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Exhibit 10.7: Balance Sheet Approach To Expatriate Compensation

Exhibit 10.7: Balance Sheet Approach To Expatriate Compensation

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Additional Allowances and

Perquisites











Foreign

Foreign service

service premiums

premiums

Hardship

Hardship allowance

allowance

Relocation

Relocation allowances

allowances

Home-leave

Home-leave allowances

allowances



Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



Expatriate Manager

Compensation: Other

Approaches

•• Headquarters-based

Headquarters-based compensation:

compensation: paying

paying home

home

country

country wages

wages regardless

regardless ofof location

location

•• Host-based

Host-based compensation

compensation system:

system: adjusting

adjusting wages

wages toto

local

local lifestyles

lifestyles and

and costs

costs ofof living

living

•• Global

Global pay

pay systems:

systems: worldwide

worldwide job

job evaluations,

evaluations,

performance

performance appraisal

appraisal methods,

methods, and

and salary

salary scales

scales are

are

used

used



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Repatriation Problem

••

••



Difficulties

Difficulties faced

faced coming

coming back

back home

home

Three

Three basic

basic cultural

cultural problems—“reverse

problems—“reverse culture

culture

shocks”

shocks”

•• Adapt

Adapt toto new

new work

work environment

environment and

and culture

culture ofof home

home

•• Expatriates

Expatriates must

must relearn

relearn own

own national

national and

and

organization

organization culture

culture

•• Need

Need toto adapt

adapt toto basic

basic living

living environment

environment

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Strategies for Successful

Repatriation

••

••

••

••

••



Provide

Provide aa strategic

strategic purpose

purpose for

for the

the repatriation

repatriation

Establish

Establish aa team

team toto aid

aid the

the expatriate

expatriate

Provide

Provide parent

parent country

country information

information sources

sources

Provide

Provide training

training and

and preparation

preparation for

for the

the return

return

Provide

Provide aa home-leave

home-leave policy

policy toto encourage

encourage expatriates

expatriates

toto make

make regular

regular visits

visits toto the

the home

home office

office

•• Provide

Provide support

support for

for the

the expatriate

expatriate and

and family

family on

on return

return

Copyright© 2005 South-Western/Thomson Learning All rights reserved



International Assignments for

Women: Two Myths

•• Myth

Myth 1:1: Women

Women do

do not

not wish

wish toto take

take international

international

assignments.

assignments.

•• Myth

Myth 2:2: Women

Women will

will fail

fail inin international

international assignments

assignments

because

because ofof the

the foreign

foreign culture’s

culture’s prejudices

prejudices against

against

local

local women.

women.

Successful

Successful women

women expatriates

expatriates

Foreign

Foreign not

not femaleemphasize

femaleemphasize nationality

nationality not

not

gender

gender

Copyrightâ 2005 South-Western/Thomson Learning All rights reserved



International Assignments for

Women: Advantages

••

••

••



More

More visible

visible

Strong

Strong inin relational

relational skills

skills

Wider

Wider range

range ofof interaction

interaction options

options



Copyright© 2005 South-Western/Thomson Learning All rights reserved



International Assignments for

Women: Disadvantages

•• Face

Face the

the glass

glass ceiling

ceiling

•• Isolation

Isolation and

and loneliness

loneliness

•• Constant

Constant proving

proving ofof themselves,

themselves, working

working harder

harder

than

than male

male

•• Need

Need toto balance

balance work

work and

and family

family responsibilities

responsibilities

•• Need

Need toto worry

worry about

about accompanying

accompanying spouse

spouse



Copyright© 2005 South-Western/Thomson Learning All rights reserved



More Women in the Future?

••

••

••



Women

Women expatriate

expatriate managers

managers are

are expected

expected toto grow

grow

Acute

Acute shortage

shortage ofof high-quality

high-quality managers

managers

Increasing

Increasing number

number ofof women

women provide

provide role

role models

models



Copyright© 2005 South-Western/Thomson Learning All rights reserved



What Can Companies Do To

Ensure Female Expatriate

Success?

••

••

••

••



Provide

Provide mentors

mentors

Provide

Provide opportunities

opportunities for

for interpersonal

interpersonal networks

networks as

as aa

form

form ofof organizational

organizational support

support

Remove

Remove sources

sources ofof barriers

barriers

Provide

Provide support

support toto cope

cope with

with dual-career

dual-career issues

issues



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Multinationals and Electronic

Human Resource Management

•• Electronic

Electronic human

human resources

resources (e.HR):

(e.HR): automation

automation ofof

various

various aspects

aspects ofof the

the human

human resources

resources system

system ofof aa

company

company



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Strategic Benefits of e.HR

Systems

••

••

••

••

••

••

••



Reduce

Reduce HR

HR and

and administrative

administrative system

system cost

cost

Boosts

Boosts productivity

productivity

Improve

Improve HR

HR services

services toto employees

employees

Employees

Employees take

take control

control ofof their

their own

own data

data

Repository

Repository ofof the

the wealth

wealth ofof knowledge

knowledge and

and skills

skills ofof

expatriates

expatriates

Employee

Employee tracking

tracking for

for career

career management

management and

and other

other

HR

HR purposes

purposes

Repository

Repository ofof information

information for

for outside

outside stakeholders

stakeholders

Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 10.7: Balance Sheet Approach To Expatriate Compensation

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