This report will evaluate the effectiveness of expatriate remuneration in a multinational organization. The study has conducted a rigorous review of existing literatures in the relevant field of study and has found that a number of parameters or factors have significant role to play at the time of evaluating the effectiveness of expatriate remuneration.
The current research is concerned with assessing performance of a subjective matter and hence it would be more appropriate to employ qualitative research approach for this investigation. This report will elaborately discuss the qualitative technique that will be applied for the investigation.
The research aims at evaluating the effectiveness of remuneration in a multinational organization. Given this aim, the objective of the research is to assess the efficacy of multinational organization’s expatriate remuneration on the basis of some parameters derived from the findings of exiting literatures. This report will analyze all the parameters that will be used at the time of the research. An organization pays expatriate for carrying out an operation that a local manger is not able to perform.
As defined by Porter (1990), a multinational organization is a firm that conducts its business activities in another nation apart from the host country. Significant growth in globalization in last a few decades has increased the presence of multinational organization across the world. Earlier organizations based in developed nations set up their productive units in less developed countries in order to have access to cheap labor. However, over time these foreign markets have emerged as potential source of generating revenues and hence the multinational organizations are also trying to market and sell their products in foreign markets as well. The importance of multinational companies has increased significantly over the years (Mcnulty, 2008). In order to survive in the extremely competitive international market, these multinational organizations require a well-designed management of human resources. A very important factor that determines the success of a company is the efficient utilization and management of resources of production. As far as organizational spending on expatriate remuneration is concerned, it has been found that many multinational organizations spend more on expatriate than what they spend on their local managers. A more noteworthy finding is that spending on expatriates does not always bring in positive outcomes; rather the rate of failure of expatriates is quite high (Reynolds, 1997). However, the role of expatriate has not been undermined; rather organizations are placing more focus on designing successful system of expatriate remuneration and appraisal in a multinational organization.
When a multinational organizations invest huge sum on expatriate, then the investment should be considered as a long term investment as it will take some time for the expatriate to gain adequate experience that are requited to perform their job accurately.
Thus the review of existing literatures shows that different authors have talks about different parameters for evaluating the effectiveness of expatriate remuneration. In the current research e will take in to account some these parameters for investigating the effectiveness of expatriate remuneration in multinational organizations. The reviews of existing studies also provide a huge support for the current aim of the research. The existing studies have found the performance of expatriate as n important factor that determines the level of success of multinational organization in host countries. In order to ensure high end performance of expectorate it is always necessary to evaluate the effectiveness of existing remuneration and appraisal system for them that are designed to enhance their performance.
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