Expatriate remuneration’s effectiveness

The aim of this study is to investigate expatriate remuneration’s effectiveness in a multination organization. This article is prepared to illustrate the process that will be employed to carry out this investigation and to provide justification of the selected research approach. However, first of all the report will explain the aims and objectives of the research. Then, it will conduct a critical review of existing literatures in the relevant field of study to provide support to the aims and objectives of my current research. Finally, it will illustrate the research methodology, provide its justification, and discuss ethical issues involved with it and its limitations.

What others say?

Researchers like Martin and Bartol (2003) have drawn attention to the importance of the system of expatriate remuneration and appraisal in a multinational organization as it is extremely importance for multinational organization’s sustainable development. This system works as a major tool of selecting, grooming, proving training those people who will be given the responsibilities of conducting the business activities of multinational organizations (Reynolds, 1997).

Of course the system of expatriate remuneration and appraisal is very important in a multinational organization to conduct its business worldwide successfully, but this system faces some crucial issues such as cultural diversity, several political and legal issues, etc. In order to enhance effectiveness of expatriate remuneration, a performance appraisal system for expatriates is considered to be an important device that management can utilize for encouraging expatriates in making valuable contributions to the multinational organizations.

The most important factor that is required to take into account while assessing the effectiveness of the system of performance appraisal of expatriates is cultural diversity (Mcnulty, 2008). Very often cultural diversity generates uncertainty in the criteria for evaluating expatriates’ performance as managers from other countries with different culture do not have similar belief with regard to evaluating performance of employees as held by the managers in the host country. Moreover a professional from the home country or some other nation who is on deputation in the host country takes some time to settle down and learning local culture. Generally it is found that expatriates take quite a few months to get well informed with local culture and their own duties. (Martin and Bartol, 2003)

Mol et al. (2005) talks about another important parameter that is spousal adjustment. On the other hand, Sinangil and Ones (2001) mentioned as many as nine different factors or parameters that should be taken in to account while evaluating the effectiveness of expatriate remuneration and appraisal system. These nine parameters include productivity of expatriates, the level of communicational proficiency of expatriates, the efforts that expatriate put to carry out innovations, the capacity to work with different other people, the level of flexibility shown at the time of adjusting to different job profiles in an organization, interpersonal skills, the ability to complete tasks, the ability of building and maintaining professional relationships that help in enhancing performance level. Earlier Ones and Viswesvaran (1997) talked about eight parameters for judging expatriate performance that include productivity, communicational skill, efforts, the leadership quality, compliance with authority, competence in supervising, awareness regarding product and service quality, and the level of job performance.

Another factor that is crucial for evaluating expatriate remuneration and appraisal system is the rate of carrying out performance appraisal that may vary from quarterly appraisal to annual appraisal. According to Martin and Bartol (2003) the other important parameter that can affect the system of performance appraisal of expatriate is the level of scope for making advancement in career. Borman and Motowidio (1993) added another factor that is important to consider while evaluating effectiveness of expatriate remuneration and appraisal program. This factor is domain of context and tasks domain that asks for striking a balance between task and the process of evaluation.

References

• Borman, W. C. and Motowidlo, S. J. 1993. “Expanding the criterion domain to include elements of contextual performance”, in Schmitt, N. and Borman, W. C. (eds), Personal selection in organizations. San Francisco: Jossey-Bass.
• Sinangil, H.K and Ones, D. S. 2001. “Expatriate management”, in Ones D. S., Sinangil, H. K. and Visersvaran, C. (eds.), Handbook of Industrial, work and organizational psychology. London: Sage Publication.
• Reynolds, C. 1997. “Expatriate compensation in historical perspective”. Journal of World business, 32:118-132.
• Porter, E.M. 1990. The competitive advantages of Nations”. New york: the FreePress.
• Ones, D. S. and Viswesvaran, C. 1997. Personality determinants in the prediction of aspects of expatriate job success. Greenwich, CT: JAI Press.
• Moi, T.S., Born P.M. and Molen T. HEnk. 2005. Developing criteria for expatriate effectiveness: time to jump off the adjustment bandwagon”. International Journal of Intercultural relation., vol. 29:pp. 339-353.
• Mcnulty, Y. 2008. How a major multinational is working to overcome the barriers to improved expatriate ROI. Willey InterScience.
• Martin, D. C. and Bartol, K.M. 2003. Factors influencing expatriate performance appraisal system success: an organizational perspective. Journal of International management, vol 9: pp. 1150132.
• Creswell, J.W. 2006.Qualitative Inquiry and Research Design: Choosing among Five Approaches. London: Sage Publication.
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• Bynner, J. and Stribley, K. M.  2010.  Research Design: The Logic of Social Inquiry. Aldine Transaction.
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