Challenges in International Benefits and Compensation...

The African Economic and Business Review, Vol. 3, No. 1, Spring 2002 1 Challenges in International Benefits and Compensation Systems of Multinational Corporation Semere Haile Grambling State University Abstract The aim of this paper is to examine developments on the type and amount of compensation necessary to attract technically and culturally qualified international managers and technical professionals to the three nationals or country categories involved international human resource management activities from which employees are selected whether the people are PNCs, TCNs or HCNs. This paper will draw on research, which has been completed over the last ten years with the growth of international business and workforce.†¦show more content†¦MNCs are staffed either by recruiting expatriates from the regular organizations or by creating an international cadre of managers, professionals, and workers of very diverse cultural backgrounds (Edstrom amp; Galbraith, 1994; Business Week, 1990). In the long run, these MNCs will have their own cadres of â€Å"globalists† in perspective and their own sophisticated international managers drawn from three national or country categories. In fact, MNCs like Gillette, Nestle, Sumitomo Bank and Sony are already doing their own international cadre of managers now (Cascio, 1998). Recruiting people directly to an international career will assure a supply of employees who expect and want to go overseas. MNCs’ businesses have expanded internationally to increase their markets. They recognized that their domestic markets were too small to sustain much growth and therefore moved into international activities. MNCs are computing in international markets and they generally employ individuals working as expatriates. For example, American MNCs are employing about seven million The African Economic and Business Review, Vol. 3, No. 1, Spring 2002Show MoreRelatedEffectively Managing Employee Compensation and Benefit Packages1289 Words   |  6 Pages There are many significant challenges that face multinational organizations in today’s business world. One such challenge, for global organizations and the human resource department, is effectively managing employee compensation and benefits packages. Managing compensation structures has become an integral part of many organizations that conduct operations in the global market, as there are many considerations for the host country when sending expatriates abroad. 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