Chicago Food and Beverage Company

Question One

The staffing framework that has been established in the case study is the ethnocentric staffing framework that has been used in framing the culture as well as beliefs of the parent company. Moreover, the top level executives at the parent company are dominated by Americans, with the best example being that of Paul Fierman who was appointed as the director of CFO Vietnam to replace Mike Shannon who was also a US expatriate (Bodolica & Waxi, 2007). The common attributes of the ethnocentric framing strategy include the fact that all the top managers are hired from one nation as the parent company, and it prefers the parent company’s culture more than the foreign, leading to them transferring it to the management of the subsidiaries (Johnston, 2017). The advantages associated with the framework include the fact that it preserves the corporate culture of the parent company and that it offers an opportunity for employees to work abroad giving them exposure to increase their creativity and critical thinking.

Question Two

The staffing framework will affect Paul’s ability to get things because its core basis is in ensuring that people from the host company to adapt to its culture as they transfer it to the host nation. The implication of this attribute is the fact that it denies creativity from the people of the host nation since they are mainly offered low-level positions that inhibit their productivity thus demoralizing them. It would be imperative that Paul trains employees from the host nation the new ways of conducting business which will likely be met with resistance, adversely impacting the overall productivity.

Question Three

The alternative staffing framework that could have been adopted in Paul’s case is the short term staffing framework because Paul was not experienced in international management issues. The assertion is supported by the fact that by placing him in the position for the preceding three years would be unfavorable (Johnston, 2017). Paul’s core focus was in gaining experience in the international market and not on his performance. It is evident Paul was discouraged just after six months, indicating that he should not have been placed in the long term staffing framework. Placing Paul in the position for one year would have been suitable.

My recommendation would be for the headquarters to ensure that whoever is given the international positions has the capacity and experience to meet the issues that are addressed in international relations. They should ensure that they have a checklist to assess the qualifications and experience of their candidates for international positions. Further, using short term staffing framework would be valuable as it would allow these candidates to gain the experience needed in the international arena.

Question Four

The core reason that Paul wanted the expatriate position was so that he could get the needed experience in the business world. It is the core reason that he became disillusioned and demotivated after just six months considering that he was awarded a long term position of three years, which was against his wish(Bodolica & Waxi, 2007).

Overall, Paul is not a good candidate for the position, with the assessment of his qualifications as well as that of the predecessors making it evident that he is under qualified. He does not have the capacity to meet the inter-organizational restructuring, linguistic as well as adaptation to the new cultural setting.

Question Five

Expatriate employees are commissioned by the Mother Company or employer to go and work in a foreign country in the host company. These corporations send most of these expatriates as the way of ensuring continuity of operations and culture of the mother company as these expatriates are mostly from the mother company (Bodolica & Waxi, 2007). Some of the issues addressed in the selection of the expatriate employee should include their management ability, ease of adapting to the foreign cultures, the ability to work under pressure, their linguistic skills as well as family circumstances.

Question Six

It is evident that expatriate is compensated differently depending on their stations. For instance, Paul receives a lower compensation from his counterpart in the same position working in Hong Kong and Paul in Vietnam. The compensation is based on the fact that Hong Kong is more expensive than Vietnam (Bodolica & Waxi, 2007). The main advantage of the compensation is the fact that the expatriates in more expensive places benefit from the more benefits and higher compensation from their counterparts in the less developed countries. The disadvantage, however, is that the manager in the less developed regions will feel disadvantaged considering they have same duties but are compensated less than their counterpart.

Question Seven

In designing their expatriate compensation packages, it is imperative they ensure they have put in place similar benefits and compensations to ensure all parties feel contented. The core element that ought to be addressed in the compensation is on the responsibilities of these individuals, and since they are the same, the compensation and general benefits should be the same.

References

Bodolica, V., & Waxi, M. (2007). Chicago food and Beverage Company: The challenges of managing international assignments. Journal of the International Academy for Case Studies, 13(3), 31-42.

Johnston, K. (2017). When Is It Appropriate to Use Ethnocentric Staffing?

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