James Doe is HR Director. His company is a manufacturing firm rapidly expanding internationally. It started moving into other Caribbean countries 10 years ago. The company hired host country nationals in senior management positions. Staff were sent from Trinidad and Tobago on short term assignments. These staff individually negotiated their compensation packages. Now the company is expanding beyond the Caribbean, into Latin America and Africa. The plan is to send management staff to all those locations for long term assignments. It is expected that  many senior employees would be involved. The company also plans to continue the practice of sending staff on short term assignments in the Caribbean area. As a result of those changing situations, the Board of Directors charged James Doe with the responsibility of preparing a comprehensive approach to compensating all international (expatriate) employees. His recommendations are to be submitted to the Board of Directors for approval. James Doe hires you as a consultant to assist in designing a compensation approach for the international employees. Questions: 1. Explain in detail the approach you would recommend including objectives, advantages, and disadvantages. Take all the circumstances into consideration and answer in detail referring to the case where necessary.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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James Doe is HR Director. His company is a manufacturing firm rapidly expanding internationally. It started moving into other Caribbean countries 10 years ago. The company hired host country nationals in senior management positions. Staff were sent from Trinidad and Tobago on short term assignments. These staff individually negotiated their compensation packages. Now the company is expanding beyond the Caribbean, into Latin America and Africa. The plan is to send management staff to all those locations for long term assignments. It is expected that  many senior employees would be involved. The company also plans to continue the practice of sending staff on short term assignments in the Caribbean area.
As a result of those changing situations, the Board of Directors charged James Doe with the responsibility of preparing a comprehensive approach to compensating all international (expatriate) employees. His recommendations are to be submitted to the Board of Directors for approval. James Doe hires you as a consultant to assist in designing a compensation approach for the international employees.


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1. Explain in detail the approach you would recommend including objectives, advantages, and disadvantages. Take all the circumstances into consideration and answer in detail referring to the case where necessary.

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