ASSIGNMENT

IMHR DILEMMA: WHOM DO YOU SATISFY? EXPATRIATE OR NATIONALS

Hi-Tech Electronics Limited was established in 2006 in KualaLumpur, Malaysia. It produces and markets all types of electronicsgoods in most of the Asian and Pacific countries. It has been oneamong the top five companies as for the level of technology and oneamong the top three companies regarding marketing of the productsin Malaysia. The company’s policy and practices concerning humanresource management are top in the country. The company’s salaryadministration policies and practices were taken as guidelines notonly by the other companies but also by various wage boards and paycommissions in the country. But this company has been struggling alot because of a minor problem relating to administration of salaryand benefits. The problem is stated hereunder.

The company employed nearly 400 national young graduate and postgraduate engineers and 20 expatriate engineers. This employee formsthe cream of the company’s present human resource. The expatriateemployees occupied higher position in all the departments includingHuman Resource Department. The company’s salary policy and benefitpolicy were formulated mainly on the basis of the expatriateemployee’s desire. The base salary of the company is the same forboth the expatriate and national employees. But expatriate receiveadditional allowances like international market allowance,educational allowance, settling-in allowance, car allowance,housing allowance and entertainment allowance. Thus, expatriatereceives nearly 250% more salary than the nationals doing the samejob.

The national employees demanded the management to pay equallywith that of expatriates immediately. According to them, the pocketfrustrates them severely.

QUESTIONS:

3. What are the 4 factors affecting standardization ofcompensation packages for expatriate and nationals’ employees?provide mind map for more proper illustration.

4. Identify 4 challenges the company will face if they did notfulfil the national’s employees demand.