just because it is required to do so. The niche of the company can also influence it in deciding to give benefits. Firms consider their financial position, the legal requirements, the workers categories and capacities as well as the policies on benefits being implemented by competitor firms.Multinational firms also follow the international regulations on human resource when giving benefits to its employees..
Question three
Compensation decisions in multinational companies involve balancing between the global and local, as well as the occupational and functional perspectives. The global perspective is the view that the company seeks to abide by the rules of multinational regulations. It also considers the effects of the compensation decisions on its future on the multinational business scene. Multinational companies mostly provide benefits to make the company workers satisfied and making its products marketable. The company will also consider local perspectives. The firm will want to create a good image to the local public, who include workers and consumers of its products, so as to enable it compete favorably with other competitors in the local market. Therefore, the firm will consider both the local and international advantages of providing benefits so as to make it thrive in the current market environment.
A multinational company will also be faced with harmonizing the functional and occupational perspectives in making compensation decisions. The firm will decide which criteria to use to award benefits. This could be by the functional capabilities of workers or by occupation basis. In functional perspectives, the firm gives benefits according to the functional units like departments. The occupational perspectives will categorize workers according to their ranks and award benefits in that order. In most cases, multinational firms award benefits according to occupational capacity.
Question four
Multinational companies can help dual career couples to repatriate by creating mentoring programs for them. This will enable the couple learn from other experienced couples who have been expatriates abroad before. This helps the couple adapt faster to new the countries they are transferred. The couples should also be provided with adequate training and be given social support through their international task. This can be done by the international managers of human resource in the multinational firms.
Question five
Re-entry shocks are the difficulties faced by workers who have been away in foreign countries, when they finally return to their home country. Factors that lead to re-entry shocks include; rejection by family and friends in the home country and reverse homesickness, which involves, the victim missing the life in their host country. Another cause is the loss of culture, where workers forget their own culture when they travel abroad and face difficulties adapting back to it. Multinational enterprises should help the returning workers adapt back to their home countries. They should prepare them psychologically and give them tips on how to start life in their home nations without problems. Human resource departments can help by catering for the costs of dealing with the re-entry shocks.
Pre-repatriation programs would normally include training the individuals about their expected duties. They will also be oriented about the host nation, the new culture, the working conditions and objectives of the repatriation. Pre-repatriation programs are carried out by the human resource to help the repatriates adapt quickly and perform a decent job wherever they are dispatched.
References
Briscoe, D. R., Schuster, R. S., & M, L. (2008). International Human Resource Management (3, illustrated ed.). New York: Taylor & Francis.
Mendenhall, M. E. (2008). Global leadership: research, practice, and development (illustrated ed.). New York: Taylor & Francis.
Scullion, H., & Collings, D. G. (2006). Global staffing (illustrated ed.). London: Routledge.
Stahl, G. K., & Björkman, I. (2006). Handbook of research in international human resource management (illustrated ed.). Northampton, Massachusetts: Edward Elgar Publishing.
Vance, C. M., & Paik, Y. (2010). Managing a global workforce: challenges and opportunities in international human resource management (2, illustrated ed.). New York: M.E. Sharpe.
