Team 4

Problem Statement Cultural Dimension Categories their employees Staff Approach Compensation of global staffs Problem Solution Resources

Problem Analysis
Fysikos Private Limited acquired a Taiwanese counterpart in 2010 in its first attempt to venture overseas Some staff were sent to Taipei where by they adopted Singapore HR style of management

new style of management and people practices caused poor morale

local staff find that it is not worth leaving their families to work for the same pay in Taipei Advise to improve the situation

asked to return but worried to re integration

Taipei office
Management objective not cleared They seem very myopic too Conflict ,not understanding each other ,miscommunication

Singapore office
Elfian , dont want go ,kid entering P1,wife expecting second child and paying house loan Move to also cant ,wife dont speak Chinese and no advise . Esatella want come back ,cant handle local staff well Cant come back as the position is already filled

Taiwanese have a lower PDI Taiwanese are more uncertain Taiwan is emphasis more Long term Orientated

Nationals

Advantage

Disadvantage

Parent Country

Best people for the job because of special skills and experience Subsidiary will comply with company objectives Organization control
No work permits required. Hiring cost are reduced No problems with language and culture Salary and benefit requirement may be lower than PCNS Better informed than PCNs about the host country

-PCNs may impose an inappropriate HQ style - Compensation is different with HCNs -Adaptation to host country may take a long time.
-limited career opportunity outside the subsidiary - HQ may have less control over operations. - Transfers must consider possible national - may not want to return to their own

Host- Country

Third Country

Ethnocentric policy

All management positions are filled with employees from the parent company

Polycentric policy

Host country nationals are recruited to manage subsidiaries while management at headquarters is staff by parent-company nationals

Geocentric policy

Seeks the best people for the job regardless of where they come from

Regio centric policy

Variation of staffing policy to suit particular geographic areas

Housing

and Utilities Allowance -The maximum housing allowance at each duty station is based on local conditions, practices, standards, costs and availability.

Insurance

-Medical benefits and medical evacuation for the staff member, spouse and dependents; life insurance; accidental death and dismemberment; long-term disability; and travel accident insurance.
Travel

Allowance - By Giving them an extra allowance to travel oversea. Allowance - By providing them allowance for their children

Education

1 Use Geo centric 2 Hofstedes Cultural Dimensions of Taiwan and Singapore

Singapore high PDI Taiwan high in LTO,UAI

3 More compensation to the employee 4 consider the criteria, Choose the right person for the right time at the right time at the right place

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