Employment of Expatriates - Essay Example

Running head: EMPLOYMENT OF EXPATRIATES Employment of Expatriates Companies are advised to keep expatriate managers off thetop positions since it is beneficial in many ways. First, it promotes host-country’s personnel into key positions and boosts the morale of the employees and upholds a sense of equal opportunities. Local managers have a wide range of information when it comes to making crucial decisions concerning the business (Wild, Wild and Han, 475). Bringing expatriate managers costs a company an immense amount of money.

From this case compensation for an expatriate can cost between $200,000 and $300,000 per year, the total package includes both cost-of-living and hardship allowances of 15% to 20 % each. By comparison, total compensation for a top-notch Chinese manager would be only about $50,000 per year as stipulated in the case study. The decision to "localize" management in the case study seems inappropriate since they need some professional advice from an individual who is experienced in the specific field.

Businesses in China do not properly document their operations and they need to understand its importance. There is a risk involved since it is not right to give up financial control (Wild, Wild and Han, 473). Another issue emerges where many expatriate managers are tested according to the operating results and their efforts to better the skills and competence of local managers through training. “Localizing” is inappropriate and the use of expatriate managers in this case will help to improve the overall performance.

The action of Ricoh Corp does not reflect sound recruitment and personnel policies since he fired Mr. Mackentire to replace him with an expatriate. This explains why the move was controversial. Though the decision was right based on the argument of business necessity, it is appropriate to conclude that he was fired simply because he is not an expatriate (Kaplan and Saccuzo, 577). Training and development programs are the only ways to solve the problem of whether or not to localize management (Wild, Wild and Han, 470).

Localization helps to train the local managers on current trends in the business world. The knowledge acquired can be shared with all managers helping them to improve on their management skills. Development programs can be used to improve the skills of managers enabling them to keep up with the international patterns in the business world. The business in China can be described as dangerous and managers are given specialized training on risk management. The development programs ensure that management skills are continuously inculcated in the current and future managers.

The “business necessity” is used to appeal against the case ruling (Kaplan and Saccuzo, 577). The move taken by the manager was for business purposes. Mr. Mackentire claimed that he was fired for discriminatory reasons. His former employer Mr. Ricoh stated that he was fired for business purposes therefore losing the case. The decision to lay off Mr. Mackentire was for the company’s benefit. In this case there was substantial evidence that he was fired for business reasons. The evidence provided was that the company was losing files and there was poor filing system under Mr.

Mackentire’s responsibility. References Kaplan, M. R. & Saccuzo, P. D. (2008). Psychological testing: Principles applications and issues. 577- 580. Wild, J., John, Wild, L. K. & Han, C. J. (2003). International business. 470- 480. .