Please writ a paragraph and some examples about : 1/ international compensation
ID: 1190764 • Letter: P
Question
Please writ a paragraph and some examples about : 1/ international compensation program 2/ lowest-cost producer's relocations to cheaper production are 3/ how globalization is affecting HR department Please writ a paragraph and some examples about : 1/ international compensation program 2/ lowest-cost producer's relocations to cheaper production are 3/ how globalization is affecting HR department 1/ international compensation program 2/ lowest-cost producer's relocations to cheaper production are 3/ how globalization is affecting HR departmentExplanation / Answer
1.) International Compensation Program with an example ---
As globalization takes hold of the Canadian business environment, many multinational companies are struggling with how to design and manage compensation programs across multiple jurisdictions. To stay competitive, Canadian companies require strategies that take into account cultural, competitive and operational issues. Often, the task is daunting. But success can be achieved with careful strategic planning, top-notch communication and a flexible, yet simple, approach. Companies also are recognizing that well conceived global rewards strategies can achieve significant cost savings through economies of scale, as well as meet the needs of internationally mobile employees.
A sound global rewards strategy that is aligned to business objectives is necessary to develop a global compensation plan. Establishing a community of guidelines and practices with consistent communication of key messages is also critical. And don’t forget cultural and socio-economic factors, employee expectations, local market practices, and tax, legal and regulatory requirements.
2.) Lowest-Cost producers relocations to cheaper production area
Many US Businesses have established manufacturing & production cost facilities in Asian Countries & in Mexico because Labour is significantly less expensive than in US. There are two key reasons for the cost differences --
a.) Labour unions generally do not have much bargaining power in developing Asian Countries or in Mexico, where the Govts possess extensive control on workplace affairs.
b.) Asian Govts historically have not valued individual employee rights as much as the US Govt.
The Fair Labour Standard Actof 1938, provides employees a minimum hourly wage rate, limits exploitation of child labour & mandates overtime pay.
The National Labour Relations Act of 1935 requires the Management to bargain with Labour Unions over terms of Employment, such as wages & employee benefit.
3.) How Globalization is affecting HR Department - Globalization of Business requires that conmpany send employees overseas to establish & operate satellite plants & offices. Companies must invest in development of HR.
Int'l Business operations are destined to fail because of the scarcity of right people at the right place.
HR Professionals must be certain to identify the selection criteria that are most related to successful Int'l work assignments.
Another key function of HR is Training. The training sessions relating to Global issues, Cross Cultural Training (like in Motorola) updates the minds of the Trainees & lead them to desired attitudenal & work related changes.
Submitted.!!!!
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