INTERNATIONAL REMUNERATION (GR7)- MODULES 1 AND 2 NEW SOLUTION GUIDE
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Module
International Compensation, Benefits
Institution
International Compensation, Benefits
INTERNATIONAL REMUNERATION (GR7)- MODULES 1 AND 2 NEW SOLUTION GUIDE
Globalization
expansion of trade and economic development that results from the movement of products, services, technology, capital and human resources throughout the world
Business Operations - Export Company
first overseas...
INTERNATIONAL REMUNERATION (GR7)-
MODULES 1 AND 2 NEW SOLUTION GUIDE
Globalization
expansion of trade and economic development that results from the movement of
products, services, technology, capital and human resources throughout the world
Business Operations - Export Company
first overseas operation(s) in place
Business Operations - International Division
company that focuses mainly on the home market with some international business
activity managed tightly by the headquarters country
Business Operations - Multinational Company
company that conducts business in multiple countries, with each operation typically
managed by local employees following a centrally coordinated strategy
Business Operations - Global Company
an organization with worldwide operations, whose strategies, resources and technology
are utilized globally, regardless of national or geographic boundaries
Reason to Globalize - Competitive survival
perhaps the major reason to globalize. Reduced costs or increased profits are often
drivers
Reason to Globalize - Cost spreading
usually is realized through mergers, alliances, and joint ventures in an effort to spread
or share costs for various capital-intensive investments, such as research or large-scale
product launches.
Reason to Globalize - Trailblazing
is a matter of vision. Today, many companies are attempting to expand into the
potentially huge markets of China and India, as well as emerging locations, such as
Vietnam and Russia
Reason to Globalize - Rule of Three
"three companies will always garner the lion's share of the market while those that
arrive late receive only crumbs" To recover high start-up costs, top companies
understand the importance of establishing a major presence in emerging markets.
Reason to Globalize - Domino Effect
is realizing that success is a new territory makes it easier to enter another. This is
especially true when intercountry cultures and customs are similar
Reason to Globalize - Effective Technology
easily accessible to most companies and it levels the global playing field. Organizations
can conduct their business through phone, fax, internet, email and videoconferencing.
Reason to Globalize - Search for innovation
involves companies seeking to cross global boarders in pursuit of innovation. Putting
organizations in touch with worldwide trends may lead to new products or services.
Reason to Globalize - Benchmarking against other companies
teaching companies how others break through global boundaries. yielding richer data
when the company doing it already has global operations
Reason to Globalize - Customer base and partnerships
, speeds up deliveries to customers, improves ties with strategic partners abroad,
supports local customers' international operations and meets cultural needs of
customers
Reason to Globalize - Business expansion
avoids protectionism, finds lower taxes and government incentives, accesses global
technical and management talent, avoids local regulatory constraints and accesses
lower production and service costs.
The global business environment - Economic Indicators
Employment/unemployment rates, income levels, Exchange rates, inflation rates, Gross
domestic product
Employment/unemployment rates, income levels
unemployment rates and workforce demographics will differ; income and salary levels
will reflect the local competitive market.
Exchange rates, inflation rates
currency exchange rates change daily and can affect both compensation and benefits.
Gross domestic product (GDP)
output of goods and services produced annually in a given country and the
corresponding growth rate provide a picture of the local business environment.
Other indicators of business conditions include
Communications, Political Stability, Legal/regulatory, Culture
Communications
International telecommunication, including web connections or cell phones may not
even be available in emerging markets. Prior assessment may highlight technological
needs before expanding into a region.
Political stability
political control will be unique and evolving in every country
Legal/regulatory
statutory requirements effect business strategy, rewards strategy and, ultimately, the
delivery of compensation and benefits in each country of operation
Culture
perhaps the most complicated aspect of global business environment. Some of the
considerations related to culture include language differences, religious influences and
appropriate or accepted norms for business etiquette
Total Rewards
monetary and non monetary returns provided to employees in exchange for their time,
talents, efforts and results
Total Rewards Strategy
art of combing the six key elements into tailored packages designed to achieve optimal
engagement (Compensation, Benefits, Work-life effectiveness, Recognition,
Performance Management, Talent Development)
Traditional Approach
impose the home country system on overseas operations - exploit the resources or
market opportunities available in the new territories
Local Approach
create separate multiple systems with local management for overseas operations
Contemporary Approach
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