First, evaluating from point of view of technical competence (indicated by past job performance) candidates, all of them had positive ratings. Wallace rated as proficient and Harrison considered highly competent and poised to move into upper-level management. Atasi Das regularly earned excellent ratings. Jalan Bukit Seng consistently rated positive. Saumitra Chakraborty has successfully increased TCT India’s sales.
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From point of view of adaptiveness (self-maintenance, satisfactory relationships with host nationals and sensitivity to host environments) Harrison, Desai, Seng and Chakraborty are good option for TCT(TEL-COMM-TEK). Harrison has worked in the Asian Regional Office and traveled regularly toured TCT’s Southeast Asian operations. Desai is currently an assistant managing director in the large Asian operation and citizen of India. Seng is the managing director of TCT’s assembly operation in Malaysia. Chakraborty is the assistant to the departing managing director in India. Furthermore he has prominent Indian families and government officials along with his skillfulness in the ways of the Indian Business environment.
2. What challenges might each candidate encounter in the position?
Wallace’s strong points are that he is a knowledgeable 30-year TCT veteran and experienced in the technical and sales aspects of job. He supported some supply chain initiatives in the U.S. market and currently supervises a U.S.-based operation that is similar size of India’s new factory. He has superiors typically rate his performance as proficient and interest in an expatriate position. However Wallace also has weak points that language problem and no international working experience. So his major challenge will be the adaptiveness to the unfamiliar and inexperienced peculiar environment.
Harrison’s strong points are that high competency, experience in the Asian Regional Office and well acquaintance with geography, politics, customs, and outlooks. But, his weak points are language problem, teenage children educational problem, and career of his wife. His expected challenge will be his personal problem regarding to his family matter.
Das’s strong points are excellent career performance, enough experience between staff and line positions and single-status. She speaks Hindi as she was born in Indian-American immigrant family and has several family members and relatives in India. Her weak points that are no international experience, lack of understanding Indian business environment, and concerns about harsh sexual discrimination. Her main challenge will come from lack of international experience.
Desai’s strong points are that experience in the larger Asian operation, M.B.A. degree from prestigious Indian Institute of Management, and native Indian. On the contrary, his weak points are that young children and no working experience in his home country. His challenge will be his personal matters about his family.
Seng’s strong points are that experience worked in either Singapore or Malaysia and willingness to learn other languages as needed, single-status, and good performance with international area. In contrast, his weak points that language problem and no Indian experience. How to adapting to different business environment will be his main challenge.
Chakraborty’s strong points are that positive performance rating, good connection with prominent Indian families and government officials, skillfulness in the ways of the Indian business environment and fluent language skills including local languages and single-status. However, Chakraborty lacks direct-line and international experience and his main challenge will come from it.
3.How might TCT(TEL-COMM-TEK) go about minimizing the challenges facing each candidate?
Tom Wallace
Give translating service, local assistant and healthcare support
BrettHarrison
Give more compensation package.
Atasi Das
Give an assistant helping her international affair.
Ravi Desai
Give more compensation package including young children education surport.
Jalan Bukit Seng
Give Hindi education and local assistant.
SaumitraChakraborty
Give more opportunity to line and international experience
4.Should all candidates receive the same compensation package? If not, what factors should influence each package?
Wallace |
Harrison |
Das |
Desai |
Seng |
Chakraborty |
|
Direct Compensation Costs |
||||||
Base Salary |
○ |
○ |
○ |
○ |
○ |
○ |
Foreign-Service |
○ |
○ |
○ |
○ |
○ |
N/A |
Goods & Service differential |
○ |
○ |
○ |
○ |
○ |
N/A |
Housing |
○ |
○ |
○ |
○ |
○ |
N/A |
Tax Differentials |
○ |
○ |
○ |
N/A |
○ |
N/A |
Company Paid Costs |
||||||
Education |
High |
High |
N/A |
High |
N/A |
N/A |
Indian income taxes |
○ |
○ |
○ |
○ |
○ |
○ |
Transfer moving costs |
High |
High |
Medium |
Medium |
Low |
N/A |
Miscellaneous costs |
High |
High |
Medium |
Medium |
Low |
N/A |
Working Spouse allowance |
None |
High |
N/A |
None |
N/A |
N/A |
Annual home leave |
High |
High |
Medium |
Medium |
Medium |
Low |
Additional health insurance, Pension supplements, evacuation coverage |
High |
High |
Low |
High |
Low |
Low |
Table 1. Required compansation package of candidates
The compensation package will not be same because each candidate are in different situation. Wallace and Harrison would be received more compensation as they need to move to India with their family. In addition, translation service cost, children education cost and more transfer moving cost and miscellaneous cost compared to single candidates should be included.
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It is expected that Wallace would gladly agree of the promotion, as his current position is supposed to be eliminated in six months. This opportunity is the best way he maintains his career until his retirement, so his foreign service cost will be smaller than others. In Harrison case, however, it is more complicated as his wife has her own career. If she wants to keep her career, she will refuse to relocate and it also affects Harrison’s decision. The more compensation should be included to make his wife agree to relocate.
Although Das has Indian background, she was born in and has lived in the United States. It is required to provide transfer moving cost. However the amount is lower than candidates with family. Desai and Seng also need moving cost, but the geographic distance is shorter than other candidates come from the United States. Chakraborty does not need to relocate and he is a single. Therefore his company paid costs would be the least among the candidates.
5. What recommendations can you offer to help a company facing this sort of decision that will enable to balance professional and personal characters?
Given this situation, choosing an expatriate is not simple problem. Basically expatriates are concerning about unaccustomed foreign life and their uncertain future after repatriation, such as disadvantage on their promotion and losing competency. However, in this case the candidates are expected to promote to the higher level of position. Therefore their major concern will not be their future status in the company.
Rank applicants according to the criteria that the company requires from candidates. Those candidates have significant strengths and weakness. Therefore, it is important to establish the criteria more specifically. For the managing director position, experience in the company, technical competence including managerial skills, language ability and areas of expertise should be considered. Also it is important to check candidate’s adaptiveness because working in different environment is totally different matter. Then consider his/her compensation package, efficiency compared to costs, and the capability that the company could afford to the managers, such as orientation programs, and training opportunities to enhance their ability.
6. Returning to material covered in Chapter 15, specifically that dealing with the idea of a matrix organization, do you see any benefit to appointing two of the individuals described here to the post? Operationally, one individual would be in charge of internal affairs, and the other would manage external affairs. What might be the likely benefits and problems with this arrangement?
Some MNEs pursue strategies that try simultaneously to deal with competing pressures for global integration and local responsiveness. As the candidates have significant pros and cons and those are supplemented, applying matrix structure could be a good solution.
The key is the role of Chakraborty. He is only candidate fully understanding peculiar Indian environment. He is also able to speak three languages including Hindi and the local language of Bengaluru. Although Das is also a strong candidate from this point, established human relation and good performance is his privilege asset.
However, he lacks of direct-line experience as he has kept the assistant position since he joined the company. Although he is almost well-known person, he does not have international working experience. Therefore he could be not suitable for one goal of the company, global integration.
The other candidates worked abroad lack of Indian local environment. Even though Harrison is well acquainted with customs and many expatriates, doing business directly is totally different. So appointing two individuals to manage internal affairs and external affairs separately is enhancing each individual’s strengths and supplement of those weaknesses.
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