EXPATRIATE REWARD SYSTEM

Expatriate Reward System

Expatriate Reward System

Introduction

Gone are the days when the role of human resources was only restricted to the administration. In today's era well designed strategies of human resource can become a source of an organization to gain competitive advantage. This competitive advantage can be gained on a global basis as well through the strategies of human resource. One of the most important aspects that the human resource department of an organization deals with is the formulation of reward strategies. Priorities of an organization and the responsibility of management of people possess serious consequences in term of employee reward consideration. First and foremost it is imperative to review the definition of the term global reward as it is defined in the literature of the human resources when talking about the treatment of employees and managing relationship with employees in an international context. The concepts of the role of strategies for business of international level, generation of profit and sharing of knowledge and information across the borders require deep and concentrated attention of the management while designing the reward strategies. On one hand, the management has to address the issue of diversity while designing the reward policies in an international business on the other hand; they also have to embrace the organization's culture and limited resources. This requires management to devise an integrated reward strategy. Besides this, there are several factors and consideration that the management of a multinational organization takes into account while designing the expatriate reward strategies. This paper provides an in depth discussion on the topic of devising expatriate reward strategies.

Meaning and concept of expatriate

Before discussing the policies and consideration while devising the policies of expatriate rewards it is imperative to understand that who the expatriate employees are. After gaining the complete understanding of the concept, we would be able to discuss the considerations that multinational organizations take into account while designing expatriate reward strategies. For the parent country nationals, the term expatriate means that workers of the organization who are managers, and experts, and they belong to the country in which the headquarter of the multinational organization is located, and they have been asked or sent to some other foreign country to accomplish a task so that they can do the task of transplanting the culture of the organization (Harris, Brewster and Sparrow 2003, 57). For third country national, expatriate are workers of the organization that do not belong to the host country or country where headquarter of the organization is located (Phillips and Fox 2003, 466). Third-country nationals present a mixture of alternatives for the management of international subsidiaries that lie between parent country national and host country national. Third country national amalgamates the benefits and various negative aspects of the usage of expatriates and host country national (Tan and Maloney 2006, 480). According to the theory it can be said that third-country nationals may possess more knowledge and information than parent country national but possess less knowledge of local culture and values than that ...