Assignment Task
Task
Discuss
For a global organisation, can you identify any issues that might need to be taken into account as one goes from, say, Australia to China and to Europe? What steps would you need to build into a HR plan.
Develop a training schedule
Background
In the section of this week’s work on staffing, you looked at a number of brief CVs of candidates to fill the Indian country manager role for Delta Beverages. Assume the country manager in China were offered a different role and consequent to that move, Haziq Tengku (currently country manager for Malaysia) had been selected to take over as country manager in China.Review Haziq Tengku’s profiles in the case study material: Caligiuri, P. W., & Lane, H. (2016) Selecting a country manager for Delta Beverages India (Links to an external site.) in Readings and cases in international human resource management' 6th edn. (pp.243–248). Taylor and Francis.
You are the HR manager in Shanghai.
- Your task is to develop a training schedule for him, and if you think appropriate, his wife and/or family, while he is in your region. Take into particular account the material on expatriate training considerations from p.256 in Vance and Paik (2015). Use the following information about Haziq when developing the training schedule:
- Haziq has been promoted to country manager in China for Delta Beverages.
- This is seen as part of his career development, with more senior roles likely in the future.
- Delta is headquartered in the Boston area of the US.
- The China office is in Shanghai, where Haziq and his family will live, but the country manager needs to travel extensively throughout China.
- Haziq is excited about the promotion and has already started to study Mandarin via a PKU MOOC. He will visit Boston and Shanghai over the coming weeks for a full briefing and familiarisation before taking up his assignment.
Background
- Marie slammed the door as she entered the apartment, she shared with her husband Don in Hanoi. "I've just about had it with those idiots in Melbourne," she shouted. Don quickly put on the kettle to make her a mug of her favourite tea. “What is it this time?” he asked quietly.
- "The whole structure of my old division at home has changed", Marie snapped. "Roles have been re-classified up, salaries increased and people who used to work for me are now a couple of levels above me in the organisation. And nobody even thought to tell me about it. "I had to find out via a chat with a friend in another division."
- Don poured her a cup of tea. This was going to be a long night he thought. "Tell me more," he said.
- "The changed structure comes with a changed approach to work, and fewer levels. There is a new manager, and even my current reporting line will change. Everyone is attending training programs to get them up to speed. But I have been forgotten in the changes. I don't know what this means for me when we return to Melbourne at the end of the year." Marie struggled to contain her disappointment and anger.
- Don sighed. "It's been a couple of years since we went home for leave," he said. "Maybe we should have gone home instead of to Europe for our holidays. Isn't the HR manager due to visit next week? Let's go out for dinner and work out how we can use the visit to try to deal with the problem," he said.
Discuss
- Why does Marie have these problems?
- A possible solution would be a mentor program. What does a mentor do?
- Would mentoring be sufficient? Which issues (Q1) are helped by mentoring?
- Expat salary exercise
Overview
You are the HR manager for an organisation based in Melbourne that is about to send its first expatriate overseas to Singapore. Based on an analysis of relative costs, you have decided to send the expatriate, John, who will be accompanied by his wife, Margaret, with remuneration provided using the balance sheet method, with tax protection. The couple have no children. They are purchasing a house in Australia with current repayments at $24,000 per year. The couple are keen to make the move, which will be for four years. They see it as a development posting setting John up for future senior management positions.John and Margaret have asked for an explanation of what this means in dollar terms. John is currently employed as a senior manager in your organisation at a salary of AU$150,000 per year. Superannuation is additional to this figure. Over the past two years John’s average bonus hasbeen $45,000 – you will use the same system for John in Singapore.In Australia, John also receives a taxable car allowance of $25,000 per year. This provides him with the opportunity to purchase a car for personal use, but it must also be used when a car is required for business purposes. If he chooses to not purchase a car, then the company does not reimburse local travel expenses. Having heard about traffic issues in Singapore, John and Margaret will use taxis and public transport rather than buy a car.Margaret works as a hospital administrator on a salary of $145,000 per year.
Problem for discussion
Work through the chart/spreadsheet (link below) to develop a balance sheet for John and Margaret and detailing the package the company will provide in Singapore. This should include salary, any allowances, information on whether a car/transport allowance will be provided, and the level of payments in Singapore dollars and Australian dollars as appropriate. Post the level of allowance calculated in the spreadsheet before grossing up for tax. Please note that if you hit ‘enter’ after each cell entry you will receive feedback on the entry and the correct figure to enter. So, ultimately you will get to the correct allowance figure – you need to do this before answering the next two questions.After you have completed the calculation, please discuss the types of (critical) questions that John and Margaret are likely to ask and how you would answer them.
Data
- Food utilities and other expenses in Singapore are 20% less than in Australia.
- Rental of a suitable apartment in Singapore will cost about S$7,000 per month.
- Singapore's tax rate maximum is 15%. For this exercise, you can assume an average tax rate in Singapore of 12% (approximately right for a salary of AU$220,000).
- For this activity, the Australian tax is $72,000.
- Let’s assume that savings in Australia are on average about 6% of after-tax income.
- At the time you were doing the calculation, the Australian dollar/Singapore dollar exchange rate was A$1 = S$1.04.
- Before starting, you might like to review this article on the cost of living (Links to an external site.) over at Human Resources Director Australia.
- Your task is to show John and Margaret how their remuneration package will be calculated. The spreadsheet below is provided to assist you with this.
- You will need to have the case and data handy to fill in the spreadsheet. Note that the balance sheet approach (home-based approach) applies only to the employee. You need to deal separately with spousal income. There is some basic arithmetic involved in this exercise; it’s important that you try to get the numbers correct because it is only by working through the process that you will really understand the balance sheet approach.
- Click to access the interactive chart. (Links to an external site.)In the activity, you will see a fillable spreadsheet on the left and a chart on the right. Fill in the blank cells in the spreadsheet. As you fill in the cells, you will build the chart, which will enable you to make decisions about the appropriate expatriate package and explain your decisions to John and Margaret. Please note that values in the cells are in thousands.
- Begin by calculating the Australia Package. In the first three lines, you will see the components of the salary package. To design the balance sheet, these need to be split into spendable income, housing payments, taxation and savings. Your first task is to break the income payments ($220,000) into these categories. Start by calculating the tax paid on the income and enter it into the spreadsheet. Then, fill in the remaining cells in the column.
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