This report concentrates on the creation of a research report or model which could be used to find out how effective an expatriate remunerations package is of any specified MNC (Multinational corporations). Before we get in to the research aspect of this report let’s get an understanding of the most important subjects or terms that are to be under stood clearly before research can take place or even the model for research can be created. In the context of this research the two major terms that are used are MNC or the multinational corporation and expatriate remunerations. Multinational Corporations (MNC’s) are companies that function in many numbers of countries other than their original country of set up (Antonello & Zanfe, 2009). Examples of MNC are are Pepsi, Coca cola, Toyota, Volkswagen, Tesco and many more. The MNC’s usually have there head quarters located in a country, normally there parent company and then have business units in many countries. The head office controls all the different business units in other countries (Abby, 2008). So an MNC is any company which functions in many countries and are able to derive more then quarter of there total incomes and revenue from its business in countries other than its actual home company (Abratt & Hawabhay,2009). There are four types of MNC’s and they are * Centralized company which produces in places where resources are cheap and thereby get cost benefits * A completely decentralized corporation with strong home country base * An international company which uses the parent companies technology and research and development to get going * And finally a MNC which is a mix of all the above types.
Since MNC are present in many a number of countries , it becomes necessity to send managers from one country to another country to get certain work done and also get managerial experience which could help them promote the employee to higher position in the MNC. So when a company sends one person to a different country, other than his native country for work related assignments are called as expatriates and the salary paid to them are called as expatriate’s remuneration (Alex, 2006). Expatriates remuneration can thereby explained as total financial and non financial benefits that are provided to the employee for going on company duty to a foreign country. But unlike normal remuneration package, the expatriate remunerations are not easy to create (Ghoshal &Westney, 2005). The reasons that the expatriate remuneration is tough to get it right, is because many a number of factors can directly and indirectly effect the remuneration. The major factors that influences are the country where it is based in, the cost of housing, education and cost of taking care of the dependents, how the tax system works the benefits of health care and also things like whether the spouse would be able to work (Haile, 2007).
Aim & Objectives
The main aim of this assignment and the objectives that are intended to be carried out given below
Aim * To develop a model of research which could be used by any researcher, to research about the effectives of the remuneration for expatriates in a MNC
Objectives * To study the concept of expatriate remuneration in detail * To find out the factors affecting the formation of the expatriate remuneration package * To find out the sources which could be utilized for research * and finally create a research outline which clearly states the way , the method , the philosophy the tools and the limitations that could be used to carry out research successfully.
Fewer and fewer employees wants to be an expatriate and go abroad for 2 or 3 years . The employees find it mostly unsettling. But however it becomes extremely important for the MNC’s to have efficient expatriates, who have experience in the field so that they may appointed to higher positions with in the MNC…