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IMHR DILEMMA: WHOM DO YOU SATISFY? EXPATRIATE ORNATIONALS
Hi-Tech Electronics Limited was established in 2006 inKuala Lumpur, Malaysia. It produces and markets all types ofelectronics goods in most of the Asian and Pacific countries. Ithas been one among the top five companies as for the level oftechnology and one among the top three companies regardingmarketing of the products in Malaysia. The company’s policy andpractices concerning human resource management are top in thecountry. The company’s salary administration policies and practiceswere taken as guidelines not only by the other companies but alsoby various wage boards and pay commissions in the country. But thiscompany has been struggling a lot because of a minor problemrelating to administration of salary and benefits. The problem isstated hereunder.
The company employed nearly 400 national younggraduate and post graduate engineers and 20 expatriate engineers.This employee forms the cream of the company’s present humanresource. The expatriate employees occupied higher position in allthe departments including Human Resource Department. The company’ssalary policy and benefit policy were formulated mainly on thebasis of the expatriate employee’s desire. The base salary of thecompany is the same for both the expatriate and national employees.But expatriate receive additional allowances like internationalmarket allowance, educational allowance, settling-in allowance, carallowance, housing allowance and entertainment allowance. Thus,expatriate receives nearly 250% more salary than the nationalsdoing the same job.
The national employees demanded the management to payequally with that of expatriates immediately. According to them,the pocket frustrates them severely.
QUESTIONS:
1. Identify the crucial issue in this case.
2. From your opinion what are the 3 factors thatenables expatriate receives more salary than the nationals who aredoing the same job? Explain and justify your statements.
